What characterizes external failure costs within the cost of quality framework?

External failure costs are a key component of the cost of quality framework, specifically associated with failures that occur after a product has been delivered to the customer. These costs arise when a product does not meet quality standards or customer expectations after it is in the hands of the user, leading to various types of expenditures.

These costs can include warranty claims, returns, repairs, and loss of reputation, which can ultimately affect the company's profitability and customer satisfaction. When a product fails after delivery, the organization needs to allocate resources to rectify the issue, which can involve both direct costs, such as refunds and repairs, and indirect costs, like damage to brand reputation.

In contrast, failures that occur before delivery relate to internal issues, such as problems in the manufacturing or testing processes, which would not be classified as external failure costs. Therefore, any characterization of external failure costs must focus on the consequences of product performance and customer experience once the product has been sold and is in use.