SCM 301 Chapter Notes - Chapter 5: Six Sigma, Central Tendency, Process Capability
Document Summary
Quality: (a) the characteristics of a product or service that bear on its ability to satisfy stated or implied needs (b) a product or service that is free of deficiencies. Value perspective: holds that quality must be judged, in part, by how well the characteristics of a particular product or service alight with the needs of a specific user. Conformance perspective: focuses on whether or not a product was made or a service was performed as intended. Features: added touches, bells, and whistles, secondary characteristics. Internal failure costs: costs caused by defects that occur prior to delivery to the customer, including money spent on repairing or reworking defective products, and time wasted. External failure costs: costs incurred by defects that are not detected until a product or service reaches the customer. Appraisal costs: costs a company incurs for assessing its quality levels. Prevention costs: costs an organization incurs to actually prevent defects from occurring to begin with.
