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Caring, individualized attention provided by the firm to its customers.
Empathy
Willingness to help customers and provide prompt service.
Responsiveness
This refers to the core features and characteristics of a product.
Functionality
The totality of characteristics which act to satisfy a need.
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This refers to the ease with which a product can be maintained in the original condition.
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Costs necessary for achieving high quality.
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____ is the ratio of the output to input.
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____ is defined as a set of attributes that bear on the ability to be transferred from one environment to another.
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____ is the ability to perform the promised service with dependable and accurate results.
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Quality Control is the ____ aspect of quality management.
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____ includes all the planned and systematic activities implemented within the quality system that can be demonstrated to provide confidence that a product or service will fulfill requirements for quality.
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____ is a systematic, formal approach to the analysis of practice performance and efforts to improve performance.
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______ is a philosophy of management for continuously improving the quality of products and processes. The idea is that the quality of products and processes is the responsibility of everyone who is involved with the development and/or use of the products or services.
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_______ is the cost of acquiring and maintaining data related to quality and development of reports on quality performances.
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_______ is the cost of developing and putting on quality training programs for employees and management.
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______ is the cost incurred in the process of uncovering defects.
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Costs consequences of poor quality.
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Costs of fixing defective products to conform to quality specifications.
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Study Notes
Cost of Quality
- There are four categories of quality costs: Prevention Costs, Appraisal Costs, Internal Failure Costs, and External Failure Costs.
Prevention Costs
- Costs incurred in the process of preventing poor quality from occurring.
- Examples include:
- Training Costs: costs of developing and putting on quality training programs for employees and management.
- Information Cost: costs of acquiring and maintaining data related to quality and development of reports on quality performances.
Appraisal Costs
- Costs incurred in the process of uncovering defects.
- Examples include:
- Inspection and Testing: costs of testing and inspecting materials, parts, and product at various stages and at the end of a process.
- Test Equipment Costs: costs of maintaining equipment used in testing quality characteristics of products.
- Operator Costs: costs of time spent by operators to gather data for testing product quality, to make equipment adjustments to maintain quality, and to stop work to assess quality.
Internal Failure Costs
- Costs associated with discovering poor quality before the product reaches the customers.
- Examples include:
- Scrap Costs: costs of poor-quality products that must be discarded, including labor, material, and indirect costs.
- Rework Costs: costs of fixing defective products to conform to quality specifications.
Total Quality Management (TQM)
- A philosophy of management for continuously improving the quality of products and processes.
- The idea is that the quality of products and processes is the responsibility of everyone who is involved with the development and/or use of the products or services.
Dimensions of Quality
- Product Quality:
- Functionality: core features and characteristics of a product.
- Reliability: indicator of the durability of the products.
- Usability: ease of use of a product.
- Maintainability: ease with which a product can be maintained in the original condition.
- Consistency, Accessibility, Convenience, Accuracy, and Responsiveness.
- Service Quality:
- Reliability: ability to perform the promised service with dependable and accurate results.
- Assurance: knowledge and courtesy of employees and their ability to inspire trust and confidence.
- Tangibles: physical facilities, equipment, and appearance of personnel.
- Empathy: caring, individualized attention provided by the firm to its customers.
- Responsiveness: willingness to help customers and provide prompt service.
Why Quality is Important
- Increases productivity and competitiveness.
- Creates a standard of meeting customer expectations.
- Enhances business reputation.
- Builds customer loyalty.
- Clients and users expect quality.
- Poor quality results in "rework" at additional cost.
- Poor quality results in problems that can be difficult to diagnose and solve.
- Poor quality can cost lives.
Definitions of Quality
- Conformance to requirements.
- A degree of excellence.
- The totality of characteristics which act to satisfy a need.
- Fitness for use.
- Fitness for purpose.
- Freedom from defects.
- Delighting customers.
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