Question: (a) Provide an example for each for the FIVE (5) types of cost of quality that affects such decisions. Internal failures Rework, scrap, inventory, inspections,

(a) Provide an example for each for the FIVE (5) types of cost of quality that affects such decisions.

Internal failures Rework, scrap, inventory, inspections, down time, retest, process losses. External failures Warranty costs, recalls, returns, loss of goodwill, loss of market share. Appraisal costs The cost of setting up additional inspections, process audit, inspection equipment such as visual inspection machines etc. Prevention costs Cost of preventing the quality issues. Procedures or additional investment that need to put in place to prevent quality issues. Personal costs Loss of opportunity, frustration, anger, depression and other feelings.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!