Purchase Solution

Cost of Quality in a Service Industry

Not what you're looking for?

Ask Custom Question

List and describe the various aspects of the cost of quality. Choose a specific service, such as Banking, Restaurant, Retail, Health Care, etc.

Discuss how the cost of quality might be different in some aspects for this service organization compared to a manufacturing organization. Be sure to make a good argument for your position.

Enter your original response to this question. Support your response with evidence from the readings or other resources. It is not necessary to provide formal citations, but you should give the sources of your information.

BACKGROUND: Review these URLs for more information about Lean, the principles of lean and eliminating waste.

The five lean principles as well as some of the historical aspects:

Lean Enterprise Institute. (2009). Principles of Lean. Retrieved from http://www.lean.org/WhatsLean/

This website provides a good overview of Lean (from the UK viewpoint):

Leaning Forward. (2009). The 5 Lean Principles. Retrieved from http://www.leaningforward.co.uk/principles.htm

YouTube video about Lean Mfg:

Gemba Academy. (2009). Introduction to Lean Manufacturing. Retrieved from http://www.youtube.com/watch?v=ZdHGTCXcJQU

Value Stream Mapping and 5S.

YouTube video about Value Stream Mapping (VSM)

Society of Manufacturing Engineers. (2009). Mapping Your Value Stream. Retrieved from http://www.youtube.com/watch?v=K0fWw9QXk60&feature=related

YouTube video about 5S:

Gemba Academy. (2009). 5S Overview. Retrieved from http://www.youtube.com/watch?v=c0Q-xaYior0

How does Lean relate to Six Sigma?

Pyzdek, Thomas. (1999). Six Sigma and Beyond: Six Sigma and Lean Production. Retrieved from http://www.qualitydigest.com/jan00/html/sixsigma0100.html.

Purchase this Solution

Solution Summary

This solution explains cost of quality. The sources used are also included in the solution.

Solution Preview

Step 1
The different aspects of cost of quality are that is the amount of money a business loses because its product or service was not done right in the first place (a). An important aspect is that businesses lose money because of poor quality. One aspect of cost of quality is prevention costs. This is the cost incurred to prevent poor quality in products or services. The second aspect is appraisal costs (b). This is the cost incurred for measuring, evaluating or auditing products. The third aspect is failure costs. These are the ...

Purchase this Solution


Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)