Question

In a Cost of Quality analysis, "failure costs" refers to:

a. Costs of not considering customer needs
b. Costs of not achieving goals
c. Costs associated with defects
d. Costs associated with mistakes

Answer 1

In a Cost of Quality analysis, "failure costs" refers to the costs associated with defects. These costs include expenses related to identifying and fixing defects, as well as any costs incurred due to the negative impact of defects on customer satisfaction and company reputation.

Step-by-step explanation:

In a Cost of Quality analysis, "failure costs" refer to the costs associated with defects. These costs include expenses related to identifying and fixing defects, as well as any costs incurred due to the negative impact of defects on customer satisfaction and company reputation.

For example, if a company produces a batch of products with defects, the cost of reworking or replacing those products is considered a failure cost. Additionally, the cost of handling customer complaints and providing refunds or compensation falls under failure costs.

Identifying and reducing failure costs is an important aspect of quality management, as it helps organizations improve their products and processes to better meet customer needs and goals.