Accounts Payable

1) Q&P (1)

a) Quality = customer satisfaction = RIGHT?

b) Quality - customers’ general satisfaction of a product/service

i) Conformance spec – to see if a product falls within set standards

ii) Value – the benefits from the specific prouct/service

iii) Fitness for use – how effective a process is in delivering goods that fit the customer’s purpose

iv) Support -

v) Psychological impressions –mental observations/experiences with the product

c) Guidelines for positive customer experience

vi) Sequence principles – bad news out of the way first

vii) Duration principles – distract & give pain in doses

viii) Rationalization principles – let customer choose among bad options (know values & norms of customer)

d) Quality Loss Function – poor quality happens outside of LCL & UCL

e) 4 Core Processes

ix) customer relationship

x) supplier relationship

xi) new product/service development

xii) order fulfillment

f) Costs of Quality

g) The more spent on prevention & appraisal, the less incurred on internal/external failure

h) Maximize – Prevention & appraisal

i) Minimize – internal/external failure

j) Hardest to estimate – external failure

k) Defects should be found – before production

xiii) Internal Failure

(1) Scrap

(2) Rework

(3) Process downtime

(4) Disposal Cost

xiv) External Failure

(5) Complaints

(6) Warranty

xv) Prevention

(7) Training

(8) Design

(9) Quality Systems

xvi) Appraisal

(10) Inspection

(11) Testing

(12) Inventory Counts

l) Key Principles of TQM

xvii) Customer satisfaction (conform. to specs, value, fitness for use, support, psych....