|Tangible LLC|
Memo
To:|Mr. John Williams|
From:|
cc:|Cost-Quality |

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Mr. Williams, Tangible LLC prides itself on providing products to better the lives of the consumers while reducing the cost associated with the products within the company. When producing said products, it is to the upmost concern that Tangible LLC keeps the cost of quality to a minimum to maximize profits while maintaining a competitive advantage within the market. Expenses associated with quality in our current line of products contain the following three types of costs. · Appraisal · Prevention · Failures (Internal/External) Appraisal is the cost associated with the testing, inspection, audits of quality, and verification of our products. The appraisal cost ensure that products are tested and inspected to the standards agreed upon in compliance with company standards to provide the most durable cost efficient products available for our consumers. These costs occur after production to make sure products meet specifications and achieve satisfaction with our customer’s evaluation of purchased products. In order to reduce our appraisal cost, we could hire a supervisor for our quality inspection staff to ensure our products are being tested to meet company standards. This would increase our cost by adding another management position to our staff however the trade- off would be fewer mistakes in the inspection department leading to an increase in productivity which would reduce cost during the appraisal cost stage of production.
Prevention is a cost that arises before production of our products to prevent and/or avoid quality concerns before the product is made. The cost can be associated with selection of raw materials to ensure that we are producing the highest quality within our design to comply with company standards. Maintaining our production lines and adequate