Quality Reporting Flashcards
Four Quality Cost Classifications
Prevention costs
Appraisal costs
Internal Failure Costs
External Failure Costs
Preventative Costs
costs incurred in order to prevent poor quality
Appraisal costs
costs incurred to measure the appraisal of the quality of the items being produced
internal failure costs
costs incurred in rejecting or correcting faulty goods
faults need to be detected before delivery
external failure costs
costs incurred as a result of customer rejection
after delivery
Conformance costs
preventative and appraisal costs
non-conformance costs
external and internal failure costs
relationship between conformance and non-conformance costs
the higher the conformance cost, the lower the non-conformance costs would be in the long run
techniques used to identify quality problems
Control charts
Pareto diagrams
Cause-and-effect diagrams
a control chart
a graph of a series of successive observations of a particular step, procedure, or operation taken at regular intervals of time.
how is each observation plotted in a control chart?
each observation is plotted relative to a specified range that represents the expected statistical distribution.
which observations in a control chart are worth investigating?
only those observations outside the control limits are regarded as non-random and worth investigating.
Pareto diagram
indicates how frequently each type of failure occurs
what serves as inputs to Pareto diagrams?
observations outside control limits.
cause-and-effect diagram
identifies potential causes of failures or defects