What should companies evaluate to save money according to Philip Crosby?

Prepare for the WGU MGMT4100 C720 Operations and Supply Chain Management Exam with flashcards and multiple choice questions. Each question provides hints and explanations to ensure you're ready for your test!

The correct answer highlights the importance of evaluating all costs associated with quality. Philip Crosby, a prominent figure in the field of quality management, emphasized the need for organizations to focus on quality as a critical factor in reducing overall costs. His philosophy suggests that poor quality leads to higher costs due to rework, scrap, and the negative impacts on customer satisfaction and loyalty. By thoroughly assessing all quality-related expenses, companies can identify areas for improvement that reduce waste and enhance efficiency. This comprehensive approach allows organizations to not only save money but also improve their products and services, ultimately leading to greater customer satisfaction and competitive advantage. Crosby's foundational message is that investing in quality ultimately saves costs in the long run, making it vital for businesses to look beyond immediate production costs and consider the total cost of quality in their evaluations.

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