Thursday, May 26, 2011

cost of quality formula, risk severity value, risk response value

All information about cost of quality formula, risk severity value, risk response value. you can get all definition and meaning of this words.

cost of quality formula: The Cost of Un-Quality quantifies errors, defects, delays, and other problems that tend to slow operations or add costs. It measures the loss to the company of not achieving the planned result. Most people will agree that any loss should be avoided. The hard part has been ranking identified losses from different functional areas according to a common standard, one that should demonstrate the problem's relative impact on the business.

The Cost of Un-Quality calculation is:

Time to Correct (in hours or dollars) Plus Out-of-Pocket costs (including material and services) Equals Event Cost-to-fix

risk severity value: The harm expected should the hazardous event occur, (i.e., loss, consequence, adverse outcome, damage, fatality, system loss, degradation, loss of function, injury) considering the risk associated with the hazardous event under evaluation.

Severity ranges should be sized so that events within each category are of comparable severity. Equating the severity of event and conditions, which can cause one fatality with those, which can cause 100 or 1,000 does not make sense

risk response value: Risk response/risk mitigation planning is the process of developing options and actions to reduce the risks to the program. It includes identifying and assigning responsibility of individuals or Integrated Product Teams (IPTs) to take responsibility for the agreed upon risk response/risk mitigation, its usage and it's monitoring. The effectiveness of the risk response/risk mitigation will determine if the risk probability will increase or decrease.


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