Memorandum
To: Joe Schmoe– Director of Operations
From: John Doe– Manager of Operations
Date: 01/14/2014
Re: Quality Cost Measures
Regarding Children Inc.: Children’s Inc. Has aspirations to be the number one baby bottle Production Company in the world. The company has worked hard to establish high production standards but in order to maintain our high production standards in addition to remain the leader of innovations, Children’s Inc. need to develop more cost-effective shipping methods to meet our consumers demands and reduce internal company costs. I would recommend that we look into the cost of quality and perhaps adopting a more sustainable quality standard training program to lower our prevention cost, include elements for accountability for every employee which would reduce our appraisal cost, and this in turn will improve the overall Company image as a need for warranties and product recalls will decrease and we can avoid additional external failure cost
Prevention Costs: In order to satisfy the increased demand without adding increased cost or creating reductions in our quality we must take a closer look at any and all reported defects that may have come from our production lines. Once the aforementioned tasks are completed we will need to create substantial training plans that will include continuous improvement methods that we can teach to our employees who possessed the professional skills and necessary techniques to properly perform their job the first time around and to address and fix any defects they might find. It would also be beneficial to create quality committees that can meet weekly to discuss any defect that happened and what was done to address them. We all know that prevention is the key to saving money. My initial investigation has discovered that we are losing approximately $5000 a month because of defective products that are leaving the assembly line. I personally feel that the cause of defects results in poor training. The...