Supervisory Total Quality Cost

Supervisory Total Quality Cost

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Deming and Crosby’s view on cost associate with a lost customer

Quality cost is mainly used to measure how the investments have been achieved whether effective or ineffective. According to Crosby’s views, the quality cost is free associated with the lost customer. According to Deming, organizations measure only the quality cost of the things that are very easy to measure and ignore the other tasks. Deming’s view can lead to poor estimation of the cost of lost customers because they only consider the easy quality cost if they do it. The problems may not be addressed if quality cost is not done for all the measurements. Deming explained the cost that comes from the lost customers as external failures. Deming said that the costs coming from the lost customer are called unknown and unknowable because most of the organizations do not quantify the quality cost. On the other hand, Crosby views are totally against Deming’s views as he considers all the costs measurable and effective in an organization. Crosby explained further the external failure cost by saying that, those who do not include all the measurements are wrong since every quantity is important (Gregory et al. 2009).

Different between Taguchi’s ideas about quality cost and traditional view

Taguchi’s ideas are totally different from traditional view whereby he is focused on using designed experiments approach. This approach is used to identify and control all the external and internal factors which lead to variation on the costs. As a measure of quality process, he is focused on establishment of the signal-to –noise ratio. Taguchi’s view used the robust design whereby the condition of a product remains constant with the variations. This view states that when the product has high quality at the beginning, it will then have lower cost at the end or if used for long time. Dr. Taguchi emphases are on the use of process design whereby the higher quality of the products would result to greater investments. This thought differs from the thought that in order to make improvement on the quality of the product; the cost of the same product must go up. The traditional views are different from Taguchi’s views whereby the manufacturing of the product means that there should be higher cost of the product. The creation of the product is seen as generation of higher cost of the same product (John et al. 2009).

References

Victor E. Sower, John Wiley & Sons. (Inc., 2009). PRFS 4433 Essentials of Quality,, ISBN #: 9780470509593

Neely, A., Gregory, M., & Platts, K. (2009). Performance measurement system design: a literature review and research agenda. International journal of operations & production management, 15(4), 80-116.