Traditional Cost of Quality

Quality costs programs started in the early 1950's. At that time only visible categories were included as shown below:

• Rejects
• Inspection Costs
• Reworks
• Customer Returns
• Quality Control Department Expenses

The hidden part of the iceberg came into the picture as broader definition of cost of quality was seen by companies:

• Rejects
• Inspection Costs
• Reworks
• Customer Returns
• Quality Control Department Expenses
• Complaint Handling
• Customer Allowances, provision
• Excessive Inventory
• Excessive Field Service Expenses
• Excessive overtime