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Strategic Cost Management Performance Task Week 6

This document is a study guide for a course on Strategic Cost Management. It provides instructions for students to read Chapter 5 on Total Quality Management (TQM) and then fill in the blanks with definitions and concepts from the chapter. Some of the key terms and concepts it defines include: quality, customer expectations, quality specification, total quality management, cost management, control activities, prevention activities, appraisal activities, failure activities, internal failure costs, external failure costs, prevention cost, appraisal cost, conformance costs, non-conformance costs, and the Demming wheel/PDCA cycle.

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Cristel Ann Dotimas
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26 views1 page

Strategic Cost Management Performance Task Week 6

This document is a study guide for a course on Strategic Cost Management. It provides instructions for students to read Chapter 5 on Total Quality Management (TQM) and then fill in the blanks with definitions and concepts from the chapter. Some of the key terms and concepts it defines include: quality, customer expectations, quality specification, total quality management, cost management, control activities, prevention activities, appraisal activities, failure activities, internal failure costs, external failure costs, prevention cost, appraisal cost, conformance costs, non-conformance costs, and the Demming wheel/PDCA cycle.

Uploaded by

Cristel Ann Dotimas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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TARLAC CHRISTIAN COLLEGE

5085 Buno Matatalaib, Tarlac City


STUDY TO SHEW THYSELF APPROVED UNTO GOD,
A workman that needeth not to be ashamed, rightly dividing the word
of truth. (II Timothy 2:15)

Name: CRISTEL ANN L. DOTIMAS


Course/Year: BSA-2 Score:
Date:

Strategic Cost Management


Performance Task (Week 6)
Chapter 5 – Total Quality Management (TQM)

I. Read and study “Chapter 5 – Total Quality Management (TQM)” in our PDF textbook.

II. Fill in the Blanks

1. QUALITY is often referred to as the “degree or grade of excellence;”


2. CUSTOMER EXPECTATIONS (2 words; plural) relate to attributes such as product
performance, reliability, durability, and fitness for use.
3. A QUALITY SPECIFICATION (2 words) is the specific level of performance planned for a
given quality attribute.
4. TOTAL QUALITY MANAGEMENT (3 words) is a “management approach of an
organization, centered on quality based on the participation of all its members and aiming at long-
term success through customer satisfaction and benefits to all members of the organization and to
society”.
5. COST MANAGEMENT (2 words) is used to analyze the cost consequences of different design
choices for TQM and to measure and report the many aspects of quality including, for example,
production breakdowns and production defects, wasted labor, or raw materials, the number of service
calls, and the nature of the complaints, warranty costs, and product recalls.
6. CONTROL ACTIVITIES (2 words) are performed by an organization to prevent or detect poor
quality (because poor quality may exist).
7. PREVENTION ACTIVITIES (2 words; plural) seek to prevent defects in the products or
services being produced.
8. APPRAISAL ACTIVITIES (2 words; plural) inspect inputs and attributes of individual units of
product or service to detect whether they conform to specifications or customer expectations.
9. FAILURE ACTIVITIES (2 words; plural) are performed by an organization in response to poor
quality (poor quality does exist).
10. INTERNAL failure costs are expenditures spent as a result of poor quality found through
appraisal prior to delivery to customer.
11. EXTERNAL failure costs are costs incurred to rectify quality defects after unacceptable
products or services reach the customers and costs of profits lost from missed opportunities as a result
of the unacceptable products or services delivered.
12. PREVENTION COST (2 words) is incurred to prevent poor quality in the products or services
being produced.
13. APPRAISAL COST (2 words; plural) are expenses incurred in the measurement and analysis
of data to determine conformity to specifications.
14. Prevention costs and appraisal costs are referred to as CONFORMANCE COSTS (2 words; plural).
15. Internal failure costs and external failure costs imply NON- CONFORMANCE COSTS (3 words;
plural).
16. Perhaps the most important and pervasive TQM problem-solving tool is the plan-do-check-act
(PDCA) cycle, which is also referred to as the DEMMING WHEEL (2 words).

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