Exam 2 - Quality Flashcards
Quality
A term used by customers to describe their general satisfaction with a service or product
- Expectations matter
- Experience matters
Quality Dimensions of Products
- Performance
- Features
- Reliability
- Conformance
- Durability
- Serviceability
- Aesthetics
- Perception
Quality Dimensions of Service
- Tangibles
- Reliability
- Responsiveness
- Assurance
- Empathy
Costs related to high quality
- Prevention
- Correction
- Equipment/Expertise
Costs related to low quality
- Defect correction
- Customer retention
Prevention costs
Costs associated with preventing defects and limiting failure and appraisal costs
Ex. Training
Appraisal costs
Costs associated with inspection to assess quality levels
Ex. Staff, tools
Internal failure costs
Costs from defects found BEFORE delivery to the customer
Ex. Hell’s Kitchen
External failure costs
Costs associated with defects found AFTER delivery to customers
Ex. Xbox
Morale costs
Costs of employee depression stemming from “losing”
The “Factor of 10”
When design changes are made vs. Cost per change
During Design $1000
During Design Testing $10000
During Process Planning $100000
During Test Production $1000000
During Final Production $10000000
Variable
A quality characteristic that can be measured on a continuous scale
Ex. UPS measured on per delivery speed
Attribute
A quality characteristic that is either present or absent. Yes or no.
Ex. UPS delivers to someone who was there or not there?
Total Quality Management (TCM)
A philosophy that stresses principles for achieving high levels of process performance and quality
- Customer satisfaction
- Employee improvement
- Continuous performance improvement
Quality Circles
Special cross-functional project teams that deal with specific projects
Andon Chord
Chord or lever that “stops the job”
Common cause
Variation that is random, unidentifiable, and unavoidable
Assignable cause
Variation that can identified and eliminated
Control charts
Time-ordered diagram used to determine whether observes variations are abnormal
Control charts are in control IF
- No points outside limits
- # of points above and below center line is about equal
- Points fall randomly above and below center line
- Most points near center line and only a few close to control limits
Type 1 Error
Concluding that a process is out of control when it is in control
Type 2 Error
Concluding that a process is in control when it is out of control
WORSE
UCL
The MAXIMUM acceptable level of output
LCL
The MINIMUM acceptable level of output
