Chapter 8 - 1 Measure Efficiency Chapter 8 2 What is...

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1 Measure Efficiency Chapter 8
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2 What is efficiency? Effective operation as measured by a comparison of production with cost The ration of useful energy delivered by a dynamic system to energy supplied to it. Efficiency is subordinate to effectiveness Efficiency is relative not absolute Efficiency is multifaceted Cost Variation Cycle time
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3 What is the cost of quality Type Prevention (good) Detection (bad) Failure (Ugly) Internal failure – External failure – Exceeding requirements – Lost opportunity Example Costs Planning, training, design, and analysis Appraisal, inspection, auditing, verifying, and checking Rework and repair prior to customer delivery Repair, replacement, refunds, recalls, and warranties after customer delivery Features provided that are not valued by the customer Revenue lost when customers purchase elsewhere
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4 1 X 10 X 100 rule 1 X 100 X 10,000 rule
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5 Redesigning process guidelines: Increase prevention until marginal cost for the
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Chapter 8 - 1 Measure Efficiency Chapter 8 2 What is...

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