Question: Benchmarks; quality costs For a benchmark, assume that the average firm incurs quality costs in the following proportions: Prevention 3 0 % Appraisal 2 5
Benchmarks; quality costs
For a benchmark, assume that the average firm incurs quality costs in the following proportions:
PreventionAppraisalInternal failureExternal failureTotal costs
When are each of the costs of quality incurred during the product life cycle: before production, during production, after production, andor after sale?
PreventionAnswer After sale onlyBefore and during productionBefore production onlyBefore, during, and after productionDuring and after productionDuring production onlyAppraisalAnswer After sale onlyBefore and during productionBefore production onlyBefore, during, and after productionDuring and after productionDuring production onlyInternal failureAnswer After sale onlyBefore and during productionBefore production onlyBefore, during, and after productionDuring and after productionDuring production onlyExternal failureAnswer After sale onlyBefore and during productionBefore production onlyBefore, during, and after productionDuring and after productionDuring production only
Would each of the following industries be inclined to have a spending pattern on quality costs that differs from the benchmark? Match each industry to the most relevant description of expected differences from the benchmark for an average firm.
Note: Use each description only once.
a Pharmaceutical company:
Answer Higher prevention and appraisal and lower internal and external failure costsMore on prevention costs and external failure costsMore prevention costs and less appraisal costsMore prevention costs and less appraisal, internal, and external failure costsSimilar pattern to typical company
b Discount merchandiser, assumed to not be competing in higher end markets:
Answer Higher prevention and appraisal and lower internal and external failure costsMore on prevention costs and external failure costsMore prevention costs and less appraisal costsMore prevention costs and less appraisal, internal, and external failure costsSimilar pattern to typical company
c Computer manufacturer competing on the basis of quality and not price.
Answer Higher prevention and appraisal and lower internal and external failure costsMore on prevention costs and external failure costsMore prevention costs and less appraisal costsMore prevention costs and less appraisal, internal, and external failure costsSimilar pattern to typical company
d Usedcar retailer with focus on maintaining a high reputation for service.
Answer Higher prevention and appraisal and lower internal and external failure costsMore on prevention costs and external failure costsMore prevention costs and less appraisal costsMore prevention costs and less appraisal, internal, and external failure costsSimilar pattern to typical company
Local lawn service company with high priority on employee safety.
Answer
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