BPM Week 2 Flashcards
Average cost of ERP installation
$15 million
Success and Failure examples of ERP
Success=Tektronix.
Failure=FoxMeyer
Cost of acquiring a new customer is..
5 times of retaining one.
Why don’t you want to exercise certain guarantees?
service could lack quality trying to get guarantee.
TQM
Total Quality Management. Managing entire organization so it excels on all dimensions.
PDCA
plan, do, check, act. control and continue improvement. also known a Deming Cycle
Objective measures of service quality
min avg max wait time, service time, cost. # errors made. certification by 3rd party.
Examples of subjective service quality
ex: music, taste
Service quality dimensions
reliability, responsiveness, assurance, empathy, tangibles.
Cost of Poor Quality
Internal failure cost and external failure cost
Cost of Good Quality
Appraisal and inspection cost. prevention cost
Poka-yoke
japanese “mistake proofing”. avoid mistakes. (ex: fry scoop and checklist)
ISO 9000
International Organization for Standardization. defines, establishes, and maintains quality assurance system.
CMM(I)
Capability Maturity Model (Integration). Process improvement training and appraisal program for software development.
CMM(I) Levels
Initial, Managed, Defined, Quantitatively Managed, Optimizing
Averages vs Variation
Averages can be deceptive. Variation can be unpredictive.
Types of Variation
Common-expected, small and random
Assignable-unexpected, large and systematic
Specification Limit
product or service must stay within upper and lower value
Control Limit
variations of process variables attributable to common causes
Cp
how wide the parabola is. doesn’t matter if its in the USL OR LSL!! If fat Cp1
Cpk
It matters where the parabola is placed within the USL AND LSL.
