chapter 6 flashcards
does improving quality cost or save money?
it will save money
what are the two outcomes with improving quality?
- sales gains
- reduces costs
both of these lead to increased profits
what are some pros to Sales Gains?
- improved response
- flexible pricing
- improved reputation
what are some pros to Reduced Costs ?
- increased productivity
- lower rework and scrap costs \
- lower warranty costs
what is ASQ?
product characteristics and features that affect customer satisfaction (performance, features, reliability, durability, serviceability)
what is User-based?
what consumer says it is
what is Manufacturing Based?
degree to whi9ch a product conforms to design speciicawon
what is Product Based?
level of measurable product characteristic
what are some dimensions of Quality for Goods?
- operation/performance
- reliability
- features
- durability
- conformance
- serviceability
- appearance
- perceived quality
what are the determinants of Service Quality and explain each one ?
- 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
how do we recognize and reward Quality?
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
what are award s based on?
- leadership
- customer focus
- people focus
- supplier/partner focus
- planning
- proces management
- total business performance
what are the 4 categories/areas of costs for Quality?
- Prevention Costs
- Appraisal Costs
- Internal Failure
- External Costs
what are Prevention Costs ?
reducing the potential for defects. $1 spent (invested) on preventions, saves $10 in external and internal failures
what are Appraisal Costs?
evaluating products
what are Internal Failure costs?
of producing defective parts or service
what are External Costs?
occur after delivery
what costs are considered Good Costs and which ones are considered Bad Costs?
Good Costs:
- Prevention
- Appraisal
Bad Costs:
- Internal
- External
TQM is not…?
a philosophy but a program
what is TQM?
- 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
what’s a Quality Circle?
- 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
what are some things a Quality Circle will discuss?
- 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
what is the process of Benchmarking?
- determine what to benchmark
- form a benchmark team
- identify benchmarking partners
- collect and analyze benchmarking information
- take action to match or exceed the benchmark
what is the relationship JIT (Just In Time) has with Quality?
- cut costs of quality
- improves quality
- better quality means less invent and better, easier to employ JIT system
when can a company introduce JIT?
when the quality is high
what are the tools for Generating Ideas (TQM)?
- check sheet
- scatter diagram
- cause and effect diagram
what are the tools to organize data (TQM)?
- Pareto charts
- process charts (flow diagrams)
what are the tools for identifying problems (TQM)?
- histograms
- statistical process control (SPC) chart
what is the point of tools of TQM?
it’s what we have to do to improve quality
what is Statistical Process Control ?
- 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
what is type 1 error?
statistically, the profitability of rejecting a good lot (batch)
that is the producer’s risk
what is type 2 error ?
statistically, the probitabilty of accepting a bad lot (batch)
that is the consumer’s risk
what is Inspection?
involves examining items to see if an item is good or defective
what is Six Sigma?
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
how many defects does 6 Sigmas mean?
3.4 defects per 1 million opportunities
how many defects are 5,4,3 Sigmas
5 Sigma’s: 233
4 Sigma’s : 6210
3 Sigma’s : 66, 810
what are the 6 Sigma Titles in the organization and explain each one?
- 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
how were the titles of Six Sigma made?
they were coined by a Motorola improvement expert with a passion for karate
what is ISO 9000 (family of standards) ?
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
when was ISO 9000 created ?
it was adopted in 1987
is ISO 9000 a pre requisite for global competition?
yes
what should the company do with the ISO 9000 document ?
- document what should they do
- do what the document says ??
list some of the ISO Standards ?
- 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
what are the three Progressive Steps for ISO Certification?
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
what are some Main Issues with TQM in Services?
- Tangible Component: define and measure
- Intangible Component: define and measure
- Customer expectations vs Customer experience
- Service recovery - immediately solve the problem
