Question

Read the following article and answer the question that follow    
Dittenhoefer’s Fine China
Overall, Steve Edwards, vice president of Marketing at Dittenhoefer’s Fine China, is very pleased with the success of his new line of Gem-Surface china plates. Gem-Surface plates are different from regular china in that the plates have a special polymer coating that makes them highly resistant to chipping and fading. Not only are the plates more durable, they are also completely dishwasher safe.
In order to manufacture the new plates, Dittenhoefer’s has leased a special machine to apply the coating and has put in place a drying system to “cure” the coating on the plates. The research and development (R&D) lab has determined that in or- der to prevent defective plates, it is important that the machine apply the polymer coating at the proper temperature and in the proper thickness.
Quality Problems
Traditionally, quality control at Dittenhoefer’s has consisted of visually inspecting finished items for defects (chips, cracks, etc.) as they are being packed for shipment. This was accept- able in the past, when defects were few and far between. With the new polymer-coating technology, however, this has caused some serious problems.
For instance, on one Friday during the Christmas sea- son, the packers noticed that nearly all of the plates they were getting ready to ship had faded designs, which suggested that
the temperature of the polymer-coating machine might be too high. Sure enough, when a supervisor went back to check on the polymer-coating machine, he found that the thermo- stat was set at 190 degrees. Apparently, someone had set the temperature higher to clean the machine but had forgotten to reset it back to 165 degrees. The good news was that the problem was easily fixed. The bad news was that the ma- chine had been running at 190 degrees since Wednesday. In the interim, 2,400 plates had been run through the coating machine. In the end, Dittenhoefer’s had to destroy all 2,400 plates and was late making shipments to several important customers.
In another instance, a worker just happened to notice that the polymer-coating machine was not using as much raw material as expected. When the worker measured the thickness of the coating being applied to the plates, she found out why: The coating thickness was only 2.4 microns. A quick check of plates being dried and those being packed revealed that they, too, had a coating thickness of around 2.4 microns. While manufacturing was able to correct the
problem and save these plates, no one knew how many plates had been shipped before the problem was discovered.
Source: Bozarth, C.C. and Handfield, R.B. (2016) Introduction to Operations and Supply Chain Management (4th edition) New Jersey: Pearson Prentice Hall;
REQUIRED:
In light of this caselet, discuss the four different types of costs related to quality of products

Answer 1

Answer:

Four types of costs involved for the determination of the quality of the product are:

1. Internal failure costs are those costs which are caused by the services or products not comforming or completing the requirements or the user's needs. They are found before the delivery of rhe products and services to the external customers. They led the customers to not being satisfied with the quality of the product availed.

2. External failure costs are those types of costs which are caused by the deficiencies existing in the products and services found after the delivery has been made to the external customers. It can lead to customer disatisfaction and loss of goodwill. Repairing goods or complaints are the examples.

3. Appraisal costs are those costs which are a part of specific category of the quality control costs. Companies often pay such appraisal costs as the pay for the quality control process and helps in ensuring that the producrs and servives would meet the customer's expectations and regulatory requirements raised by the customers. It would include all the field tests and inspections cost for checking and ensuring the quality of the product.

4. Prevention costs are such kind of costs which are directly associated with the design, maintenance and the implementation of the quality management system. These are the costs which are incurred by the company so they could prevent any damage or quality disbalance happening to the product. They are planned and also i curred before the actual operation. They include development, training, preparation and managing the quality programs.