FARE 3310 Chapter Notes - Chapter 6: Operations Management, Life-Cycle Assessment, Iso 9000

• School: University of Guelph
• Department: Food, Agricultural and Resource Economics
• Course: FARE 3310
• Professor: Getu Hailu

Document Summary

Quality and strategy: improvements in quality help rm increase sales and reduce costs, both increasing pro tability, quality or lack of quality affects the entire organization from supplier to customer and from product design to maintenance. Cost of quality (coq): the cost of doing things wrong that is, the price of non-conformance (eg. training, quality improvement programs) Prevention costs: costs associated with reducing the potential for defective prats or services (eg. testing, labs, inspectors) 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 to customers (eg. rework, scrap, downtime) External costs: costs that occur after delivery of defective parts or services (eg. rework returned goods, liabilities, lost goodwill, costs to society: harder to quantify. Iso 9000: a set of quality standards developed by the international organization for.