Chapter 19: Balanced Scorecard: Quality, Time, and the Theory of Constraints Flashcards Preview

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Flashcards in Chapter 19: Balanced Scorecard: Quality, Time, and the Theory of Constraints Deck (10)
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1
Q

Quality

A

Features of a product consistent w/ customer expectations.

2
Q

What is the result of a quality focus?

A

Reduces costs

and

increases customer satisfaction.

3
Q

What are the benefits to focusing on product quality?

A

B.L.I.P

  • Builds expertise
  • Lowers costs
  • Increases satisfaction
  • Potential increase in future revenues
4
Q

What are the 2 basic aspects of quality?

A
  1. Design quality - how close does the design of the product meet customer needs
  2. Conformance quality - how actual product performance compares to customer needs
5
Q

What are the 4 perspectives of the Balanced Scorecard?

A

F.U.L.L

  1. Financial
  2. cUstomer
  3. InternaL business process
  4. Learning and growth
6
Q

Costs of Quality (COQ)

A

Costs incurred to prevent or costs incurred due to a low-quality product.

There are 4 categories:

  1. Prevention
  2. Appraisal - incurred to detect low-quality
  3. Internal failures - incurred before shipped
  4. External failures - incurred after shipped
7
Q

Customer-response time

A

How long it takes from when the product is ordered to its delivery.

8
Q

Bottlenecks

A

Occurs when the work in progress approaches or exceeds the capacity available to do it.

9
Q

On-time performance

A

Delivery of a product when it is scheduled to be delivered

10
Q

Balanced Scorecard

A

A measurement system that is used to monitor and enhance performance within the financial, customer, internal business processes, and learning and growth segments of a business.