Prevention cost:

These are associated with the design, implementation and maintenance of the total Safety, Health, Environmental and Quality Management System. prevention cost are planned and are incurred before autual operation. This includes:

1. Product or service requirements

2. Safety, Health, Environmental and Quality planning

3. Safety, Health, Environmental and Quality assurance

4. Inspection on equipment

5. Training

6. Miscellaneous

7. Risk assessments

8. Environmental aspect and inpact investigations

Appraisal cost:

These cost are associated with the supplier's and customer's evaluation of purchased material, processes, intermediates, products and services to assure conformance with the specified requirements.

1. Verification of materials

2. Safety, Health, Environmental and Quality audits

3. Inspection equipment, calibration of test equipment

4. Vedor rating, assessments on suppliers

Internal failure cost:

These costs occur when the results of work fail to reach designed safety, Health, Environmental and Quality standards and detected before transfer to the customer takes place.

1. Waste

2. Scrap

3. Rework or rectification

4. Re-inspection

5. Downgrading

6. Failure analysis

External failure cost:

These cost occur when products or services fail to reach design safety, Health, Envorinmental and Quality standardsbut are not detected until after transfer to the customer to place.

1. Repair and servicing

2. Warranty claims

3. Complaints

4. Returns

5. Liability

6. Incidents and accedents

7. Loss of goodwill