AS 2561-1982

1 - AS 2561-1982 GUIDE TO THE DETERMINATION AND USE OF QUALITY COSTS
4 - Preface
4 - Contents
5 - Foreword
6 - 1 Scope
6 - 2 Application
6 - 3 Referenced documents
6 - 4 Definitions
6 - 4.1 Process operating costs
6 - 4.2 Quality cost
6 - 4.2.1 Prevention costs
6 - 4.2.2 Appraisal costs
6 - 4.2.3 Failure costs.
6 - 5 Cost Identification
6 - 5.1 Introduction.
7 - 5.2 Prevention Costs.
7 - 5.3 Appraisal Costs.
8 - 5.4 Failure Costs.
8 - 5.4.1 Internal failure costs.
8 - 5.5 Quality Management Costs.
8 - 6 Collection of Quality Cost Data
8 - 6.1 Introduction.
8 - 6.2 Collection Methods.
8 - 6.3 Quality Cost Data Sources.
8 - 6.3.1 General.
10 - 6.3.2 Sources of prevention cost data.
10 - 6.3.3 Sources of appraisal cost data.
10 - 6.3.4 Sources of failure cost data.
10 - 7 Recording of Quality Cost Data
10 - 8 Analysis of Quality Cost Data
10 - 8.1 Introduction.
10 - 8.2 Quality Cost Indices.
13 - 8.3 Determination of the Distribution of Quality Costs.
13 - 8.3.1 General.
13 - 8.3.2 Analysis of the current situation.
13 - 8.3.3 Quality costs as a function of time.
13 - 8.3.4 Analysis for the purpose of corrective action.
13 - 8.3.5 Caution in the use of quality cost indices.
13 - 9 Reporting of Quality Costs
13 - 9.1 Introduction.
13 - 9.2 Responsibility for Quality Cost Reports.
14 - 9.3 Distribution and Frequency of Reports.
14 - 9.4 Quality Cost Report for Cost Centre Supervisors.
14 - 9.5 Quality Cost Report for the Managers of Large Operational Areas.
14 - 9.6 Quality Cost Report for Divisional and Senior Management.
14 - 9.7 Quality Cost Report for Promoting Effective Quality Assurance Programs.
17 - 9.8 Format of Reports.
17 - 9.8.1 Types.
17 - 9.8.2 Tabular reports.
17 - 9.8.3 Graphic reports.
17 - 9.8.4 Narrative reports.
18 - 10 Optimizing of Quality Costs
18 - 10.1 Economic Perspective.
18 - 10.1.1 General.
18 - 10.1.2 New products expenditure.
18 - 10.1.3 Existing products expenditure.
19 - 10.2 Methods of Changing Quality Costs.
19 - 10.2.1 Introduction.
19 - 10.2.2 Prevention costs.
20 - 10.2.3 Appraisal costs.
21 - 10.2.4 Failure costs.
21 - 10.3 Optimization of Cost Categories.
21 - 10.3.1 General.
21 - 10.3.2 Optimizing prevention costs vs appraisal plus failure costs.
21 - 10.3.3 Optimizing prevention costs vs appraisal costs.
22 - 10.3.4 Optimizing appraisal costs vs failure costs
22 - 10.3.5 Optimizing prevention plus appraisal costs vs failure costs.
22 - 10.4 Interpreting Quality Cost Improvement.
24 - Appendix A - Cost categories and cost elements

Discusses methods for use by quality assurance and cost accounting managers in particular, whereby costs incurred in providing high quality products may be identified, controlled and minimized. Defines three categories of quality cost prevention, appraisal and failure costs and establishes procedures for collection, recording, analysis and reporting of quality cost data.

This standard provides guidance on what quality costs are, how they are incurred and how they may be adjusted to minimize the overall cost of supplying product of acceptable quality. Three categories of quality cost are defined, viz prevention, appraisal and failure costs, and procedures are established for the collection, recording, analysis and reporting of quality cost data.NOTE: Where the term 'product' appears in this guide it is intended to comprise goods and, where applicable, services.

Reconfirmed 1994