Operations Management and Student CD
Operations Management and Student CD
11th Edition
ISBN: 9780133408010
Author: HEIZER, Jay, RENDER, Barry
Publisher: Prentice Hall
bartleby

Concept explainers

Question
Chapter 6, Problem 1DQ
Summary Introduction

To determine: The way quality can reduce the cost.

Introduction:

Quality is a state of performance, and the excellence of a product or service differentiates it from the competitors’ products.

Expert Solution & Answer
Check Mark

Explanation of Solution

Determine the way quality can reduce the cost:

Improving quality leads to reduced costs in the following ways:

  • Higher quality means less rejection, scrap, or rework. Therefore, there are savings with improved quality in terms of material costs and labor costs, besides better utilization of machinery and other capital assets.
  • Poor quality also leads to customer dissatisfaction, customer complaints, and warranty costs, besides the impairment of the company’s brand image. All these add to the costs in significant ways. Improving quality will save such costs.
  • Higher quality improves the company’s image in the market, contributing to the increase in the market share. It becomes easier to sell and therefore marketing costs such as advertising, sales promotion, discounts, and so on can be reduced.
  • Higher quality and consequently increased market share also increase the production volumes, resulting in scale economies. Consequently, the portion of fixed costs in the unit cost comes down significantly.
  • The good quality image also helps in not only attracting the talented people in the organization, but also in retaining them. Recruitment costs would come down, besides salary costs. Talented employees would be proud that they are on the payrolls of a quality conscious organization.
  • Improved quality also enhances the company’s image with the investors, financial institutions, and so on, resulting in lower costs of raising finance.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Describe the relationship between quality and costs. How does improving quality reduce costs and increase profit?
Explain and give examples of the costs associated with quality?
Explain and understand tools that can be used to detect and correct quality problems?

Chapter 6 Solutions

Operations Management and Student CD

Ch. 6.S - Prob. 11DQCh. 6.S - Prob. 12DQCh. 6.S - Prob. 13DQCh. 6.S - Prob. 14DQCh. 6.S - Prob. 15DQCh. 6.S - Prob. 16DQCh. 6.S - Prob. 17DQCh. 6.S - What does the formula L = D2C mean?Ch. 6.S - Prob. 19DQCh. 6.S - An avant-garde clothing manufacturer runs a series...Ch. 6.S - Prob. 2PCh. 6.S - Prob. 3PCh. 6.S - Prob. 4PCh. 6.S - Kathleen McFaddens restaurant in Boston has...Ch. 6.S - Develop a flowchart [as in Figure 6.6 (e) and...Ch. 6.S - Prob. 7PCh. 6.S - Prob. 8PCh. 6.S - Prob. 9PCh. 6.S - Prob. 10PCh. 6.S - Prob. 11PCh. 6.S - Prob. 12PCh. 6.S - Prob. 13PCh. 6.S - Prob. 14PCh. 6.S - Prob. 15PCh. 6.S - Prob. 16PCh. 6.S - Prob. 17PCh. 6.S - Prob. 18PCh. 6.S - Prob. 19PCh. 6.S - Prob. 20PCh. 6.S - Prob. 21PCh. 6.S - Prob. 22PCh. 6.S - Prob. 23PCh. 6.S - Prob. 24PCh. 6.S - Prob. 25PCh. 6.S - Prob. 26PCh. 6.S - Prob. 27PCh. 6.S - Prob. 28PCh. 6.S - Prob. 29PCh. 6.S - Prob. 30PCh. 6.S - Prob. 31PCh. 6.S - Prob. 32PCh. 6.S - Prob. 33PCh. 6.S - Prob. 34PCh. 6.S - Prob. 35PCh. 6.S - Prob. 1CSCh. 6.S - Prob. 2CSCh. 6.S - Prob. 1.1VCCh. 6.S - Prob. 1.2VCCh. 6.S - Prob. 1.3VCCh. 6.S - Prob. 2.1VCCh. 6.S - Prob. 2.2VCCh. 6.S - Prob. 2.3VCCh. 6.S - Prob. 2.4VCCh. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQCh. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Prob. 13DQCh. 6 - Prob. 14DQCh. 6 - Prob. 15DQCh. 6 - Prob. 16DQCh. 6 - Prob. 17DQCh. 6 - What does the formula L = D2C mean?Ch. 6 - Prob. 19DQCh. 6 - An avant-garde clothing manufacturer runs a series...Ch. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Kathleen McFaddens restaurant in Boston has...Ch. 6 - Develop a flowchart [as in Figure 6.6 (e) and...Ch. 6 - Prob. 7PCh. 6 - Prob. 8PCh. 6 - Prob. 9PCh. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - Prob. 17PCh. 6 - Prob. 1CSCh. 6 - How could the survey have been more useful?Ch. 6 - Prob. 3CSCh. 6 - Prob. 1.1VCCh. 6 - Prob. 1.2VCCh. 6 - Prob. 1.3VCCh. 6 - Prob. 1.4VCCh. 6 - Prob. 2.1VCCh. 6 - Prob. 2.2VCCh. 6 - Prob. 2.3VCCh. 6 - Prob. 2.4VCCh. 6 - Prob. 2.5VC
Knowledge Booster
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Recommended textbooks for you
  • Practical Management Science
    Operations Management
    ISBN:9781337406659
    Author:WINSTON, Wayne L.
    Publisher:Cengage,
    Operations Management
    Operations Management
    ISBN:9781259667473
    Author:William J Stevenson
    Publisher:McGraw-Hill Education
    Operations and Supply Chain Management (Mcgraw-hi...
    Operations Management
    ISBN:9781259666100
    Author:F. Robert Jacobs, Richard B Chase
    Publisher:McGraw-Hill Education
  • Business in Action
    Operations Management
    ISBN:9780135198100
    Author:BOVEE
    Publisher:PEARSON CO
    Purchasing and Supply Chain Management
    Operations Management
    ISBN:9781285869681
    Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
    Publisher:Cengage Learning
    Production and Operations Analysis, Seventh Editi...
    Operations Management
    ISBN:9781478623069
    Author:Steven Nahmias, Tava Lennon Olsen
    Publisher:Waveland Press, Inc.
  • Practical Management Science
    Operations Management
    ISBN:9781337406659
    Author:WINSTON, Wayne L.
    Publisher:Cengage,
    Operations Management
    Operations Management
    ISBN:9781259667473
    Author:William J Stevenson
    Publisher:McGraw-Hill Education
    Operations and Supply Chain Management (Mcgraw-hi...
    Operations Management
    ISBN:9781259666100
    Author:F. Robert Jacobs, Richard B Chase
    Publisher:McGraw-Hill Education
    Business in Action
    Operations Management
    ISBN:9780135198100
    Author:BOVEE
    Publisher:PEARSON CO
    Purchasing and Supply Chain Management
    Operations Management
    ISBN:9781285869681
    Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
    Publisher:Cengage Learning
    Production and Operations Analysis, Seventh Editi...
    Operations Management
    ISBN:9781478623069
    Author:Steven Nahmias, Tava Lennon Olsen
    Publisher:Waveland Press, Inc.