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Prevention costs
incurred to avoid or minimize the number of defects at first place
Appraisal Costs
part of the quality control process to ensure that their products and services meet customer expectations
Failure Costs
costs incurred by defective parts/products or faulty services
Internal Failure Costs
costs incurred to fix problems that are detected before the product/service is delivered to the customer.
External Failure Costs
all costs incurred to fix problems that are detected after the product/service is delivered to the customer.
MANPOWER
refers to the human workforce involved in the manufacture of product
METHOD
refers to the process or technique of converting raw materials to finished products.
Heterogeneous product
product has dissimilar characteristics, parts, and physical appearance
Homogeneous product
product in which physical appearance, taste, or chemical content that can hardly be distinguished from that of the other products.
Intermittent Production System
the goods are manufactured specially to fulfill orders made by customers rather than for stock.
Project Method
company accepts a single or complex order or contract and is bound by a specific time to complete it.
Job order Method
company accepts a contract to produce one or few units of a product strictly as per specifications given by the customer.
Batch Method
the production undergoes several stages and the product is transferred from one worker to another.
Continuous Production System
involves a continuous or almost continuous physical flow of materials
Just-in-Time Production System
goods are produced just in time when the market needs or demand for them
MACHINE
refers to the manufacturing equipment used in the production of goods or delivery of services
MATERIALS
refers to the materials needed in the production of a product