fullbrazerzkidai.blogg.se

Gearcity lower production cost
Gearcity lower production cost










The quality is unrivalled and I feel quite safe that I’m practically guaranteed (term is used lightly) good quality, unspoiled and unmarked foods when using a HACCP controlled food store. My personal experiences dealing with food stores using HACCP and food stores that don’t use HACCP are like night and day.

gearcity lower production cost

HACCP can be summarised as food quality management “through the analysis and control of biological, chemical and physical hazards from raw material production” (FDA, 2011). Control the new processes and maintain performance and quality levels.Īnother popular quality assurance protocol is HACCP (Hazard Analysis & Critical Control Points) used in food safety (FDA, 2011) in countries like the US, UK and for certain food stores here in South Africa (eg: Woolworths).Improve the processes by modifying and/or redesigning them.

gearcity lower production cost

  • Analyse the collected data and ensure the results are repeatable as well as reproducible.
  • Measure processes and collect data on the processes.
  • Maintaining the idea of the customers definition of quality
  • Define the purpose, scope and outputs and required processes.
  • To outline the processes behind Six Sigma, very broadly, we can consider them as follows (Heizer & Render, 2009) Six Sigma was developed by Motorola in the 1980s to deal with consumer complaints and increasing competition. One of the popular methodologies behind quality management is Six Sigma, which has the goal of “flawless performance” (TechRepublic, 2003). Heizer & Render also point out that poor quality delivery can also result in injuries, lawsuits, and increasing government legislation (which can be costly if processes are required by law). In the cases where a warranty/guarantee is not available the lower quality will potentially damage the reputation of the organisation, which can end up in lost return and future customers.

    gearcity lower production cost

    If products are faulty or defective then consumers will return products which need to be repaired or replaced. Another example provided by Heizer & Render (2009) show how Mercedes Benz’ lack of focus on quality led to a $600 million cost to company spent on warranties for faulty parts in their vehicles in a single year.įortunate to the consumer and perhaps not so fortunate to the organisation is that products and services can and generally are required to carry some sort of warranty or guarantee (such as the Consumer Protection Acts in many different countries – Wikipedia, 2011). Heizer & Render (2009) go on to show an example of General Electric’s recall of 3.1 million dishwashers due to a defective part, this recall ended up costing GE more than the value of all the washing machines. The costs involved in recalling, refunding and/or replacing the product or service.

  • External costs – similar to the situation above, usually a defective product or part of a product which occurs after the sale of the product or service.
  • The product/service then needs to be scrapped or reworked. The internal aspect is that this is when the defective/failed product is detected before delivery to the customers.
  • Internal failure – this is when a product or service is produced and fails or is defective.
  • These appraisals can include, but aren’t limited to: product testing, product/service inspectors, quality assurance labs etc.
  • Appraisal costs – the costs of “quality testing” the products produced.
  • Prevention costs – training your staff to perform their tasks better and having programs to educate staff on improving quality.
  • Heizer & Render (2009) outline the costs of quality, or rather the costs that can occur if you have poor quality, as follows: To explain the details behind this idea we should look at the details behind quality.

    gearcity lower production cost

    The answer to how higher quality can lead to lowered costs may seem fairly obvious.












    Gearcity lower production cost