ACTG 3P23 Midterm: Team 4 Midterm Cheat Sheet
30 Jan 2019
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Emphasis: enhanced quality, continuous improvement in all activities and processes. decreased throughput, minimized costs of quality or zero defects. An integrated system that anticipates, meets, and exceeds customers" needs, wants, and expectations. It is the totality of ways for achieving superior quality. Goal: customer satisfaction weakness: not explicitly focused on profit. Prevention costs are those costs incurred to prevent poor-quality products or services from being produced in the first place. Appraisal costs are incurred to identify nonconformities before a product or service reaches another activity and is delivered to the ultimate customer. Internal failure costs are those costs incurred when products or services fail to meet quality standards, and the defects are identified after the products or services are produced but corrected before they are delivered to the external customer. External failure costs are those costs incurred because poor-quality products or services are delivered to external customers. Costs of quality = costs of conformance + costs of nonconformance.
