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CHAPTER 5Quality: the characteristics of a product or service that bear on its ability to satisfy stated or implied needs; a product or service that is free of deficiencies
Value perspective: a quality of perspective that holds that quality must be judged, in part, by how well the characteristics of a particular product or service align with the needs of a specific userConformance perspective: a quality perspective that focuses on whether or not a product was made or aservice was performed as intendedInternal failure costs: costs caused by defects that occur prior to delivery to the customer, including money spent on repairing or reworking defective products, as well as time wasted on these activitiesExternal failures costs: costs incurred by defects that are not detected until a product or service reaches the customerAppraisal costs: costs a company incurs for assessing its quality levelsPrevention costs: the costs an organization incurs to actually prevent defects from occurring to begin withTotal cost of quality curve: a curve that suggests that there is some optimal quality level, Q*. The curve iscalculated by adding costs of internal and external failures, prevention costs, and appraisal costsTotal quality management (TQM): a managerial approach in which an entire organization is managed so that it excels in all quality dimensions that are important to customersContinuous improvement: a principle of TQM that assumes there will always be room for improvement, no matter how well an organization is doingEmployee empowerment: giving employees the responsibility, authority, training, and tools necessary to manage qualityQuality assurance: the specific actions firms take to ensure that their products, services, and processes meet the quality requirements of their customersQuality function deployment (QFD): a technique used to translate customer requirements into technical requirements for each stage of product development and productStatistical quality control (SQC): the application of statistical techniques to quality controlStrategic quality plan: an organizational plan that provides the vision, guidance, and measurements to drive the quality effort forward and shift the organization’s course when necessaryISO 9000: a family of standards, supported by the international organization for standardization, representing an international consensus on good quality management practices. ISO 9000 addresses business processes rather than specific outcomes