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Total quality management (TQM)
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Managing the entire organization so that it excels on all dimensions of products and services that are important to the customer
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2 goals of TQM
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1. careful design of the product or service2. ensuring that the organization's systems can consistently produce the designed product or service
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Dimensions of quality
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Criteria by which quality is measured-reliability, durability, maintainability, availability
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Design quality
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The inherent value of the product in the marketplace due to some need
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Conformance quality
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How well the prescribed processes are executed
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Quality at the source
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The person who does the work is responsible for ensuring that specifications are met
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Cost of quality
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Expenditures related to achieving product or service quality such as the costs of prevention, appraisal, internal failure and external failure
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Prevention costs
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Planning, training, improvement
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Appraisal costs
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Incoming raw materials and final goods inspections
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Internal failure costs
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Scrap, rework, retest costs and downtime-incurred within the system
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External failure costs
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For defects that pass through the system-warranty, returns, complaints, good-will loss (most expensive)
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Cos of _________ is cheaper
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Prevention
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Six sigma
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A statistical term to describe the quality goal of no more than four defects out of every million units-quality improvement philosophy and program
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Six sigma is used to
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Eliminate defects
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________ is the enemy of quality
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Variation
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