A project manager is analyzing the Cost of Quality (COQ) for a recently completed project. Which of the following is an example of an external failure cost?
The correct answer is warranty claims. External failure costs are costs associated with defects found after the product has been delivered to the customer. Warranty claims are a primary example of this, as they represent the cost to repair or replace a faulty product that is already in the customer's possession.
Reworking a deliverable before inspection is an example of an internal failure cost because the defect is found and corrected before the product reaches the customer.
Quality assurance team training is a prevention cost, as it is an investment made to prevent defects from occurring in the first place.
Final product testing is an appraisal cost, which is a cost incurred to assess the quality and detect defects before delivery.
Understanding these distinctions is crucial for effective quality management.
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