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ManagingQuality:IntegratingtheSupplyChain,6e(Foster)Chapter4StrategicQualityPlanning1)Whichofthefollowingisnotanexampleofastrategiccontentvariable?timeleadershipqualitycostsgenericstrategiesproductdevelopmentAnswer:EDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.1Understandthedifferencesbetweenstrategycontentandprocess.AACSB:ApplicationofKnowledgeType:Concept2)referstothevariables,definitions,components,andconceptsthatareincludedinthestrategy.ContentProcessPrototypeParadigmCriterionAnswer:ADiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.1Understandthedifferencesbetweenstrategycontentandprocess.AACSB:ApplicationofKnowledgeType:Concept3)consistsofthestepsfordevelopingstrategywithinanorganization.PrototypeCriterionProcessContentParadigmAnswer:CDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.1Understandthedifferencesbetweenstrategycontentandprocess.AACSB:ApplicationofKnowledgeType:ConceptWhichofthefollowingisnotafactorconsideredduringsupplychainstrategicplanning?A)suppliersB)serviceC)logisticsD)pricesE)productsAnswer:DDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptWhichofthefollowingisnotafactorconsideredduringsupplychainstrategicplanning?(SeeFigure4-5,page100intext.)definetypesofsourcesitemsorganizeimprovementofteamsandprojectsidentifyoptimalstateforthesupplychainimplementteamsandimprovementprojectsalloftheaboveAnswer:EDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptWhichofthefollowingisoneoftheprimaryreasonsthatqualityeffortshavenotledtogainsinbottom-lineresults?companiespricehighqualityitemstoolowlowcostitemsarenotprofitablequalityandprofitabilityarenegativelycorrelatedqualityistheonlyvariablethataffectsprofitabilitymanycompaniesimplementqualityincorrectlyAnswer:EDiff:3LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ApplicationReducingwasteandimprovingenvironmentalperformance,whichareconsistentwithleanandqualitymanagementphilosophies,arelinkedtowhatbusinesspracticeorvariable?leadershipsustainabilityproductivityconsistencypricingAnswer:BDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptWhichofthefollowingwouldbeanexampleofaleaderwithreferentpower?aleaderwhopunishesrule-breakersanewlyappointedleaderinapositionofpoweramanagerwhooffersperksandprivilegesanadmiredmentoraprofessorinaclassroomAnswer:DDiff:3LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ApplicationLeadinginvolvesapower-sharingrelationshipbetweentwoormoreindividualswherethepowerisdistributedunevenly.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptIfaleaderhaspowertopunishthefollowerfornotfollowingrulesorguidelines,theleaderhasreferentpower.Answer:FALSEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptAleaderwithcoercivepowergrantsraisesandpromotionstoemployees.Answer:FALSEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptReferentpowerisderivedfrompersonalcharismaorcharm.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptLegitimatepowerisderivedfromthepositionanindividualholdsinanorganization.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptSuperordinategoalspertaintoachievingahigherendthatbenefitsnotjusttheindividualbutthegroup.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptConflictmanagementisanexampleofaknowledgeskillexhibitedbyaleader.Answer:FALSEDiff:3LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptAssertivenessisanexampleofacommunicationskillexhibitedbyaleader.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptAcceptanceofdiversityisanexampleofavisionskillexhibitedbyaleader.Answer:FALSEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptThetraitdimensionofleadershipdealswithvariables,suchasheight,productivity,andintelligence.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptNothingcandamageaqualityimprovementeffortfasterthanmanagement'sfailuretoconsiderimplementingchangesthatemployeesrecommend.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ApplicationCommitmenttoqualitymeansthatleadersprovidefunding,slacktime,andresourcesforqualityimprovementeffortstobesuccessful.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptCommitmenttoqualityismeasuredinbudgetcycles.Answer:FALSEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptAlow-costorientationisbasedoncontinuallearningandproductioncompetence.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptSimplificationofprocessesresultsinflowsthatareoflowerproductivity.Answer:FALSEDiff:3LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ApplicationSustainabilityistheabilitytomeettheneedsofthecurrentgenerationwithoutcompromisingtheabilityoffuturegenerationstomeettheirneeds.Answer:TRUEDiff:1LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptTheacronymTQEMstandsforTotalQualityEngineeringandManagement.Answer:FALSEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptTQEMsystemsinvolveaholisticsystemsviewoftheprocessescausingenvironmentaldegradation.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptWhatarethefactorsinvolvedinqualityimprovement?Answer:Qualityimprovementisaplannedmanagerialactivity.Itinvolvesidentifyingpotentialimprovements,prioritizingpotentialareasforimprovement,andplanningtheimplementationofprojectsandimprovements.Diff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptWhatsortofconsequencescanensueifmanagementsetsnumericgoalsforqualityimprovement?Answer:AccordingtoDonaldWheeler,aqualityexpert,whennumericgoalsforqualityimprovementareset,oneofthreethingswilloccur:Peoplewillachievethegoalsandincurpositiveresults.Peoplewilldistortthedata.Peoplewilldistortthesystem.Therearemanypracticalexamplesthatcouldbedrawnfrompublicpolicy.Diff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ApplicationDiscusstheimportanceofleadershipasakeystrategicvariableforqualitymanagement.Answer:Leadershipisakeystrategicvariableforqualitymanagement.Aleaderorganizes,plans,controls,communicates,teaches,advises,anddelegates.Leadinginvolvesapower-sharingrelationshipbetweentwoormoreindividualswherethepowerisdistributedunevenly.Leadershipistheprocessbywhichaleaderinfluencesagrouptomovetowardtheattainmentofsuperordinategoals.Superordinategoalsarethosegoalsthatpertaintoachievingahigherendthatbenefitsnotjusttheindividualbutthegroup.Diff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ApplicationExplainthefivepowersexhibitedbyaleader.Answer:Powerofexpertise:Sometimesaleaderhasspecialknowledge(orisperceivedtohavespecialknowledge).Thistypeofpowertendstohaveverynarrowparametersinthatthefollowerswillfollowonlywithintheconfinesoftheleader'sexpertise.Rewardpower:Ifaleaderhasrewardsthatheorshecanbestowonsubordinatesinreturnforsomedesirableaction,theleaderhasrewardpower.Thisisoftenthecaseinthegrantingofraises,promotions,rewards,recognition,oravarietyofotherincentives.Coercivepower:Iftheleaderhaspowertopunishthefollowerfornotfollowingrulesorguidelines,theleaderhascoercivepower.Suchpoweroftenresultsinunintendedresponses,suchasthefollowergivinguporcircumventingtheleader'srulesurreptitiously.Referentpower:Ifaleaderischarismaticorcharmingandisfollowedbecauseheorsheisliked,thentheleaderhasreferentpower.Acaseofreferentpoweristhementorwhoisadmiredbyhisorherprotegeswhowanttobelikethementor.Legitimatepower:Asaresultofthepositionsthatdifferentpeopleholdwithinanorganization,themanagerhastheobligationtorequestthingsofsubordinates,andthesubordinateshavethedutytocomplywiththerequest.Thisistheexerciseoflegitimatepower.Diff:3LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptExplainthefourimportantskillsthateffectiveleadersexhibit.Answer:Thefourimportantskillsforleadersareknowledge,communication,planning,andvision.Thedifferentphasesidentifyskillsetsthatareneededbymanagers.InPhase1,knowledgehelpstheleaderacceptriskandmoderatethestressassociatedwiththeriskbyusingcopingmechanismsorhealthyoutlets.InPhase2,theleadermustbeabletocommunicatewithotherleadersandsubordinates.InPhase3,theleadermustbeabletoplanandmakedecisions.Finally,inPhase4,theleadermustbeabletoformulateacoherentvisionofthefuturetowardwhichtoplan.Diff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptWhatistherelationshipbetweenqualityandethics?Answer:Qualityisnotonlygoodbusiness,itisalsogoodethics.Itisunethicaltoshipdefectiveproductsknowinglytoacustomer.Reliableproductsandlowdefectratesreflectanethicalapproachofmanagement'scareforitscustomers.Companiesfocusingontheircustomersoftendevelopasetofethicsthatincludesvaluingemployees.Thisisreflectedineducation,training,health,wellness,andcompensationprogramsthatshowempathyfortheemployees.Increasingly,environmentalfriendlinessisseenasanethicalconcern.Diff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptGivereasonswhytheeffectsofqualityonbusinessresultsaremixed.Answer:Theeffectsofqualityonbusinessresultsaremixed;somefirmshavebeenwildlysuccessfulwiththeirqualityefforts,andothercompanieshavebeenunsuccessfulingainingbottom-lineresults.Therearetwoprimaryreasonsforthis.First,manyvariablesaffectprofitabilitybesidesquality.Youmightproducethehighest-quality,obsoleteproductintheworld.Ifyouproduceahigh-qualityproductorservicethatnoonewantstobuy,qualitymanagementsystemslikelywillnotsaveyou.Second,manycompaniesimplementqualityincorrectly.Thatyoucanclaimyouareimplementingqualitydoesnotguaranteeyouwillbesuccessful.Qualityimprovementtakesalongtime,andmanyfirmsdesirequickreturnsoninvestmentforqualitytrainingprograms.Diff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ApplicationExplaintherelationshipbetweenqualityandcost.Answer:Afundamentaldifferenceexistsbetweenalow-pricestrategy,whichisbasedoncompetitivepricing,andalow-costorientationthatisbasedoncontinuallearningandproductioncompetence.Becauseofthepossiblerelationshipbetweenpricingandlow-coststructure,weanticipatethatqualitywilltendtoprovideacompetitiveadvantagerelativetoothercompetitorsbyallowingfirmswithahigh-qualitystrategytoincurlowercoststheycanpassalongtothecustomers.Diff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.2Discussstrategycontentandstrategicconsiderationsinquality.AACSB:ApplicationofKnowledgeType:ConceptWhatarethethreebroadcategoriesofthePAFparadigm?performance,appraisal,andfunctionalcostsprocess,assessment,andfailurecostsprevention,appraisal,andfailurecostsperformance,assessment,andfailurecostsprocess,appraisal,andfunctionalcostsAnswer:CDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:Concept61)costsarecoststhatlimittheoccurrenceofdefectsandimperfections.ProcessAssessmentPreventionFailureAppraisalAnswer:CDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptWhichofthefollowingisnotanexampleofastrategicprocess?forced-choicemodelleadershipHoshinplanningsupplychainstrategyproductdevelopmentAnswer:BDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.1Understandthedifferencesbetweenstrategycontentandprocess.AACSB:ApplicationofKnowledgeType:ConceptStrategyprocessanswersthequestionofwhatistobecontainedinthestrategicplan,andstrategycontentconsistsofthestepsusedtodevelopthestrategy.Answer:FALSEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.1Understandthedifferencesbetweenstrategycontentandprocess.AACSB:ApplicationofKnowledgeType:ConceptHoshinplanningisastrategiccontentvariablethatresultsincascadingactionplansdesiredtoachievecorporategoals.Answer:FALSEDiff:3LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.1Understandthedifferencesbetweenstrategycontentandprocess.AACSB:ApplicationofKnowledgeType:ConceptThetwodimensionsofstrategicplanningarecontentandprocess.Answer:TRUEDiff:1LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.1Understandthedifferencesbetweenstrategycontentandprocess.AACSB:ApplicationofKnowledgeType:Concept62)costsincludecostssuchastraining,qualityplanning,processengineering,andothercostsassociatedwithqualitybeforehand.A)PreventionProcessAppraisalAssessmentFailureAnswer:ADiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:Concept63)Whichofthefollowingisconsideredapreventioncost?costoftroubleshootinglaboratoryacceptancetestingwarrantysupplierqualityassuranceon-siteperformancetestsAnswer:DDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:Concept64)costsareassociatedwiththedirectcostsofmeasuringquality.FailureAppraisalAssessmentPreventionProcessAnswer:BDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:Concept65)costsincludelabtesting,inspection,testequipmentandmaterials,andlossesduetodestructivetests.AssessmentFailurePreventionAppraisalProcessAnswer:DDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:Concept66)Whichofthefollowingisconsideredanappraisalcost?supplierassessmentcostoftroubleshootingprocesswasterobustdesignproductqualityauditsAnswer:EDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:Concept67)failurecostsarethoseassociatedwithonlinefailure.IndirectGenericExternalInternalDirectAnswer:DDiff:1LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:Concept68)failurecostsareassociatedwithproductfailureaftertheproductionprocess.ExternalIndirectDirectGenericInternalAnswer:ADiff:1LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptFailureafterthecustomertakespossessionoftheproductresultsina(n)failurecost.indirectgenericexternalinternaldirectAnswer:CDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptWhichofthefollowingisconsideredafailurecost?on-siteperformancetestswarrantysupplierqualityassurancerobustdesignproductqualityauditsAnswer:BDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptUsingthe,qualitycostscanbemodeledtoshowthetrade-offsbetweenthesecosts.lawofdiminishingmarginalreturnsorder-winningcriterionforced-choicemodelsupplychainstrategyPAFparadigmAnswer:ADiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptUsingthelawofdiminishingmarginalreturns,qualitycostscanbemodeledtoshowthetrade-offsbetweenthesecosts.Thistrade-offmodeliscalledthe.order-winningcriterionsupplychainmodelPAFparadigmforced-choicemodelLundvall-JuranmodelAnswer:EDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptTheLundvall-Juranqualitycostmodelstatesthat.asqualityincreases,customersatisfactionincreasesasexpendituresininspectionandcontrolactivitiesincrease,qualityconformancedecreasesasdesignandmanufacturingcostsincrease,qualityincreasesasexpendituresinpreventionandappraisalactivitiesincrease,qualityconformanceincreasesasinspectioncostsincrease,customersatisfactiondecreasesAnswer:DDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptAppraisalcostsincludecostssuchastrainingandqualityplanning.Answer:FALSEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptAppraisalcostsareassociatedwiththedirectcostsofmeasuringquality.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptSuppliermonitoringisanexampleofapreventivecost.Answer:FALSEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptFailurecostsarecategorizedintotangiblefailurecostsandintangiblefailurecosts.Answer:FALSEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptInternalfailurecostsarethecostsassociatedwithonlinefailure.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptExternalfailurecostsareassociatedwithproductfailureaftertheproductionprocess.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptWarrantiesandconcessionsareexamplesoffailurecosts.Answer:TRUEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptIncreasingpreventionandappraisalcostscouldresultinasignificantincreaseinfailurecosts.Answer:FALSEDiff:2LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptTheLundvail-Juranqualitycostmodelstatesthatasexpendituresinappraisalactivitiesincrease,qualityconformanceshoulddecrease.Answe亡FALSEDiff:3LearningOutcome:DiscussthetotalcostofqualityandcomparethecommonmethodsofmanagingqualityLO:4.3Analyzequalitycosts.AACSB:ApplicationofKnowledgeType:ConceptExplainthethreecategoriesofqualitycosts.Answer:ThePAFparadigm9translatesqualitycostsintothreebroadcategories,whicharethensubdividedintoothercategories.Thethreecategoriesareprevention,appraisal,andfailurecosts(hencetheacronymPAF).Preventioncostsarethosecostsassociatedwithpreventingdefectsandimperfectionsfromoccurring.Preventioncostsarethemostsubjectiveofthethreecategoriesofcosts.Preventioncostsincludecostssuchastraining,qualityplanning,processengineering,andothercostsassociatedwithassuringqualitybeforehand.Appraisalcostsareassociatedwiththedirectcostsofmeasuringquality.Thesecanincludeavarietyofactivitiessuchaslabtesting,inspection,testequipmentandmaterials,lossesbecauseofdestructivetests,andcostsassociatedwithassessmentsforISO9000:2015orotherawards.Failurecostsareroughlycategorizedintotwoareasofcosts:internalfailurecostsandexternalfailurecosts.Internalfailurecostsarethoseassociatedwithonlinefailure,whereasexternalfailurecostsareassociatedwithproductfailureaftertheproductionprocess.Diff:3LearningOutcome:Discussthetotalcostofqualityandcomparethecommonmethodsofmanaging
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