As indicated in Exhibit 17.2 and the accompanying discussion, a comprehensive framework for the management and control of quality will likely include both financial and nonfinancial data. Explain the primary role of each in terms of the overall quality-management process.
EXHIBIT 17.2
Comprehensive Framework for
Managing and Controlling Quality

For example, is financial information likely to be more relevant to managers or operatingpersonnel?

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Customer Expectations I Satisfied Customers Deliver Set Quality- Related Goals i.e., Strategyl Work Processes Perform WorkProduct/Service and Monitor Output/ Correct Defects Monitor Customer Satisfaction I Dissatisfied Customers Nonfinancial Quality Indicators Taguchi Loss Functions, Six Sigma Programs Statistical Quality Control and Run Charts Prevention Costs Appraisal Costs Internal Failure Costs External Failure Costs Quality-Related Investments/Spending Diagnostic Control