Quality Costs for Consideration Essay

Our firm is the manufacturer of tangible proceedss. We, as a comp all, must keep in line that we argon delivering the higher(prenominal)est spirit products to our clients to prevent a prime(prenominal) reputation and in order to earn subscribe to over and referral business. We lease identified the collar types of be associated with the capital punishment of superior considerations. We believe that if we be mindful of the pursual be our whole tone leave alone improve, our customer enjoyment will improve and our business will prosper. The three types of constitutes associated with whole tone considerations ar prevention cost, estimation costs, intragroup and external adversity costs. Prevention costs be the most effective way to head off unnecessary problems with production and sales quality. These costs are defined as any steps we as a company can take to pre-emptively subdue any future defects by providing our employees with things such as, kosher as wel lls to complete their assigned work, safe and proper work conditions, proper and effective cookery of only youthful employees and continual training and education for all exist employees, and by weaponing quality control systems to ensure all products produced are up to the companys and customers quality standards. estimate costs are the costs associated with the testing and inspection of purchased materials used in the productions process, inspection of the items the company is producing, checking items produced for conformance, quality control audits and knit stitch testing of items produced and the cost of the labor associated with all of these items. These costs are ultimately the quality costs conclusioning from quality control and while they may be high in numbers but are commanding during the manufacturing and production processes. Internal failure costs are the costs that we would incur should we fail to meet the quality standards of the products we produce. These c osts encompass everything from the manufacturing of a bad product to the downtime go outing from a quality assurance problem. Scrap materials, high-risk and rejected products are some example of internal failure costs incurred from a lack of quality assurance.External failure costs are the result of internal failure costs that somehow fly recognition and end up with our customers. These costs are warranty repairs and replacements, lawsuits from spoilt or dangerous products, a loss of referral and repeat business as a result of a battered reputation and any recalls the company may have to endure because of amiss(p) quality assurance these costs will unavoidably cause the most damage as our defective products have reached the product and that is where the problem is realized. The time, money and safari needed to overcome an external failure cost is astronomical and can even become a threat to the companys very existence. An military rating of these costs allows us to analyze t he trade-offs for each and why it is so important for us, as a company, to maintain high quality control standards.Preventative costs may be substantial to the company during the sign implementation period because the company may have to update equipment or hire appropriate training managers for our employees but we believe that if we implement these preventative measures the benefits will far outweigh the costs for the company. The trade-offs if we decide non to take preventative measures we will be opening night our processes up for internal failure which will result in lost time, wasted product and disquieted customers from late deliveries. We believe this cost will hit our employees morale and increase our costs overall for the reasons stated above which will deteriorate our margin.Appraisal costs may be numerous in the manufacturing industry and during the production process but the tradeoff for non implementing these appraisal costs is far too great to accept from a co st, benefit perspective. The tradeoffs for not implementing these costs are the use of bad mad materials during production resulting in poorly produced items, products that are not uniformly produced defective products which will ultimately be returned or worse cause harm to the allocator or even customer. We would lose business, lose referrals and maybe even lose suppliers if we do not implement appraisal procedures and we, as a company cannot sacrifice liabilities that would be a direct tradeoff for not implementing appraisal costs. Internal and external costs, we believe, can be the end of the company if we do not take preventative action now.We leave ourselves open for judicial proceeding from faulty products that reached our customers and were injured, the cost of recalling faulty merchandise which requires us to pay for shipping and to replace any defective product that we sold. We also open ourselves up for existence ridicule and loss of repeat and referral business from a battered reputation. For all these reasons we believe that the company necessarily to act now to implement a quality control system, implement preventative measures starting at the training phase of our new employees and monitor our turnout carefully by auditing our processes and products regularly to help us avoid internal failure and external failure costs as a company.