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Raw Material Storage: The meat is stored in a large warehouse adjacent to the main grinding room.
Essentially a cold room (large freezer). Prevention costs are those costs that occur when a company is performing activities designed to prevent poor quality in products or services. E.g. design reviews, education and training, supplier selection and capability reviews, process capability reviews and quality-improvement projects, good practices, SOPs, WIs etc. How to?
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Loading the Grinder: Burger Maker uses whole muscles
Loading the Grinder: Burger Maker uses whole muscles. Since they only make hamburger patties they don't rely on scraps. Appraisal costs are the costs associated with measuring, evaluating, or auditing products or services to make sure that they conform to specifications or requirements
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The Grind: The beef undergoes a two step grinding process.
Appraisal costs - the cost of evaluating the product or service during the production of the product or the providing of the service to determine if, in its unfinished or finished state, it is capable of meeting the requirements set by the customer.
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Separator: This machine pulls out bone and cartilage from the beef.
Appraisal costs can be found anywhere - the raw materials, in-process, or finished product – review, inspection, or otherwise checking to ensure that it meets requirements. Examples - incoming inspection, in-process inspection, final inspection or testing, material reviews, and calibration of measuring or testing equipment. When the quality of the product or service reaches high levels, then appraisal costs can be reduced.
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The Hopper: The ground beef is loaded into a hopper.
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Ground Beef: Each batch of beef is labeled and tracked.
This is the point when other ingredients are added.
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Portioning the Beef: The hoppers feed either a patty machine
Portioning the Beef: The hoppers feed either a patty machine....or the bag
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The Patty Machine: Burger Maker make everything from large 8-ounce prime patties....to ultra thin patties
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Air blast freezing
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Packaging of frozen burger,
Followed by store storage And distribution.
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The Shipping Department: At the other end of the grinding room is the shipping department.
Essentially a cold room (freezer). Internal failure costs are those costs associated with product nonconformities or service failures found before the product is shipped or the service is provided to the customer. Internal failure costs are the costs of correcting the situation. This failure cost may take the form of scrap, rework, remaking, reinspection, or retesting.
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External failure costs are the costs that occur when a nonconforming product or service reaches the customer. External failure costs include the costs associated with customer returns and complaints, warranty claims, or product recalls Intangible costs, the hidden costs associated with providing a nonconforming product or service to a customer, involve the company’s image. Difficult to identify and quantify, - are often left out of quality-cost determinations. They must not be overlooked, or disregarded. Is it possible to quantify the cost of missing an important deadline? What will be the impact of quality problems or schedule delays on the company’s image? Intangible costs of quality can be three or four times as great as the tangible costs of quality.
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