Chapter 4

Chapter 4 - Strategic Management of Costs, Quality, and...

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Strategic Management of Costs, Quality, and Time Maher 10e Chapter 4 1
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Learning Objectives Distinguish between the traditional view of quality and the quality-based view. Compare the costs of quality control to the costs of failing to control quality. Explain why firms make trade-offs in quality control costs and failure costs. Explain why just-in-time requires total quality management. 2
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Traditional View The traditional view of quality assumes that improving quality always requires increasing costs. Firms can reduce total costs by Producing lower-quality goods Tolerating some level of defective goods 3
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Quality-Based View The quality-based view holds that firms should always attempt to improve quality. Attempts to improve quality will succeed without limit Firms Should not wait for inspections of finished products to reveal defects Aim for zero defects High quality pays for itself 4
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Six Sigma
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This note was uploaded on 01/14/2012 for the course ECON 121 taught by Professor Mcdevitt during the Winter '10 term at UCLA.

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Chapter 4 - Strategic Management of Costs, Quality, and...

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