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QUALITY COST MANAGEMENT - Coggle Diagram
QUALITY COST MANAGEMENT
QUALITY
Implications
Company reputation
Product liability
Global implications
Key Dimensions
Performance
Realibility
Conformance
Durability
Components
Performance Quality
focuses on product/service performance
Design Quality
focuses on the features that customers want
Ways of Improving
Plan-Do-Study-Act Cycle (PDSA)
Circular, never ending problem solving process
called the Deming Wheel
Seven Tools of Quality Control
Problem solving teams
Quality Function Deployment
Translate customer preferences to design
Definition
Customer satisfaction with the total experience of a product/service
COST OF QUALITY
Category
Conformance
Prevention Costs
Associated with the development of programs to prevent defectives from occuring in the first place
Attending training
Analyzing requirements
Quality audits
Appraisal Costs
Associated with the test & inspection of subassemblies & products after they have been made
Inspecting
Testing
Monitoring
Non-conformance
Internal failure costs
Producing defective products that are identified before shipment
Rework
Failure Analysis
Scrap
External failure costs
Producing defective products that are delivered to the customer
Paying warranty costs
Providing a help desk
Making allowances
Definition
Cost of attaining quality
Cost of poor quality
STRATEGIES IMPORTANCE OF QUALITY
ISO 9000 Standards
Set of internationally recognized quality standards
Periodically audited & certified
Certification developed by International Organization for Standardization
ISO 14000
Focuses on a company’s environmental responsibility