Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
12th Edition
ISBN: 9780134741062
Author: Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
Publisher: PEARSON
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Chapter 3, Problem 2VC
Summary Introduction

Interpretation: The ways of avoiding the four costs of poor process performance and quality by company’s commitment to employee engagement.

Concept introduction: The defects that show the dissatisfaction level of the customer. To fill this gaps the company uses various method such as training to the employees, spend time and money, and bring new technologies or systems or changes organizational structure to increase the level of quality and performance or to decrease the cost such as prevention cost, appraisal cost, internal failure cost or external failure cost.

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