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Sagot :
Ge's recall of 3. 1 million dishwashers cost the company more in repairs than the value of the actual dishwashers. This is an example of the quality principle where the cost of poor quality is underestimated.
As the dishwashers are of poor quality, the cost of the company is going more in repairs than the value of the actual dishwashers. Thus, the cost of poor quality is defined as the costs associated with providing poor quality products or services.
Such inferior quality products or services can lead to dissatisfaction among the customers, resulting in lost revenue and decreased customer loyalty.
Hence, this is an example of the quality principle where the cost of poor quality is underestimated.
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