During the execution phase of a manufacturing project, your quality engineer discovers that a batch of assembled circuit boards contains defective solder joints during an in-house inspection. The boards must be reworked and then retested before shipment. According to the Cost of Quality (COQ) framework in project management, how should the money spent on the rework and retesting be classified?
Rework and retesting expenses are considered Internal failure costs because the defects were detected and corrected before the product reached the customer. External failure costs apply only after delivery, appraisal costs relate to detecting defects, and prevention costs are spent to avoid defects in the first place.
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What is a Cost of Quality (COQ)?
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