Upgrade to remove ads
info 463 quiz 3
Terms in this set (8)
Three types of measures
process (efficiency), output (effectiveness), outcome (product)
What is a process?
Measures of efficiency quantify the resources consumed in the process relative to minimum possible levels
Measured within the process
What is an output?
Measures of process effectiveness quantify the ability of a process to deliver products or services according to their specifications
Measured by examining products and services when they are produced
what is an outcome?
Measures of outcome quantify the ability of outputs to satisfy the needs of their customers and represent the ultimate performance measure
Can be measured in two ways
Can be determined only after the product has been delivered or the service provided
Measuring in four deimensions
Quality vs. Quantity: measuring attributes of the output (quality) is for customers. Counting numbers of outputs (quantity) is for shareholders.
what are the three types of efficiency measures?
-Cost measures - try to minimize the resources consumed in the process.
-Variation measures - try to eliminate the waste associated with adding "fat" and contingency into plans and designs that serve to cushion uncertainty.
-Cycle time measures - try to reduce the total elapsed time required to transform inputs into outputs.
how do you minimize the cost of quality?
Increase prevention until the marginal cost for the next increment exceeds the marginal cost of detection.
Increase prevention and detection until the sum of marginal costs exceeds the cost of the next failure.
Improve performance by increasing effectiveness and efficiency of prevention and detection processes.
Reduce the consequences of failure
Categories of cycle time
Real Value-added (RVA) - Essential process that transforms inputs into outputs that are necessary to meet customer's requirements and have value to the customer.
Business Value-added (BVA) - Processes that are installed by management and deemed necessary to support internal business functions. No real value to the customer.
Non-value-added (NVA) - Are nonessential processes that contribute to either customer satisfaction or improved business operations. Increase cycle time and add cost rather than value.
This set is often in folders with...
Info 463 Quiz 1
info 463 quiz 2
Info 463 quiz 4
You might also like...
Cost Acct Chapter 12
Cost- Exam 4
Cost Accounting Exam 3
Other sets by this creator
info 463 midterm
info 300 quiz 1
info 361 test 1
Other Quizlet sets
cell division study guide
SYG 2000 CH 5 Personal Dev & Soc