Defect or quality losses:
The produced output either dose or dose not confirm to quality specifications. If it dose not comply, this is consider a quality loss.
1.
Rework and quality defects; these losses are due to the defective products during the routine production. These products are not according to the specifications. So that rework is done to remove the defects or make a scrap of these products. Labor is required to make a rework which is the cost for the company and material become a scrap is also another loss for the company. The amount of these losses is calculated by the ratio of the quality products to the total production.