BMO3b_E/QTO1/K SUGGESTED ANSWER ACADEMIC YE. 2020-2021 ( a ) Major/Class: 7 Course: Quality Management UE Course code: MGTII106E. No. of Credit: 03 Daie: al WoC Kink TE TAI CHINN Time limit: 60 minutes Exam method: Written Exam FACULTY OF ECONOMICS —_ Exam code (If any): 102 Suggested answer Mark(s) ‘The answer should be included: Cost of quality measures the impact of quality of any business. It is defined as the cost of those activities, which an organization or process has incurred over and above the minimum costs required to do the job well. This is the amount of money a business loses because its products or services failed to secure customer satisfaction in the first place. Businesses lose money every day due to poor quality. Importance of COQ: 0 The costs of doing a quality job, conducting quality improvements, and achieving goals must be carefully managed so that the long-term effect of quality on the organization is a desirable one. (These costs must be a true measure of the quality effort, and they are best determined from an analysis of the costs of quality. Such an analysis provides a method of assessing the effectiveness of the management of quality and a means of determining problem areas, opportunities, savings, and action priorities. Cost of quality is also an important communication tool. Philip Crosby demonstrated what a powerful tool it could be to raise awareness of the importance of quality. He referred to the measure as the "price of non-conformance" and argued that organizations choose to pay for poor quality. ( _ Many organizations will have true quality-related costs as high as 15-20% of sales revenue, some going as high as 40% of total operations. A general rule of thumb is that costs of poor quality in a thriving company will be about 10-15% of operations, Effective quality improvement programs can reduce this substantially, thus making a direct contribution to profits. The quality cost system, once established, should become dynamic and have a positive impact on the achievement of the organization’s mission, goals, and objectives. Components of COQSECC reece CCC Cee CCC eC eee eee ccc ccc ccc rece eee Cece ee cee cece eee eee eee eee eee See ee eee BMO3b_B/QTO1/K ‘Cavegory Measure of Quality Mapping of Quelty Cons 1 Biicicad 2 Scapicomt booming dew 4 enna Geile tencdovdomn-cnpias omer 2 Opa Sebald) | aime cr vcahpaltonace, |» Yan Es ary ea Gayl) temp gocandon 2 Ope si tpn sonipeeeet eRe ‘ecm spots bortcy Depp a pie mauence quoiycontal qalty + Heed geen ‘ltl onsheals Wovenion ial plmsng. design saerances, + Opening expenses Caing bow hoping paclaging, + Fespee ‘ecalanreng iogritens fod aaa feat preproduction shies, Ine teresa ca or Part2 |i. Providing an example to support the student's idea i TOTAL: 10 HCMC, date month /4.. year 2021 ‘Approver Designer (Sign and write full name) (Sign and wrige full name) hp heraa— ee Let Seing Chien Minh ‘Nguyén Dinh Cuong