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Operations Mgmnt.

Prof. Fandel: Chapter 15: Quality Management

QuestionAnswer
Quality Management Refers to systematic policies, methods, and procedures used to ensure that goods and services are produced with appropriate levels of quality to meet the needs of customers.
Service Quality Consistently meeting or exceeding customer expectations (external focus) and service delivery system performance criteria (internal focus) during all service encounters.
Fitness for use The ability of a good or service to meet customer needs.
Quality of Conformance The extent to which a process is able to deliver output that conforms to the design specifications.
Principles of total quality: 1) A focus on customers and stakeholders 2)A process focus supported by continuous improvement and learning 3) Participation and teamwork by everyone in the organization.
Dimensions of Service Quality: 1) Tangibles 2) Reliability 3) Responsiveness 4) Assurance 5) Empathy
Tangibles What the customer sees, such as physical facilities, equipment, and the appearance of service employees.
Reliability The ability to provide what is promised, dependably and accurately.
Responsiveness The willingness to help customers and provide prompt service.
Assurance The knowledge and courtesy of service providers and their ability to convey trust and confidence.
Empathy Caring, individual attention the firm provides its customers.
The Deming Cycle Plan: Study the current situation Do: Implement plan on trial basis Study: Determine if trial is working correctly Act: Standardize improvements
ISO 9000:2000 Principles: 1) Customer-focused organization 2) Leadership 3) Involvement of People 4) Process Approach 5) System Approach to Management 6) Continual Improvement 7) Factual approach to decision making 8) Mutually beneficial supplier relationships
Cost of Quality Refers to the costs associated with avoiding poor quality or those incurred as a result of poor quality.
Six Sigma 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, resulting in a clear financial return for the organization.
Defect Any mistake or error that is passed on to the customer.
Unit of Work The output of a process or an individual process step.
Equation: Defects per unit (DPU) = (Number of defects discovered)/(Number of units produced)
Prevention Costs Costs that are expended to keep nonconforming goods and services from being made and reaching the customer. Ex) Quality planning costs, process-control costs, information-system costs, and training and general management costs.
Appraisal Costs Costs that are expended on ascertaining quality levels through measurement and analysis of data to detect and correct problems. Ex) Test and inspection costs, instrument maintenance costs, process-measurement and process-control costs.
Internal-failure Costs Costs incurred as a result of unsatisfactory quality that is found before delivery of good or service to the customer. Ex) Scrap an rework costs, costs of corrective action, downgrading costs, and process failures.
External-failure Costs Costs incurred after poor-quality goods or services reach the customer. Ex) Costs due to customer complaints and returns, goods and services recall costs and warranty and service guarantee claims, and product-liability costs.
Seven QC Tools 1) Flowcharts 2) Run charts and control charts 3) Checksheets 4) Histograms 5) Pareto Diagrams 6) Cause-and-Effect Diagrams 7) Scatter Diagrams
Flowcharts Process mapping to identify the sequence of activities or flow of materials/information in a process.
Run Charts A line graph with data plotted over time.
Control Charts A line graph with data plotted over time that also includes control limits.
Checksheets Simple tools for data collection, ensure completeness.
Histograms Graphically represent frequency of values within a specified group.
Pareto Diagrams Separate the vital few from the trivial many causes; provide direction for selecting projects for improvement.
Cause-and-Effect Diagrams Represent chain of relationships; often called a Fishbone Diagram
Scatter Diagrams Graphical component of regression analysis.
Kaizen Focuses on small, gradual, and frequent improvements over the long term with minimum financial investment and with participation by everyone in the organization.
Kaizen Blitz An intense and rapid improvement process in which a team or a department throws all its resources into an improvement project over a short time period, as opposed to traditional kaizen applications, which are performed on a part-time basis.
Poka-yoke (Mistake-proofing) An approach for mistake-proofing processes using automatic devices or method to avoid simple human error.
The Six Sigma quantifies quality perfomrance by defects per million opportunities (dpmo). The equation is: = (Number of defects discovered/opportunities for error) x 1,000,000 *In service applications, we often use the term errors per million opportunities (epmo)
Six Sigma: DMAIC Process 1) Define 2) Measure 3) Analyze 4) Improve 5) Control
DMAIC Process: Define Identify customers and their priorities; identify and define a suitable project; identify CTQs (critical-to-quality characteristics)
DMAIC Process: Measure Determine how to measure the process and how it is performing; identify key internal process that influence CTQs and measure current defects.
DMAIC Process: Analyze Determine likely causes of defects and understand why defects are generated by identifying key variables that cause process variation.
DMAIC Process: Improve Identify means to remove causes of defects; confirm key variables; modify the process to stay within acceptable range.
DMAIC Process: Control Determine how to maintain improvements; put tools in place to ensure that key variables remain within acceptable ranges under the modified process.
Created by: KAzetapi
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