Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
4 Cards in this Set
- Front
- Back
|
Value Engineering |
A means of reaching targeted costs levels. The purpose is to minimize costs without sacrificing customer satisfaction. |
|
|
Process value analysis |
A comprehensive analysis of how an organization generates its output |
|
|
Steps in the Value Chain |
1) Identify the firms value creating activities. 2) To determine how each value creating activity can produce a competitive advantage to the firm. A) Identify competitive advantage ( e.g cost reduction, product differentiation) B) Identify ways in which the firm value creating activities can generate additional customer value. C) Identify activities candidates for cost reduction or in the case of non-core competencies, outsourcing. D) Identify value adding ways in which the firms remaining activities can be linked. |
|
|
Cost of Quality |
1) Conformance Cost a) Prevention- attempts to avoid defective output. These costs include preventive maintenance, employee training, review of equipment design and evaluation of suppliers. Providing quality training to employees should reduce all types of quality costs. b) Appraisal- encompasses such activities as statistical quality control programs, inspection and testing. 2) Noncorformance costs- Include costs of internal and external failure. a) Internal failures- Include scrap, rework, tooling changes, downtime, redesign of products or process, lost of output, reinspection, retesting . b) External failures- Lost profits from a decline in market share as dissatisfied customers make no repeat purchases, return products for refunds, cancel orders, and communicate their dissatisfaction to others. |
