New Era University.

College of Accountancy
SCHOOL OF MANAGEMENT
No.9 Central Avenue, New Era, Quezon City 1107 Philippines
Tel. Nos. (632) 8981-4227/Fax: (632) 8981-4240
E mail add: accountancy@neu.edu.ph

Title of the Activity:

ASSIGNMENT # 2

Submitted by: Submitted to:

Patricia Nicole Y. Cruz Prof. Estrada

Date Submitted: October 13, 2022

Section: 3BSA-3
Assignment#2 Questions

2.1. How does the consumer’s perspective of quality differ from the producer’s?

A product's grade is determined by comparing it with another of its kind. A product's

capacity to satisfy client needs is often determined by its quality. The standards of a
product are frequently used to describe its quality. Quantity, on the other hand, refers to
the whole amount of a product. A consumer is an individual or business who purchases
a product with the purpose to use it. Producers are businesses and people who create
goods and services for a profit. Customers view product quality as being equivalent to a
product's fitness, which is different from how producers think. This suggests that
consumers evaluate a product's quality based on its capacity to satisfy their needs.
Contrarily, producers see quality in terms of product conformance. This suggests that
they use certain, defined standards to evaluate the quality of a product.

2.2. Briefly describe the dimensions of quality that a customer looks for in a product, and
apply them to a specific product.

➢ Product Performance - The product's principal activities are referred to as the

product's performance.
➢ Features - The product's unique features or extra qualities that make it appealing.
➢ Reliability - This is the possibility or belief that the product will not fail within a
certain period of time; it is the faith in the brand.
➢ Conformance - it is the assurance that the product will perform as expected.
➢ Durability - This is the product's lifeline, or how long it will last.
➢ Serviceability - The term "serviceability" refers to how quickly a product can be
fixed and put back into service.
➢ Aesthetics - A consumer's particular preference or personal preference for a
product or brand is referred to as aesthetics.
➢ Perceived Quality - Quality measurements that are connected to the product but
are not directly tied to the product since the customer does not know everything
about it.
 Mobile/Cellular Phone is the particular product I've chosen. Mobile phones are widely
accessible in the Philippines. Nowadays, the majority of Filipinos—rich or poor—are glued
to their cellphones. Mobile phones have evolved through time and now provide
exceptional features that are advantageous to their users. The mobile phones are
dependable even when used outside of the country since they maintain the eight quality
parameters that were previously discussed. In this level of quality, which includes
quantitative qualities, brands can often be evaluated objectively on each component of
performance.

2.3. How does quality of design differ from quality of conformance?

The level to which design specifications adhere to customer requirements and

expectations is referred to as design quality (also known as quality of engineering).
Maintaining design quality is the responsibility of designers. It is their duty to translate the
client's requirements into design criteria in the form of internal specifications and drawings.
The Manufacturing function, which makes the product, receives the design (a set of
drawings and specifications). The amount to which a product conforms with design
requirements is referred to as the degree of conformity. Employees in manufacturing (or
production) and quality control are primarily in charge of ensuring Quality of Conformance.
The use of several measurement and testing tools is required for this.

2.4. Define the two major categories of cost of quality and how they relate to each other.

Quality Control Cost - covers costs related to acquiring high quality. Avoiding flaws is
better to locating them in products and fixing them.

Prevention costs -are the costs incurred to prevent or minimize the maximum number of
issues. Examples include investments in industrial processes, employee training, quality
engineering, statistical process control, and other preventive costs. The costs incurred to
find defective products before they are sold to customers are considering appraisal
expenses (also known as inspection costs). All costs associated with measures taken
during manufacturing processes to meet required quality standards are also part of this
category. Maintaining a team of inspectors on hand to locate defective merchandise. For
certain businesses, it could be too pricey.

2.5. What is the difference between internal and external failure costs?

External Failure Costs- are costs incurred as a result of complications with a product
after it has been sold to a customer. These costs include the legal costs related to
consumer litigation. Consumer dissatisfaction results in lost future revenue.

Internal Failure Costs- are costs related to quality incurred as a result of product flaws
discovered prior to the product leaving manufacturing. These are discovered via internal
inspection processes at the firm.
shortcomings.