Concept Number: *034
English Master: Price-of-Nonconformance
Synonyms, Variations & Acronyms: none
Price-of-Nonconformance (What it costs to do things wrong)
• Unplanned Service
• Overdue accounts receivable
• Computer reruns
• Explanation time
• Excess inventory
1. In general, PONC increases the later in the implementation Process that a Defect is found. The relative costs can be expected to be 20:1 at the test stage (20) compared to the development stage (1); and 80:1 at a field-use stage (80) compared to development stage (1) [GILB93].
This Concept entered by Adore Shuko.