Chapter 19: Balanced Scorecard: Quality, Time, and the Theory of Constraints

Question 1

Quality

Answer 1

Features of a product consistent w/ customer expectations.

Question 2

What is the result of a quality focus?

Answer 2

Reduces costs

and

increases customer satisfaction.

Question 3

What are the benefits to focusing on product quality?

Answer 3

B.L.I.P

• Builds expertise
• Lowers costs
• Increases satisfaction
• Potential increase in future revenues

Question 4

What are the 2 basic aspects of quality?

Answer 4

1. Design quality - how close does the design of the product meet customer needs
2. Conformance quality - how actual product performance compares to customer needs

Question 5

What are the 4 perspectives of the Balanced Scorecard?

Answer 5

F.U.L.L

1. Financial
2. cUstomer
3. InternaL business process
4. Learning and growth

Question 6

Costs of Quality (COQ)

Answer 6

Costs incurred to prevent or costs incurred due to a low-quality product.

There are 4 categories:

1. Prevention
2. Appraisal - incurred to detect low-quality
3. Internal failures - incurred before shipped
4. External failures - incurred after shipped

Question 7

Customer-response time

Answer 7

How long it takes from when the product is ordered to its delivery.

Question 8

Bottlenecks

Answer 8

Occurs when the work in progress approaches or exceeds the capacity available to do it.

Question 9

On-time performance

Answer 9

Delivery of a product when it is scheduled to be delivered

Question 10

Balanced Scorecard

Answer 10

A measurement system that is used to monitor and enhance performance within the financial, customer, internal business processes, and learning and growth segments of a business.