All Theses, Dissertations, and Capstone Projects

Original Publication Date


Year of Award



Master of Business Administration (MBA)


College of Business & Professional Studies

Degree Program



Business Administration


Manufacturing, Costs, Optimization, Relevant Quality, Metalworking, Metals


In our profit oriented society, decisions are made between alternatives and the effect each alternative has on the expense and income of the business entity. The manager making rework decisions must use costs which are relevant to the decision. Relevant cost decisions for rework are made prior to the product being manufactured. The only time rework cost decisions are relevant are during the prevention stage when all the bugs can be worked out of a product and the rework can be avoided.

Quality costs can be placed into four generalized categories: prevention, appraisal, internal failures, and external failures. The prevention and appraisal costs are incurred in order to avoid failure costs. An optimum balance between these four general quality cost categories will help to improve productivity and quality at a desirable profit level.

Rework costs are a subcategory of internal failure costs, a general quality cost category. Rework is the cost of correcting defective products so they are conforming to applicable specifications. Reworked material will always meet the product requirements and this is what makes it different from a repair. For purposes of explanation rework has been limited to the repeating of an operation.

Producing items that have a high level of product quality is not always enough. Product quality must be defined as a product that realizes the customers expectations of performance based on the intended use and the selling price. The cost of achieving this quality must be carefully managed so the effect of quality costs on the companies profits is desirable.

A business striving for improvement of product or service through the continual reduction of waste and optimization of quality and productivity costs in the manufacturing operation will develop into a dominate force and highly respected adversary in the marketplace.

Document Type

Restricted Thesis


Available to Fontbonne users only. Please log in with your id + password.

Free My Thesis

If you are the author of this work and would like to make it openly accessible to all, please click the button above.



Rights Statement

In Copyright