Standard Category for Hidden Quality Cost and Corresponding Measurement System?

by ZHOU FULI
(CHONGQING, CN)

Hidden quality cost has been researched by many researchers in recent years. There is little standard classification for invisible quality loss cost due to customer complaint, defectives and defective service.

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Jun 02, 2017
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starstarstarstarstar 		External Quality Costs
by: Robert

These "hidden" cost are classified as External Quality Costs. The measurement system for these costs is based on your company so it is difficult to establish a standard.
I recommend your company defines these and tracks these. For example you can set a ratio, defective unit is 5 X the defective costs, Poor service is 10 X the defective costs, etc.

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