Chapter 5 Quality And Performance Flashcards
Prevention costs
Costs associated with preventing defects before they happen
Appraisal costs
Costs incurred when the firm assess the performance level of its processes
Internal failure costs
Costs resulting from defects that area discovered during the production of a service or product
External failure costs
Costs that arise when a defect is discovered after the customer receives the services or product
Warranty
Written guarantee that the producer will replace or repair defective parts or perform the service to the customer’s satisfaction
Total quality management TQM
A philosophy that stresses three principles for achieving high levels of process performance and quality
- Customer satisfaction
- Employee involvement
- Continuous improvement in performance
Quality
A term used by customers to describe their general satisfaction with a service or product
Quality at the source
A philosophy whereby defects are caught and corrected where they were created
Teams
Small groups of people who have a common purpose, set their I own performance goals and approaches, and hold themselves accountable for success
Employee empowerment
An approach to teamwork that moves responsibility for decisions further down the organizational chart - to the level of the employee actually doing the job
Quality circles
Another name for problem solving teams; small groups of supervisors and employees who meet to identify, analyze, and solve process and quality problems
Special purpose teams
Groups that address issues of paramount concern to management, labor, or both
Self-managed team
A small group of employees who work together to produce a major portion, or sometimes all, of a service or product
Continuous improvement
The philosophy of continually seeking ways to improve processes based on a Japanese concept called kaizen
Plan-do-study-act-cycle
A cycle, also called the Deming Wheel, used by firms actively engaged in continuous improvement to train their work teams in problem solving
Six Sigma
A comprehensive and flexible system for achieving, sustaining, and maximizing business success by minimizing defects and variability in processes
Green Belt
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
Black Belt
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
Master Black Belt
Full time teachers and mentors to several Black Belts
Acceptable quality level AQL
The quality level desired by the customer
Acceptance sampling
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
Statistical process control SPC
The application of statistical techniques to determine whether a process is delivering what the customer wants
Variables
Service or product characteristics, such as weight, length, volume, or time, that can be measured
Attributes
Service or product characteristics that can be quickly counted for acceptable performance
