Internal failures, external failures, appraisal, and prevention. In this video, Eddie Davilla explains how these costs can lead to quality improvements with maximum impact.
- [Instructor] 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 …
- 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 Intermediate
1. Introduction to Operations
2. Managing Inventory Basics
3. Making Products and Services
4. Managing Waiting Lines Basics
5. Quality Control Basics
6. Operations at the Office
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