Product Process Design Costs Notes: Definitions & Explanations PDF | Download eBooks
Study Product Process Design Costs lecture notes PDF with total quality management definitions and explanation to study What is Product Process Design Costs?. Study product process design costs explanation with TQM terms to review total quality management course for online MBA programs.
Product Process Design Costs Definition:
Costs incurred during the design of the product or the selection of the production processes that are intended to improve the overall quality of the product are called product/process design costs.
Introduction to Statistical Quality Control by Douglas C. Montgomery
Product Process Design Costs Notes:
Quality control of products incur costs to the organization. These are called quality costs. Quality costs are divided into three classes. One of them is prevention costs that are associated with the prevention of defects or non-conformities in the products. A subclass of prevention costs is product/process design costs. As the name indicates, product/process design cost is the cost that is linked with designing a product or selecting a process in such a way that the non-conformities are prevented. For example, if a redundant component is introduced in the design of the product to increase its reliability, the quality is increases but the cost of the product also increases which is product design cost. Moreover, if two different production processes can be used to produce products but the more advanced one of them is selected as it is capable of producing products at higher tolerances, the cost associated with selecting advanced process is called process design cost.
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