CH 2 Quality Costs by https://padlet.com/nurulsuhaida1612/Bookmarks SUHAIDA’s Creation en-us 2022-03-23 02:09:32 UTC 2026-01-11 16:29:28 UTC hello@padlet.com 1. Maximizing cost nurulsuhaida1612 https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108790219 Profit = ( Price - Costs ) x Volume
3 ways to maximising profit
  1. Increase Price
  2. Increase Volume
  3. Reduce Costs
]]> 2022-03-23 02:29:02 UTC https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108790219 2. Quality Cost nurulsuhaida1612 https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108803315 Any cost incurred in order to ensure the perfect quality of product/service. 
  1. portion of operating costs caused by low quality of service/product.
  2. includes the costs associated to prevent poor quality
Benefits of defect free ( activity performed w/o defect every time )
  • Less wasted material
  • Lower warranty materials
  • Reduce scrap/ rework costs
  • Decreased production costs
  • Faster cycle time
If all benefits defect free were worked : 
  1. Lower total cost
  2. Higher company revenue
  3. More competitive pricing
]]> 2022-03-23 02:37:08 UTC https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108803315 3. QUALITY COST ( Visible VS Hidden ) nurulsuhaida1612 https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108813045 VISIBLE
  • Warranty
  • Rejects
  • Reworks
  • Inspection
  • Scrap
HIDDEN
  1. Lost Sales
  2. Late Delivery
  3. Lost Customer Loyalty
  4. Expiditing Costs
  5. Excessive Material Orders/Planning

]]> 2022-03-23 02:43:34 UTC https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108813045 4. EXAMPLE QUALITY COSTS nurulsuhaida1612 https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108817120
  • Responding to warranty claim
  • Retrieving lost baggage
  • Responding to customer’s claim
  • Redesigning a faulty component that never worked right
  • Repurchasing because of non-conforming material
    • ]]>     2022-03-23 02:46:24 UTC https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108817120     5. TYPES QUALITY COSTS nurulsuhaida1612 https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108820514 COST OF GOOD QUALITY
    • PREVENTION COSTS
    • APPRAISAL COSTS
    COST OF POOR QUALITY
    • INTERNAL FAILURE COSTS
    • EXTERNAL FAILURE COSTS
    ]]>     2022-03-23 02:48:33 UTC https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108820514     6. nurulsuhaida1612 https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108831914 Prevention Costs
    Costs of performing activities to prevent poor quality in products/services
    Eg; process design review, education & training, supplier selection & capability review, process capability review
    Prevention is need to determine root of causes problem & eliminate it. So, reoccurance don’t happen.

    Appraisal Costs
    Associated with measuring, evaluating @ auditing products/service to ensure they conform to specifitcations
    Eg; Inspection of incoming material, Work in Progress & Final Goods, Material Reviews, Calibration measurement, Testing Equipment
    Appraisal is necessary in environment where quality problems on product, service, process are found. ]]>     2022-03-23 02:56:22 UTC https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108831914     7. FAILURE COSTS nurulsuhaida1612 https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108838607 DEF ; Incurred when completed peoduct/service does not confirm to cust requirement.
    • Internal failure ( scrap, reject, rework )
    bfr product is shipped@service is provided to cust
    • External failure ( warranty claims, customer complains, product recall )
    after product is shipped/service is provided to customers

    1-10-100 RULE
    PREVENTION COSTS - APPRAISAL COSTS - FAILURE COSTS
    ]]>     2022-03-23 03:00:53 UTC https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108838607     8. INTANGIBLE COSTS nurulsuhaida1612 https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108843552 The Hidden Costs associated w providing a non-conforming product/service to cust. It involves company’s image.
    Can be greater than tangibe quality costs

    Eg:
    • lost of cust loyalty
    • lost of sales
    • rush delivery costs
    ]]>     2022-03-23 03:04:07 UTC https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108843552     9. TOTAL QC nurulsuhaida1612 https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108847290  Total Qc = Prevention + Appraisal + Failure + Intangible

    once quantified, qc enhance decision mking : projects will allow for greatest return on investment & most effective at lowering qc]]>     2022-03-23 03:06:37 UTC https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108847290     10. CUSTOMER-BASED ORGANIZATION nurulsuhaida1612 https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108863546 The disasters happened, bcs of breakiny cardinal quality rule such as to reduce cost, problematic of raw material, failure of product. 
    So, CBO is to understand internal & external cust    ]]>     2022-03-23 03:17:40 UTC https://padlet.com/nurulsuhaida1612/Bookmarks/wish/2108863546