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Quality Costs – Types of Cost

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Click on the links below to find out about the different quality costs.

Gold in the mine

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Juran’s analogy of gold in the mine referred to the present costs that would disappear if all defects were eliminated.

Hidden plant

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Feigenbaum referred to the 'hidden plant' explaining that the costs of failure to achieve quality 'right first time' amounted to the costs of running an extra facility within the real one.

Picture courtesy of General systems Company of Pitsfield, Massachusetts.

Prevention, appraisal and failure

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At the start of the 1960’s quality costs were categorised into three elements:

  • Prevention
  • Appraisal
  • Failure costs

The above three costs will be explained in more detail over the following pages.