MGT 300 Study Guide - Termal, Thai Baht, Root Mean Square
Document Summary
Important notes from the required text for module #11. Prevention costs: costs associated with preventing defects before they happen. Appraisal costs: costs incurred when the firm assesses the performance level of its processes. Internal failure costs: costs resulting from defects that are discovered during the production of a service or product. External failure costs: costs that arise when a defect is discovered after the customer receives the service or product. Warranty: a written guarantee that the producer will replace or repair defective parts or perform the service to the customer"s satisfaction. Total quality management (tqm: a philosophy that stresses three principles for achieving high levels of process performance and quality: customer satisfaction, employee involvement, and continuous improvement in performance. Quality: a term used by customers to describe their general satisfaction with a service or product. Value: another way that customers define quality. Quality at the source: a philosophy whereby defects are caught and corrected where they were created.
