The Consequences of Poor Quality It is important for management to recognize the | Course Hero

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3. Productivity



Productivity and quality are often closely related.

Poor quality can adversely affect productivity during

the manufacturing process if parts are defective and

have to be reworked or if an assembler has to try a

number of parts before finding one that fits properly.



Also, poor quality in tools and equipment can lead to

injuries and defective output, which must be

reworked or scrapped, thereby reducing the amount

of usable output for a given amount of input.



Similarly, poor service can mean having to redo the

service and reduce service productivity.

4. Costs



Cost to remedy a problem is a major consideration in

quality management. The earlier a problem is

identified in the process, the cheaper the cost to fix

it.



The cost to fix a problem at the customer end has

been estimated at about five times the cost to fix a

problem at the design or production stages.

The Costs of Quality

1. Appraisal Cost



Appraisal costs

– Costs of activities designed to

ensure quality or uncover defects.



Appraisal costs relate to inspection, testing, and

other activities intended to uncover defective

products or services, or to assure that there are

none. They include the cost of inspectors, testing,

test equipment, labs, quality audits, and field testing.

2. Prevention Cost



Prevention costs

relate to attempts to prevent

defects from occurring. They include costs such as

planning and administration systems, working with

vendors, training, quality control procedures, and

extra attention in both the design and production

phases to decrease the probability of defective

workmanship.

3. Failure Cost



Failure costs

are incurred by defective parts or

products or by faulty services.



Internal failures

are those discovered during the

production process.