Answer :
Final answer:
Quality costs in the automotive industry include prevention costs, appraisal costs, internal failure costs, and external failure costs. These represent the costs for quality assurance measures, testing, defects caught before shipping and after, respectively.
Explanation:
The costs of quality in an industry such as automotive manufacturing can be divided into four main categories. These categories are Prevention costs, Appraisal costs, Internal failure costs, and External failure costs.
Prevention costs are the costs incurred to prevent any defects in the product. In the car industry, they can include costs for quality assurance planning, work methods, and training. For instance, a car company may invest in advanced machinery for precision manufacturing, which would be a prevention cost.
Appraisal costs are involved in the assessment of the product's quality. For cars, this might involve inspection or testing of individual parts or the whole vehicle. For example, dynamometer testing to ensure the engine performs up to standard is an appraisal cost.
Internal failure costs occur when a defect is identified before the product is shipped to the consumer. For a car, this cost might be incurred due to a faulty brake system identified in the assembly stage, forcing the company to spend on rework or scrap the product.
External failure costs are costs that arise after a defective product is delivered to the customer. For cars, this is often seen in recalls. If a car has been found to have a harmful defect after purchase, the company must bear the cost of repairing or replacing the defective products.
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