- 10 Marks
BMIS – May 2019 – L1 – Q3b – Operations strategy
Explain the costs associated with producing quality products in reference to the four types of quality cost.
Question
Quality Management is a prerequisite for every industrial concern. Producing high-quality products as opposed to poor-quality products is a preferred option when it comes to determining demand for goods and services. However, some argue that producing higher-quality output increases costs, as more expensive resources are likely to be required to achieve a higher standard. Others argue that poor-quality output will lead to customer dissatisfaction, which generates costs associated with complaint resolution and loss of revenue as customers move to competitors.
Required:
In reference to the FOUR (4) types of quality cost, explain the costs associated with producing quality products. (10 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Cost Management, Operations Strategy, Production, Quality Management
- Level: Level 1
- Topic: Operations strategy
- Series: MAY 2019