1 PROJECT TASK NUMBER 5 After reading this document ( apply these concepts to the design (and production) of the product mentioned in Task 4.

2 PREVENTION COSTS Staff training Clear requirements Costs related to products searching Researching new market opportunities and promotions

3 APPRAISAL COSTS Design review Quality control tests Pre-release out-of-box testing by customer service staff

4 INTERNAL FAILURE COSTS Wasted tester time Wasted writer time Wasted marketer time Wasted advertisements Opportunity cost of late shipment

5 EXTERNAL FAILURE COSTS Investigation of customer complaints Emission of new products Lost sales Lost customer goodwill Discounts to resellers to encourage them to keep selling the product All other costs imposed by law