Module 12 - Business Improvements

Question 1

To implement TQM what are the four principle steps?

Answer 1

1. Create a quality control council - led by the chief exec
2. Initiate quality training programs
3. Create target and remuneration programs
4. Constantly review all performance quality.

Question 2

What is six sigma and how many defects are allowed per million?

Answer 2

Six sigma is a management improvement technique that allows for 3.4 defects per million.

Question 3

Value chain analysis derives customer value from three sources:

Answer 3

1. Activities that differentiate the product.
2. Activities that lower the cost of the product.
3. Activities that meet the needs of the customer’s quickly.

Question 4

Name the six stages of the value chain sequence:

Answer 4

1. R&D
2. Design
3. Production
4. Marketing
5. Distribution
6. Customer services

Question 5

What are the four key elements of a JIT system?

Answer 5

1. Pull system of production
2. Excellent relationships with suppliers
3. Improved factory layout
4. Reduced set up times

Question 6

Name three examples of JIT performance indicators:

Answer 6

1. Customer satisfaction
2. Defects
3. Stock levels