In: Operations Management
Describe the benefits and costs of good quality, and the costs of poor quality.
Benefits of Good Quality: Benefits of good quality include-
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