Section C: Quality and Continuous Improvement Flashcards
Total Quality Management, TQM
Total Quality Management, TQM A term coined to describe Japanese-style management approaches to quality improvement. Since then, total quality management (TQM) has taken on many meanings. Simply put, TQM is a management approach to long-term success through customer satisfaction. TQM is based on the participation of all members of an organization in improving processes, goods, services, and the culture in which they work.
Define Quality & The 5 Principal Approaches
Quality Conformance to requirements or fitness for use. Quality can be defined through five principal approaches: (1) Transcendent quality is an ideal; a condition of excellence. (2) Product-based quality is based on a product attribute. (3) User-based quality is fitness for use. (4) Manufacturing-based quality is conformance to requirements. (5) Value-based quality is the degree of excellence at an acceptable price.
What are the two major components of Quality?
Quality has two major components: (1) quality of conformance—quality is defined by the absence of defects, and (2) quality of design—quality is measured by the degree of customer satisfaction with a product’s characteristics and features.
Transcendent Quality
Transcendent quality. This is what most people think of when asked to define quality, but it is actually very difficult to define precisely and involves opinions.
Product-based quality
Product-based quality. This relates to the grade of the product, for example, a low-cost item or a luxury version with many features. The design should fit the targeted customer segment and organizational strategy for sales volumes. Even low-grade items can be high quality by the other definitions.
User-based Quality
User-based quality. This is the user’s expectations of how a product should perform, its features, its aesthetics, its conformance to specifications, and its services (e.g., speed, consistency, availability, and competence of services). It will also be based on other elements, such as warranty, price, and perceived quality. From a performance perspective, this includes the following subsets: Reliability. This is performance consistency and how long the unit lasts. Durability. This is resistance to wear and tear. Maintainability. This is the ability to repair the unit if it fails.
Manufacturing-based Quality
Manufacturing-based quality. This is conformance to requirements and quality of conformance, as noted earlier, and is a manufacturing responsibility.
Value-based Quality
Value-based quality. This is value for the money and is relative to the competition and perceptions. Perceptions can be influenced by marketing and branding.
Cost of Poor Quality
Cost of poor quality : The costs associated with performing a task incorrectly and/or generating unacceptable output. These costs would include the costs of non-conformities, inefficient processes, and lost opportunities.
Quality Costs
Quality costs : The overall costs associated with prevention activities and the improvement of quality throughout the firm before, during, and after production of a product.
What are the two categories of Quality Costs?
The 2 categories of Quality Costs are (1) Cost of Failure (2) Costs of Controlling Quality
What are the two types of Cost of Failure?
Cost of Failure can be external or internal. External failure costs : The costs related to problems found after the product reaches the customer. This usually includes such costs as warranty and returns. Internal failure costs : The cost of things that go wrong before the product reaches the customer. Internal failure costs usually include rework, scrap, downgrades, reinspection, retesting, and process losses. Because it impacts the customer, external failures are more significant & expensive.
Field Service
Field service The functions of installing and maintaining a product for a customer after the sale or during the lease. Field service may also include training and implementation assistance.
Quality Control
Quality Control is the process of measuring quality conformance by comparing the actual with a standard for the characteristic and taking corrective actions on the difference.
The cost of controlling quality includes appraisal costs and prevention costs. Define each.
The two costs of controlling quality: Appraisal costs include costs for inspections, calibration of equipment, product testing, and quality audits. While necessary to some degree, recall that lean considers these to be a form of waste, because perfect-quality goods should not need inspection. Prevention costs include the costs caused by improvement activities that focus on the reduction of failure and appraisal costs. Typical costs include education, quality training, and supplier certification. According to TQM, these should be prioritized.
What is the primary objective of TQM?
The primary objective of TQM is to ensure the organization’s long-term success through customer satisfaction. As it applies to the products and services provided to the customer, this objective can be translated as meeting all required product and service specifications. Another objective of TQM is to ensure that variation is minimized to the degree possible (tall and narrow bell curves) given the nature of the process, the costs involved in increasing precision, and the needs of the customer for precision.
What are the 4 core concepts of TQM? Define each.
TQM 4 Core Concepts 1. Management Champions - Management must champion the effort and develop organizational strategy, mission statements, and vision statements in ways that inspire a sustained effort toward desired levels of quality. 2. Performance Measurement - Estimates need to be made of how much of the change in customer loyalty and customer satisfaction can be attributed to quality versus investments in marketing, changing tastes, environmental factors, and so on. 3. Involvement and Empowerment - everyone needs to commit not only to doing their jobs well but also to improving their jobs. 4. Focus on the Customer - Customers can be internal or external, meaning that a customer by this definition is simply someone who uses your outputs as inputs to their own processes.
Customer needs include what 7 things?
The 7 Customer Needs: 1. Quality 2. Flexibility (agility), meaning the ability to be flexible in quantity, delivery, capacity, or specifications as well as adaptable to changing requirements and environments 3. Dependability (resilience) 4. Service 5. Speed (Lead time) 6. Stability (meaning low variability in specifications or performance measures) 7. Cost
Quality Function Deployment (QFD)
Quality Function Deployment (QFD) A methodology designed to ensure that all the major requirements of the customer are identified and subsequently met or exceeded through the resulting product design process and the design and operation of the supporting production management system. QFD can be viewed as a set of communication and translation tools. QFD tries to eliminate the gap between what the customer wants in a new product and what the product is capable of delivering. QFD often leads to a clear identification of the major requirements of the customers. These expectations are referred to as the voice of the customer (VOC).
Value Analysis
Value Analysis The systematic use of techniques that identify a required function, establish a value for that function, and finally provide that function at the lowest overall cost. Focuses on the functions of an item rather than the methods of producing the present product design.
Voice of the Customer (VOC)
VOC Actual customer descriptions in words for the functions and features customers desire for goods and services. In the strict definition, as related to quality function deployment (QFD), the term customer indicates the external customer of the supplying entity.
House of Quality
House of Quality A structured process that relates customer-defined attributes to the product’s technical features needed to support and generate these attributes. HOQ is part of the quality function deployment (QFD) process and forces designers to consider customer needs and the degree to which the proposed designs satisfy these needs.
What are the House of Quality 6 Processes?
The HOQ technique achieves by means of a six-step process: (1) identification of customer attributes; (2) identification of supporting technical features; (3) correlation of the customer attributes with the supporting technical features; (4) assignment of priorities to the customer requirements and technical features; (5) evaluation of competitive stances and competitive products; and (6) identification of those technical features to be used (deployed) in the final design of the product.
Basic Seven Tools of Quality (B7)
Basic Seven Tools of Quality (B7) Tools that help organizations understand their processes in order to improve them. The tools are: 1. the cause-and-effect diagram (also known as the fishbone diagram or the Ishikawa diagram), 2. check sheet, 3. flowchart, 4. histogram, 5. Pareto chart, 6. control chart, and 7. scatter diagram.
Check Sheet
Check Sheet A simple data-recording device. The check sheet is designed by the user to facilitate the user’s interpretation of the results… *Check sheets are often confused with data sheets and checklists. Check sheets are used to record the number of times a particular type of event occurs.
