The document discusses cost of quality, which quantifies the total costs associated with quality-related efforts and deficiencies. It was first described by Armand V. Feigenbaum in 1956 to show that higher quality does not necessarily mean higher costs. By classifying quality-related financial data, management can evaluate investments in quality based on cost improvement and profit enhancement.
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TQM Ans 4 Assignment A
The document discusses cost of quality, which quantifies the total costs associated with quality-related efforts and deficiencies. It was first described by Armand V. Feigenbaum in 1956 to show that higher quality does not necessarily mean higher costs. By classifying quality-related financial data, management can evaluate investments in quality based on cost improvement and profit enhancement.
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In process improvement efforts, quality costs or cost of quality 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. [1]
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. [2] 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. [3] 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. [4]
By coverage[edit] There are five types of coverage where the term process model has been defined differently: [3]
Activity-oriented: related set of activities conducted for the specific purpose of product definition; a set of partially ordered steps intended to reach a goal. [4]
Product-oriented: series of activities that cause sensitive product transformations to reach the desired product. Decision-oriented: set of related decisions conducted for the specific purpose of product definition. Context-oriented: sequence of contexts causing successive product transformations under the influence of a decision taken in a context. Strategy-oriented: allow building models representing multi-approach processes and plan different possible ways to elaborate the product based on the notion of intention and strategy. [5]
By alignment[edit] Processes can be of different kinds. [2] These definitions correspond to the various ways in which a process can be modelled. Strategic processes investigate alternative ways of doing a thing and eventually produce a plan for doing it are often creative and require human co-operation; thus, alternative generation and selection from an alternative are very critical activities Tactical processes help in the achievement of a plan are more concerned with the tactics to be adopted for actual plan achievement than with the development of a plan of achievement Implementation processes are the lowest level processes are directly concerned with the details of the what and how of plan implementation By granularity[edit] Granularity refers to the level of detail of a process model and affects the kind of guidance, explanation and trace that can be provided. Coarse granularity restricts these to a rather limited level of detail whereas fine granularity provides more detailed capability. The nature of granularity needed is dependent on the situation at hand. [2]
Project manager, customer representatives, the general, top-level, or middle management require rather coarse-grained process description as they want to gain an overview of time, budget, and resource planning for their decisions. In contrast, software engineers, users, testers, analysts, or software system architects will prefer a fine-grained process model where the details of the model can provide them with instructions and important execution dependencies such as the dependencies between people. While notations for fine-grained models exist, most traditional process models are coarse-grained descriptions. Process models should, ideally, provide a wide range of granularity (e.g. Process Weaver). [2][6]
By flexibility[edit]
Flexibility of Method construction approaches [7]
It was found that while process models were prescriptive, in actual practice departures from the prescription can occur. [5] Thus, frameworks for adopting methods evolved so that systems development methods match specific organizational situations and thereby improve their usefulness. The development of such frameworks is also called Situational Method Engineering. Method construction approaches can be organized in a flexibility spectrum ranging from 'low' to 'high'. [7]
Lying at the 'low' end of this spectrum are rigid methods, whereas at the 'high' end there are modular method construction. Rigid methods are completely pre-defined and leave little scope for adapting them to the situation at hand. On the other hand, modular methods can be modified and augmented to fit a given situation. Selecting a rigid methods allows each project to choose its method from a panel of rigid, pre-defined methods, whereas selecting a path within a method consists of choosing the appropriate path for the situation at hand. Finally, selecting and tuning a method allows each project to select methods from different approaches and tune them to the project's needs. [8]