MGT510

Assignment No. 1

Answer No. 1: The cost of quality is the cost of NOT creating a quality product or service.
Study the topic thoroughly and identify the type of quality cost (Prevention, Appraisal, Internal
failure and external failure cost) in the given scenarios.

Description Type of cost

In a restaurant, customer returns the ordered food
because of bad taste. External Failure Cost

A manufacturing firm prepares for inevitable

disruptions by mitigating supplier capacity risks. Prevention Cost

The whole batch of medicine was rejected during

re-inspection. Internal Failure Cost

Calibration of measuring and test equipment in a

surgical manufacturing unit. Appraisal Cost

Managing corrective action due to nonconforming

products identified during an inspection. Internal Failure Cost

Customer perception survey to align the product

design with customer requirements. Prevention Cost

Answer No. 2: Read the description and identify the relevant

 Deming’s principle (Either being followed or not)

 Deming’s seven deadly diseases (Either existed or not)

Provide justification for your selection in terms of their implementation/existence.

Description Deming’s Principle Deming’s Seven Justification

Management does not
think beyond the next
quarter and does not
have long-term plans
to stay in the market.
Diseases
Demining principles
emphasis on long term
Not Followed Existed plans and resist short term
solutions and future plans.
The disease existed
because first among seven
deadly Deming’s diseases,

Emphasizing too
much on shareholder
dividends and do not Not Followed
make innovations to
product and quality.
Emphasis on lack of
consistency of purpose is
found in this scenario
which is not thinking for
next quarter and no long-
term plans to stay in
market.
Demings Principal states to
continuously improve
Existed systems and make new
innovations to quality and
product but this scenario
does not follow this. Also,
there is the existence of
Deming’s seven deadly
diseases in this scenario as
it is emphasizing too much
on dividends and not
making changes to product
and the quality.