Definition of the Cost of Quality, Management Essay Sample

Published: 2019-05-31
Definition of the Cost of Quality, Management Essay Sample
Type of paper:  Essay
Categories:  Management Business
Pages: 7
Wordcount: 1878 words
16 min read

Cost of quality is the value or worth that any given organization counts on in its portfolio and which the stakeholders cannot afford to lose. The cost of quality could be in terms of the product brand that defines the progress that the company would have made in a specific duration or the amount of assents that the organization would have accumulated over a given period of time. This value is usually in terms of accrued profits, when all the expenses, losses and capital would have been eliminated (Colla et al., 2010). The cost of quality is the measure of progress that a company would have made during the time of its operation in line with its stipulated aims and objectives. This is the essence of the effort made by the management in augmenting productivity as a way of propelling the organization towards the realization of its short term and long-term goals.

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The cost of quality is a crucial concept that any given organization is supposed to embrace in case achievement of its set aims and objectives are anything to go by. The management of the organization is entrusted with the responsibility of guiding the entire establishment in working towards the achievement of the goals through efficient performance in day to day operations. First, in the An extension of internal service quality concept: lesson from the best low-cost carrier in the six regions of the world, Fernando, Saad, and Haron, (2012) says the development of the cost of quality in an organization begins with setting of clear aims, goals as well as strategic plans. Aims refer to the ultimate achievement that the company leadership wishes to make over a certain period of time. To attain a specific aim, an organization first begins by setting goals or objectives. These constitute a series of attainments which the company must achieve before reaching the main aim. In order to achieve both goals and aims, the organization will require formulating a strategic plan. The strategic plan entails clear specifications of roles and responsibilities that every section of the organizations is supposed to make as their specific input in the company within a specified duration of time (Fernando, Saad, and Haron, 2012).). Similarly, this crucial step of designing a cost of quality should go hand in hand with the formulation of the vision and mission statement of the organization. Mission and vision are summary of values that the company is crated to be bound by in order to achieve the long-term objectives. Every stakeholder in the company is supposed to comprehend the contents of all these pertinent drafts of the organization so as to channel their effort towards the similar direction.

Besides that, the collaborative decision making as well as management of the company play an imperative role in determining the cost of quality of a given organization. In the Location-Free Greedy-Face-Greedy Routing With Guaranteed Delivery and Lightweight Maintenance Cost in a Wireless Sensor Network With Changing Topology, Cheng, Tang and Tsai, (2014) allude that the management is tasked with the responsibility of incorporating the thoughts and information of other stakeholders in the final decisions that affect the day to day running of the organization. It is very much in order to acknowledge other members advice and concerns about the welfare of the organization other than imposing regulations, objectives and aims on them to implement. According to Cheng, Tang and Tsai, (2014), collaborative management fosters the spirit of solidarity and hard work among the employees across all cadres. This will compel all of the workers to pull together the fiscal and human resources towards the success of the organization. By so doing it cannot be possible to get a few members who may begin the venture of sabotaging the organization.

Similarly, another way through which the cost of quality can easily be crafted is by practicing discreet management of fiscal as well as human resources. In the Strategic Human Resources Management: Human Resources or Human Capital Gashi, (2013) reiterates that if one does not economize, he will definitely agonize. This reminds every stakeholder that the resources of the organization must be well utilized in a manner that mitigates wastage. All must strive to minimize the cost as they optimize the output. It is by this policy that the organization fast tracks in its growth towards its goals and aims. In the same breath, the organization has to engage in the practice of recycling as another way of cutting down on the extra expenses of making of new products from scratch. It is proven that recycling is quite economic not just of the raw materials used but also on power and even time spent in coming up with the product as compared to the process spent when beginning contriving a new product from raw materials (Gashi, (2013).

In the The impact of work design, autonomy support, and strategy on employee outcomes: A differentiated perspective on self-determination at work Guntert, 2014) advises that the management should seriously consider adopting the strategy of employee motivation. This is a very significant consideration that any organization cannot afford to neglect. Employees play a significant role in the organization since they are behind the creation of the cost of quality of an organization. Their motivation works not for their good alone but for the good of all other stakeholders and the fiscal as well as human resources of the organization. Therefore the management should ensure the employees are enticed with good remuneration, allowances such as house, medical, overtime, responsibility and commuter allowances among others. Guntert, (2014) further desccribes other forms of motivation as entailing promotion through ranks, leaves, insurance covers, holidays, and scholarships among others. When employees have all these assorted privileges in their midst, they will surely value their work and become self-driven in their roles. In fact their intrinsic motivation becomes much augmented to higher levels such that they own the organization and would do anything to make it successful. As such the attainment of the cost of quality becomes a walk over.

The next strategy toward the establishment of the cost of quality is the adoption of the principles of corporate social responsibility (CSR). In the Can a university act as a corporate social responsibility (CSR) driver? An analysis, Ahmad, (2012) delineates that CSR is the practice of an organization which considers the welfare of the organizations shareholders, the management, the employees across all the cadres, and goes beyond the organization to factor in the welfare of the community in the proximity which is its immediate neighbor as well as the environments and the consumers of the organizations products. This means that for the cost of quality of the organization to be prominent, all the involved individuals together with the environment within which the operation of the organizations are based should be satisfied as well. The organization should mind about the organizations environment and the people who depend on the same environment. Therefore the management has to adopt mechanisms which mitigate the environmental pollution through harmful effluents such as greenhouse emissions, liquid discharges as well as deafening noise (Setala et al., 2013). A polluted environment is not conducive for the creation of the cost of quality at the same time pollution compromises the joint effort of the communities of the world of safeguarding the state of the environment, especially reducing the effects of pollution on the stratospheric ozone layer. This layer is susceptible to chlorofluorocarbons; the harmful gases that are usually emitted from industries and which deplete the ozone layer. Once the ozone layer is depleted, the resultant outcome will be global warming; which is the increase in the atmospheric carbon dioxide that absorbs a lot of heat from the incoming solar radiation and therefore increasing the room temperatures. Global warming has become a concern by the entire environmentalists around the world who are galvanizing the society in the fight against this menace of pollution (Ahmad, 2012).

Finally, Konefal, (2015) comments in the Governing Sustainability Transitions: Multi-Stakeholder Initiatives and Regime Change in United States Agriculture. About the significance of organizations embracing the initiatives of sustainability. A big challenge in any given organization is usually sustaining of the same good standards but not just setting good standards. The organizations management must strive to put in place measures that will ensure that the rightful standards, cultures and customs of the organization are highly embraced because compromising them is tantamount to compromising the cost of quality that would have been realized. According to Konefal, (2015), some of the initiatives that ensure increased productivity and sustainability involve sponsoring some of the employees for further training to augment their skills, benchmarking with renowned organizations, as well as devising ways that can attract and maintain customers. If well implemented, such ways can really ensure the company maintains its set standards of the cost of quality that would have been attained at a given point in time.


The Cost of Quality is as relevant today as it has ever been is a credible assertion that is upheld by nearly all the business organizations. This is because without understanding the cost of value, no business stands the test of time. Organizations strive all the time to make improvements with hope of augmenting the cost of quality so as to remain relevant in the industry. The cost of value to an organization has a number of benefits. First, the cost of value enables the company to grow in terms of assets (Colla et al., 2010). The achievement and sustenance of the cost of value makes it possible for the organization to evaluate it profits and therefore be able to invest the profits in other assets that expand the organization. Furthermore, due to the importance of the cost of value, the organization is also able to create employment opportunities for a surplus population that lack employment. As such courtesy of the organization, many people end up getting the way of securing their ends in life as well as their families.

Besides, the cost of value has been behind the increased innovations in the field of business. These innovations are achieved as the outcome of the varied ways that the organization ends up with; which are deemed appropriate to attract and sustain customers. The main core of the business organization is usually to offer value for the customers money through the cost of quality. When the cost of quality of an organization is high, many customers will be attracted towards the products of the organization and vice versa. Furthermore, it can be said courtesy of the cost of quality, a lot of developments has been witnessed in the business sector. Among them is the creativity witnessed in the manner of customer attraction, treatment and satisfaction. Some organization have resorted to use of media channels to popularize their products and even to teach the public about the precautionary measure while using certain products. Not forgetting the CSR efforts made by certain organizations in adding value to the organization itself as well as the society in entirety. Through CSR, the organizations cost of quality reached the customers on the grass root; who they take the initiative of popularizing the organization on behalf of the management. This is because the customers also see great value in the organization not just the value entrenched into the products, but also the value tha...

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