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Unformatted text preview: Chapter 17 CHAPTER 17 IMPLEMENTING QUALITY CONCEPTS QUESTIONS 1. Quality refers to the dimensions or characteristics of a product or service that make it able to meet the stated or implied needs of the person acquiring it. Quality can be viewed from a production or consumer perspective. When viewed from the production perspective, quality is often measured in terms of product life, failure rate, and durability. The consumer's perspective of quality reflects how well the product or service meets specified needs. Both views of quality are valuable. The internal (production) view of quality leads to greater process efficiency and better product design. The external (consumer) view of quality keeps the company focused on the needs of its customers and the relationship between internal processes and external value. 2. Such activities include reworking defective units, handling waste materials, repairing broken production machinery, replacing broken product components, and scrapping defective products or product components. These activities can be described as non-value-added, as discussed in Chapter 4. 3. The eight characteristics (listed in Exhibit 17-2) are performance, features, reliability, conformance, durability, serviceability, aesthetics, and perceived value. The three characteristics of service quality are assurance, tangibles and empathy. The majority of the product quality characteristics are objective, whereas the service quality characteristics are subjective. Thus, a company’s product could be reliable but its customer service department might not be. Product reliability can be tested against constant company specifications; service reliability is judged by individual customers. As noted in the chapter, however, it is possible for services to be measured against characteristics, if the service is in fact defined as the “product” the company sells. 4. Each student will have a different answer. No solution is provided. 1 Chapter 17 5. Benchmarking refers to a process of investigating, comparing, and evaluating one company’s product or services against those of another. Internal benchmarking is the least expensive and, probably, least effective method because only other organizational units are used as “role models” for improvement. Results benchmarking considers the end product or service and often uses reverse engineering to assess the product’s design, components, costs, and features. Process benchmarking investigates, within a particular application or industry, how something is produced or delivered and focuses on the effectiveness and efficiency of the process. Strategic benchmarking seeks to identify strategies of successful and high performing companies in the business world that may not be in the same industry as the benchmarking company....
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This note was uploaded on 12/12/2008 for the course ACCT 310 taught by Professor Nacemagner during the Fall '08 term at Western Kentucky University.

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