Quality Control and Process Improvement

Question 1

Quality Control definition?

Answer 1

Quality control is the process of comparing output to an expectation

Question 2

what is the relation between quality control and process improvement?

Answer 2

most of times problems are discovered after the process has been completed.
process improvement address this issue by taking a proactive approach before any problems are uncovered.

Question 3

what is the purpose of cost management?

Answer 3

effective and efficient use of resources to achieve organizational objectives.
Effective means to achieve desired outcome
Efficient means to achieve maximum productivity for minimum effort

Question 4

when cutting costs would be effective?

Answer 4

when the root causes of the cost, namely the activities that create the costs, are eliminated. for example, cutting labor cost without changing the underlying way in which work is done

Question 5

which type of activities that create costs should be eliminated?

Answer 5

only activities that do not impair the organization’s ability to achieve its strategic goals.
: Non-value-added activities (value-added-activities should not be removed)

Question 6

what is cost of quality?

Answer 6

this is the cost of losing customer because of poor quality

Question 7

what levels cost of quality can be tracked?

Answer 7

1- external failure cost (for example, warranty cost)
2- internal failure cost (for example, end-point inspection)
3- appraisal or process cost (prototype testing)
4- prevention or planning costs (computer modelling)

Question 8

what is the most important cost related to cost of quality?

Answer 8

opportunity cost of lost sales due to poor quality

Question 9

what are the non-statistical quality control tools?

Answer 9

1- cause and effect diagram or Ishikawa diagram

2- Check Sheet

Question 10

what is pareto analysis?

Answer 10

pareto analysis is a statistical method to identify the barriers to quality and to prioritize them with respect to process improvement.
Pareto analysis is an organized bar chart. the intent of the analysis is to identify and order the drivers of poor quality, then attack the largest first.

Question 11

what are the objectives of process improvement tools?

Answer 11

to improve performance (effectiveness and/or efficiency), reducing costs, or increasing profits

Question 12

what is lean management?

Answer 12

lean management focuses on the elimination of any element in any business process that does not add value to the final product or service that customer purchases. 
Include: 
- a just in time management system
- activity analysis 
- zero-defects approach

Question 13

what is just in time management system?

Answer 13

is a plan to deliver products and services as customer demand them as apposed to a system when inventory and resources are built based on forecast. this means that stock levels of raw materials, WIP, and finished goods are minimized.

Question 14

what is activity analysis?

Answer 14

analyzing activities of products can help company to remove any portion that does not add value. activities are divided into following groups:
1- Processing
2- Moving
3- Storing
4- Inspecting
first question, is the activity adding value?
second question, are we undertaking the activity efficiently?

Question 15

what is zero-defects approach?

Answer 15

employs a system that forbids mistakes to be passed on to the next stage of the product or service process. main costs related to defects are:

1. Inspecting
2. Internal Failure
3. External Failure

Question 16

what is the difference between six sigma and lean management?

Answer 16

lean management looks at value-added and non-value added processes and eliminates non-value added processes whereas six sigma focuses on reducing the waste in all the processes.

Question 17

How calculate six sigma impact on profitability of company?

Answer 17

Cost of the quality improvement - Savings from elimination of waste + additional profit because of improving of quality

Question 18

what’s the main objective of supply chain management?

Answer 18

to maximize value, that is, to optimize the balance of cost, time, and quality involved in the creation and delivery of goods and services.

Question 19

what is the characteristics of effective supply chain management?

Answer 19

integrate across many functions and business areas including
1- Logistics: plans, implements, and controls the flow of goods, services, and information between order point and reception by the customer.
2- procurement
3- operations management
4- information technology

Question 20

what are the added values of supply chain management?

Answer 20

1- it improves manager’s ability to achieve strategic objectives through improved control
2- it enables organizations to forecast demand as accurately as possible and match supply with demand
3- it improves the ability to adapt quickly to changes in markets and the competitive environment
4- it can lead to shorter cash-to-cash cycle times for improved cash flows
5- it enables managers to lower operational expenses through better planning and communication

Question 21

what are core principles of total quality management?

Answer 21

1- customer focus: customer expectations and preferences 
2- executive leadership
3- people involvement 
4- process approach
5- system approach
6- continuous improvement 
7- factual approach in decision making 
8- supplier relationships