Ch. 10 Quality Management & Six Sigma

Six Sigma refers to...

- A description of the quality goal of no more than 3.4 defects per million opportunities. - A quality improvement philosophy and program.

ISO 14000 has a three-pronged approach that includes...

- environmental management requirements. - standards for monitoring air, water, and soil. - the development of environmentally friendly products and service

Which of the following are assumptions that justify the costs of quality? 1. Failures occur 2. Prevention is cheaper 3. Performance can be measured

1, 2, and 3

Which piece(s) of information is/are needed to calculate DPMO? 1. Unit 2. Defect 3. Opportunity

1, 2, and 3

ISO _____ , standards are concerned with business-to-business transactions dealing with quality, while ISO ______ , standards are concerned with environmental management.

1. 9000 2. 14000

Examples of a situation where statistical quality control can be applied

1. Paint defects in the finish of a car 2. Hotel rooms clean when customers check-in 3. Time to serve customers from a drive-thru window

There are two aspects to analyzing the data for benchmarking, they are:

1. comparing performance of the process against certain measures. 2. comparing actual processes.

The cost of quality has been estimated at what percentage of every sales dollar?

15-20%

When did total quality become a national concern?

1980s

The general belief is that the correct cost for a well-run quality management program is under...

2.5%

According to a rule of thumb, for every dollar that you spend in prevention, you can save $10 in what type(s) of costs?

Appraisal Failure

Which variation is caused by factors that can be clearly identified?

Assignable variation

What variation is inherent in the process itself?

Common variation

What quality term refers to the degree to which the product or service design specifications are met?

Conformance

Which quality term refers to the degree to which the product or service design specifications are met?

Conformance

hich six sigma tool requires changing each individual variable to determine the most influential one?

Design of experiments (DOE)

What term refers to the inherent value of the product in the marketplace?

Design quality

The Baldrige Quality Award is given annually in what categories?

Education Services Health care

Warranty costs and customer complaints are examples of which type of quality cost?

External failure costs

Expenditures related to achieving product or service quality include all of the following:

Failure costs Appraisal costs Prevention costs

Which tool in Six Sigma projects is a structured approach to identify, estimate, prioritize, and evaluate risk of possible failures at each stage of a process?

Failure mode and effect analysis

Which is the ISO certification regarding quality management requirements in business-to-business dealings?

ISO 9000

The Malcolm Baldrige National Quality Award was created as a response to the US quality shortfalls compared with which country?

Japan

When a service is being provided, who is typically responsible for ensuring quality at the source?

Location operations manager

Which analytical tool of Six Sigma breaks down a problem into the relative contributions of its components?

Pareto (or bar) charts

Brand name recognition is an example of which dimension of quality?

Perceived quality

What tools (charts) can be used in the Define step of the DMAIC cycle?

Run charts Flow charts

Which dimension of design quality refers to the ease of repair?

Serviceability

What term refers to the philosophy and methods that companies use to eliminate defects in their products and processes?

Six Sigma

What covers the quantitative aspects of quality management?

Statistical quality control (SQC)

Which of the following is a quality management standard developed specifically for the telecommunications industry?

TL 9000

ISO, international standards for quality management and assurance, was developed by?

The International Organization of Standardization

To achieve quality at the source, in general, who is responsible for ensuring that quality specifications are met?

The person who does the work

In which step of the DMAIC cycle do you determine the most likely causes of defects and understand why defects are generated?

analyze

The classic "I love Lucy" scene where they are inspecting the chocolates on the assembly line is an example of what type of quality cost?

appraisal

Each step or activity, when using six sigma, a company performs represents an opportunity for a(n) _________ to occur.

defect

Where in a process is there an opportunity for defects?

every step or activity

The process of looking outside the company to compare the firm to excellent performers is called___________ benchmarking.

external

You are a manager that has calculated the DPMO to be 10,000. Is this process meeting Six Sigma standards? T or F

false - no

In which step of the DMAIC cycle would you identify ways to remove the cause of defects and confirm key variables?

improve

Often, a(n) __________, in productivity occurs as a by-product of efforts to reduce the cost of quality.

increases

Which type of quality cost deals with scrap, rework and repair?

internal failure cost

When a service is being provided, who is typically responsible for ensuring quality at the source?

location operations manager

Cost of quality (COQ) is a primary function for the...

quality control department.

When a customer audits its supplier in regards to ISO certification, this form of certification is referred to as ____________.

second party

ISO 9000 standards are based on the _______ quality management principles.

seven

Design quality is considered a(n) __________ for the firm.

strategic decision

Which is the best form of ISO certification?

third party

True or false: A product can have high design quality with low conformance quality, and vice versa.

true

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 do Six Sigma programs seek to reduce in processes?

variation

The cost of quality involves the cost of...

warranties. rework. scrap.