In: Operations Management
An operation where higher quality will cost more are producing energy from renewable sources that reduces pollution and lessens the stress on non renewable sources. It will be expensive as high standards of quality will be required to ensure that a new technology works as good as earlier one with equivalent performance, zero chances of failure and no negative impacts on user and environment. Thus, quality can be defined as high standards of performance with zero defects and maximum benefits expected from an operation, product or service. The equipment and components need to be made from readily available materials and more reliable and durable than usual items used.
Higher quality will cost more as it will involve research and development costs for achieving higher standards of performance , ensuring that the processes are having no defects or errors and are more reliable in providing services and benefits for a long term. The components used will need to be of higher quality and more checks will be required to ensure that they do not falter.
If another definition of quality is used it means performance as per defined levels and outcomes delivered as per planning . Thus higher quality will cost less as it will not require any additional efforts or resources. As per definition, the defects and errors need to be zero for high quality with accuracy and reliability in delivering the performance as per expectations. Proper processes and checks will also be required to ensure that the warranty and replacements are not required to reduce costs.