Cost-Quality Relationship Essay Example | Topics and Well Written Essays - 750 words

Cost-Quality Relationship - Essay Example The prevention cost therefore works towards trying to control the reduction of possible defects that can be experienced that may have effect on the quality and hence making it difficult to implement the required costs that will work well towards making the organization to grow. Prevention cost tries to employ prevention of defects by enabling companies to employ various techniques such as statistical process control, personnel training or even quality engineering (Festinger, 2001).  Under this kind of cost that regards quality for its operations, there are activities that relate to quality circles as well as the statistical process control. In this regard, the quality circles under this program talk greatly in detail about small numbers of employees that will always have a meeting regularly to discuss the initiatives to select that will help them improve on quality. These circles often include both the employees as well as the management. Some firms tend to provide various forms of technical support to suppliers so as to avoid and prevent defects that could occur in the company. In JIT (just in time) systems for example, there are deliveries of parts from the suppliers in good time as well as in good quality. Parts that have defects can not be accepted and hence the supplier is expected to use sophisticated programs of quality control to enable them supply good parts that lack defects (Festinger, 2001).A company should have adequate programs for the identification of defects in good time within the production process. The appraisal costs are the ones that are set aside for that effect. They are the costs incurred in the endeavor to identify products that are defective before they are actually transported to the consumers. However, maintaining an up to date system of appraisal could be quite expensive as they are for problems that will always be there. The employees are therefore given the responsibility of being responsible for their departments and the produ cts involved so as to avoid much spending on the same mistake continuously. The management that lacks insight may always prefer keeping things in order only when they go wrong and such firms are the kinds that are mostly interested in this kind of cost. The other type of firms is the ones that use fewer funds to control a defect and use the idea to avert future issues that are similar (Festinger, 2001). External Failure Cost: This is the third type of cost that can be applied in the real sense to facilitate quality of services offered in a company. This is mostly applicable in instances whereby the product has already left the company premises and has reached the consumer of the product. This kind of cost includes the provision for repairs, products recall, warranty, replacement or even costs that arise from the legal actions lodged against a company. The warranty, for example, is implemented to pay for any form of defect that may be witnessed in a product within a given period of time, mostly a year or so. Such kinds of problems can decimate the profits of a company (Festinger, 2001). Some managers have in the past embraced the notion that they should supply

Uk Music Retailers Essay Example | Topics and Well Written Essays - 2000 words

Uk Music Retailers - Essay Example Just like in any other economy of the world, the UK economy also suffers from quite a number of challenges. Being an important component of the economy, the UK retailers have not been spared from the difficult moments that occasionally characterize the economy. Therefore, some traditional UK retailers such as music retailers who deal with the selling of music CD and VCD have been critically affected. In the past few years, some famous music retailers went bankrupt one after another. Cases in point include the Towers, KPS, and Virgin. Whilst some of the aforementioned retailers were troubled by the market changes, the likes of Find-CD, which is an online music company, were flourishing. According to findings of Traynor (2013) in his research, nearly 140 music retailers are prone to perilous economic period in the near future. A case in point is the HMV music retailer. HMV is credited for having been one of the longest-serving players in the music industry with a history of music retai ling for approximately 91 years.Unfortunately, trends in the recent years spell doom to its operations. Currently, the company no longer accepts gift card payment as well as it has stopped issuing new gift cards in over 200 of its retail stores worldwide. In addition, the London Stock Exchange decided to suspend HMV’s stock trading due to a persistent poor performance of its shares. In a bid to salvage the sorry situation, HMV has contracted Deloitte to investigate the possible solution as well as chart a way forward for the company.... In addition, the London Stock Exchange decided to suspend HMV’s stock trading due to persistent poor performance of its shares. In a bid to salvage the sorry situation, HMV has contracted Deloitte to investigate on the possible solution as well as chart a way forward for the company (Savov, 2013). In 2008, the UK largest music retailer Virgin Megastore faced a host of challenges. This company had stood in London Oxford Street for 18 years. After struggles with its finances and the changing fortunes in the industry, Virgin Megastore decided to sell its125 music retail stores to Zavvi Retailer. This is just but an example of the music retailers that have slowly been fading into oblivion in the UK. The other retailers include MVC, MUSIC ZONE, and FOPP. This closures and acquisition serve to signify the changing market fortunes in this industry. Despite the fact that Zavvi Retailer acquired stores from Virgin Megastore, the prospects of the business seem to be bleak and black. Thi s is because Entertainment UK (EUK), which is the major supplier of music records to Zavvi, has also been struggling to survive. 2. The service delivered by the retailers of music bear a number of characteristics that distinguishes them from goods. These characteristics include intangibility, inseparability, perishability, variability, inaccessibility. It is from this nature of services that the marketers of music face quite a number of challenges as they market the service to the customers. These challenges are as discussed below: Intangibility of music makes it difficult for the customers to ascertain the risk factors involved before they receive the