Operations Management Simulation

Quality Analytics & Cost of Quality

$150 / seat

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Simulation Overview

Students work through a series of four challenges to calculate control limits for X-bar and R charts, make decisions about machine recalibrations and labor substitutions, determine whether processes are capable of producing to specifications, and make investment decisions in order to minimize the total cost of quality. Challenges span service, health care, and manufacturing settings. Across the separate challenges, students work as both operators, responsible for keeping a process in control, and managers, responsible for process improvement.

Learning Focus

  • Review essential calculations in statistical process control
  • Understand the difference between a process that is in control and a process that is capable
  • Understand the relationship between Internal Failure Costs, External Failure Costs, Appraisal Costs, Prevention Costs, and the total cost of quality
  • Explore how managerial decisions about quality control affect product yields and costs

Topics Covered

  • Statistical Process Control
  • Process Capability
  • Cost of Quality
  • Operations Management

Additional Information


1 to 3 hours including introduction and debrief

See How the Simulation is Played

This simulation is by Harvard Business School Publishing and Forio

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