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Q1.
What is the difference between an Internal Failure and an External Failure in the Cost of Quality (CoQ) model?
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5 Replies
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Internal failure costs occur before a product reaches the customer (e.g., scrap, rework), while external failure costs occur after the customer receives it (e.g., warranty claims, recalls)
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Correct. In the Cost of Quality model, the key difference is “when and where” the defect is found: internal failure happens before the product/service reaches the customer (scrap, rework, re-inspection, downtime), while external failure happens after delivery (returns, complaints, warranty claims, recalls, penalties, loss of trust).
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Fallo interno: Es un error detectado antes de que el producto o servicio llegue al cliente. Ejemplos: retrabajos, desperdicios, inspecciones fallidas.
Fallo externo: Es un error descubierto después de que el producto llega al cliente. Ejemplos: devoluciones, quejas, garantías, pérdida de reputación.
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In the Cost of Quality (CoQ) model, the difference between Internal Failure and External Failure is all about when and where a defect is found—and who feels the pain.
Internal Failure Costs happen before the product or service reaches the customer.
Defects are discovered during production or internal checks.
The customer never sees the problem.
Still costly, but usually more controllable.
External Failure Costs occur after the product or service has reached the customer.
Defects are discovered by the customer
Direct impact on customer satisfaction and trust
Often far more expensive and damaging
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Internal failure costs are incurred within the organization, identifying and correcting defects before a product or service reaches the customer (e.g., scrap, rework). External failure costs occur after the product/service is received by the customer, leading to complaints, warranty claims, and reputation damage.
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