After a thorough cost analysis, the Economic Quality Level (EQL) for a particular product is determined to be 98%. The manager overseeing the production of this product has just completed a certificate program on quality management and believes that the process should continually strive for "zero defects," which means that she should pursue a defect rate that improves further on the 98% EQL. The Senior Vice President of operations, however, is satisfied that the EQL for the product is optimal and directs the manager to focus attention and resources instead on other products and processes. Which of the following reasons can be used to justify the manager's quest for continuing to lower the defect level.

After a thorough cost analysis, the Economic Quality Level (EQL) for a particular product is determined to be 98%. The manager overseeing the production of this product has just completed a certificate program on quality management and believes that the process should continually strive for "zero defects," which means that she should pursue a defect rate that improves further on the 98% EQL. The Senior Vice President of operations, however, is satisfied that the EQL for the product is optimal and directs the manager to focus attention and resources instead on other products and processes. Which of the following reasons can be used to justify the manager's quest for continuing to lower the defect level.

The EQL does not take into account that costs can change over time, and if competitors improve the quality of their product, the failure cost of our product will increase.

The EQL is based on a false trade-off between the revenues received for the product and the cost of producing it.

The EQL fails to take into account any of the costs of failure.

The Multidimensional Quality Principle (MQP) states that failure costs will decrease as a function of the cumulative production of the product.

The learning-curve effects on appraisal and prevention costs, which are being actively pursued by the manager and her team, are lowering the appraisal and prevention costs.