Used to categorize quality-related expenses according to the PAF model, and supports simple trend analysis and discussions on improvement priorities.
Can be maintained together with the financial account mapping table to ensure consistent criteria.
First, define the data collection cycle and responsible departments, and unify the boundaries of whether 'external failure' includes claims and line stoppage losses.
Using the same definitions to compare data before and after six months of an improvement project is more convincing.
Avoid double-counting or omitting hidden costs (rework hours, line stoppage); inconsistent definitions of 'prevention' across departments can lead to distorted trends.
Do not use unaudited estimates as the sole basis for performance evaluation.