O.M. Ch. 15 Flashcards
Quality Management
refers to systematic policies, methods, & procedures used to ensure that goods & services are produced with appropriate levels of quality to meet the needs of customers.
Fitness for use
is the ability of a good or service to meet customer needs
Quality of conformance
is the extent to which a process is able to deliver output that conforms to the design specification
Specifications
are targets & tolerance determined by designers of goods & services
Service Quality
is consistently meeting or exceeding customer expectations (external focus) and service delivery system performance criteria (internal focus) during all service encounters.
Principles of total quality :
- a focus on customers & stockholders
- a process focus supported by continuous improvement and learning
- participation and teamwork by everyone in the organization
Quality trilogy (Juran)
quality planning
quality control
quality improvement
Six Sigma
is a business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and results in a clear financial return for the organization.
defect
is any mistake or error that is passed on to the customer
unit of work
is the output of a process or an individual process step
DMAIC
Define Measure Analyze Improve Control
Cost of quality
refers specifically to the cost associated with avoiding poor quality or those incurred as a result of poor quality
Prevention costs
are those expended to keep nonconforming goods and services from being made and reaching the customer
Appraisal costs
are those expended on ascertaining quality levels through measurement and analysis of data to detect and correct problems
Internal failure costs
are costs incurred as a result of unsatisfactory quality that is found before the delivery of a good or service to the customer