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1. Quality Control Costs
- ANSWER Cost necessary for achieving high quality.
2. Two types of Quality Control Costs
- ANSWER a. Prevention costs. b. Appraisal costs.
3. Prevention Costs - ANSWER are all costs incurred in the process of
preventing poor quality from occurring. Costs includes the following.
a. quality planning costs, such as the costs of developing and implementing a
quality plan.
b. cost of product and process design.
c. Employee training in quality measurement.
d. Cost of maintaining records of information and data related to quality.
4. Appraisal Costs
- ANSWER incurred in the process of uncovering defects. They include the
following;
a. Cost of quality inspections.
b. Product testing.
c. performing audits to make sure that quality standards are being met.
d. costs of worker time spent measuring quality
e. cost of equipment used for quality appraisal.
,5. Quality Failure Costs
- ANSWER Cost consequences of poor quality.
6. Two types of Quality Failure Costs
- ANSWER a. External Failure Costs b. Internal Failure Costs
7. Internal Failure Costs - ANSWER are associated with discovering poor
product quality before the product reaches the customer site.
a. rework: the cost of correcting the defective item.
b. Scrap: when item is so defective that it cannot be fixed and must be thrown
away. Scrap cost includes all the material, labor, and machine cost spent in
producing the defective product.
c. cost of machine downtime due to failures in the process and the costs of
discounting defective items for salvage value.
8. External Failure Costs
- ANSWER are associated with quality problems that occur at the customer
site. These costs can be particularly damaging because customer faith and loyalty
can be difficult to regain.
a. Customer complaints
b. Product returns
c. repairs to warranty claims
d. recalls
e. litigation costs resulting from product liability issues
f. lost sales and lost customers
- ANSWER Example of External Failure Costs
manufacturers of lunch meats and hot dogs whose products have been recalled
due to bacterial contamination have had to struggle to regain consumer
confidence. Other examples include auto manufacturers whose products have
been recalled due to major malfunctions such as problematic braking systems and
,airlines that have experienced a crash with many fatalities. External failure can
sometimes put a company out of business almost overnight.
9. External Failure Costs are particularly high where?
- ANSWER External failure costs tend to be particularly high for service
organizations. The reason is that with a service the customer spends much time in
the service delivery system, and there are fewer opportunities to correct defects
than there are in manufacturing. Examples of external failure in services include
overbooking airline flights, long delays in airline service, and lost luggage.
10. Walter A. Shewhart
- ANSWER "grandfather of quality control"
-developed quality control charts that are used to identify whether the variability
in the process is random or due to an assignable cause, such as poor workers or
miscalibrated machinery.
W. Edwards Deming
11. "father of quality control"
- ANSWER -Deming prize: an annual award given to firms that demonstrate
outstanding quality.
-"14 points": upper management must develop a commitment to quality and
provide a system to support this commitment that involves all employees and
suppliers.
12. Joseph M. Juran
- ANSWER -considered to have had the greatest impact on quality
management.
-defines quality as fitness for use which takes in to account customer intentions
for use of the product instead of focusing on technical specifications.
-develpped the concept of cost of quality which allows measuring quality in dollar
terms rather than on the basis of subjective evaluations.
-originated the quality trilogy.
, 13. Quality Trilogy
- ANSWER 1. quality planning
2. quality control
3. quality improvement.
14. Quality planning
- ANSWER companies identify their customers, product requirements, and
overriding business goals. Process set up so quality standards can be met.
15. Quality control
- ANSWER stresses the regular use of statistical control methods to ensure
that quality standards are met and to identify variation from the standards.
16. Quality improvement
- ANSWER quality improvement should not be just breakthroughs, but
continuous as well.
17. Armand V. Feigenbaum
- ANSWER -introduced the concept of quality control.
-promoted idea that quality developments are integrated throughout the entire
organization/
-managers & employees have a total commitment to improve quality and people
can learn from each other's success.
-adapted by the Japanese and called "company-wide quality control.
18. Philip B. Crosby
- ANSWER -developed phrase "Do it right the first time" and the notion of zero
defects, assuming that no amounts of defects should be considered acceptable.
-coined the phrase "quality is free" and for pointing out the many costs of quality.
-stressed role of management in the quality improvement effort and the use of
statistical control tools in measuring and monitoring quality.
19. Kaoru Ishikawa