mgsc chapter 3
a term used by customers to describe their general satisfaction with a service or product -
ANS-quality
prevention, appraisal, internal failure, external failure - ANS-4 major costs of quality
costs associated with preventing defects before they happen - ANS-prevention costs
Costs incurred when the firm assesses the performance level of its processes - ANS-appraisal
costs
costs resulting from defects that are discovered during the production of a service or product -
ANS-internal failure costs
costs that arise when a defect is discovered after the customer receives the service or product -
ANS-external failure costs
a comprehensive and flexible system for achieving, sustaining, and maximizing business
success by minimizing defects and variability in processes - ANS-Six Sigma
a philosophy that stresses three principles for achieving high levels of process performance and
quality
1. customer satisfaction
2. employee involvement
3. continous improvement in performance - ANS-TQM
the application of statistical techniques to determine whether a process is delivering what the
customer wants - ANS-SPC
assignable causes and common causes - ANS-basic categories of variation
the purely random, unidentifiable sources of variation that are unavoidable with the current
process - ANS-common causes of variation
any variation-causing factors that can be identified and eliminated - ANS-assignable causes of
variation
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