Block 1 - lecture 4 Flashcards
1
Q
costs of poor quality?
A
- scrap/rework
- warranty
- extra inspection
- extra inventory
- management time
- hassle
- poor product
- late delivery
- rejection paperwork
- lost customers
2
Q
Efficiency?
A
doing something but with less resources
3
Q
Effectiveness?
A
doing different things that are more suited to business needs
4
Q
Prevention/conformance?
A
costs incurred for right first time
5
Q
Appraisal?
A
costs incurred from checking
6
Q
Failure/non-conformance?
A
costs incurred from not right first time
7
Q
Changing spending to reduce overall costs?
A
More in prevention to reduce appraisal and failure costs
8
Q
Uses of quality costs?
A
- finding waste
- management attention
- indicating scale
- quantifying improvements
9
Q
limits of quality costs?
A
- only as good as how it was collected
- some costs can’t be worked out
10
Q
Traditional loss function?
A
goalposts (within limits=good, out of limits=bad)
11
Q
Taguchi’s loss function?
A
reducing variability reduces costs to society.
improvement is justified, even when spec is met.
