Prevention cost - Answers incurred to prevent or avoid quality problems; design, implementation,
maintenance
Examples of prevention costs - Answers product or service requirements, quality planning,
quality assurance, training
Appraisal costs - Answers associated with measuring and monitoring activities related to
quality; suppliers & customers evaluation of purchased materials, processes, products and
services
Examples of appraisal costs - Answers verification, quality audits, supplier rating, cost to
maintain instruments and equipment
internal failure costs - Answers incurred to remedy defects discovered before the product or
service is delivered to the customer
examples of internal failure costs - Answers wastes, scrap, rework or rectification, downgrading
external failure cost - Answers incurred to remedy defects discovered by the customers
examples of external failure costs - Answers repairs and servicing, warranty claims, complaints,
returns, product liability costs
Define quality - Answers the totality of features and characteristics of a product or service that
bears on its ability to satisfy stated or implied needs
Quality is based off of 3 things: - Answers User based - better performance, more features
Manufacturing based - conformance to standards, making it right the first time
Product based - specific and measurable attributes
Implications of quality - Answers companys reputation, product liability, global implications
Total Quality Management (TQM) - Answers a management philosophy that focuses on
satisfying customers through empowering employees to be an active part of continuous quality
improvement
Taguchi Concepts - Answers Quality robustness
Quality loss function
Target-oriented quality
Shewhart's PDCA Model - Answers 1. Plan