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Flashcards in B3 - M4 Deck (24):
1

What type of performance measures:
- Financial Scorecards
- Costs of Quality
- Return on Investment
- Return on Assets
- Return on Equity
- Residual Income
- Economic Value Added

Financial Measures
- Financial Effectiveness

2

What type of performance measures:
- External Benchmarks: TFP ratio, PPR ratio
- Internal Benchmarks: Control Charts, Pareto Diagrams

Non-Financial Measures
- Operational Effectiveness

3

Important tool used in Statistical Quality Control (SQC).Graphical tool that is used to plot a comparison of actual results to an acceptable range (Goalpost)

Control Charts

4

Used to determine the quality-control issues that are most frequent and often demand the most attention. Demonstrates the frequency of defects from highest to lowest frequency.

Pareto Diagram

5

Framework for Managers to analyze the problems that contribute to occurrence of defects.

Cause-and-Effect (Fishbone) Diagram

6

Four financial measures for which managers may be held accountable in a responsibility segment (strategic business unit)

1. Cost
2. Revenue
3. Profit
4. Investment

7

Effectiveness of each SBU is subdivided into additional areas of accountability:

1. Product Lines
2. Geographic Areas
3. Customer

8

Contribution Margin

Revenue - Variable Costs

9

Controllable Margin

Contribution Margin - Controllable Fixed Costs

10

Critical Success Factors

1. Financial
2. Internal Business Processes
3. Customer Satisfaction
4. Advancement of Innovation and HR development

11

What are the two Conformance Costs?

Prevention and Appraisal

12

What are the two Nonconformance Costs?

Internal Failure and External Failure

13

What costs are the following:
- Employee Training
- Inspection Expenses
- Preventive Maintenance
- Redesign of product and processes
- Search for higher-quality suppliers

Prevention Costs (prevent the production of defective units)

14

What costs are the following:
- Statistical Quality Checks
- Testing
- Inspection
- Maintenance of Laboratory

Appraisal Costs (discover and remove defective parts BEFORE they are shipped to the customer)

15

What costs are the following:
- Rework - Scrap - Tooling Changes
- Cost to Dispose - Cost of the Lost Unit
- Downtime

Internal Failure Costs (defect discovered BEFORE sent to customer)

16

What costs are the following:
- Warranty Costs - Cost of returning the good
-Liability Claims - Lost Customers - Product Repair

External Failure Costs (defect discovered AFTER sent to customer)

17

Contribution Margin - Noncontrollable Fixed Costs

Contribution by SBU

18

Total Factor Productivity Ratio (TFP) Formula

Quantity Output / Cost of ALL inputs

19

Partial Productivity Ratios (PPR) Formula

Quantity Output / Quantity of Inputs

20

4 Common Elements of Fishbone Diagram

Machinery
Materials
Method
Manpower

21

1. Plans that are broad-based and long-term in nature
2. Reports that are specific and shorter terms

1. Strategic Plans
2. Performance Reports

22

Performance measurement tool generally associated with evaluating multiple different dimensions of business outcomes

Balanced Scorecard

23

Balanced Scorecard reports management information regarding organizational performance as defined by _________

Critical Success Factors

24

Fixed Costs that a manager can impact in less than one year

Controllable Costs