ENTREPRENEURIAL OPERATIONS
QUALITY CONTROL
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Product is not fit for purpose.
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Loss of sales.
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Increased costs due to more wastage.
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Cheaper for the business
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Detailed explanation-1: -COPQ is broadly categorized into three costs – 1) Due non-conformities, 2) Due lost sales and 3) Due inefficient processes. When companies refer to these costs, they’d stick with these categories or look at four categories—Internal Failure Cost, External Failure Cost, Appraisal Cost and Prevention Cost.
Detailed explanation-2: -The cost of quality can be divided into four categories: prevention cost, appraisal cost, internal failure cost, and external failure cost.
Detailed explanation-3: -Poor quality can have several business-related consequences. The most common are lost customers, lower productivity, and increased costs. In some cases, poor quality can also lead to product liability claims. In some cases, poor quality can also lead to legal action against the manufacturer or supplier.