ACC3200 Study Guide - Final Guide: Quality Engineering, Quality Costs, Total Quality Management
8 Aug 2018
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Document Summary
Definition = the total features and characteristics of a product or service that adhere to specifications and satisfy customers at the time of purchase and use. Aspects of quality: quality of design (appealing to customer expectations, quality of conformance (meeting formal design specifications- manufacturing, selling and distributing processes) Benefits of focusing on the quality of a product: build expertise in producing it, lower costs to make it, generate higher future revenues. Why quality cost management is important: quality costs can be substantial, source of significant cost savings, source of competitive advantage. Costs incurred to stop the production of products that don"t conform to specifications (pre-production) Quality engineering, employee training, quality reporting, research best materials. Costs incurred to detect the individual units that don"t conform to specifications. Wip and fg inv, testing equipment, idle time when employees can"t work due to machine malfunctions. Costs incurred to fix defective products before they"re shipped to customers.
