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operations management > chapter 6 flashcards > Flashcards

chapter 6 flashcards

1
Q

does improving quality cost or save money?

A

it will save money

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2
Q

what are the two outcomes with improving quality?

A
  • sales gains
  • reduces costs

both of these lead to increased profits

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3
Q

what are some pros to Sales Gains?

A
  • improved response
  • flexible pricing
  • improved reputation
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4
Q

what are some pros to Reduced Costs ?

A
  • increased productivity
  • lower rework and scrap costs \
  • lower warranty costs
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5
Q

what is ASQ?

A

product characteristics and features that affect customer satisfaction (performance, features, reliability, durability, serviceability)

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6
Q

what is User-based?

A

what consumer says it is

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7
Q

what is Manufacturing Based?

A

degree to whi9ch a product conforms to design speciicawon

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8
Q

what is Product Based?

A

level of measurable product characteristic

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9
Q

what are some dimensions of Quality for Goods?

A
  • operation/performance
  • reliability
  • features
  • durability
  • conformance
  • serviceability
  • appearance
  • perceived quality
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10
Q

what are the determinants of Service Quality and explain each one ?

A
  • reliability: consistency and dependability
  • responsiveness: willingness/readiness of employees to provide service ; timeliness
  • competence : possession of skills and knowledge required to perform service
  • access: approachability and ease of contact
  • courtesy: politness, respect, consideration, friendliness of contact personnel
  • communication: keeping customers informed in languages they understand
    -credibility: trustworthiness, believability, honesty
  • security: freedom from danger, risk or doubt
  • understanding/knowing the customer: making the effort to understand the customer’ needs
  • tangibles: the physical evidence of the service
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11
Q

how do we recognize and reward Quality?

A

through promotion of High Quality Goods and Services. some examples of these are…
- CAE (Canadian Award of Excellence)
- Malcom Baldrige National Quality Award
- Deming Prize (Japan)
- European Quality Award

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12
Q

what are award s based on?

A
  • leadership
  • customer focus
  • people focus
  • supplier/partner focus
  • planning
  • proces management
  • total business performance
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13
Q

what are the 4 categories/areas of costs for Quality?

A
  • Prevention Costs
  • Appraisal Costs
  • Internal Failure
  • External Costs
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14
Q

what are Prevention Costs ?

A

reducing the potential for defects. $1 spent (invested) on preventions, saves $10 in external and internal failures

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15
Q

what are Appraisal Costs?

A

evaluating products

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16
Q

what are Internal Failure costs?

A

of producing defective parts or service

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17
Q

what are External Costs?

A

occur after delivery

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18
Q

what costs are considered Good Costs and which ones are considered Bad Costs?

A

Good Costs:
- Prevention
- Appraisal

Bad Costs:
- Internal
- External

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19
Q

TQM is not…?

A

a philosophy but a program

20
Q

what is TQM?

A
  • it encompasses entire organization, from supplier to customer
  • stresses a commitment by management to have a continuing, company wide, drive toward excellence in all aspects of products and services that are important to the customer
21
Q

what’s a Quality Circle?

A
  • a group of 6-12 employees from the same work area
  • they meet regularly to solve work related problems, cut costs, continuous improvement
  • about 4 hours a month
  • facilitator trains and helps with meetings
22
Q

what are some things a Quality Circle will discuss?

A
  • the benefits and the limitations of quality circles
  • the impact of quality circles
  • requirements for quality circles to be successful
  • implementation of quality circles in the US
23
Q

what is the process of Benchmarking?

A
  • determine what to benchmark
  • form a benchmark team
  • identify benchmarking partners
  • collect and analyze benchmarking information
  • take action to match or exceed the benchmark
24
Q

what is the relationship JIT (Just In Time) has with Quality?

A
  • cut costs of quality
  • improves quality
  • better quality means less invent and better, easier to employ JIT system
25
Q

when can a company introduce JIT?

A

when the quality is high

26
Q

what are the tools for Generating Ideas (TQM)?

A
  • check sheet
  • scatter diagram
  • cause and effect diagram
27
Q

what are the tools to organize data (TQM)?

A
  • Pareto charts
  • process charts (flow diagrams)
28
Q

what are the tools for identifying problems (TQM)?

A
  • histograms
  • statistical process control (SPC) chart
29
Q

what is the point of tools of TQM?

A

it’s what we have to do to improve quality

30
Q

what is Statistical Process Control ?

A
  • a technique used to monitor standards, by taking measurements and corrective actions, when the product or service is being produced (in real time)
  • uses small samples
  • measures used : average and range
31
Q

what is type 1 error?

A

statistically, the profitability of rejecting a good lot (batch)
that is the producer’s risk

32
Q

what is type 2 error ?

A

statistically, the probitabilty of accepting a bad lot (batch)
that is the consumer’s risk

33
Q

what is Inspection?

A

involves examining items to see if an item is good or defective

34
Q

what is Six Sigma?

A

a statistical measure (6 Standard Deviations from the mean of a Normal Distribution) of the performance of a process or a product. it is a goal that reaches near perfection for performance improvement

35
Q

how many defects does 6 Sigmas mean?

A

3.4 defects per 1 million opportunities

36
Q

how many defects are 5,4,3 Sigmas

A

5 Sigma’s: 233
4 Sigma’s : 6210
3 Sigma’s : 66, 810

37
Q

what are the 6 Sigma Titles in the organization and explain each one?

A
  • Champion: executive or a key manager who is accountable to the success of Six Sigma
  • Master Black Belt
  • Black Belt: expert in tools for assessing problems and fixing or designing processes. it is the most important function in Six Sigma
  • Green Belt
38
Q

how were the titles of Six Sigma made?

A

they were coined by a Motorola improvement expert with a passion for karate

39
Q

what is ISO 9000 (family of standards) ?

A

series of standards agreed upon by the (ISO) International Organization for Standardization

it assists organizations of all types and sizes to implement and operate effective Quality Managment Systems

40
Q

when was ISO 9000 created ?

A

it was adopted in 1987

41
Q

is ISO 9000 a pre requisite for global competition?

A

yes

42
Q

what should the company do with the ISO 9000 document ?

A
  • document what should they do
  • do what the document says ??
43
Q

list some of the ISO Standards ?

A
  • ISO 9000 - Fundamentals and vocabulary
  • ISO 9001- Specific requirements for a quality management systems
  • ISO9004- Gudielines for performance improvements
  • ISO19011- Guidance on auditing of quality systems
  • ISO/TS 16949- Application of ISO9001 to the automotive industry
  • ISO14000 - Environment Management System
44
Q

what are the three Progressive Steps for ISO Certification?

A

First Party: a firm audits itself against ISO 9000 standards

Second Party: a customer audits its supplier

Third Party: a “qualified” national or international standards or certifying agency serves as auditor

45
Q

what are some Main Issues with TQM in Services?

A
  1. Tangible Component: define and measure
  2. Intangible Component: define and measure
  3. Customer expectations vs Customer experience
  4. Service recovery - immediately solve the problem

operations management (10 decks)

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