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
Sampling plan
A plan that specifies a sample size, the time between successive samples, and decision rules that determine when action should be taken
Sample size
A quantity of randomly selected observations of process outputs
Common causes of variation
The purely random, unidentifiable sources of variation that are unavoidable with the current process
Assignable causes of variation
Any variation causing factors that can be indentified and eliminated
Control chart
A time ordered diagram that is used to determine whether observed variations are abnormal
Type I error
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
Type II error
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
R chart
A chart used to monitor process variability
X bar chart
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
P chart
A chart used for controlling the proportion of defective services or products generated by the process
C chart
A chart used for controlling the number of defects when more than one defect can be present in a service or product
Nominal value
A target for design specifications
Process capability
The ability of the process to meet the design specifications for a service or product
Tolerance
An allowance above or below the nominal value
Process capability index Cpk
An index that measures the potential for a process to generate defective outputs relative to either upper or lower specifications
Process capability ratio Cp
The tolerance width divided by six standard deviations
Quality engineering
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
Quality loss function
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
ISO 9001:2008
A set of standards governing documentation of a quality program
ISO 14000:2004
Documentation standards that require participating companies to keep track of their raw materials use and their generation, treatment, and disposal of hazardous wastes
ISO 26000:2010
International guidelines for organizational social responsibility
Baldrige Performance Excellence Program
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
Defect
Any instance when a process falls to satisfy its customer
