BSCM - 9 - Lean and Quality Systems Flashcards
The costs caused by improvement activities that focus on the reduction of failure and appraisal costs. Typical costs include education, quality training, and supplier certification.
PREVENTION COSTS
A management approach to long term success through customer satisfaction. Based on the participation of all members of an organization in improving processes, goods, services, and culture in which they work.
TOTAL QUALITY MANAGEMENT
A clear, complete, and accurate statement of the technical requirements of a material, an item, or a service ,and a procedure to determine if they requirements are met.
SPECIFICATIONS
The costs related to problems found after the product reaches the customer. This usually includes warranties and returns.
EXTERNAL FAILURE COSTS
A source of variation in a process that can be isolated, especially when its significantly larger magnitude or different origin readily distinguishes it from random causes of variation.
ASSIGNABLE CAUSE VARIATION
Conformance to requirements or fitness for use.
QUALITY
The variability in product quality that results from numerous uncontrollable everyday factors, such as temperature, humidity, tool wear, etc. This type of variation affects every outcome of the process and everyone working in the process.
COMMON CAUSE VARIATION
The cost of things that go wrong before the product reaches the customer. These costs usually include rework, scrap, downgrades, retest, etc.
INTERNAL FAILURE COSTS
A graphical tool for ranking causes from most significant to least significant. It is based on the premise that a small percentage of items will account for the largest percentage of the problems.
PARETO CHART
The concept of using the experience, creative energy, and intelligence of all employed by treating them with respect, keeping them informed, and including them and their ideas in decision making processes appropriate to their areas of expertise.
EMPLOYEE INVOLVEMENT
Measuring, examining, testing, or gauging one or more characteristics of a good or service and comparing the results with specified requirements to determine whether conformity is achieved for each characteristic.
INSPECTION
The practice of giving non-managerial employees the responsibility and the power to make decisions regarding their jobs or tasks.
EMPLOYEE EMPOWERMENT
Those costs associated with the formal evaluation of and audit of quality in the firm. Typical costs include inspection, quality audits, testing, calibration, etc.
APPRAISAL COSTS
A graphic comparison of process performance data with predetermined computed control limits. The process performance data usually consist of groups of measurements selected in regular sequence of production that preserves the order.
CONTROL CHART
A graph of contiguous vertical bars representing a frequency distribution in which the groups or classes of items are marked on the x axis and the number of items in each class is marked on the y axis.
HISTOGRAM
