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Kraft: Cost of Quality

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Apply the concept of the cost of quality to Kraft Foods. Do research on Kraft P3 (Protein)product line. Discuss how the company utilizes the cost of quality concept.

Find relevant and recent information about Kraft Foods company. The quality problems it's experiencing, the costs of poor quality that occurred, or what it did to eliminate poor quality and implement good quality and the ensuing cost changes.

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Step 1
The cost of quality refers to the cost of not creating a quality product or service. Any cost that would not have been expended if quality were perfect contributes to the cost of quality. From the arithmetical point of view quality costs are the sum of failing to comply with requirements, appraising the product for conformance to requirements, and investing in prevention of non conformance to requirements. Specifically, the cost of quality includes prevention costs, appraisal costs, internal failure costs, and external failure costs.

Step 2
P3 is an Oscar Mayer product from Kraft. This is a three compartment snack pack that is a combination of cheese, meat, and nut. The three compartment ...

Solution Summary

This solution explains cost of quality for Kraft. The sources used are also included in the 422-word solution.