Chapter 5 Quality And Performance

Question 1

Prevention costs

Answer 1

Costs associated with preventing defects before they happen

Question 2

Appraisal costs

Answer 2

Costs incurred when the firm assess the performance level of its processes

Question 3

Internal failure costs

Answer 3

Costs resulting from defects that area discovered during the production of a service or product

Question 4

External failure costs

Answer 4

Costs that arise when a defect is discovered after the customer receives the services or product

Question 5

Warranty

Answer 5

Written guarantee that the producer will replace or repair defective parts or perform the service to the customer’s satisfaction

Question 6

Total quality management TQM

Answer 6

A philosophy that stresses three principles for achieving high levels of process performance and quality

1. Customer satisfaction
2. Employee involvement
3. Continuous improvement in performance

Question 7

Quality

Answer 7

A term used by customers to describe their general satisfaction with a service or product

Question 8

Quality at the source

Answer 8

A philosophy whereby defects are caught and corrected where they were created

Question 9

Teams

Answer 9

Small groups of people who have a common purpose, set their I own performance goals and approaches, and hold themselves accountable for success

Question 10

Employee empowerment

Answer 10

An approach to teamwork that moves responsibility for decisions further down the organizational chart - to the level of the employee actually doing the job

Question 11

Quality circles

Answer 11

Another name for problem solving teams; small groups of supervisors and employees who meet to identify, analyze, and solve process and quality problems

Question 12

Special purpose teams

Answer 12

Groups that address issues of paramount concern to management, labor, or both

Question 13

Self-managed team

Answer 13

A small group of employees who work together to produce a major portion, or sometimes all, of a service or product

Question 14

Continuous improvement

Answer 14

The philosophy of continually seeking ways to improve processes based on a Japanese concept called kaizen

Question 15

Plan-do-study-act-cycle

Answer 15

A cycle, also called the Deming Wheel, used by firms actively engaged in continuous improvement to train their work teams in problem solving

Question 16

Six Sigma

Answer 16

A comprehensive and flexible system for achieving, sustaining, and maximizing business success by minimizing defects and variability in processes

Question 17

Green Belt

Answer 17

An employee who achieved the first level of training in a Six Sigma program and spends part of his/her time teaching and helping teams with their projects

Question 18

Black Belt

Answer 18

An employee who reached the highest level of training in a Six Sigma program and spends all of his/her time teaching and leading teams involved in Six Sigma projects

Question 19

Master Black Belt

Answer 19

Full time teachers and mentors to several Black Belts

Question 20

Acceptable quality level AQL

Answer 20

The quality level desired by the customer

Question 21

Acceptance sampling

Answer 21

The application of statistical techniques to determine whether a quantity of material should be accepted or rejected based on the inspection or test of a sample

Question 22

Statistical process control SPC

Answer 22

The application of statistical techniques to determine whether a process is delivering what the customer wants

Question 23

Variables

Answer 23

Service or product characteristics, such as weight, length, volume, or time, that can be measured

Question 24

Attributes

Answer 24

Service or product characteristics that can be quickly counted for acceptable performance

Question 25

Sampling plan

Answer 25

A plan that specifies a sample size, the time between successive samples, and decision rules that determine when action should be taken

Question 26

Sample size

Answer 26

A quantity of randomly selected observations of process outputs

Question 27

Common causes of variation

Answer 27

The purely random, unidentifiable sources of variation that are unavoidable with the current process

Question 28

Assignable causes of variation

Answer 28

Any variation causing factors that can be indentified and eliminated

Question 29

Control chart

Answer 29

A time ordered diagram that is used to determine whether observed variations are abnormal

Question 30

Type I error

Answer 30

An error that occurs when the employee concludes that the process is out of control based on a sample result that falls outside the control limits, when in fact it was due to pure randomness

Question 31

Type II error

Answer 31

An error that occurs when the employee concludes that the process is in control and only randomness is present, when actually the process is out of statistical control

Question 32

R chart

Answer 32

A chart used to monitor process variability

Question 33

X bar chart

Answer 33

A chart used to see whether the process is generating output, on average, consistent with a target value set by management for the process or whether its current performance, with respect to the average of the performance measure, is consistent with past performance

Question 34

P chart

Answer 34

A chart used for controlling the proportion of defective services or products generated by the process

Question 35

C chart

Answer 35

A chart used for controlling the number of defects when more than one defect can be present in a service or product

Question 36

Nominal value

Answer 36

A target for design specifications

Question 37

Process capability

Answer 37

The ability of the process to meet the design specifications for a service or product

Question 38

Tolerance

Answer 38

An allowance above or below the nominal value

Question 39

Process capability index Cpk

Answer 39

An index that measures the potential for a process to generate defective outputs relative to either upper or lower specifications

Question 40

Process capability ratio Cp

Answer 40

The tolerance width divided by six standard deviations

Question 41

Quality engineering

Answer 41

An approach originated by Genichi Taguchi that involves combining engineering and statistical methods to reduce costs and improve quality by optimizing product design and manufacturing processes

Question 42

Quality loss function

Answer 42

The rationale that a service or product that barely conforms to the specifications is more like a defective service or product than a perfect one

Question 43

ISO 9001:2008

Answer 43

A set of standards governing documentation of a quality program

Question 44

ISO 14000:2004

Answer 44

Documentation standards that require participating companies to keep track of their raw materials use and their generation, treatment, and disposal of hazardous wastes

Question 45

ISO 26000:2010

Answer 45

International guidelines for organizational social responsibility

Question 46

Baldrige Performance Excellence Program

Answer 46

A program named for the late secretary of commerce, Malcolm Baldrige, who was a strong proponent of enhancing quality as a means of reducing the trade deficit; organizations vie for an award that promotes, recognizes, and publicizes quality strategies and achievements

Question 47

Defect

Answer 47

Any instance when a process falls to satisfy its customer