Total Quality Management Costs are often identified and categorized in the Prevention, Appraisal, Failure (PAF) Model....

Total Quality Management Costs are often identified and categorized in the Prevention,
Appraisal, Failure (PAF) Model.
a. With relevant examples, explain the components of the PAF- model
b. According to the PAF- Model in which ways can organizations minimize the total
cost (TC) of quality?
c. Briefly explain the term Benchmarking. Distinguish between the three types of benchmarking

Solutions

Expert Solution

P-A-F MODEL
Cost of Quality predict by PAF Model

Cost of achieving good quality

Prevention
Appraisal

Cost of achieving bad quality

Internal failure cost
External failure cost

COMPONENTS OF PAF MODEL
Prevention Cost- make it right the first time. It includes-

Planning
Product design
Process design
Review
Process control
Data collection, analyzing and reporting

Appraisal Cost-

Inspection
Testing
Testing equipment maintenance cost

Failure Cost-

Internal
Scrap
Rework
Retest
Yield losses
Downtime
External
Return
Replacement
Warranty
Liability
Complaints
Investigation
Goodwill

COQ- It is the cost reduction program

EXAMPLE=

BENCHMARKING

It means improving ourself by learning from others. It is the process of comparing one's business process and practice to others

Types of benchmarking

Process benchmarking-It includes thorough study.
Product benchmarking- It includes Product and Services, cost structure.
Strategic benchmarking- It include strategic analysis.

keosha answered 1 year ago

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