Cost of nonconformance

What is the Cost of Nonconformance?

The cost of nonconformance is comprised of those costs incurred as the result of a failure to meet the quality standards for a product. These costs are triggered when problems in the production process cause imperfections that render products unusable. The costs can include rework, scrap, field service costs, warranty replacements, and the cost of lost customers.

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Quality Management Fundamentals