Hidden quality costs and the distinction between quality cost and quality loss

Abstract

Thus far, it has been usual to distinguish quality costs as prevention, appraisal and failure costs. In this paper, we propose that prevention, appraisal and failure are not the only quality costs. There are other hidden costs that are identified in this paper. The importance of the hidden costs that are the manufacturing loss and the design loss is stretched, as they are large and they cannot be overlooked. Also, prevention, appraisal and failure are classified as quality costs and quality losses. So, we introduce the categories of prevention loss and appraisal loss. Finally, a case study is presented, in order to support the validity of the proposal.