AS 2561-2010

Table of Contents

<toc>
<bookmarktable>
<bookmark index='0'>
<pageno>1</pageno>
<text>AS 2561-2010 GUIDE TO THE DETERMINATION AND THE USE OF QUALITY COSTS</text>
<bookmark index='1'>
<pageno>4</pageno>
<text>PREFACE</text>
</bookmark>
<bookmark index='2'>
<pageno>5</pageno>
<text>CONTENTS</text>
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<bookmark index='3'>
<pageno>6</pageno>
<text>FOREWORD</text>
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<bookmark index='4'>
<pageno>8</pageno>
<text>1 SCOPE</text>
</bookmark>
<bookmark index='5'>
<pageno>8</pageno>
<text>2 NORMATIVE REFERENCES</text>
</bookmark>
<bookmark index='6'>
<pageno>8</pageno>
<text>3 DEFINITIONS</text>
<bookmark index='7'>
<pageno>8</pageno>
<text>3.1 Actual cost</text>
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<bookmark index='8'>
<pageno>8</pageno>
<text>3.2 Controls</text>
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<bookmark index='9'>
<pageno>8</pageno>
<text>3.3 Cost of conformity</text>
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<bookmark index='10'>
<pageno>8</pageno>
<text>3.4 Cost of nonconformity</text>
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<bookmark index='11'>
<pageno>8</pageno>
<text>3.5 Cost of quality</text>
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<bookmark index='12'>
<pageno>8</pageno>
<text>3.6 Effectiveness</text>
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<bookmark index='13'>
<pageno>9</pageno>
<text>3.7 Efficiency</text>
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<bookmark index='14'>
<pageno>9</pageno>
<text>3.8 Inputs</text>
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<bookmark index='15'>
<pageno>9</pageno>
<text>3.9 Management system</text>
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<bookmark index='16'>
<pageno>9</pageno>
<text>3.10 Nonconformity</text>
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<bookmark index='17'>
<pageno>9</pageno>
<text>3.11 Output</text>
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<bookmark index='18'>
<pageno>9</pageno>
<text>3.12 Process</text>
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<bookmark index='19'>
<pageno>9</pageno>
<text>3.13 Resources</text>
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<bookmark index='20'>
<pageno>9</pageno>
<text>3.14 Synthetic cost</text>
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<bookmark index='21'>
<pageno>9</pageno>
<text>3.15 System</text>
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<bookmark index='22'>
<pageno>9</pageno>
<text>3.16 Top management</text>
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</bookmark>
<bookmark index='23'>
<pageno>9</pageno>
<text>4 ECONOMICS OF QUALITY</text>
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<bookmark index='24'>
<pageno>10</pageno>
<text>5 MANAGEMENT RESPONSIBILITY</text>
<bookmark index='25'>
<pageno>10</pageno>
<text>5.1 Top Management</text>
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<bookmark index='26'>
<pageno>10</pageno>
<text>5.2 Management review</text>
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</bookmark>
<bookmark index='27'>
<pageno>10</pageno>
<text>6 IDENTIFY PROCESSES AND PROCESS ACTIVITIES</text>
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<bookmark index='28'>
<pageno>11</pageno>
<text>7 IDENTIFY AND MONITOR COSTS</text>
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<bookmark index='29'>
<pageno>11</pageno>
<text>8 APPROACHES TO COST REPORTING</text>
<bookmark index='30'>
<pageno>11</pageno>
<text>8.1 General</text>
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<bookmark index='31'>
<pageno>12</pageno>
<text>8.2 Customer satisfaction</text>
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<bookmark index='32'>
<pageno>12</pageno>
<text>8.3 Reporting models</text>
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</bookmark>
<bookmark index='33'>
<pageno>13</pageno>
<text>9 MANAGE THE IMPROVEMENTS</text>
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<pageno>13</pageno>
<text>9.1 Identify improvement opportunities</text>
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<bookmark index='35'>
<pageno>14</pageno>
<text>9.2 Conduct improvement cost/benefit analysis</text>
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<bookmark index='36'>
<pageno>14</pageno>
<text>9.3 Plan and implement improvement</text>
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</bookmark>
<bookmark index='37'>
<pageno>15</pageno>
<text>10 RELATIONSHIP BETWEEN TRADITIONAL PREVENTION, APPRAISAL, FAILURE (PAF) MODEL AND THE PROCESS COST MODEL</text>
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<pageno>15</pageno>
<text>10.1 Prevention, appraisal, failure approach to cost modelling</text>
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<bookmark index='39'>
<pageno>15</pageno>
<text>10.2 Process cost model</text>
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<bookmark index='40'>
<pageno>15</pageno>
<text>10.3 Linking the PAF model and the process cost model</text>
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</bookmark>
<bookmark index='41'>
<pageno>16</pageno>
<text>APPENDIX A - PROCESS COST MODEL</text>
<bookmark index='42'>
<pageno>16</pageno>
<text>A1 THE PROCESS</text>
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<bookmark index='43'>
<pageno>16</pageno>
<text>A2 IDENTIFICATION OF INPUTS, OUTPUTS, CONTROLS AND RESOURCES</text>
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<bookmark index='44'>
<pageno>16</pageno>
<text>A3 THE PROCESS COST ELEMENTS</text>
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<bookmark index='45'>
<pageno>17</pageno>
<text>A4 PREPARATION OF THE PROCESS COST MODEL</text>
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<bookmark index='46'>
<pageno>17</pageno>
<text>A5 USING THE PROCESS COST MODEL</text>
<bookmark index='47'>
<pageno>17</pageno>
<text>A5.1 Improvement Teams</text>
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<bookmark index='48'>
<pageno>17</pageno>
<text>A5.2 Identify the process</text>
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<bookmark index='49'>
<pageno>17</pageno>
<text>A5.3 Identify costs</text>
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<bookmark index='50'>
<pageno>18</pageno>
<text>A5.4 Cost report</text>
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<bookmark index='51'>
<pageno>18</pageno>
<text>A5.5 Improvement process</text>
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</bookmark>
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<bookmark index='52'>
<pageno>19</pageno>
<text>APPENDIX B - PREVENTION, APPRAISAL AND FAILURE (PAF) MODEL</text>
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<pageno>19</pageno>
<text>B1 INTRODUCTION</text>
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<bookmark index='54'>
<pageno>20</pageno>
<text>APPENDIX C - SOURCES OF COSTS AND COST DATA</text>
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<pageno>20</pageno>
<text>C1 GENERAL</text>
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<bookmark index='56'>
<pageno>20</pageno>
<text>C2 EXAMPLE OF SOURCES OF COSTS AND COST DATA FOR THE PROCESS COST MODEL</text>
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<bookmark index='57'>
<pageno>20</pageno>
<text>C3 EXAMPLE OF SOURCES OF COSTS AND COST DATA FOR THE PAF MODEL</text>
<bookmark index='58'>
<pageno>20</pageno>
<text>C3.1 Example of sources of prevention costs and cost data</text>
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<bookmark index='59'>
<pageno>23</pageno>
<text>C3.2 Example of sources of appraisal costs and cost data</text>
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<bookmark index='60'>
<pageno>25</pageno>
<text>C3.3 Example of sources of internal failure costs and data</text>
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<bookmark index='61'>
<pageno>26</pageno>
<text>C3.4 Example of sources of data for external failure costs</text>
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</bookmark>
<bookmark index='62'>
<pageno>27</pageno>
<text>C4 Management costs</text>
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</bookmark>
<bookmark index='63'>
<pageno>28</pageno>
<text>APPENDIX D - ANALYSIS OF COST DATA</text>
<bookmark index='64'>
<pageno>28</pageno>
<text>D1 INTRODUCTION</text>
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<bookmark index='65'>
<pageno>28</pageno>
<text>D2 COST INDICES</text>
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</bookmark>
<bookmark index='66'>
<pageno>30</pageno>
<text>APPENDIX E - FIGURES AND DIAGRAMS</text>
<bookmark index='67'>
<pageno>30</pageno>
<text>E1 PROCESS FOR USING COST AND SATISFACTION DATA TO PLAN AND IMPLEMENT IMPROVEMENTS</text>
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<bookmark index='68'>
<pageno>31</pageno>
<text>E2 EXAMPLE OF PROCESS COST REPORT FOR PERSONNEL</text>
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<bookmark index='69'>
<pageno>32</pageno>
<text>E3 EXAMPLES OF TREE DIAGRAM FOR IMPROVEMENT</text>
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</bookmark>
<bookmark index='70'>
<pageno>33</pageno>
<text>APPENDIX F - EXAMPLE OF TOOLS THAT CAN BE USED FOR IDENTIFYING AND ANALYSING COST DATA</text>
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</bookmarktable>
</toc>

Scope

This standard provides guidance on how to achieve economic benefits from the application of quality costs analysis and the use of cost data. It may be applied broadly to all organizations and at all levels within an organization. It is not intended to be used in contractual situations nor as a subject for third-party audits.

General Product Information

Published
Document Type	Standard
Status	Current
Publisher	Standards Australia
ProductNote	ISBN : 978-0-7337-9416-2.
Pages
ISBN
Committee	QR-008
Supersedes	AS 2561-1982 DR 09043