BAMG 30700 Study Guide - Final Guide: Six Sigma, Hubble Space Telescope
18 May 2018
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Process Analytics Final Study Guide
• Quality and Performance:
o Quality:
▪ a term used by customers to describe their general satisfaction with a
service or product
o Defect:
▪ product fails to meet expectations
• any instance when a process fails to satisfy customer demand
• Costs of Quality:
o 1. Prevention Costs:
▪ costs associated with preventing defects before they happen
o 2. Appraisal Costs:
▪ costs incurred when the firm assesses the performance level of its
processes
o 3. Internal Failure Costs:
▪ costs resulting from defects that are discovered during the production of
a service or product
o 4. External Failure Costs:
▪ costs that arise when a defect is discovered after the customer receives
the service or product
• Six Sigma:
find more resources at oneclass.com
find more resources at oneclass.com
