Final Flashcards
4 types of quality costs
- Internal Failure
- External Costs
- Prevention Costs
- Appraisal Cost
Determinants of Service Quality
-Reliability
-Responsiveness
-Competence
-Access
-Courtesy
Quality Circles
A group of people that meet monthly to discuss how to cut costs
What are the 4 M’s?
-Method
-Manpower
-Material
-Machinery
List 4 of 7 quality goods. ???Charts?
- Pareto Analysis
- Cause and Effect Diagram
- Flow Chart
- Run Chart
- Scatter Diagram
- Histogram
- Check Sheet
Type I Error:
Statistically, the probability of rejecting a goo lot (batch)
Type II Error:
Statistically, the probability of
accepting a bad lot (batch).
Six Sigma (6σ)
A system of management to achieve lasting business leadership and world-class performance.
(Improving methods, cutting costs, increasing sales, etc)
Inspection
Involves examining items to see if an item is good or defective
3 Categories of
- Process Focus
- Repetitive Focus
- Product Focus
Process Focus (Job Shop)
Low volume, high variety
Product Focus (Continuous Flow)
Very High Quantity, Very Low Variety
Repetitive Focus (Assembly Line)
Medium Quantity, Medium Variety
Advantages of Process Focused Strategy
-Greater Product Flexibility
-More General Purpose Equipment
-Lower Initial Capital Investment
Disadvantages of Process Focused Strategy
-High Variable Cost
-More Highly Trained Staff
-Low Equipment Use (5%)
Advantages of Product Focused Strategy
-Lower Variable Cost
-Lower but more specialized workers
-Higher Equipment Utilization
Disadvantages of Product Focused Strategy
-Lower Product Flexibility
- More Specialized Equipment
-Higher Capital Investment
Mass Customization
Facility Planning deals with the following:
- How much long-range capacity is needed
- When more capacity is needed
- Where facilities should be located (location)
- How facilities should be arranged (layout)
