MANAGING PRODUCT AND SERVICE OPERATIONS Flashcards
Fitness of use or customer satisfaction
Quality
measures the extent to which customer satisfaction is incorporated into the product design though the specification of proper materials, tolerances, and other precautions.
Quality of Design
measures how well the quality specified in the design is realized in manufacture and delivered to the customer.
Quality conformance (Quality of production)
an important step in getting management support for improving quality is documenting the total cost of poor quality and of quality control efforts. The American Society for Quality ASQ has established four categories of costs to help in this analysis.
Quality Cost
are those incurred in advance of manufacture to prevent failures, such as quality planning, training, data analysis and reporting, process control, and motivation programs.
Prevention costs
include the costs of inspection of incoming parts and materials (whether by your supplier or by you when you receive it), inspection and test of your product in process and as a finished product, and maintenance of test equipment.
Appraisal costs
are those that would not appear if there were no defects in the product before shipment to the customer. They include scrap (labor and material spent on unrepairable items), rework (the cost of making defective items fit for use, including necessary retesting), downtime and yield losses caused by defects, and the cost of material review and disposition of defectives.
Internal failure costs
are those caused by defects found after the customer receives the product. These include the costs of investigating and adjusting complaints, the costs of replacing defective product returned by the customer, price reductions (“allowances”) offered to compensate for substandard products, and warranty charges. The total costs to your customer in downtime and other damages may be much higher, and these may drive your customer to seek a more trustworthy supplier.
External failure costs
set of interrelated activities that are involved in manufacturing
products.
Production operations
focuses on carefully managing the production operations to produce and distribute products and services. It is about the transformation
of various resources into value added product or services.
Operations management
the creation of goods and services.
Production
used to point to potential problems that need
attention.
Process control charts
control charts consist of three parallel lines:
a central line
an uppercontrol limit (UCL),
lowercontrol limit (LCL),
Examining a product to determine if it meets the specifications set for it, or ___________, is certainly the original method of quality control, and it is still the most common.
inspection
Inspection may
be performed on the raw materials and parts you receive from suppliers
acceptance sampling
