What kind of quality cost is incurred when an error is detected in a product prior to shipment?*preventionexternal failureinternal failureappraisal

Understanding Quality Costs

When an error is detected in a product prior to shipment, it typically falls under the category of internal failure costs. These costs are incurred because they represent the expenses related to defects found before the product reaches the customer. In simpler terms, since the error is identified before the product is shipped, it doesn't impact the customer directly, but it does incur costs within the production process.

Types of Quality Costs:

1. Prevention Costs: These are costs associated with measures taken to prevent defects, such as training and process control. They are not applicable in this scenario since the error has already occurred.

2. Appraisal Costs: These costs relate to the evaluation of products for conformance to quality standards, including inspection and testing. While relevant here, the main cost incurred from detecting the error prior to shipment is internal failure.

3. Internal Failure Costs: This includes costs arising from defects identified before the product is shipped, such as rework, scrap, or downtime. This is the correct classification for the scenario presented.

4. External Failure Costs: Costs incurred when defects are found after the product has been shipped, such as warranty claims or returns. This is not applicable since the error was detected before shipment.

Conclusion

In conclusion, the quality cost incurred when an error is detected in a product prior to shipment is classified as internal failure costs.