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-In the figure above, moving from production at point d to production at point a requires
Internal Failure Cost
Expenses incurred when a product fails to reach quality standards before it is delivered to the customer, including scrap and rework costs.
Quality Cost Report
A financial report detailing the costs associated with ensuring products meet quality standards, including prevention, appraisal, and failure costs.
Rework Labor
The effort and cost associated with correcting defective goods or services after they have been produced.
External Failure Cost
Costs incurred when a product or service fails to meet quality standards after being delivered to the customer, including returns, repairs, and warranty claims.
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