ABSTRACT
This chapter discusses the factors to be considered in measuring various types of value in both specific and abstract systems. Improved quality should produce a number of tangible benefits such as reduced scrap, a lower number of rejects, less rework, and reduced warranty claims and the resultant labor. If two or more similar products are available on the market, the customer will consider what the product does, the performance, and its price. The customer wants the best value for his money; satisfaction at a reasonable price. The best value is satisfactory performance for the least amount of money. In the role of the manufacturer, cost is the sum of material, labor, and variable burden required to produce the product. In the role of the customer, cost becomes price when profit and other elements are added to the cost to get it to the buyer. Higher quality adds to performance and contributes to higher value to the consumer.
