Question

What are some potential impacts of the costs of quality related to Verizon’s extensive testing procedures, including impacts on manufacturers whose phones are not selected by Verizon to be sold to its customers?

Answer 1

Some potential impacts are:

• High number of tests performed before selling the product which increases the cost of product due to testing equipment required
• High number of man hours required to test each item thus labor cost increases impact the cost of product
• Multiple manufacturers phone tested and only those selected which meet the quality parameters again involving cost to test different phones and reviewing manufacturers process
• It helps to ensure high quality product only goes to market and there are minimum complaints. It leads to build strong relationship and ensure continuous business

The manufacturers also gets impacted as they have to go through the audit protocol of by Verizon. During that time, there production is impacted which can impact their business. Also, if they do not get business, they may have to invest more on quality in order to get business next time.