BSOP 588 Week 5 Discussion 1 [Performance Metrics] 2 [Cost of Quality (COQ) - Graded)] Devry

DQ 1) Performance Metrics

Discuss why organizations need to have the correct performance metrics to drive quality. Think of examples in the news and their outcomes. For example:

• Toyota and the recalls

• BP and the Gulf oil disaster

• NASA and the Space Shuttle disasters

What behaviors were being driven by their metrics? Identify whether they were the correct behaviors or the wrong behaviors.

DQ 2) Cost of Quality (COQ)

An organization has the following breakdown for cost of quality:

• Prevention              22%

• Appraisal                30%

• Internal Failures     33%

• External Failures   15%

Use your critical thinking skills and discuss what you can deduce from this data. Please think about both behaviors and processes and linkage to the quality management program.