Ch4: COPQ & Productivity Flashcards Preview

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Flashcards in Ch4: COPQ & Productivity Deck (10)
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1

cost of quality

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

2

COPQ represents the difference between (2)

the actual cost - what the cost would be if effective

3

COPQ equation

failures + appraisal + prevent action + white collar

4

1-10-100 rule

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

5

Prevention costs (5)

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

6

Appraisal costs (4)

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

7

Internal Failure costs (5)

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

8

External Failure costs (5)

costs for defects found by the customer
1. customer complaint
2. product return
3. warranty claims
4. product liability
5. lost sales

9

index numbers

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

10

4 assumptions in the COPQ model

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