Flashcards in Long Test 2: Benefits of TQM Deck (13)
What are the Tangible Benefits
1. Cost of Poor Quality
What are the Intangible Benefits
1. Increased Customer Satisfaction
2. Increased Workforce Satisfaction and Motivation
3. Improved Environment Impacts
The costs associated with providing poor-quality products and services.
Cost of Poor Quality
The most obvious tangible benefit of quality improvement is _____
the reduction of costs associated with non-quality.
4 Categories of Quality Costs
1. Prevention Costs
2. Appraisal Costs
3. Internal Failure Costs
4. External Failure Costs
Costs incurred to avoid or minimize the failures.
Costs involved in determining the degree of conformance to the quality requirements.
Costs associated with defects found before the customer receives the product or service.
Internal Failure Costs
Costs associated with defects found at customer’s site.
External Failure Costs
Refer to “non-value added activities” and “process waste”.
7 Types of Wastes (Ohno, 1988)
Deming's Chain Reaction
1. Improve Quality
2. Costs reduce because of less waste, defects, etc
3. Productivity improves
4. Capture market with better quality & lower price
5. Stay in business & provide more and more jobs