Quality deficiency cost

Additional costs resulting from nonconforming products, services, processes or equipment. Note 1 to entry: Quality deficiency cost can be distinguished by causes (e.g. failures in tender-, design and development-, production-, purchasing-project management processes) and by phase of occurrence (e.g. tender, design, production (3.1.2.16), post-delivery). Note 2 to entry: Quality deficiency cost can include: — additional labour, material or other direct costs in the context of failures or changes due to incorrect design and the resulting actions taken (e.g. rework, redesign, repair, repurchase, special shipments); — costs due to downtimes; — costs of scrap; — costs of products rendered unusable or oversupply of storage; — costs due to accepted third-party claims and costs due to claims not asserted by the organization against third parties; — costs due to penalties for default or delays. EXAMPLE:Some examples of quality deficiency cost include nonconformity cost, cost of non-quality, cost of poor quality, lost cost, compensation cost.