Question

Answer all Five Questions. Show All your work for full marks Total Marks: 50 Question a. [3 marks] Describe 3 ways of how the ost of production can be reduced by implementing a good quality control process in manufacturing industry snsaharacteristic with

Answer 1

We can discuss about three ways of how the cost of production can be reduced by implementing a good quality control process -

1. Increase production equipment efficiency —

Preventive maintenance improves the quality of the equipment’s output since some quality issues are caused by equipment that goes out of spec (e.g. worn tools).

But preventive maintenance also improves the machines’ uptime, and thus reduce operating costs per produced unit.hence a good quality control process can reduce the cost.

2. Reduce external failures —

By “external failures” I mean quality issues that result in customer chargebacks, lost business, lawsuits, poor reputation, etc. In short, all the negative consequences related to shipping a substandard product to a customer.

In aggregate, those failures are extremely expensive and a good quality control makes this less probable, resulting a less production cost.

3. Reduce internal failures —

What is an “internal failure”? A quality issue that is found and corrected before the goods are delivered to a customer.

Such issues can also be quite expensive, but usually less so than external failures. Associated costs include sorting a batch and correcting it, throwing material out after it was processed, last-minute changes in the production plan, delays for other orders, etc resulting a higher cost of production. A good quality control process can reduce this cost.