Question

In: Operations Management

Which cost of quality would most likely involve setting up a continuous improvement process during the execution phase of a major project?


Which cost of quality would most likely involve setting up a continuous improvement process during the execution phase of a major project? 

 Prevention cost

 Appraisal cost

 Internal failure cost

 External failure cost

Solutions

Expert Solution

Correct answer is (a) prevention cost.

Explation :- Contineous improvement process is adopted to prevent the defects in the process , hence it is a prevention cost for the company.

Appraisa cost is the cost incurred during the detection of a defect like inspection cost.

Internal and external failure costs are the costs incurred due to failure of the product to satisfy the quality parameters either in manufacturing fascility or at customer’s end .


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