(2) The planned systematic activities necessary to ensure that a component, module, or system conforms to established technical requirements. (3) The policy and procedures, established in an organization which is meant for the purpose of providing and maintaining a specified degree of confidence in data integrity and accuracy throughout the life cycle of the data.
If the process is not established and the standard procedures are not adhered to, then it will result in poor quality. As a consequence the deadlines will not be met within the required time frame and subsequently deliverables to the customer will be delayed. Thus productivity is affected.
The cost of a product includes the manufacturing cost and cost of quality. The cost of quality is the money spent what it would cost to build a product right the first time. If every worker could produce the defect-free products the first time, COQ would be zero. Since this situation would not occur, there are associated with getting defect free product is produced.
Prevention: Monoey required to prevent errors and to do the right first time is considered prevention costs. This category includes money spent on establishing methods and procedures, training procedures, training workers and planning for quality. ...