Reference no: EM132956857

1. For operations managers, one of the most important jobs is to deliver healthy, safe, and quality products and services to customers. The development of poor-quality products, because of inadequate design and production processes, not only results in higher production costs but also leads to injuries, lawsuits, and increased government regulation. Discuss the Four major categories of costs associated with quality/Cost of Quality (COQ).

2. Capacity decisions often determine capital requirements and therefore a large portion of fixed cost. Capacity also determines whether demand will be satisfied or whether facilities will be idle. As student with background and full understanding of Operations Management, explain the three (3) categorized definitions of capacities in relation to design, effective and actual capacities and give three (3) capacities expansion choices to managers with regard to the proposed capacity decision.

3 Give four reasons why capacity decision is important for a company. What are the critical issues in capacity decision?