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Chapter 8 MAN324
Quality Management: Focus on Six Sigma
| Question | Answer |
|---|---|
| Total Quality Management (TQM) | Managing the entire organization so that it excels on all dimensions of products and services that are important to the customer. |
| Design Quality | Refers to the inherent value of the product in the marketplace and is thus a strategic decision for the firm |
| conformance quality | refers to the degree to which the product or service design specifications are met |
| quality at the source | the person who does the work takes responsibility for maing sure that is or her output meets specifications |
| dimensions of quality | criteria by which quality is measured |
| cost of quality (COQ) | all of the costs atrtibutable to the production of quality that is not 100 percent perfect. |
| Four types of costs of quality | Appraisal costs, prevention costs, internal failure costs, external failure costs. |
| appraisal cots | Costs of the inspection, testing, and other tasks to ensure that the product or process is acceptable. |
| prevention costs | The sum of all the costs to prevent defects, such as the cost 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 eqmt/ make modifications |
| Internal failure costs | Costs for defects incurred within the system: scrap, rework, repair |
| External failure costs | Costs for defects that pass through the system: customer warranty replacements, loss of customers or goodwill, handling complaints, and product repair. |
| Six Sigma Methodology | leans toward perfection and strives for no more than 2 mistakes per billion |
| DMAIC | Define, Measure, Analyze, Improve, Control |
| Define | customers and their priorities |
| Measure | process and its performance |
| Analyze | cause of defects |
| Improve | remove cause of defects |
| Control | maintain quality |
| PDCA cycle | plan, do, check, act |
| continuous improvement/kaizen | seeks continual improvement of machinery, materials, labor utilization, and production methods through applications of suggestions and ideas of company teams. |
| Statistical Process Control (SPC) | involves using statistical techniques to measure and analyze the variation in processes used only in pareto and run charts |
| run chart | depicts trends and data over time to help to understand the magnitude of a problem at the define stage. |
| pareto chart | help to break down a problem into the relative contribution of its components |
| Six Sigma Roles and Responsibilities | Executive leaders, corporatewide training in Six-Sigma concepts and tools, setting of stretch objectives for training, continuous reinforcement and rewards |
| Executive leaders | Champions that are drawn from the ranks of the executives and managers are expected to identify appropriate metrics early in the project and make certain that the improvement efforts focus on business results |
| black belts | who coach or actually lead a Six-Sigma improvement team |
| master black belts | who receive in-depth training on statistical tools and process improvement (they perform many of the same functions as black belts but for a larger number of teams) |
| green belts | employees who have received enough Six-Sigma training to participate in a team or in some companies to work individually on a small-scale project directly related to their own job. |
| The Shingo System | Shingo's argument: SQC methods do not prevent defects, defects arise when people make errors, defects can be prevented by planning |
| Poke yoke | such things as checklists or special tooling that prevents the worker from making an error that leads to a defect before starting a process or gives rapid feedback of abnormalities in the process to the working in time to correct them |
| ISO 9000 | a series of international quality standards that have been developed by the International Organization for Standardization. Recognized in over 100 countries |
| Two ISO 9000 groups | requirements and guidelines |
| requirements | dictate what a customer should do |
| guidelines | suggest what a company should do |
| Three forms of ISO 9000 certification | First party, second party, third party |
| first party certification | a firm audits itself against ISO 9000 standards |
| second party certification | A customer audits its supplier |
| third party certification | a "qualified" national or international standards or certifying agency serves as an auditor |
Created by:
kristinajoy
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