Quality and Performance

Quality Performance

Prevention Costs are costs acquired in avoiding and preventing and minimizing the number of defects. China star provides some training to its employees but not as extensive at it should. Also, China Star keeps track of its machinery maintenance to avoid any failures and delays.

Appraisal Costs are also known as Inspection Costs, these costs are incurred to identify defects before the products gets to the customer. For this reason, China Star inspects its ingredients at arrival to make sure they are of good quality and employees are supervised most of the times to make sure they follow the correct procedures.

Internal Failure Costs are costs that are the result from defects detected during the production of a service or product. China Star rarely has to do any rework or ends up with scrap. They offer a limited number of products therefore the procedure does not vary and there is a lower possibility to make mistakes.

External Failure Costs are costs that arise when a defect is discovered after the customer receives the product or service. For China Star there are some occasions when unfortunately, customers receive the incorrect order, are missing items or dislike the product. This results in customers making return and complaining about the product and the business.

Ethical Failure Costs are social and monetary costs related to deceivingly passing defective products or services to internal or external customers. China Star runs the business with ethical behavior, therefore it is not something that worries the business.