Cost and saving definition

The Cost of Poor Quality(COPQ) is the penalty incurred by an organization from not performing work correctly the first time or not meeting the customer's expectations.
COPQ can be subdivided into four main categories. These categories are Appraisal Costs, Internal Failure Costs, Prevention Costs, and External Costs.
Entitlement Cost is the cost associated with doing the right things right the first time
This is one of those intangible benefits or hidden costs of COPQ. This type of savings is more commonly known as a soft savings rather than hard savings because it doesn抰 directly affect the bottom line.
Hard Savings are those that have direct impact upon the bottom line. They may come in the form of increased revenue or decreased costs.
Soft Savings are non-tangible such as saving a portion of a person抯 time, improving customer satisfaction, or increasing company goodwill.
Cost Avoidance Savings are savings from costs that might have occurred in the future if the process had not been improved.