Long Test 2: Benefits of TQM Flashcards Preview

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Flashcards in Long Test 2: Benefits of TQM Deck (13)
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1

What are the Tangible Benefits

1. Cost of Poor Quality
2. Waste

2

What are the Intangible Benefits

1. Increased Customer Satisfaction
2. Increased Workforce Satisfaction and Motivation
3. Improved Environment Impacts

3

The costs associated with providing poor-quality products and services.

Cost of Poor Quality

4

The most obvious tangible benefit of quality improvement is _____

the reduction of costs associated with non-quality.

5

4 Categories of Quality Costs

1. Prevention Costs
2. Appraisal Costs
3. Internal Failure Costs
4. External Failure Costs

6

Costs incurred to avoid or minimize the failures.

Prevention Costs

7

Costs involved in determining the degree of conformance to the quality requirements.

Appraisal Costs

8

Costs associated with defects found before the customer receives the product or service.

Internal Failure Costs

9

Costs associated with defects found at customer’s site.

External Failure Costs

10

Refer to “non-value added activities” and “process waste”.

Waste

11

7 Types of Wastes (Ohno, 1988)

Transport
Inventory
Motion
Waiting
Over-production
Over-processing
Defects

12

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

13

Give the Intangible Benefits

1. Increased Customer Satisfaction
2. Increased Workforce Satisfaction and Motivation
3. Improved Environment Impacts