What are Complaint Adjustment Costs in Total Quality Management? PDF Book

Learn Complaint Adjustment Costs definition in total quality management with explanation to study “What are Complaint Adjustment Costs”. Study complaint adjustment costs explanation with TQM terms to review total quality management course for online MBA programs.

Complaint Adjustment Costs Definition

Complaint Adjustment Costs Explanation

There are some costs associated with the quality of the products. These costs are called quality costs. Quality costs are divided into three classes. One of them is external failure cost that is associated with the poor quality of products after they are shipped to the customer. One of the external failure cost is related to the customer complaints about the quality issues in the products. When an organization receives complaint from customers about malfunctioning of a product or item, the organization must adjust that complaint. This complaint can be adjusted either through financial compensation or shipping a similar good quality product to the customer. The costs associated with all these activities that are performed to adjust customer complaints are called complaint adjustment costs.

Keep Learning TQM Explanations

What is Lot Tolerance Percent Defective?

Lot Tolerance percent defective (LTPD) is the value of percent defective related to consumer's risk i.e. Type II error. The ...

What is External Validation?

In process improvement, assessment of the procedures etc. is important. This can be done by two ways, internal validation and ...

What is Task Environment?

When moving towards globalization, a firm may find changes in its task environment. Task environment includes all the operational changes ...

What is Statistical Thinking?

Decisions can be made based on two thing, intuition and data. Normally, management makes decisions based on its gut feelings ...

What is Knowledge Management?

One aspect of Customer Relationship Management System is determining the profitable and non-profitable customers. This is usually done through personalized ...

What is Organic Organization?

The term "Organic Organization" was first coined by Tom Burns and G.M Stalker in the late 1950's. According to them, ...