Cost of Quality Assessment
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Determine the total cost of quality per unit by balancing inspection effectiveness against the high cost of missed defects.
NOTEAbout This Model
## Determine the total cost of quality per unit by balancing inspection effectiveness against the high cost of missed defects. This model explores how **Total Cost Of Quality Per Unit** could play out, depending on Defect Rate, Inspection Effectiveness. Hit **Run** to see the range of possibilities.
VARIABLEDefect Rate
beta(2, 18.99)
Typical manufacturing defect rates range from 0.1% to 10% depending on process maturity.
defect_rate
VARIABLEInspection Effectiveness
beta(14.9, 5.1)
Human or automated inspection is rarely perfect; effectiveness typically ranges from 50% to 99%.
inspection_effectiveness
FORMULAMissed Defect Rate
defect_rate * (1 - inspection_effectiveness)
Probability of a defect reaching the customer (Type II error)
missed_defect_rate
FORMULACaught Defect Rate
defect_rate * inspection_effectiveness
Probability of a defect being caught during inspection
caught_defect_rate
FORMULATotal Cost Of Quality Per Unit
1 + (caught_defect_rate * 10) + (missed_defect_rate * 1000)
Total cost of quality per unit produced including inspection, internal failure, and external failure costs
total_cost_of_quality_per_unit
OUTPUTTotal Cost Of Quality Per Unit
total_cost_of_quality_per_unit
Track the total cost of quality per unit output
What is Carlo?
Carlo is a visual tool for Monte Carlo simulation. Model uncertainty by dragging probability distributions, connecting them visually, and running thousands of scenarios instantly.