Supply chain homework | Operations Management homework help

Is quality free? Or does quality have a cost? What about the cost of poor quality?  How much does that cost? Can you think of a time when you bought a product and it was defective?  What did you do?  How did it make you feel about the firm who made the product?  Think about your actions in that scenario and the costs the company had to incur to “make it right.”

Cost of quality (COQ) analysis was developed in the 50s to help clarify the cost impacts of poor conformance quality. COQ identifies and assesses four major cost categories, which are prevention, appraisal, internal, and external costs.

  • Prevention costs are incurred due to efforts used to prevent poor quality from occurring in the first place. 
  • Appraisal costs are basically the costs associated with incoming material inspections, product and process inspections, inspection staff salaries, test equipment, and development of test procedures. 
  • Internal failure costs result when a defect is detected before the product is shipped.  These costs include the cost of salvage and rework.
  • Finally, if a defect does occur, and it happens to be discovered by the customer, the firm incurs external failure costs due to complaint settlements, loss of customer goodwill and future sales, returned materials, warranty work, and field service or repairs.

Understanding the Cost of Quality:

The new Quality Manager for XcelForce Inc. has put together a proposal for implementing a TQM Program for their business units in Canada, Mexico, the United States, and the English-speaking Caribbean. She has provided the following expected cost information to the senior management team in charge of approving the proposal:

Cost item                                                                               Total for the year

Quality assurance programs                                                      $4,500,000

Equipment maintenance (regular/scheduled)                             $2,050,000

Product design improvements (redesign/reengineering)             $3,100,000

Estimated (after-sales) product warranty service and repairs      $5,500,000

Product testing and inspection (at the manufacturing facility)      $3,720,000

Employee training programs                                                         $2,500,000

Process improvement/Kaizen projects                                          $1,200,000

Material scrap (associated with defective process output)            $2,300,000

Rework labor (to correct defective process output)                       $4,260,000

Raw materials inspection                                                              $3,230,000

After-sales customer support                                                         $1,500,000

Travel to suppliers to conduct process certification                           $750,000

Travel to customers to solve problems                                              $800,000







Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more