A First Course in Quality Engineering, 2nd Edition

Introduction to Quality 21

c� Retest

If a reworked product has to be retested, the cost of retesting and re- inspection

should be added to the internal failure cost�

d� Penalty for not meeting schedules

When schedules cannot be met because part of the production is rejected due

to poor quality, any penalty arising from such a failure to meet schedules

is an internal failure cost� Often, overproduction is scheduled to cover pos-

sible rejections� The cost of any overproduction that cannot be sold should be

included in the internal failure category�

1.7.1.4  External Failure Cost

External failure cost is the cost arising from defective products reaching the

customer� Making a bad product results in waste, and if it is allowed to reach

the customer ...