Question

In: Operations Management

Describe the benefits and costs of good quality, and the costs of poor quality.

Describe the benefits and costs of good quality, and the costs of poor quality.

Solutions

Expert Solution

Benefits of Good Quality: Benefits of good quality include-

  1. Increased customer satisfaction: When customer receives products, that doesn't require much intervention from the manufacturer end post sales, they will prefer to stick to the brand or perhaps spread a word of mouth or two. This in tur will get you more loyal customer.
  2. Lesser loss: Bad quality brings in additional cost of rework, rejection, occupied space, loss of productivity, and subsequently missed delivery, unfulfilled orders and loss of customer to competitors. All these are avoided through good quality.

Costs of good quality: Cost associated with good quality is nothing different than the standard cost associated with creating and delivering a product. Only it requires additional focus, adherence to processes and accountability.

Costs of poor quality: Costs of poor quality are associated to the business in the following manner. Bad quality brings in additional cost of rework, rejection, occupied space, loss of productivity, and subsequently missed delivery, unfulfilled orders and loss of customer to competitors


Related Solutions

What is your definition of quality? What is the difference between poor quality and good quality?
What is your definition of quality? What is the difference between poor quality and good quality?
In a used car market- Quality Poor (lemon) Fair Good Excellent % cars in quality 25%...
In a used car market- Quality Poor (lemon) Fair Good Excellent % cars in quality 25% 25% 25% 25% Seller valuation $2,000 4,000 6,000 8,000 Buyer Valuation $4,000 6,000 8,000 10,000 Buyer does not know quality car when making offer/ competition among buyers/ buyers and sellers know probability distribution of types of cars What price would a buyer offer a seller and what quality of car would be sold at price?
(A) Describe the costs and benefits of the “stay” foraging strategy. (B) Describe the costs and...
(A) Describe the costs and benefits of the “stay” foraging strategy. (B) Describe the costs and benefits of the “move” foraging strategy. (C) Which strategy conformed to the Marginal Value Theorem?
Interim Quality Performance Reports Good quality cost management requires that quality costs be reported and controlled...
Interim Quality Performance Reports Good quality cost management requires that quality costs be reported and controlled (control having a cost reduction emphasis). Control enables managers to compare actual outcomes with standard outcomes to gauge performance and take any necessary corrective actions. The total quality management standard is the robust zero-defects standard. This standard requires that goods and services be produced that meet the targeted value of specified quality characteristics. Achieving zero defects typically requires years and so a variety of...
What are some examples of sentinel events? Describe the impact of poor quality care on the...
What are some examples of sentinel events? Describe the impact of poor quality care on the individual, family, community, and the United States. Create a core value statement.
NO HANDWRITTEN ANSWERS PLEASE Describe good recordkeeping practices and their benefits.
NO HANDWRITTEN ANSWERS PLEASE Describe good recordkeeping practices and their benefits.
Describe the funding, benefits, and costs related to the financing of Medicaid and Medicare.
Describe the funding, benefits, and costs related to the financing of Medicaid and Medicare.
1. Assess the benefits of high-quality information on an organization. 2. Describe the advantages of the...
1. Assess the benefits of high-quality information on an organization. 2. Describe the advantages of the relational database model. 3. What is a data warehouse and why would a business want to implement one? 4. Can an organization achieve 100 percent accurate and complete information? Why? 5. Compile a list of all of the issues found in the following information. Also list why most low quality information errors occur and what an organization can do to help implement high quality...
According to the Static Tradeoff Theory, issuing debt has costs and benefits. Describe these costs and...
According to the Static Tradeoff Theory, issuing debt has costs and benefits. Describe these costs and benefits associated with debt financing. Based on this theory, explain how the new tax law, that lowers corporate income tax rates, will impact the level of corporate borrowing.
Describe three recent situations in which you were directly affected by poor product or service quality.
Describe three recent situations in which you were directly affected by poor product or service quality.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT