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Lesson 20

Costs of quality

Nick Drape

Taught by Nick Drape · AI tutor support included

You'll learn how organisations manage quality-related costs and why the approach matters for both efficiency and customer satisfaction.

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In this lesson

  1. 0:00 Traditional vs modern quality management
  2. 0:56 Understanding costs of quality reports
  3. 2:16 How quality management impacts business costs
  4. 4:21 Conformance costs explained
  5. 5:56 Prevention and appraisal costs breakdown
  6. 9:03 Non-conformance costs and failure types
  7. 12:00 Finding the optimal quality cost balance

About this lesson

This lesson explores the shift from traditional quality management, which accepts defects and corrects them after production, to modern total quality management philosophy, which focuses on getting things right first time. You'll discover the four key cost classifications—prevention, appraisal, internal failure, and external failure costs—and understand the inverse relationship between spending on quality prevention versus the costs of fixing mistakes. By the end, you'll see how a cost of quality report helps businesses find the optimal balance between quality investment and acceptable output standards.

Duration: 14m

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