Ch4: COPQ & Productivity

Question 1

cost of quality

Answer 1

any cost that the company would not have incurred if the quality of the product or service were perfect

Question 2

COPQ represents the difference between (2)

Answer 2

the actual cost - what the cost would be if effective

Question 3

COPQ equation

Answer 3

failures + appraisal + prevent action + white collar

Question 4

1-10-100 rule

Answer 4

the earlier you detect and prevent a defect the more you can save

Question 5

Prevention costs (5)

Answer 5

1. quality planning
2. product design
3. process
4. training
5. information

Question 6

Appraisal costs (4)

Answer 6

1. Inspection and testing
2. audit costs
3. test equipment costs
4. operator costs

Question 7

Internal Failure costs (5)

Answer 7

1. scrap costs
2. rework costs
3. process failure
4. process downtime
5. price-downgrading

Question 8

External Failure costs (5)

Answer 8

costs for defects found by the customer

1. customer complaint
2. product return
3. warranty claims
4. product liability
5. lost sales

Question 9

index numbers

Answer 9

ratios that measure quality costs against a base value (ex. labor index: quality cost to labor hours)

Question 10

4 assumptions in the COPQ model

Answer 10

1. there is a root cause for each defect
2. defects are preventable
3. it is better to prevent than correct defects
4. inspection/testing can be reduced for capable processes