Review the four major categories of the cost of quality. Reflect upon the definition of each one and then answer the following questions:
Which one will have the greatest impact for reducing overall quality costs? Why?
Which one (in general) results in higher quality costs to the company?
Relating to the fifth category, provide an example of a recent (within 10 years) event relating to ethical failure costs and the impact to the company.
Discuss the differences between economies of scale and diseconomies of scale. What are factors that must be considered by an operation when considering economies of scale? How are the expansionist strategy and the wait-and-see strategy linked to economies of scale?
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