MGT 364 Exam 2 Vocab Ch 5-8

MGT 364 Exam 2 Vocab Ch 5-8 - CHAPTER 5: Quality and...

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CHAPTER 5: Quality and Performance - Defect—instance when a process fails to satisfy its customer - Prevention costs—costs associated with preventing defects before they happen - Appraisal costs—costs incurred when the firm assess the performance level of its processes - Internal failure costs—costs resulting from defects that are discovered during the production of product - External failure costs—costs that arise after the customer receives the product - Warranty—guarantee that the producer will replace or repair defective parts to satisfaction - Total Quality Management (TCM)—stresses three principles for achieving high levels of process performance and quality: customer satisfaction, employee involvement, and continuous improvement in performance - Quality—term used by customers to describe their general satisfaction with a service or product - Quality at the source—philosophy where defects are caught and corrected where they were created - Teams—small groups of people with common purpose, hold themselves accountable - Employee empowerment—approach to teamwork that moves responsibility for decisions further down the organizational chart - Quality circles—another name for problem solving teams - Special purpose teams—groups that address issues of paramount importance to management - Self-managed team—small group of employees who work together to produce majority of product - Continuous improvement—philosophy of continually seeking ways to improve processes based on kaizen - Six Sigma Improvement Model—five step procedure that leads to improvements in process performance Define Measure Analyze Improve Control - Statistical process control (SPC)—application of statistical techniques to determine whether a process is delivering
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MGT 364 Exam 2 Vocab Ch 5-8 - CHAPTER 5: Quality and...

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