Quality cost analysis of important knowledge of CMA
1, prevention expenses, expenses incurred before the start of production in order to prevent the occurrence of defective products. Specifically including:
(1) Staff training;
(2) Maintenance of production equipment;
(3) Evaluate suppliers;
(4) Establish a quality information system;
(5) Improve the design and production process;
(6) Quality team.
2. Appraisal expenses incurred in order to check the quality in the production process. Specifically including:
(1) Quality inspection equipment purchase fee;
(2) Conduct quality inspection activities to test the cost of products and finished products.
3. Internal error costs, related to defective products, occur after the end of the production process. Specifically including:
(1) Rework and recheck the defective products;
(2) rushing to work;
(3) Opportunity cost caused by limited resources.
4. External error cost, related to defective products, occurs after sale. Specifically including:
(1) Repair or replace defective products;
(2) handling customer investment;
(3) product recall or legal liability;
(4) the corresponding opportunity cost.
Example: Which of the following has nothing to do with the external failure cost?
A. Loss of sales and customers
B. Product field testing
C. product quality litigation
D. Policy liabilities
Answer: b
Answer analysis: Option A is incorrect. The losses of sales and customers are external failure costs.
Option b is correct. External failure cost refers to the cost caused by quality problems after delivery to customers. Such as customer complaints, returns, product recovery and warranty responsibility. On-site testing of products belongs to the cost of testing/evaluation.
Option c is incorrect. Product quality litigation belongs to external failure cost.
Option d is incorrect. Warranty liability is an external failure cost.