Question

In: Operations Management

What type of costs cannot be reduced as a result of better quality in a manufacturing...

What type of costs cannot be reduced as a result of better quality in a manufacturing process?

Solutions

Expert Solution

Here are the type of costs that cannot be reduced as a result of better quality in the manufacturing process -

Cost of quality - COQ is the main method that allows the organisation to determine the resources that need to be used to prevent poor quality.

  • Appraisal costs cannot be reduced as these happen to make sure that level of quality is maintained.
  • The internal failure costs which are directly related to defects founds before customer services the products or services are other costs that cannot be reduced.
  • External failure costs which occur post the customer receives the products and services cant be compromised as well.

Other cost areas that cannot be reduced include -

  • To make sure quality is maintained the prevention costs, appraisal costs cant be reduced.
  • The cost that is directly related to design, implementation & maintenance of quality systems cannot be reduced.
  • The costs associated with quality planning and making sure operations and tools are used accordingly.
  • The costs associated with inspection and control.
  • The costs associated with training, development, preparation & overall maintenance of training programs.

Overall the cost to maintain the quality levels, the technology, the cost to keep servicing the customers, cost of using the right machinery and proocess etc are the areas which cannot be reduced.

==========================================================================================


Related Solutions

Olestra cannot be metabolized, thereby adding calories, because... a) it cannot be reduced due to the...
Olestra cannot be metabolized, thereby adding calories, because... a) it cannot be reduced due to the aromaticity of the central group. b) it undergoes condensation to form an ester. c) it can't be oxidized since it is a tertiary alcohol. d) it has so many ester units clustered together that it is too crowded to be hydrolyzed.
a) “The standard deviation of a portfolio's return cannot be reduced to zero by holding all...
a) “The standard deviation of a portfolio's return cannot be reduced to zero by holding all the securities in the market.” True or false? Explain. (2 mark) An investor buys 1 share of ABC Ltd at the price of $32 on December 1, 2019. The firm is not expected to pay any dividends. Consider the following three possible scenarios for the share price on December 1, 2020: $50 with a probability of 30% $35 with a probability of 60% $23...
a) “The standard deviation of a portfolio's return cannot be reduced to zero by holding all...
a) “The standard deviation of a portfolio's return cannot be reduced to zero by holding all the securities in the market.” True or false? Explain. (2 mark) An investor buys 1 share of ABC Ltd at the price of $32 on December 1, 2019. The firm is not expected to pay any dividends. Consider the following three possible scenarios for the share price on December 1, 2020: $50 with a probability of 30% $35 with a probability of 60% $23...
a) “The standard deviation of a portfolio's return cannot be reduced to zero by holding all...
a) “The standard deviation of a portfolio's return cannot be reduced to zero by holding all the securities in the market.” True or false? Explain. (2 mark) An investor buys 1 share of ABC Ltd at the price of $32 on December 1, 2019. The firm is not expected to pay any dividends. Consider the following three possible scenarios for the share price on December 1, 2020: $50 with a probability of 30% $35 with a probability of 60% $23...
a) “The standard deviation of a portfolio's return cannot be reduced to zero by holding all...
a) “The standard deviation of a portfolio's return cannot be reduced to zero by holding all the securities in the market.” True or false? Explain. (2 mark) An investor buys 1 share of ABC Ltd at the price of $32 on December 1, 2019. The firm is not expected to pay any dividends. Consider the following three possible scenarios for the share price on December 1, 2020: $50 with a probability of 30% $35 with a probability of 60% $23...
1) The cost of quality training is an example of what type of quality cost? A)...
1) The cost of quality training is an example of what type of quality cost? A) External failure costs B) Internal failure costs C) Appraisal or inspection costs D) Prevention costs 2) Which of the following statements is correct about the differences between a volume-based cost system and an ABC system? A) The only difference is how the methods assign direct costs to products. B) The only difference is how the methods assign indirect costs to products. C) There is...
1. If you cannot think of a better way to say what another author said, it...
1. If you cannot think of a better way to say what another author said, it is best to keep reading the passage until you can paraphrase. quote the author, no matter how long or how often. substitute a few words in the sentence for synonyms. leave that source out of your paper. 2. When referring to the work of other authors, APA uses the title of their work. the first and last name of the author(s). the last name...
Hamline Manufacturing makes a single product. Standard costs are given below. Manufacturing Cost Elements Quality *...
Hamline Manufacturing makes a single product. Standard costs are given below. Manufacturing Cost Elements Quality * Price = Cost Direct Materials 6 oz. * $0.90 = $5.40 Direct Labor 0.5hrs * 12.00 = 6.00 Manufacturing overhead 0.5hrs * 4.80 = 2.40 $13.80 During the month, the following transactions occurred in manufacturing 10,000 units. 58,000 ounces of materials were purchased at $1.00 per ounce. All the materials purchased were used to produce the 10,000 units. 4,900 direct labor hours were worked...
Some benefits and costs cannot be quantified. What kinds of benefits and costs elude quantification, and...
Some benefits and costs cannot be quantified. What kinds of benefits and costs elude quantification, and how can these be factored into an investment decision?
What is the result of holding business managers accountable for metrics which they cannot control?  Should...
What is the result of holding business managers accountable for metrics which they cannot control?  Should a plant manager be held responsible for sales volume?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT