SUBDOMAIN 304.1 – QUALITY MANAGEMENT
Competency 304.1.3: Cost-Quality Relationship – The graduate understands the relationship between costs and quality.
Objective 304.1.3-04: Given the necessary data, calculate the costs of customer dissatisfaction.
You are employed by a firm that produces tangible products. These products are then sold to a consuming populace that is unaffected by place, income, sex, race, age, or any environmental concerns. These products are acquired and used across the spectrum of consumers.
Prepare a memo (1-3 pages) to your supervisor that addresses the following:
Identify the three types of costs when quality considerations are made.
Explain each of these types of costs using examples.
Evaluate the three types of costs considering the trade-offs within manufacturing a product and/or producing a service.
Note: When using sources to support ideas and elements in a paper or project, the submission MUST include APA formatted in-text citations with a corresponding reference list for any direct quotes or paraphrasing. It is not necessary to list sources that were consulted if they have not been quoted or paraphrased in the text of the paper or project.
Note: No more than a combined total of 30% of a submission can be directly quoted or closely paraphrased from sources, even if cited correctly. For tips on using APA style, please refer to the APA Handout web link included in the General Instructions section.
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