Crawford Production Inc.
John Doe – Supervisor
May 20, 2015
WGU QHT1 Task 1
As an employee within this company, this memo will address the various types of costs when quality considerations are made within the company, explanations for these types of costs, and three types of costs and how they are portrayed when used with trade-offs within manufacturing the product or service.
The first type of cost when quality considerations are made are appraisal costs. Appraisal costs are the costs of activities that are designed to ensure quality or expose the defects with a product or service. Appraisal costs include, but are not limited to, inspection costs, testing, equipment testing, testing equipment labs, quality audits, and field testing.
The second type of cost when quality considerations are made are prevention costs. Prevention costs are used to prevent defects from occurring. Prevention costs include, but are not limited to, planning and administration systems, working with vendors, training of employees, quality control procedures, and also extra attention in both the design and production phases of the company to help decrease the probability of defective workmanship.
The third type of cost when quality considerations are made are failure costs. Failure costs are usually incurred by defective parts or by having faulty services. Failure costs include internal and external failures. Internal failures are those that are usually found during the production process and external failures are those that are usually found after delivery of the service or product to the customer.
There are many different kinds of external costs within a company, including providing warranty work for products and services, handling the complaints of customers about services or products received from the company, as well as replacing products or services for...
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