SCMT Exam 2 - FLASHCARDS - Chapter 12
True or false: Total quality management requires companies to deal with all dimensions of products and services that are important to the customer
TRUE
What term refers to the inherent value of the product in the marketplace?
Design quality
Which quality term refers to the degree to which the product or service design specifications are met?
Conformance
What are costs for defects that pass through the system: customer warranty replacements, loss of customers or goodwill, handling complaints, and product repair?
External failure costs
What are costs of the inspection, testing, and other tasks to ensure that the product or process is acceptable?
Appraisal costs
What is the sum of all the costs to prevent defects, such as the costs to identify the cause of the defect, to implement corrective action to eliminate the cause, to train personnel, to redesign the product or system, and to purchase new equipment or make modifications?
Prevention costs
What are costs for defects incurred within the system: scrap, rework, repair?
Internal failure costs
TQM stands for
Total quality management
It is generally believed that the correct cost for a well-run quality management program should be under what amount?
2.5 percent
Where a product is involved, who is responsible for ensuring that quality specifications are met?
Manufacturing management
The cost of quality has been estimated at what percentage of every sales dollar?
15-20%
Warranty costs and customer complaints are examples of which type of quality cost?
External failure costs
How many defects per million units are permitted to meet Six Sigma standards?
3.4
Quality at the source is often discussed in the context of ______________ quality.
Conformance
What term refers to the philosophy and methods that companies use to eliminate defects in their products and processes?
Six sigma
What do Six Sigma programs seek to reduce in processes?
Variation
Which piece(s) of information are needed to calculate DPMO? Check all that apply.
Unit
Defect
Opportunity
Cost of goods sold
Efficiency
Unit
Defect
Opportunity
Which is the ISO certification regarding quality management requirements in business-to-business dealings?
ISO 9000
The idea behind the ISO standards is that defects can be prevented through the planning and application of _____ _____ at every stage of business
Best practices
Which analytical tool of Six Sigma breaks down a problem into the relative contributions of its components?
Pareto diagram
ISO documents provide detailed requirements for meeting the standards and describing the tools used for improving quality in the firm. These documents are:
generic and applicable to any organization.
What does DPMO measure?
The variability of a process
True or false: Conformance quality is a strategic decision for a firm?
FALSE. Conformance quality refers to the degree to which the product or service design specifications are met. The activities involved in achieving conformance are of a day-to-day nature
True or false: Design quality refers to the inherent value of the product in the marketplace?
TRUE. Design quality refers to the inherent value of the product in the marketplace and is thus a strategic decision for the firm.
True or false: One six sigma tool used in total quality management is the Pareto chart?
TRUE. The tools common to all quality efforts, including Six Sigma, are flowcharts, run charts, Pareto charts, histograms, checksheets, cause-and-effect diagrams, and control charts
The dimension of design quality that concerns the consistency of performance over time or the probability of failing is which of the following?
A. Response
B. Serviceability
C. Reliability
D. Reputation
E. Perceived quality
Reliability
Which of the following is the cost of quality classification for costs such as defects that pass through the system (e.g., customer warranty replacements, loss of customer or goodwill, handling complaints, and product repair)?
A. Appraisal costs
B. Prevention costs
C. External failure costs
D. Customer return cost
E. Workmanship costs
External failure costs. External failure costs include costs for defects that pass through the system: customer warranty replacements, loss of customers or goodwill, handling complaints, and product repair
What are the demensions of quality?
• Performance: Primary product or service
characteristics
• Features: Added touches, bells and whistles,
secondary characteristics
• Reliability/durability: Consistency of performance
over time
• Aesthetics: Sensory characteristics
• Serviceability: Ease of repair (or support)
• Perceived quality: Past performance and reputation
What is total quality management?
Managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.
What are TQM values?
- Holistic view of quality
- Emphasis on customer
- Extended process view of operations
- Emphasis on prevention, not inspection
- Disdain for variability
- Data (not opinion) based decision making
- Employee empowerment
- Top management support
- Supplier involvement
- Continuous improvement
What do supply managers do to influence quality?
Purchase requirements
Supplier selection
Manage contracts
Manage suppliers
What do Manufacturing & Service Operations do to influence quality?
Design and execute processing procedures
Design work policies
Manage facilities and equipment
Schedule work
What do human resources do to influence quality?
Hiring criteria; training and development programs
Compensation schemes and incentives
What do logistics managers do to influence quality?
Selection of transportation providers
Develop tracking systems
Design packaging, storage and material handling processes
Management of transportation providers
What are details about ISO 9000?
• For all types of organizations
• Application and audit
• International standard for quality
• Required by many customers
• Certification maintenance requires periodic auditing
What are benefits of ISO 9000?
• Required by many customers (including Ford, GM, Chrysler, & many other large firms)
• A firm can free itself from liability in European Union if it shows it used ISO 9000 suppliers
• Provides the foundational work for ISO 14000 and other quality standards
What reward is given to organizations that have demonstrated outstanding quality in their products and processes?
The Baldrige Quality Award
What do candidates for the Baldrige Quality Award have to do?
Must submit an application of up to 50 pages that details the approach, deployment, and results of their quality activities under seven major categories:
1. Leadership
2. Strategic Planning
3. Customer and Market Focus
4. Information and Analysis
5. Human Resource Focus
6. Process Management
7. Business Results
What is Crosby’s opinion on performance standards and motivation?
Zero defects
What is Deming’s opinion on performance standards and motivation?
– Quality is multi‐dimensional and has many scales
– Statistical measures of performance
– Not a believer in zero defects
What is Juran’s opinion on performance standards and motivation?
Avoid campaigns touting “perfection”
What is Crosby’s opinion on Statistical Quality Control (SQC)?
Rejects statistically acceptable levels of quality due to the zero defects (100% quality) requirement
What is Deming’s opinion on Statistical Quality Control (SQC)?
Statistical methods are vital to quality control
What is Juran’s opinion on Statistical Quality Control (SQC)?
Use SQC but exercise caution as one size does not fit all
What is Crosby’s opinion on cost of quality?
– Cost of nonconformance
– Quality is ‘free’
What is Deming’s opinion on cost of quality?
– No optimum level of quality
– Continuous improvement is the focus
What is Juran’s opinion on cost of quality?
– Quality is not free
– No optimum level of quality
Why might Cost of Quality (COQ) be hard to calculate?
– Hidden in overhead and administrative accounts
– Need cooperation by accounting and operations
What is a philosophy and set of methods companies use to eliminate defects in their products and processes?
Six sigma
What does six sigma seek to do?
Seeks to reduce variation in the processes that lead to product defects
What does DPMO stand for?
Defective Parts per Million Opportunities
What is the unit in DPMO?
Unit is the item produced or serviced
What is the defect in DPMO?
Defect is any item or event that does not meet the customer’s requirements
What is the opportunity in DPMO?
Opportunity is any chance for a defect to occur
What is the formula for Defective Parts per Million Opportunities (DPMO)?
(Number of defects / number of opportunities for error per unit x number of units) x 1,000,000
What does DMAIC stand for?
Define, measure, analyze, improve, and control
What is the overall focus of DMAIC?
Overall focus of the methodology is to understand and achieve what the customer wants
What does DMAIC seek to do?
Seeks to reduce the variation in the processes that lead to these defects
What is the DMAIC cycle?
• Define: Identify customers and their priorities
• Measure: Determine how to measure the process and how it is performing
• Analyze: Determine the most likely causes of defects
• Improve: Identify means to remove the causes of defects
• Control: Determine how to maintain the improvements
What is quality at the source?
Person who does the work takes responsibility for meeting specifications
What is lean six sigma?
Combines implementation and quality tools of Six Sigma with Lean Manufacturing which eliminates waste and focuses on just‐in‐time inventory methods.
What are analytical tools of six sigma?
• Flowchart: A diagram of the sequence of operations
• Run chart: Depict trends in data over time
• Pareto chart: Help to break down a problem into components
• Checksheet: Basic form to standardize data collection
• Cause‐and‐effect diagram: Show relationships between causes and
problems
• Opportunity flow diagram: Used to separate value‐added from
non‐value‐added
• Process control chart: Used to assure that processes are in
statistical control
• Failure Mode and Effect Analysis (FMEA): Used to find failure
modes and determine liability
• Design of Experiments (DOE): Multivariate testing method
What is when you identify each element, assembly, or part of the process and list the potential failure modes, potential causes, and effects of each failure?
Failure Mode and Effect Analysis (FMEA):
What does FMEA help identify?
Helps identify liability exposure
What is a statistical method for determining cause and effect relationships between many inputs and the output?
Design of Experiments (DOE)
What is another name for Design of Experiments (DOE)?
multivariate testing
