Chapter 5: Quality Flashcards by Crista Chang

The characteristics of a product or service that bear on its ability to satisfy stated or implied needs. A product or service that is free of deficiencies

Quality

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A quality perspective that holds that quality must be judged, in part, by how well the characteristics of a particular product or service align with the needs of a specific user

Value perspective

Fast food va five star restaurant

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A quality perspective that focuses on whether or not a product was made or a service was performed as intended; did we get a good product and is it working how it should

Conformance perspective

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What are the basic operating characteristics of the product or service?; primary product or service characteristics. Refers to…

Performance

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What extra characteristics does the product or service have, beyond the basic performance operating characteristics?; added touches, bells and whistles, secondary characteristics. Refers to

Features

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How long can a product go between failures or the need for maintenance?; consistency, time between failures. Refers to…

Reliability

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What is the useful life for a product? How will the product hold up under extended or extreme use? Refers to

Durability

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Was the product made or service performed to specifications? Refers to

Conformance

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How well does the product or service appeal to the senses?; sensory characteristics. Refers to

Aesthetics

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How easy is it to repair, maintain, or support the product or service? Refers to

Serviceability

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What is the reputation or image of the product or service?; past performance and reputation. Refers to..

Perceived quality

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Costs caused by defects that occur prior to delivery to the customer, including money spent on repairing or reworking defective products, as well as time wasted on these activities; found it before you shipped it to customer

Internal failure costs

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Costs incurred by defects that are not detected until a product or service reaches the customer; customer invokes warranty

External failure costs

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Costs a company incurs for assessing its quality levels; random sample to see if product meets specifications

Appraisal costs

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The costs an organization incurs to actually prevent defects from occurring to begin with

Prevention costs

Ex/ children toys only go together one way

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A curve that suggests that there is some optimal quality level, Q*. The curve is calculated by adding costs of internal and external failures, prevention costs, and appraisal costs

Total cost of quality curve

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A managerial approach in which an entire organization is managed so that it excels in all quality dimensions that are important to customers

Total quality management (TQM)

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A principle of TQM that assumes there will always be room for improvement, no matter how well an organization is doing

Continuous improvement

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Giving employees the responsibility, authority, training, and tools necessary to manage quality; no punishment for doing something that benefits the product

Employee empowerment

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The specific actions firms take to ensure that their products, services and processes meet the quality requirements of their customers

Quality assurance

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A technique used to translate customer requirements into technical requirements for each stage of product development and production

Quality function deployment (QFD)

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The application of statistical techniques to quality control

Statistical quality control (SQC)

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An organizational plan that provides the vision, guidance, and measurements to drive the quality effort forward and shift the organization’s course when necessary

Strategic quality plan

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A mathematical determination of the capability of a process to meet certain quality standards.

Process Capability Ratio

A Cp (greater than or equal) to 1 means the process is capable of meeting the standard being measured

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The highest acceptable value for some measure of interest

Upper tolerance limit (UTL)

The lowest acceptable value for some measure of interest

Lower tolerance limit (LTL)

A mathematical determination of the capability of a process to meet certain tolerance limits

Process capability index (Cpk)

A level of quality that indicates that a process is well controlled. The term is usually associated with Motorola, which named one of its key operational initiatives this..

Six Sigma Quality

A specialized run chart that helps an organization track changes in key measures over time (ex/ day to day)

Control chart

A variable that can be measured along a continuous scale, such as weight, length, height, and temperature

Continuous variable

A characteristic of an outcome or item that is accounted for by its presence or absence, such as “defective” versus “good” or “late” versus “on-time” or yes vs no

Attribute

A key measure that represents the central tendency of a group of samples used in conjunction with range (R)

Sample average (x bar)

A key measure that represents the variation of a specific sample group, used in conjunction with sample average (x bar)

Range (R)

A measure that refers to the presence or absence of a particular characteristic

Proportion

The upper and lower limits of a control chart. They are calculated so that if a sample falls inside them, the process is considered in control.

Control limits

A specific type of control chart for a continuous variable that is used to track the average value for future samples

X bar chart

A specific type of control chart for a continuous variable that is used to track how much the individual observations within each sample vary

R chart

A specific type of control chart for attributes that is used to track sample proportions

P chart

According to APICS, the process of sampling a portion of goods for inspection rather than examining the entire lot

Acceptance sampling

A term used in acceptance sampling to indicate a cut off value that represents the maximum defect level at which a consumer would always accept a lot; if supplier sends you 1000 products, sample 100, if 90% good accept and if lower than that reject...

Acceptable quality level (AQL)

A term used in acceptance sampling to indicate the highest defect level a consumer is willing to “tolerate”

Lot tolerance percent defective (LTPD)

A term used in acceptance sampling to indicate the probability of accepting a lot with quality worse than the LTPD level

Consumer’s risk (Beta)

A term used in acceptance sampling to indicate the probability of rejecting a lot with quality better than the AQL level

Producer’s risk (alpha)

A curve used in acceptance sampling to show the probability of accepting a lot, given the actual fraction defective in the entire lot and the sampling plan being used. Different sampling plans will result in different one of this curve

Operating characteristics curve (OC)

A family of standards, supported by the International Organization for Standardization, representing an international consensus on good quality management practices. This addresses business processes rather than specific outcomes

ISO 9000

8 dimensions of quality

``` Performance Features Reliability Durability Conformance Aesthetics Serviceability Perceived quality ```

4 costs of quality

Prevention costs Appraisal costs Internal failure costs External costs

Two views of the total cost of quality

Traditional view | Zero defects view

Refers to the ideal level of defects that will minimize overall cost

Traditional view

Refers to having defects equal to zero to minimize overall cost

Zero defects view

7 things under total quality management

``` Customer focus Leadership involvement Continuous improvement Employee empowerment Quality assurance Supplier partnerships Strategic quality plan ```

Refers to the need for suppliers because you can’t do it alone

Supplier partnerships

The plan on what you want to achieve with quality

Strategic quality plan

4 statistical quality control techniques

Process capability Six Sigma Quality Control Charts Acceptance Sampling

A Cp greater than or equal to one means the process is

Capable of meeting these tolerance limits 99.7% of the time

A Cp less than one meant that the process is

Not capable of meeting these tolerance limits 99.7% of the time

In order to use regular Cp formula, the mean is assumed to be

In the center

You will use this when the process mean is not exactly centered on the target value

Cpk

With six sigma quality the idea is to reduce the variability of a process to such a point that the process capability ratio is

Greater than or equal to 2

Preset standards with supplier

Sampling

Charts used for a continuous variable

X bar and R chart

Charts used for attribute; think of it as a proportion

P chart

Chart displaying an average of samples

X bar chart

Chart displaying a range of samples

R chart

R bar is equal to

The sum of all the ranges divided by the number of samples used

X bar bar is equal to

The sum of all the averages of each sample divided by the number of samples used

Formula for the UCL and LCL of the x bar chart

``` UCL= X bar bar + A2(R bar) LCL = X bar bar - A2 (R bar) ```

Formula for the UCL and LCL of the R chart

``` UCL= D4( R bar) LCL = D3 (R bar) ```

P bar equals

Sum of all p values divided by the number of samples used

Formula for the UCL and LCL of the p chart

``` UCL = p bar + 3(Sp) LCL = p bar - 3(Sp) ```

P equals

defective (that don’t meet standards) divided by total sample

5 dimensions of service quality

``` Reliability Responsiveness Assurance Empathy Tangibles ```

Perform promised service dependably and accurately (mail carrier vs the cable guy)

Reliability

Willingness to help customers promptly (motor vehicle license office)

Responsiveness

Ability to convey trust and confidence (physician/dentist/police)

Assurance

Ability to be approachable (minister v government official)

Empathy

Physical facilities and facilitating goods (Walmart v target)

Tangibles

Satisfaction equals

Perceived quality - expected quality

What analysis is used to analyze service quality

Gap analysis

If perceived quality is greater than expected quality, according to gap analysis

Expectations exceeded

If perceived quality equals expected quality, according to gap analysis

Expectations met

If perceived quality is less that expected quality

Expectations not met