The cost of quality is a technique for estimating the expenses businesses spend to ensure that their products satisfy regulatory standards, including the costs of manufacturing items that do not. The objective of cost of quality calculation is to better understand how quality affects the company’s financial performance. In general, the cost encompasses all expenses connected with a product’s quality. Additionally, it includes preventative expenditures aimed at minimizing or eliminating failures, operational management costs to sustain quality standards, and the expenses of external and internal mistakes.
The cost of quality is composed of the organization’s expenses that influence the final production process and contribute to forming the features of the goods. Considering the particular examples, the administrative salaries were the first cost I experienced. It means the employees’ wages contribute to production, quality inspection, and sales processes. An organization needs to make payments to the people who are responsible for the final features of the goods and services. The second personal instance is the warranty claims expense utilized to compensate the manufacturer, the importer, the dealer, and the end consumer for various service agreements. The warranty claim is used in order to receive reimbursement payments from the producer for warranty and service repairs that result from manufacturing defects.
The online article that was selected for the assignment was written as a description of the key concepts of Project Quality Management. It is a system that verifies whether all the project-related actions are efficient and effective in terms of their scope and outcomes. The text contains substantial knowledge, for instance, the explanation of differences between grade and quality, which ordinary people often tend to confuse (What is Project Quality Management? 2021). The text is relevant to becoming better Project Managers since it provides readers with important improvement points, for example, customer satisfaction rate and the need to consider prevention measures before the inspection procedures.
Reference
What is Project Quality Management? (2021). Academy for International Modern Studies.