Question: QUESTION 5 ( 3 1 Marks ) The Hidden Cost of Poor Quality in Manufacturing It is not uncommon for studies to indicate that cost
QUESTION Marks The Hidden Cost of Poor Quality in Manufacturing It is not uncommon for studies to indicate that cost of quality for manufacturers is typically or higher as a percent of total sales. Many people are surprised to learn of the full extent of the costs of poor quality. In part, this is caused by the inability of normal business reporting systems to either consolidate the costs, or to capture them at all. This hidden nature causes a deemphasis of a problem that deserves much more attention because of its magnitude, and the damage it causes to the business. As an example, lets assume for a minute, that your cost of quality runs between and of revenues. Even the best of companies admit their COQ is at least as high as What portion of your attention and effort would you typically focus on a cost this high? These costs can often run higher than the total costs of marketing, accounting, and research development combined. Now is the time for you to evaluate your programs, tally your true costs of quality and begin to make the type of investments that can potentially yield high results. From people, to systems, on to processes, you need to begin now to avoid losing to your competition. September accessed from workwisellc.com on the th of August From reading the article above, list and explain in detail the various costs associated with poor quality for any organisation. Expanding on the costs associated with poor quality, recollect the hidden costs associated with quality. Now call to mind the steps that can be followed to quantify the costs of poor quality.
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