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:
Prevention30%Appraisal25%Internal failure15%External failure30%Total costs100%
1. When are each of the costs of quality incurred during the product life cycle: before production, during production, after production, and/or after sale?
PreventionAnswer 1After sale onlyBefore and during productionBefore production onlyBefore, during, and after productionDuring and after productionDuring production onlyAppraisalAnswer 2After sale onlyBefore and during productionBefore production onlyBefore, during, and after productionDuring and after productionDuring production onlyInternal failureAnswer 3After sale onlyBefore and during productionBefore production onlyBefore, during, and after productionDuring and after productionDuring production onlyExternal failureAnswer 4After sale onlyBefore and during productionBefore production onlyBefore, during, and after productionDuring and after productionDuring production only
2. 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 5Higher 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 6Higher 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 7Higher 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. Used-car retailer with focus on maintaining a high reputation for service.
Answer 8Higher 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 9

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