memo QHT1-Task 1
To: Mr.
From: D
CC: Recipient names
Date: Jan
Re: Business Management Tasks
Comments:
Dear Mr. Jones, when taking into consideration quality control, I have identified three types of associated costs; appraisal cost, prevention cost and failure cost (Stevenson, 2018, p. 385-386).Appraisal cost is the cost associated with ensuring quality or to reveal defects; this involves investing to achieve a good quality product. The costs include inspectors, testing, quality audits, the interruption of production to take samples, field testing and test equipment (Stevenson, 2018, p.385).The time and cost associated with appraisal is a trade-off; for example, equipment maintenance will have positive outcomes such as fewer equipment breakdowns, more accuracy, possible increased capacity, and higher quality output. Equipment maintenance will also have negative outcomes however, such as the cost of the maintenance, downtime, and possible missed delivery dates. Inspections will also be a trade-off. In exchange for interruptions to processes and delays caused by inspection, we will have less defects going undetected and a better overall product that meets or exceeds the expectations of our customers.Prevention cost is the cost associated with attempting to prevent defects from happening in the first place. Those costs include working with vendors, training employees, quality control procedures, quality improvement programs, extra attention in the design and production phases and data collection and analysis (Stevenson, 2018, p. 386). Training employees is an important prevention tool that will initially cost us time and money in the form of loss of production while the employees are in training, but it is worth the investment over time because it will result in properly trained employees. A properly trained employee is more likely to produce quality work and less likely to injure themselves.Failure cost is the cost associated with defective or faulty products which can
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