Final - Quality Flashcards
quality of design
product-based; degree to which quality dimensions are designed into the product
quality of conformance
producer’s perspective; degree to which a product conforms to required specifications
what comprises a consumer’s perspective of quality?
fitness for use: degree to which a product satisfies customer’s wants
value-based: degree to which a product provides acceptable quality at a reasonable price
American Society for Quality
the totality of features and characteristics that satisfy needs
What are the 3 different perspectives in defining quality?
producer-pov, consumer-pov, product-pov
What are some dimensions of quality from a product standpoint?
performance, features, conformance, reliability, durability, serviceability (ease of getting repairs), aesthetics, safety, perceived quality (reputation and intangibles)
What are some dimensions of quality from a services standpoint? ex. repair service
time and timeliness, accessibility and convenience, accuracy and competence (ex. certifications), completeness, consistency, courtesy, responsiveness to unusual circumstances, communication, security (ex. privacy), credibility, tangibles (ex. how the facility looks/is organized, the employees are neat and professional)
true or false: if the quality index decreases overtime, quality has improved
true
index down = quality up and vice versa
What are two quantitative measures of quality?
product yield, quality index
what are lost sales costs?
the cost of sales lost from word of product defects travelling faster than word of good products
What are some examples of internal failure costs?
costs of scrap, rework, downtime, material losses
What are some examples of external failure costs?
costs of product returns, repairs, recalls, warranty claims, customer complaints, and lost sales costs
True or false: as product quality goes up, failure costs go up
false; failure costs go down
True or false: as internal failure costs go down, external costs go down
true (generally), but some external costs may not decrease
What are appraisal costs?
one of the types of control/good quality costs; costs of testing and inspection (equipment, operators)
What are prevention costs?
one of the types of control/good quality costs; costs of preparing and implementing a quality plan (product/process design, training, information costs)
True or false: As product quality goes up, appraisal costs go down.
True; if products are good quality then less likely to need repairs etc.
True or false: As product quality goes up, prevention costs go down.
False; prevention costs increases since company may invest more into preventing costs therefore your quality is better
“zero-defects” mentality
the idea that as product quality improves, prevention costs increases but only moderately. therefore, the lowest total cost of quality can be achieved when quality reaches 100% with zero defects. this is pretty close to reality
What was the pre-“zero-defects” mentality?
Theory prior to the zero-defects mentality that it is impossible to get 100% quality without having exorbitantly high prevention costs, therefore being infeasible for companies to do so. Has changed since the 1970s.
What are two ways improved quality leads to higher profits?
Increasing sales and lowering quality costs
Why do sales increase with quality improvement?
Improved response
improved reputation
Higher prices (can markup due to quality)
increased market share
Why do costs lower with quality improvement?
Lower rework and scrap (internal failure costs)
Lower warranty and liability (external failure costs)
Increased productivity
process improvement
final product inspection is too late -> must improve the production process
