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Reduction in Costs : An efficient quality control system reduces the cost of production of the product due to reduction in wastage of raw materials, semi finished and finished goods: large scale production of standard quality product, rework cost of the substandard goods is the minimum.
Improvement in the Morale of Employees : By quality control programme the employees become quality conscious. They understand and produce the quality goods to the best of their efforts. Thus it improves the morale of the employees.
Maximum Utilization of Resources : By establishing the quality control system the necessary control over the machines equipment men and materials and all other resources of the company is exercised. The system will also control the misuse of facilities, wastage of all types and low standard production. Thus the resources of the company are put to maximum use.
Increase in Sales : Increase in sales of the product is the main objective of the quality control system. By introducing quality control programme in manufacturing process, a quality product is made available to the consumers and that too at lower rates because of lower cost of production it in turn increase the demand of company product.
Consumer Satisfaction : Consumers always get the quality products of standard specification which they find of their utmost satisfaction.
What do you mean by variable costs? Variable costs conversely, tend to vary directly along with the volume of output. Illustrations of variable cost are as given below: direct
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