BEC MCQ 6.1 Flashcards
prevention and appraisal cost
Equipment maintenance and product repair
Internal and external failure costs
internal-Scrap rework maintenance because they find our the defects before shipped to customers
External-responding to customers claims
Just in time purchasing systems
A reduction in number of suppliers. JIT requires more deliveries from suppliers. Prevention of non value adding storage costs
Quality Assurance and Quality control=conformance costs
Warranty claims= external failure cost Design engineering=prevention cost supplier evolution=prevention cost Appraisal cost include: Statistical quality checks, inspections, testing maintenance of lab Tooling changes-Internal failure costs
Four categories of cot associated
appraisal, prevention, internal failure and external failure
lean management
Use of only those resources needed to meet the requirements of the customers. It is not directly focused on inventory management-waste reduction
Activity based costing
Focuses on the cost of activities and those costs that add value to the process
Total Quality Management
represents an organizational commitment to customer focused performance that emphasis both quality and continuous improvement
Goal post conformance
assumes a range of acceptable results. Because it represents achievement of compliance within a range of tolerable error goalpost conformance is considered less rigorous than absolute conformance
Maximization of throughput
Is by identifying and alleviating constraints
Six sigma
cost reduction above production constraints
Activity based costing
Focuses on value added by identifying cost drivers that add value
Conforming cost
Prevention and appraisal-conforming cost
Prevention-employee training
preventive maintenance
supplier education expense
Appraisal- Quality inspectors
Materials inspection expense
Non conforming costs- Internal External
Internal- Scrap
External-Product recalls, Processing product returns
