Stages of Cost Reduction
The quality costs are the costs which are associated with preventing, finding, and correcting the defective work. These costs are vast which runs 20% - 40% of the sales. Many of the costs should be considerably reduced or completely avoided. One of the main functions of the Quality Engineering is the reduction of the total cost of the quality associated with the product. There are six quality costs associated with the software products which are as follows:
Total cost of quality = Prevention + Appraisal + Internal Failure+ External Failure.