BEC MCQ 6.1 Flashcards Preview

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Flashcards in BEC MCQ 6.1 Deck (14):

prevention and appraisal cost

Equipment maintenance and product repair


Internal and external failure costs

internal-Scrap rework maintenance because they find our the defects before shipped to customers
External-responding to customers claims


Just in time purchasing systems

A reduction in number of suppliers. JIT requires more deliveries from suppliers. Prevention of non value adding storage costs


Quality Assurance and Quality control=conformance costs

Warranty claims= external failure cost
Design engineering=prevention cost
supplier evolution=prevention cost
Appraisal cost include: Statistical quality checks, inspections, testing maintenance of lab
Tooling changes-Internal failure costs


Four categories of cot associated

appraisal, prevention, internal failure and external failure


lean management

Use of only those resources needed to meet the requirements of the customers. It is not directly focused on inventory management-waste reduction


Activity based costing

Focuses on the cost of activities and those costs that add value to the process


Total Quality Management

represents an organizational commitment to customer focused performance that emphasis both quality and continuous improvement


Goal post conformance

assumes a range of acceptable results. Because it represents achievement of compliance within a range of tolerable error goalpost conformance is considered less rigorous than absolute conformance


Maximization of throughput

Is by identifying and alleviating constraints


Six sigma

cost reduction above production constraints


Activity based costing

Focuses on value added by identifying cost drivers that add value


Conforming cost

Prevention and appraisal-conforming cost
Prevention-employee training
preventive maintenance
supplier education expense
Appraisal- Quality inspectors
Materials inspection expense


Non conforming costs- Internal External

Internal- Scrap
External-Product recalls, Processing product returns