Quality Planning Establishes the Design of a Product, Service, or Process

question 27

Multiple Choice

Quality planning establishes the design of a product, service, or process that will meet customer, business, and operational needs to produce the product before it is produced. Quality planning follows a universal sequence of steps. List the universal sequence of steps in order.

• A) Identify customers and target markets.
• B) Discover hidden and unmet customer needs.
• C) Develop a service or product that exceeds customer's needs.
• D) Transfer these designs to the organization and the operating forces to be carried out.
• E) Translate these needs into product or service requirements: a means to meet their needs.
• F) Develop the processes that will provide the service, or create the product, in the most efficient way.

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Definitions:

Demand Curve

A graphical representation of the quantity of a good or service demanded by consumers at various prices, typically downward sloping indicating an inverse relationship between price and quantity demanded.

Average Revenue Curve

A graphical representation showing how the average revenue per unit sold changes with changes in the quantity of the product sold.

Marginal Revenue Curve

A graphical representation showing the additional revenue a firm can earn by selling one more unit of a good or service.

Marginal Profit

The additional profit earned from selling one more unit of a product or service.