OPER-3006EL Chapter Notes - Chapter 6: Coq, Total Quality Management, I.R.S. Records
3 Dec 2018
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Document Summary
Managing quality helps build successful strategies of differentiation, low cost, and response. Improvements in quality help firms increase sales and reduce costs, both of which can increase profitability. Increases in sales often occur as firms speed response, increase or lower selling prices, and improve their reputation for quality products. Reduced costs often occur as firms increase productivity and lower rework, scrap, and warranty costs. Quality the totality of features and characteristics of a product/service that bears on its ability to satisfy stated or implied needs. The cost of quality (coq) is the cost of doing things wrong (non-compliance), made up of 4 categories: Prevention costs costs associated with reducing the potential for defective parts or services. Appraisal costs costs related to evaluating products, processes, parts, and services. Internal failure costs that result from production of defective parts or services before delivery. External costs costs that occur after delivery of defective parts or services.
