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Cost and Quality Analysis - Essay Example
Pages 4 (1004 words)
Cost and quality analysis Name Institution Date Cost and quality analysis The paper seeks to explore the issues that are involved in the cost of health care in relation to the quality. This is through differentiating the roles of the public and the private agencies aimed at improving health care quality…
The two are intimately related. However, Brent (1989) explains that there is a certain quality of the health care can lead to lower costs. This is because of the failure of the process to bring a series of high costs. The unit output of the healthcare services is scrapped while the resources used in the production are wasted. In order to recover the scrapped units, additional resources have to be reallocated to the appropriate deficiency. These allocations involve those aimed at replacing the customer who is lost due dissatisfaction in the organization. The organization may also be liable for the additional warranty cost and other damages traced to the failure. Brent (1989) explains that, the lower quality will eventually result to higher costs for the organization. The additional costs arise due to the liability of the process failure caused by the low quality of the services offered to the customer. This situation is termed as Quality waste, which is a representation of the consumption of resources for repairing the output unit that fails to meet the expectations of the customers. The waste is traced through identification scrap and rework. This is a way of managing and eliminating quality wastage from within the organization aimed to improve the quality of the services. ...
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