Q1. Which type of data an organization use to measure performance?

Accurate measurement of organizational performance allows managers to correct deficiencies,

leading to cost-savings and higher customer satisfaction. But without the right tools, it's hard to
adjust operations and lead personnel in the right direction. Several specific quality tools measure
organizational performance and provide meaningful feedback to leadership.

1. Control Charts.
Control charts are graphs that track the performance of a process over a period of time. Elements
of control charts include a central line for the average process performance, an upper control
limit and a lower control limit with data points plotted in time order. By comparing current and
historical data, managers are able to determine if a process is in control or whether variation in
process outputs is normal. Control charts give management a scientific way of measuring
performance.

2. Pareto Diagrams.
Pareto Diagrams are bar charts that plot the frequency of defects or costs, with the largest bars
placed to the left. In this way, managers can see the areas of greatest concern quickly, assessing
the areas of operations that need adjustment based on the most important defects or costs. Once
these issues are corrected, smaller defects often are eliminated. Managers save time and
resources by focusing on the problem areas that have the largest impact on operations.

3. Cause-and-Effect Diagrams.
Cause-and-effect diagrams, also known as fishbone diagrams, identify the possible causes for
defects within a process or system. A problem statement is examined by discussing the potential
for defects in methods, machines, people, materials, measurement and environment. Employees
more easily can visualize processes and systems that are mapped out in this fashion. These
diagrams and discussions are effective ways to identify deficiencies and talk about solutions.

4. Process Mapping.
Process mapping graphically depicts the different steps and decision points within a process.
This tool can be used by managers or employees to assess and standardize work tasks. It also
allows subject matter experts to communicate with managers about specific processes. Process
maps are sometimes easier to interpret than lengthy written procedures and can serve as
benchmarks to measure performance against. This quality tool and others make it easier to gauge
operations in an objective manner.
Q2. Cost of Quality and quality cost management?

Cost Of Quality.
Costs of quality or quality costs does not mean the use of expensive or very highly quality
materials to manufacture a product. The term refers to the costs that are incurred to prevent,
detect and remove defects from products. Quality costs are categorized into four main types.
These are:

 Prevention costs.
 Appraisal costs.
 Internal failure costs.
 External failure costs.

Quality Cost Management.

Quality costs can arise anywhere in a company. There may be product design issues that begin in
the engineering department, as well as manufacturing problems that can create product flaws.
Further, the procurement department may acquire substandard components that result in product
flaws. In addition, the order entry department may have incorrectly entered a customer order, so
that the customer receives the wrong product. These issues all result in quality costs. Quality
costs can comprise a major portion of the total expenses of a business, though they are hidden
within its normal cost recording system, which is oriented more toward recording by
responsibility center than by quality issue. The mitigation of quality issues can greatly increase
the profitability of a business, as well as enhance the level of customer retention.