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In Cost Of Quality concept, Internal Failure Costs means: Select one:

a. All costs associated with quality initiatives that help avoid defectsb. All costs associated with Inspecting materials at all stagesc. All costs associated with material / product failure with in the factory before it reaches the customerd. All costs associated with the product failure at customer place / field ater the product is sold

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تم إضافة السؤال من قبل Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG
تاريخ النشر: 2016/05/21
Omar Saad Ibrahem Alhamadani
من قبل Omar Saad Ibrahem Alhamadani , Snr. HR & Finance Officer , Sarri Zawetta Company

Thanks

I think it is (C). ..................................

MADAN MOHAN GAJULA
من قبل MADAN MOHAN GAJULA , Material Coordinator , Sadara Chemical Company

c. All costs associated with material / product failure with in the factory before it reaches the customer  ++++++++++

Sathish Prabhu.V
من قبل Sathish Prabhu.V , Manager - Operations & Process Improvement , Revolution Valves

Option C is the right answer.

All costs associated with material / product failure with in the factory before it reaches the customer

This cost is the internal failure cost which is either due to malfunctioning in the machine or by operator during processing of the product

Shameer Nazir Madari
من قبل Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)

Correct Answer is 

C. All costs associated with material / product failure with in the factory before it reaches the customer

 

The reason is Internal failure costs are incurred to remedy defects discovered before the product or service is delivered to the customer. These costs occur when the results of work fail to reach design quality standards and are detected before they are transferred to the customer.

vidya sagar burra
من قبل vidya sagar burra , Assistant Manager SCM , Gati Kintetsu Express Private Limited

option c ....................................................

Saiyid Maududi-Oracle Applications Consultant
من قبل Saiyid Maududi-Oracle Applications Consultant , Entrerprise Architect , US Technomatrix, Inc

Hello Team,

In process improvement efforts, quality costs or cost of quality is a means to quantify the total cost of quality-related efforts and deficiencies

Prior to its introduction, the general perception was that higher quality requires higher costs, either by buying better materials or machines or by hiring more labor. Furthermore, while cost accounting had evolved to categorize financial transactions into revenues, expenses, and changes in shareholder equity, it had not attempted to categorize costs relevant to quality, which is especially important given that most people involved in manufacturing never set hands on the product.[3]By classifying quality-related entries from a company's general ledger, management and quality practitioners can evaluate investments in quality based on cost improvement and profit enhancement.

Regards,

 

Saiyid

ghazi Almahadeen
من قبل ghazi Almahadeen , Project Facilitator , Jordan River Foundation

Thanks for the invite ............................ I think c

Mohammed  Ashraf
من قبل Mohammed Ashraf , Director of International Business , Saqr Al-Khayala Group

Several Wonderful answers are already here, but again I am selecting option "C"....