QHT1: Business Management Tasks
Task 1: 304.1.3-04 2015

interoffice memorandum to: | Supervisor of XYZ Inc. | from: | | subject: | Quality consideration costs | date: | September 1, 2015 | | | | |
Looking over our products, there are three types of costs to utilize when quality considerations are made. These consist of appraisal, prevention, and failure costs.
To ensure and achieve good quality and fix any defect before our product reaches the consumer, we must consider appraisal costs. Appraisal costs include the measuring and evaluating of our products to assess compliance with standards. The costs of measuring and evaluating will come from inspections (which will also include the inspectors to conduct the inspections), and testing, which will include the equipment to conduct tests, labs, quality audits, and field testing. Importantly, appraisal costs have the potential to significantly lower any future failure costs that may be incurred. The trade-off for the cost of taking the time and effort to inspect, audit, and conduct field testing will give viable information for not only the company but to the consumer as well that we produce and believe in quality products; resulting in a higher return of quality.
To prevent the possibility of defects occurring we must invest in prevention costs. These costs will ultimately aid in consumer satisfaction and decrease products returned on account of defective workmanship by paying an exuberant amount of attention towards the design and production phases. In order to do this, we must work with vendors, administrative systems, and take the time and effort to plan, train, and educate more people on quality control procedures. The trade-off of this investment will ensure and enrich the company’s culture of quality satisfaction, resulting in a decrease of returned products, higher