ACCT 23021 Lecture Notes - Lecture 6: Coq, Quality Costs, Total Quality Management
2 Aug 2020
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Document Summary
Signs the old system may be distorting costs. Competitors with similar products price their products lower but still earn profit. Management philosophy and strategy focused on creating value for the customer by eliminating waste. Eliminate the waste of time and money that accompanies large inventories. Just-in-time (jit) focuses on purchasing raw materials just in time for production and complete goods just in time for delivery. Employee empowerment: broad roles and use of teams. Sustainability to increase profits while preserving the planet and improving lives. Describe and use the costs of quality framework. Management philosophy to focus on consistently generating high- quality products. Goal: provide customers with superior products and services. Each business function in value chain examines its activities to improve quality and eliminate defects. Four types of costs of quality (1 of 2: prevention costs incurred to avoid poor quality goods or services. Preventive maintenance: appraisal costs incurred to detect poor quality goods or services.
