Costs of Poor Process Performance and Quality

Cost of poor process. Chapter 6.

42 cards   |   Total Attempts: 182
  

Cards In This Set

Front Back
Associated with preventing defects before they happen
Prevention
Incurred when the firm assesses the level of performance of its processes
Appraisal
Result from defects that are discovered during the production of a product or service. Can fall into two categories rework and scrap
Internal failure costs
Incurred if some aspect of a service must be performed again
Rework
Incurred if a defective item is unfit for further processing
Scrap
Arise when defect is discovered after the customer receives the product/service
External failure costs
Stresses three principles for achieving high levels of process performance and quality
Total Quality Management (customer satisfaction, employee involvement, and continuous improvement)
Process that produced the P/S that are really being judged
Customer satisfaction
A process's inability to meet certain advertised or implied performance standards
Process failure
How well P/S serves its intended purpose at a price customers willing to pay
Value
Good product support can reduce the consequences of quality failures
Support
Atmosphere, image, or aesthetics
Psychological impressions
Challenge of quality management is to instill an awareness of the importance of quality in all employees ad to motivate them to improve it
Cultural involvement
(Deming Wheel) used by firms actively engaged in continuous improvement to train their work teams in problem solving
Plan-do-check-act cycle
P/S characteristics, such as weight, length, volume or time that can be measured
Variable measurements