Lecture 10 Flashcards
Quality meaning in operations management
Always meeting customer expectations
Benefits of producing according to specifications
Externally:
- Customer has clearer pircture of the product
- Fewer customer complaints
Internally:
- Throughput (amount of data moved successfully) increases
- Dependability (in terms of time) increases
- Waste (time, effort) decreases
- Costs decreases
How to assess quality characteristics of goods
With a variable (measurable):
[-Durability - product lifespan]
[Reliability - avg. time between 2 failures]
With an attribute (eval. by question):
[Appearance - did product have the correct color]
[Functionality - Does the product work]
TQM Total Quality Management characteristics
-Focus on customer needs & expectations
-Includes all parts of organization
-Involves all employees
-Takes into account all costs related to quality
-Develops procedures and systems for quality control & improvement
-Never stops
Costs of a recall
-Crisis team
-Removing product from market
- Investigating and adressing
- PR management
Risk management steps
- Prevent failure
- Mitigate (Limit) the consequences of failur
- Recover from consequences of failure
Mitigation actions in risk management
- Mitigation planning - identifying all potential disruptions and how to reduce them
- Economic mitigation - insurance
- Spacial Containment - preventing disruptin from physically spreading internally or externally
- Temporal containment - preventing disruption from spreading over time
- Loss reduction - Reducing consequences by moving resources
- Replacement - compensating for disruption by replacing affected resources