BEC B6 Flashcards
Prevention Costs Include: - Conformance Cost
Employee Training, Inspection Expenses, Preventive Maintenance, Redesign of product, Redesign of processes, and Search for higher-quality suppliers
Appraisal Costs: Conformance Cost
Statistical quality checks, testing, inspection, and maintenance of the laboratory.
Conformance costs include
Appraisal and Prevention Costs
Nonconformance costs include
Internal Failure and External Failure
Internal Failure costs include:
Rework costs, scrap, tooling changes, costs to dispose, cost of the lost unit, and downtime
External Failure costs include:
Warranty costs, Cost of returning the good, Liability claims, Lost Customers, and Re engineering an external failure.
Mnemonic for Quality Reporting - APIE
Appraisal includes the costs incurred to identify defective products or services
Prevention includes the costs incurred to prevent the production or delivery of defective products or services.
Internal Failure is the cost of defective parts or lost production time.
External Failure is the cost of returns and lost customer loyalty due to defective products or services.
Companies that adopt just-in-time purchasing systems often experience:
A reduction in the number of suppliers. Because J-I-T is very dependent on supplier performance, usually fewer suppliers are used and a very close working relationship is developed with existing suppliers.
It requires more deliveries from suppliers, More reliance on quality control by the supplier, and more need to connect to the vendor’s order entry system.
Which of the following is not a typical characteristic of a just-in-time (JIT) production environment?
Just-in-time has the goal to minimize the level of inventory carried. Typical characteristics include lot sizes equal to one, insignificant set-up times and costs, and balanced and level workloads. In a just-in-time environment, the flow of goods is controlled by a “pull” approach, where an item is produced only when it is needed down the line, and not a “push-through” system.
What are the characteristics of Total Quality Management (TQM)
TQM focuses on customer needs, continuous improvement, and quality circles. Waste reduction is characteristic of lean manufacturing, not TQM.
What process makes sure that production processes resource uses stay within target costs?
Kaizen, or continuous improvement, occurs at the manufacturing stage where the ongoing search for cost reductions takes the form of analysis of production processes to ensure that resource uses stay within target costs.
What does Activity-based costing focus on
Activity-based costing focuses on costs for each activity in a process, but does not strive to stay within a targeted cost.
What come as a result of Just-in-time systems?
Employee empowerment, supplies received as needed throughout the day and reduced setup time.
Reduced set up times result from no longer needing to accommodate buffers for delivery of goods are benefits and features of just-in-time inventory systems.
Just-in-time means that employees with multiple skills are used more efficiently and will not specialize in merely one job or task.
Absolute Conformance
Absolute conformance is the most rigorous standard of quality because it represents a perfect, or ideal, level of compliance.
The maximization of throughput is an inherent concept in which philosophy
Theory of Constraints
The theory of constraints is concerned with maximizing throughput by identifying and alleviating constraints.
