How To Control The Ouality Cost in Production Cycle
1. Identify and describe the four types of quality costs.
To understand quality costs, it is first necessary to understand
what is meant by quality. There are two types of quality: quality of design and
quality of conformance. Quality of design concerns quality differences that
arise for products with the same function but different specifications. Quality
of conformance,on the other hand, concerns meeting the specifications required
by the product. Quality costs are incurred when products fail to meet design
specifications (and are, therefore, associated with qualityof conformance).
Quality costs are divided into four categories: prevention, appraisal, internal
failure,and external failure. Prevention costs are those incurred to prevent
poor quality. Appraisal costs are those incurred to detect poor quality.
Internal failure the acceptable quality level. AQL is the level at which the
number of defects allowed minimizes total quality costs. The zero-defects view,
on the other hand, espouses total quality control. Total quality control maintains
that the conflict between failure andappraisal and prevention costs is more
conjecturethan real. The actual optimal level of defects is thezero-defect
level; companies should be striving toachieve this level of quality. Although
quality costsdo not vanish at this level, they are much lower than the optimal
level envisioned by the AQL view.
2. Prepare a quality cost report, and differentiate between acceptable quality level and the view espoused by total quality control
A quality cost report is prepared by listing costs for each item within each of the four major quality cost categories. There are two views concerning the optimal distribution of quality costs: the AQL view and the zero-defects view. The AQL view holds that there is a trade-off between costs of failure and prevention and appraisal costs. This tradeoff produces an optimal level of performance called the acceptable quality level. AQL is the level at which the number of defects allowed minimizes total quality costs. The zero-defects view, on the other hand, espouses total quality control. Total quality control maintains that the conflict between failure and appraisal and prevention costs is more conjecture than real. The actual optimal level of defects is the zero-defect level; companies should be striving to achieve this level of quality. Although quality costs do not vanish at this level, they are much lower than the optimal level envisioned by the AQL view.
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