INTERNAL FAILURE COST
Cost incurred when products and services do not conform to specifications.
EXTERNAL FAILURE COST
The costs arising after delivery of product or service to the customer due to non-conformities or defects.
INTERNAL FAILURE COST
- Rejection cost
- Rework/Repair cost
- Loss due to down grading
- Re-testing costs,etc.
EXTERNAL FAILURE COST
- Warrantee Expenses
- Claims
- Returns/Replacements
- Complaints handling,etc.