<div class="htmlview paragraph">Using the popular categories of quality costs: prevention, appraisal, internal failure and external failure, the quality cost elements of a Supplier Quality Assurance program are defined.</div> <div class="htmlview paragraph">Several methods of using these costs to measure both the effectiveness of a Supplier Quality Assurance program and the performance of suppliers are discussed.</div> <div class="htmlview paragraph">These measurements include the relationship between investment and results, purchasing’s cost recovery performance, loss of productivity due to purchased defects, percent defective purchased dollars and True Price Index.</div>