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Cost Of Poor Quality
Cost of poor quality (COPQ), poor quality costs (PQC), cost of nonquality, Cost of Quality (QOQ), Cost of Current Quality (COCQ) are costs that would disappear if systems, processes, and products were perfect. COPQ was popularized by IBM quality expert H. James Harrington in his 1987 book ''Poor-Quality Cost''. COPQ is a refinement of the concept of quality costs. In the 1960s, IBM undertook an effort to study its own quality costs and tailored the concept for its own use. While Feigenbaum's term "quality costs" is technically accurate, it's easy for the uninitiated to jump to the conclusion that better quality products cost more to produce. Harrington adopted the name "poor quality costs" to emphasize the belief that investment in detection and prevention of product failures is more than offset by the savings in reductions in product failures. Harrington breaks down COPQ into the following elements: Examples White collar COPQ Harrington noted that expanding cost analyses ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
American Society For Quality
The American Society for Quality (ASQ), formerly the American Society for Quality Control (ASQC), is a society of quality professionals, with more than 30,000 members, in more than 140 countries. History ASQC was established on 16 February 1946 by 253 members in Milwaukee, Wisconsin, with George D. Edwards as its first president. The organization was first created as a way for quality experts and manufacturers to sustain quality-improvement techniques used during World War II. In 1948, ASQC's Code of Ethics established standards for members to conduct their activities and business. Business writer Armand V. Feigenbaum served as president of the society in 1961–63. In 1997, the members of the organization voted to change its name from "American Society for Quality Control" to "American Society for Quality". Quality ASQ provides its members with certification, training, publications, conferences, and other services. ASQ is a founding partner of the American Customer ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Quality Costs
In process improvement efforts, quality costs or cost of quality (sometimes abbreviated CoQ or COQ) is a means to quantify the total cost of quality-related efforts and deficiencies. It was first described by Armand V. Feigenbaum in a 1956 Harvard Business Review article. Prior to its introduction, the general perception was that higher quality requires higher costs, either by buying better materials or machines or by hiring more labor. Furthermore, while cost accounting had evolved to categorize financial transactions into revenues, expenses, and changes in shareholder equity, it had not attempted to categorize costs relevant to quality, which is especially important given that most people involved in manufacturing never set hands on the product. By classifying quality-related entries from a company's general ledger, management and quality practitioners can evaluate investments in quality based on cost improvement and profit enhancement. Definitions Feigenbaum defined the follo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ledger
A ledger is a book or collection of accounts in which accounting transactions are recorded. Each account has: * an opening or brought-forward balance; *a list of transactions, each recorded as either a debit or credit in separate columns (usually with a counter-entry on another page) *and an ending or closing, or carry-forward, balance. Overview The ledger is a permanent summary of all amounts entered in supporting journals (day books) which list individual transactions by date. Usually every transaction, or a total of a series of transactions, flows from a journal to one or more ledgers. Depending on the company's bookkeeping procedures, all journals may be totaled and the totals posted to the relevant ledger each month. At the end of the accounting period, the company's financial statements are generated from summary totals in the ledgers. Ledgers include: * Sales ledger (debtors ledger): records accounts receivable. This ledger records the financial transactions betwe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Depreciation
In accountancy, depreciation refers to two aspects of the same concept: first, an actual reduction in the fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wears, and second, the allocation in accounting statements of the original cost of the assets to periods in which the assets are used (depreciation with the matching principle). Depreciation is thus the decrease in the value of assets and the method used to reallocate, or "write down" the cost of a tangible asset (such as equipment) over its useful life span. Businesses depreciate long-term assets for both accounting and tax purposes. The decrease in value of the asset affects the balance sheet of a business or entity, and the method of depreciating the asset, accounting-wise, affects the net income, and thus the income statement that they report. Generally, the cost is allocated as depreciation expense among the periods in which the asset is expected to be used. Account ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Quality Management
Total quality management, Total Quality management (TQM), ensures that an organization, product, or service consistently performs as intended, as opposed to Quality Management, which focuses on work process and procedure standards. It has four main components: quality planning, quality assurance, quality control, and quality improvement. Customers recognize that quality is an important attribute when choosing and purchasing products and services. Suppliers can recognize that quality is an important differentiator of their offerings, and endeavor to compete on the quality of their products and the service they offer. Thus, quality management is focused both on product and service quality. Advancement In earlier periods, arts and crafts were led by Master craftsman, master craftspeople or artists who supervised studios, trained apprentices, and oversaw the product development process. With the advent of the Industrial Revolution, steam engines, and mass production, the role of crafts ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Process Capability
The process capability is a measurable property of a Process (engineering), process to the specification, expressed as a process capability index (e.g., Cpk or Cpm) or as a process performance index (e.g., Ppk or Ppm). The output of this measurement is often illustrated by a histogram and calculations that predict how many parts will be produced out of specification (OOS). Two parts of process capability are: # Measure the variability of the output of a process, and # Compare that variability with a proposed specification or product tolerance Capabilities The input of a process usually has at least one or more measurable characteristics that are used to specify outputs. These can be analyzed statistically; where the output data shows a normal distribution the process can be described by the process mean (average) and the standard deviation. A process needs to be established with appropriate process controls in place. A control chart analysis is used to determine whether the p ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Scrap
Scrap consists of recyclable materials, usually metals, left over from product manufacturing and consumption, such as parts of vehicles, building supplies, and surplus materials. Unlike waste, scrap can have monetary value, especially recovered metals, and non-metallic materials are also recovered for recycling. Once collected, the materials are sorted into types – typically metal scrap will be crushed, shredded, and sorted using mechanical processes. Metal recycling, especially of structural steel, ships, used manufactured goods, such as vehicles and white goods, is an industrial activity with complex networks of wrecking yards, sorting facilities, and recycling plants. The industry includes both formal organizations and a wide range of informal roles such as waste pickers who help sorting through scrap. Processing Scrap metal originates both in business and residential environments. Typically a "scrapper" will advertise their services to conveniently remove scrap metal ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rework (electronics)
In electronics, rework (or re-work) is repair or refinish of a printed circuit board (PCB) assembly, usually involving desoldering and re-soldering of surface-mounted electronic components (SMD). Mass processing techniques are not applicable to single device repair or replacement, and specialized manual techniques by expert personnel using appropriate equipment are required to replace defective components; area array packages such as ball grid array (BGA) devices particularly require expertise and appropriate tools. A hot air gun or hot air station is used to heat devices and melt solder, and specialised tools are used to pick up and position often tiny components. A rework station is a place to do this work—the tools and supplies for this work, typically on a workbench. Other kinds of rework require other tools. Reasons for rework Rework is practiced in many kinds of manufacturing when defective products are found. For electronics, defects may include: * Poor solder joi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sales (accounting)
In bookkeeping, accounting, and financial accounting, net sales are operating revenues earned by a company for selling its products or rendering its services. Also referred to as revenue, they are reported directly on the income statement as ''Sales'' or ''Net sales''. In financial ratios that use income statement sales values, "sales" refers to net sales, not gross sales. Sales are the unique transactions that occur in professional selling or during marketing initiatives. Revenue is earned when goods are delivered or services are rendered. The term sales in a marketing, advertising or a general business context often refers to a free in which a buyer has agreed to purchase some products at a set time in the future. From an accounting standpoint, sales do not occur until the product is delivered. "Outstanding orders" refers to sales orders that have not been filled. A sale is a transfer of property for money or credit. In double-entry bookkeeping, a sale of merchandise is rec ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Service Level Agreement
A service-level agreement (SLA) is an agreement between a service provider and a customer. Particular aspects of the service – quality, availability, responsibilities – are agreed between the service provider and the service user. The most common component of an SLA is that the services should be provided to the customer as agreed upon in the contract. As an example, Internet service providers and telcos will commonly include service level agreements within the terms of their contracts with customers to define the level(s) of service being sold in plain language terms. In this case, the SLA will typically have a technical definition of '' mean time between failures'' (MTBF), '' mean time to repair'' or '' mean time to recovery'' (MTTR); identifying which party is responsible for reporting faults or paying fees; responsibility for various data rates; throughput; jitter; or similar measurable details. Overview A service-level agreement is an agreement between two or m ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Warranty
In law, a warranty is an expressed or implied promise or assurance of some kind. The term's meaning varies across legal subjects. In property law, it refers to a covenant by the grantor of a deed. In insurance law, it refers to a promise by the purchaser of an insurance about the thing or person to be insured. In contract law, a warranty is a contractual assurance given, typically, by a seller to a buyer, for example confirming that the seller is the owner of the property being sold. A warranty is a term of a contract, but not usually a condition of the contract or an innominate term, meaning that it is a term "not going to the root of the contract",Hogg M. (2011). ''Promises and Contract Law: Comparative Perspectives''p. 48 Cambridge University Press. and therefore only entitles the innocent party to damages if it is breached, i.e. if the warranty is not true or the defaulting party does not perform the contract in accordance with the terms of the warranty. A warranty is not ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Gold In The Mine
Gold in the mine is a metaphor for the potential savings in quality improvement efforts. It is essentially a restatement of the Pareto principle in the context of quality costs; digging in the right place can produce great savings, though investigating every possible opportunity is not economically Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interac ... feasible. References Metaphors Quality control {{business-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
