A firm that improves its quality control cannot reduce its costs of va

QUESTION

A firm that improves its quality control cannot reduce its costs of value creation simultaneously.

Indicate whether the statement is true or false.

ANSWER

FALSE
The firm that improves its quality control will also reduce its costs of value creation. The effect is to lower the costs of value creation by reducing both production and after-sales service costs. This creates an increased overall reliability in global production and supply chain management.