Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 19 - Balanced Scorecard: Quality and Time - Assignment Material - Questions - Page 753: 19-6

Answer

Companies use the following methods to identify quality problems: 1. Control Chart: A graphical tool that displays a series of successive observations of a specific process or operation taken at regular intervals. It helps monitor process stability and detect deviations or trends that may indicate quality issues. 2. Pareto Diagram: A chart that prioritizes different types of failures or defects based on their frequency of occurrence, from most frequent to least frequent. This helps identify the most significant quality problems that require attention. 3. Cause-and-Effect Diagram (Fishbone Diagram: A visual tool used to analyze and identify potential causes of defects. It resembles the skeletal structure of a fish, with branches representing various factors or categories that could contribute to quality issues.

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