Preview

QHT1 Task 1 final

Satisfactory Essays
Open Document
Open Document
615 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
QHT1 Task 1 final
Memo
To: Directory Quality Control
From:
Date:
Re: Cost of Quality and Trade-Offs

The cost of quality in a manufacturing process and environment are many as you are aware. But the 3 primary costs that we should review on a more regular basis to assure we are creating the most cost effective and quality products are the following: Appraisal, Prevention and Failure, and failure costs should be looked at as internal failure and external failure.
Appraisal costs can be defined as “The cost of activities designed to ensure quality or uncover defects” (Stevenson, 2008, p.421) Trade-offs of these appraisal costs are internal costs that are incurred when we stop production of a product to check for defects in production process, material, or any other item that causes defects. The cost associated with doing these inspections is looking for defects or issues during this part of the production cycle, other costs would be the cost of stopping the production line for a period of time, cost of additional inspectors and the testing equipment they will use for these tests.
Prevention costs are another of the costs of quality and can be defined as “The cost of preventing defects from occurring” (Stevenson 2008, p.421) Prevention costs are the costs we pay to prevent defects during production of our products. Some of the ways we create these costs or trade-offs of having these within the manufacturing process is that we implement technology systems to help monitor the processes, working with our external material vendors to assure we are getting the best quality products to use and also by training our employees on how to properly use the material and machines to produce our products as well as paying more attention to detail during the design and production of our products.
The final cost of quality that we need to look at is Failure Costs, and can be defined as “ Caused by defective parts, products or by faulty services.” (Stevenson, 2008, p.421) These failure costs can



References: Stevenson, W. (2008). Operations Management (10th ed.). McGraw-Hill.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    QAT1 Task 4

    • 501 Words
    • 7 Pages

    D. T=(10 + 4(11) + 15)/6 – OR – T=11.5 E. T=(4 + 4(5) + 6)/6 – OR – T= 5…

    • 501 Words
    • 7 Pages
    Satisfactory Essays
  • Good Essays

    Qlt1 Task 1

    • 506 Words
    • 3 Pages

    3When do babies start to roll from front to back? 3-6m 4When do children begin to feed themselves with a spoon? 12-18m…

    • 506 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Qlt4 Task 4

    • 927 Words
    • 4 Pages

    WESTERN GOVENOR’S UNIVERSITY Community and Health Nursing Task 4 Marie Lickliter 08/07/2013 The role of the major public health personnel includes assessing the immediate health needs and identifying the potential risks in the community. There are several team members who work together to accomplish this common goal. Team members provide epidemiology, environmental, medication services, food delivery, and sanitation services.…

    • 927 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Qlt1 Task 1

    • 908 Words
    • 4 Pages

    5. Association of Fundraising Professionals Recent social fundraising research at Artez Interactive found that 14 percent of online donations in client campaigns were referred directly from Facebook.…

    • 908 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Qlt1 Task 3

    • 61 Words
    • 1 Page

    3- Building a deep sense of respect and admiring in the team partner is the main key of a successful leader.…

    • 61 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Qlt1 Task 1

    • 1178 Words
    • 5 Pages

    Note to students: Since the table below is based on another case study, please note this is just an example of how to present Task 2 and in no way suggests answers to the current case study.…

    • 1178 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Professor and class, * How do the two systems differ? The two alternatives for product costing systems are job and process. The two differ in that with job costs these are specified for a particular job. Process costs go by each process that is done (Kinney & Raiborn, 2013, p 150).…

    • 323 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Seath, I. J. (2006, October 19). Cost of Quality - the forgotten tool? Retrieved April 30, 2013, from http://www.performance-measurement.net/news-detail.asp?nID=222…

    • 4893 Words
    • 20 Pages
    Better Essays
  • Good Essays

    However, traditional cost accounting methods suffer from several defects that can result in distorted costs for decision-making purposes. All manufacturing costs, even those that are not caused by any specific product, are allocated to products. Nonmanufacturing costs that are caused by products are not assigned to products. Additionally, traditional methods tend to place too much reliance on unit-level allocation bases such as direct labor and machine-hours. This results in overcosting high-volume products and undercosting low-volume products and can lead to mistakes when making decisions.…

    • 692 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Quality Assurance

    • 601 Words
    • 3 Pages

    Warranty cost is arises from Government administration and enforcement of the warranty plus the contractor’s charge for accepting the deferred liability created by the warranty (Federal acquisition regulation, 2012). The administration and enforcement factors are nature and complexity of the item, location and proposed use, storage time, distance of the using activity from the source of the item, difficulty in establishing existence of defeats and difficulty in tracing responsibility for defects.…

    • 601 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Determining Product Cost

    • 463 Words
    • 2 Pages

    • Product (manufacturing) costs are those costs, both direct and indirect, of producing a product in a manufacturing firm or of acquiring a product in a merchandising firm and preparing it for sale. Therefore, only costs in the production section of the value chain are included in product costs. A key feature of product costs is that they are inventoried. Product costs initially are added to an inventory account and remain in inventory until they are sold, at which time they are transferred to cost of goods sold (COGS). Product costs can be further classified as direct materials, direct labor, and manufacturing overhead, which are the three cost elements that can be assigned to products for external financial reporting.…

    • 463 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    accounting

    • 811 Words
    • 5 Pages

    III. Standard cost To establish the standard cost of producing a product, it is necessary to establish standards for each manufacturing cost element—…

    • 811 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    QLT1 task 3

    • 296 Words
    • 1 Page

    A couple is comparing two day cares to find the best option for their 5 year old son. A home-based daycare charges a flat rate of $5 per hour. A center-based daycare charges a fixed rate of $185 per week, providing 40 hours of childcare. Above 40 hours, the center-based daycare then charges a fixed rate of $12 per hour. The couple determines that the driving distance to each daycare is the same, thus driving expenses do not need to be considered. will require 50 hours of childcare per week and are looking for the cheapest daycare, as they are soon expecting their second child.A couple is comparing two daycares to determine the best option for their 1 year old son. A home-based daycare charges a flat rate of $15 per hour. A center-based daycare charges a fixed rate of $185 per week, providing 40 hours of childcare. Above 40 hours, the center-based daycare then charges a fixed rate of $8 per hour. The couple determines that the driving distance to each daycare is the same, thus driving expenses do not need to be considered. The couple will require 50 hours of childcare per week and are looking for the cheapest daycare, as they are soon expecting their second child.A couple is comparing two daycares to determine the best option for their 1 year old son. A home-based daycare charges a flat rate of $5 per hour. A center-based daycare charges a fixed rate of $185 per week, providing 40 hours of childcare. Above 40 hours, the center-based daycare then charges a fixed rate of $8 per hour. The couple determines that the driving distance to each daycare is the same, thus driving expenses do not need to be considered. The couple will require 50 hours of childcare per week and are looking for the cheapest daycare, as they are soon expecting their second…

    • 296 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    Operations Management

    • 1610 Words
    • 6 Pages

    2. The cost of quality would increase in order for the supplier to do a quality check on the customer’s order before shipment.…

    • 1610 Words
    • 6 Pages
    Satisfactory Essays
  • Good Essays

    QMT501

    • 881 Words
    • 3 Pages

    Introduction to Quality Management and Six Sigma- Cost of Quality Cost of Quality Cost of quality is the widely used term and it is the price of not creating the quality service and product. The cost of quality increases every time when the work is done. There are two main components of Cost of Quality which includes the “Cost of Conformance” and “Cost of Non-Conformance (Deng, Lu, Wei & Zhang, 2010).…

    • 881 Words
    • 3 Pages
    Good Essays