Overview of Quality Systems and Costs

The cost of quality in a manufacturing process and environment are many as you are aware. But the 3 primary costs that we should review on a more regular basis to assure we are creating the most cost effective and quality products are the following: Appraisal, Prevention and Failure, and failure costs should be looked at as internal failure and external failure.

Product production comes with many types of costs. Four of the most common costs are prevention costs, appraisal costs, internal failure costs and external failure costs. These four costs are called quality costs and are costs that all businesses that produce products will pay. The amount of money that will go to each cost is dependent on the amount spent on the other costs. In other words, an increase in one type of cost can result in a decrease in another. Businesses need to understand the nature of each cost in order to understand for which cost to budget.

However, if the cost of “perfection” is so expensive that the company cannot be profitable, it is not realistic to spend too much on a zero defect mindset. Instead the company must first identify what an acceptable percentage of defects is and where the defect could have been prevented. Then the company can further quantify which cost of quality is presenting the greatest risk and put procedures and policies in place in an attempt to minimize defects. Since prevention costs many times are considered the least expensive and can have the biggest affect on non-conforming products most companies will focus its initial and largest efforts into prevention. The next initiative would be appraisal and last would be identifying

While we are performing our analysis on different aspects of the company, we look at the three main types of cost. When we remain devoted to improving our costs, and the faults related, we show our same devotion to our consumers. This is portrayed by the quality of products we put on the shelves. Prevention costs, appraisal costs and Failure costs are areas

The first type of cost when quality considerations are made are appraisal costs. Appraisal costs are the costs of activities that are designed to ensure quality or expose the defects with a product or service. Appraisal costs include, but are not limited to, inspection

Berry, L. L. (2000). Cultivating service brand equity. Journal of the Academy of Marketing Science, 28(1), 128-137. Retrieved from http://link.springer.com/article/10.1177/0092070300281012

Question 2. 2. (TCO G) Explain the concept of the cost of quality model and then link your explanation to how quality can be defined by organizations. What are some advantages and disadvantages of the cost of quality model? This answer must be in your own words—significant cut and paste from the text or other sources is not acceptable.  (Points : 30)

The nurse is challenged with the care of patients over a lifespan. Each stage of life brings its own physical and emotional changes which directs the care needs. The care needs of the pediatric patient will be much different from the needs of the geriatric population. The geriatric population has very specific needs which has prompted the government to establish the Quality Assurance & Performance Improvement (QAPI) program. The QAPI provides the framework for nursing facilities to develop and implement changes which address deficiencies the facility was found to have. Also, the QAPI program requires practices and policy be put in place to monitor care of the residents. The purpose of this paper is to list some of the changes the elderly go through as they age, and demonstrate these changes in a quality improvement project. After review of literature, I will discuss the challenges, barriers, and solutions as related to quality improvement. Lastly, I will discuss the quality of care for the geriatric in the future.

The AHRQ organization has several portfolios’ that are funded and supports research projects. Such portfolios are information technology, health patient safety, prevention and care management, and value portfolios. Within these portfolio’s, grants are there to fund new projects that relate to each category. Within each portfolio, research has been started and effectiveness of these projects is underway. Some clinical research projects are a set of priority conditions of importance to the Medicaid, Medicare, and SCHIP programs. Projected initiatives are to improve quality of care. The Value portfolio finds ways to reduce unnecessary cost and waste while maintaining or improving quality without adding cost which is a critical, national need (2012, p.5).

I would like to bring to your attention three types of costs when quality considerations are made here at Acme Catsup Company. The first costs would be our failure costs. The second would be our appraisal costs. The third is the cost of prevention.

After the interview with my nurse manager, I came up with the PICO question which states: “Does the computerized physician order entry (CPOE) system reduce the number of medication errors compared to the common paper system being used today?” This question is important and I selected it because the population that the Belvoir Community hospital serves includes army officers of all ages both active and retired including their spouses and children. This group includes two sub groups of highly vulnerable persons which include the very young and the very old, who have a high-risk effect for medication errors because the potential adverse drug event is three times greater than an adult hospitalized patient (Levine et al., 2001). CPOE is not a panacea, but it does represent an effective tool for bringing real-time, evidence-based decision support to physicians. Nurses are the last defense level of protection against medication errors, and are solely responsible for the dispensing, administering, and monitoring of medications. In healthcare, computers can be used to help facilitate clear and accurate communication between health care professionals. When using a CPOE system it allows physicians to type in prescriptions right into the device or computer which significantly lessens any mistakes that can occur when

iConsultant is committed to implementing appropriate quality management systems and processes to enable the delivery of the highest practicable quality products and services. Dyson Limited engaged iConsultant to strategize a total quality transformation for the company to overcome its current quality challenges and hone its competitiveness in the world market.

The system of quality is prevention: This is why management must take the concept of prevention very seriously because it reduces defects and it lowers cost. This absolute state that appraisal, checking and inspection is an expensive and unreliable way of getting quality. Prevention can be achieved if during production process opportunities for error are identified. Prevention can also be achieved using statistical quality control method. Crosby (1995).

Implementation of excellent quality comes with a cost. The company must decide if it is really worth compromising the quality for revenue. If the quality costs exceeds the expected revenue of the company then the company must abandon implementing quality control mechanism. If otherwise, the quality would contribute to the product value and hence the revenue.

ISO 9001 is a Quality management standard which is recognised internationally and used by organizations worldwide. It can be used by business of all sizes, it provides an effective quality management system. It was first published in 1987 (updated 1994, 2000, 2008). The latest version was published in 2015. This replaces all the previous editions. (Praxiom Group 2014)