Join Eddie Davila for an in-depth discussion in this video Costs of quality, part of Operations Management Fundamentals.
- Managing quality requires a vigilant commitment…to monitoring quality,…identifying problems at different stages…in the supply chain, finding root causes,…and then devoting resources to fix those root causes.…One very helpful way of seeing the costs of quality…at different stages of the supply chain…is by categorizing quality costs into four categories.…As we walk through these four costs,…notice how the longer you wait in the supply chain…to address the problems,…the more expensive the quality costs are…to the organization.…
The first cost of quality category…is internal failure costs.…These are quality problems that are found and fixed…within the supply chain before they reach the consumer.…These types of costs would include resources…wasted to produce the defective item,…disposal of the damaged good,…and possibly the cost of work and material…required to repair the damaged or defective item.…While having high internal failure costs…is not a great thing,…if a problem is found and fixed internally,…the customer never sees the problem.…
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- Understanding operations management
- Making key inventory decisions
- Balancing holding costs and ordering costs
- Choosing a production strategy and facility layout
- Managing waiting-line systems
- Defining quality and improving quality
- Managing business processes
Skill Level Appropriate for all
1. Introduction to Operations
2. Managing Inventory
3. Managing Production of Products and Services
4. Managing Waiting Lines
5. Managing Quality
6. Operations at the Office
Wrap up2m 52s
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