Quality ch.6
Which of the following determinants of service quality means approachability and ease of contact? A. tangibles B. access C. courtesy D. security
B
Which of the following determinants of service quality means the firm performs the service right the first time and that the firm honors its promises? A. reliability B. credibility C. competence D. responsiveness
B
Which of the following is an award for quality achievement in Japan? A. Tokyo Medal for Excellence in Quality B. Deming Prize C. Malcolm Baldrige National Quality Award D. ISO 9000
B
scatter diagram
A graph of the value of one variable vs. another (recall that we used this tool in associative forecasting)
PARETO chart
A graphic way of classifying problems by their level of importance. "For many events, roughly 80% of the effects come from 20% of the causes." - Vilfredo Pareto
SPC chart
A process used to monitor standards, make measurements and take corrective action as a product or services is being produced.
cause and effect diagram
A schematic technique used to discover possible sources of quality problems.
A device or technique that ensures production of a good unit every time is a A. fail-safe. B. zero defect. C. control chart. D. poka-yoke.
D
Managing quality helps build successful strategies of A. differentiation, time and response. B. differentiation, low cost and service. C. differentiation, time and service. D. differentiation, low cost and response
D
One hundred percent inspection A. catches all of the defective parts. B. is practical and an excellent fit for world-class manufacturers. C. means that every part is checked to see whether or not it is defective. D. means that only good parts will be shipped to a customer.
D
Which of the following is NOT an external failure cost? A. lost goodwill B. returned goods C. costs to society D. scrap
D
Which of the following is NOT one of the techniques for building employee empowerment? A. Build high-morale organizations. B. Develop open, supportive supervisors. C. Build communication networks that include employees. D. Eliminate formal organization structures such as teams and quality circles.
D
Steps in TQM
Identify the Root Cause to determine the true source of the quality issue "ask why five times" Implement Corrective Actions to both fix the issue and prevent re-occurrence "treat the disease not just the symptom"
techniques for building employee empowerment:
building comm networks tht include employees, dev open supportive supervisors moving respon from both mngrs and staff to production employees building high morale org creating such formal org struct as teams and quality circles
JIT: After inventory is lowered
can focus on process improvement to decrease variability and reduce risk. REMOVE VARIABILITY
TQM tools tht generate ideas incl
check sheet scatter diagram cause and effect diagram
variable inspection
classfications of inspected items like meas dimensions like weight, speed, size, strength to see if item falls within an acceptable range
why quality is important
co rep product liability global implications
managing quality builds a successful strategy of
differentiation, low cost, response
employee fulfillment ex..what it yields
empowerment, org commitment employee attitudes that can accomplish whats important
ISO stand encourages
est of Q mgmt procedures, detailed documentation, work instructions, record keeping
mngr must expect...
exceptions initiated by cust or off operating conditions
note 7 known for spontaneously catching on fire
ext failure did not conduct root cause analysis right just swapped batteries-still caught on fire - took 10 billion hit to end note 7 line
__ ___ __ are a better solution than trying to find defects by inspection
good processes, employee empowerment, source control
quality circle
group of employees who meet reg to solve work rel probs. members rec training in group planning, prob solving, statistical quality control. rec recog from firm
improved quality means
happier cust and increased profits
Which of the following DOES NOT increase profit by improving quality? higher warranty costs flexible pricing improved reputation increased productivity
higher warranty costs
tools for iding problems
histogram and SPC chart
each of 10 dec made by op mngrs deals w some aspect of
iding and meeting cust expectations, req TQM
better Q means less inven and a better easier to employ jit system
if consistent Q exists, Jit allows firms to reduce all costs assoc w inven
org practices ex...and what it yields
leadership, mission statement, effective op procedures, staff support, training : whats important and whats to be accomplished
Q loss function QLF
measure to est cost of deviating from target val to est Q costs of diff processes determine if this added cost is worthwhile a simple quadratic equation ids all costs conn w poor qual and shows how these costs increase as output moves away from target val
inspection
measurement, tasting, tasting touching weigh, or testing of prod goal to detect bad process immediately doesnt correct deficiencies or change a prod or increase its val only finds def and defects expensive dont add val to prod ensure op prod at qual lvl expected
service Q is judged on basis of whether it... mngr may be able to influence both the ___ of serv and the ___
meets expectations Q and expectation
TQM
mgmt of entire org so it excels in all aspects of p/s tht r important to cust if firm wants to compete in leader in world markets
six sigma is __directed, ___based,___approach
mgmt, team, expert led
Quality services
more intang perceptions responsiveness courtesy credibility
Quality goods
more tangible metrics conformance perf useful life easier to track for goods
ext failure costs and ex
occer after delivery of defective parts / s rework, returned goods, liabilities, lost goodwill, costs to society hard to quantify
successful quality strat:
org culture that fosters quality, understanding of the principles of quality, engaging employees in act to implement quality which satisfies customers and obtains a competitive advantage
flow of act to achieve TQM
org practices - quality prin, employee fulfillment, cust satisfaction
quality in technical usage can mean
p/s free of defiencies
TQM tools for organ data
pareto chart and flow chart
JIT just in time
philosophy of continuing improvement and enforced prob solving. to prod/deliver goods just as they're needed. driving optimized inventory levels, improved quality, and lower costs.
SERVQUAL
popular meas scale for serv qualty compares serv expectations w serv perf focuses on gaps bt those on 10 serv Q determinants
Q robust
products that can be prod uniformly and consistently in adverse manf and environmental conditions. remove effects of adverse conditions instead of removing the causes, bc cheaper and more effective in prod a robust product consist. built to meet cust needs despite adverse conditions in prod process
high quality p/s are the most
profitable
KSF
quality
ethical conduct for a questionable product introduced
recall
appraisal costs and ex
rel to eval products, processses, parts/s testing labs, inspectors reasonably est
determinants of serv Q
reliability responsiveness competence - having req skills access- ease of contact courtesy- respect communication- keeping cust informed in lang they understand credibility security- freedom from risk, doubt, danger understanding/knowing cust tangibles - phy evidence of serv
SERVQUAL 5 collapsed serv Q determinants
reliability, assurance, tangibles, empathy, responsiveness
the characteristics that connote Q must first be identified thru
research (a user based app to Q)
Support Serv
How were problems handled after the sale?
To develop a standard or benchmark, firms need to start with A. determining what to benchmark. Your answer is correct.B. forming a benchmark team. C. collecting benchmarking information. D. identifying benchmarking partners.
A
perf measures used in bming
% of defects, cost per unit, processing time per unit, serv response time, ret on I, cust satisfaction rates, cust retention rates
6Sigma
*Statistical definition of a process that is 99.9997% capable, 3.4 defects per million opportunities (DPMO)
six sigma statistical sense program definition
-describes process, p/s with v. high capability -program to reduce defects to help lower costs, save time, improve cust satisfaction, improve qual
DMAIC improvement model steps
1.defines proj purpose, scope, outputs, ids req process info, keep in mind cust def of qual 2.measure process, coll data 3.analyze data, ensure repeatability and reproducibility(others get same result) 4.improves by modifying or redesigning 5.controls new process to make sure perf levels are maintained
Attribute inspection measures A. if the product is good or bad. B. whether or not the product attributes conform to the inspector's personal tastes. C. such dimensions as weight, speed, size, or strength to see if an item falls within an acceptable range. D. if cause and effect are present.
A
What is training and empowering frontline employees to solve a problem immediately? A. service recovery B. quality circle C. courtesy D. employee empowerment
A
Deming
American made mgmt accept reson for building good system Deming prize in Japan
The American Society for Quality defines quality as A. how well a product fits patterns of consumer preferences. B. the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. C. even though it cannot be defined, you know what it is. D. the degree of excellence at an acceptable price and the control of variability at an acceptable cost.
B
flow chart
Block diagram that graphically describes a process or system.
Inspections should NOT take place A. at your supplier's plant while the supplier is producing. B. at your facility upon receipt of goods from your supplier. C. after costly or irreversible processes. D. during the step-by-step production process.
C
The objective of a statistical process control (SPC) system is to A. provide a statistical signal when natural causes of variation are present. B. provide a statistical signal when assignable causes of variation are present. C. assess customer expectations. D. eliminate natural variations.
C
Which of the following costs is NOT a cost of quality? A. rework B. lost goodwill C. research and development D. scrap
C
Which of the following is the Japanese term used to describe continuous improvement efforts? A. kanban B. poka-yoke C. kaizen D. six sigma
C
Which of the following statements is NOT true regarding the importance of the role that an operations manager plays in addressing service quality? A. Managers must expect exceptions. B. The tangible component of many services is important. C. The manager may be able to influence the quality of the service but has little control over the customers' expectation. D. The operations manager should realize that the customer' expectations are the standard against which the service is judged.
C
Taguchi's quality loss function is based on a A. linear equation. B. binomial distribution. C. quadratic equation. D. negative exponential distribution.
C
FITNESS FOR USE
How did the product perform versus intended use? User based
TQM Philosophy
Encompasses entire organization from supplier to customer Stresses a commitment toward excellence in everything important to the customer
JIT high inventory does what?
High inventory levels conceal costly process issues Reducing inventory forces process improvement holding inventory = cost scrap setup time late del qual probs process downtime
Psychological benefits
How did I "feel" about the experience - am I satisfied?
conformance to specif ?
Manf based Did product/service meet targets and tolerances?
continuous improvement
PDCA model of ongoing, unending incremental process improvement 4 stages: Plan do check act: shewhart
val for price paid?
Product based Were expectations met based on price paid?
Feigenbaum
Q a total field tht integrated pthe processes of a co how to learn from otheres successes led to field of cross functional teamwork
used based quality
Q lies in eyes of beholder marketing ppl like this and cust higher Q means better perf, nicer feat
manf based quality
Q means conforming to standards making it right first time production mngrs
product based quality
Q precise, measurable variable
user based
Qual lies in eye of the beholder Used by marketing ppl and customers high Qual means better perf, nicer feat, oother costly improvements
histogram
Show the range of values of a measurement and the frequency with which each value occurs.
check sheet
Super simple data collection tool used to quantify the extent of quality problems Often used to collect raw data as first step in an analysis
quality categories:
User based manufacturing based product based
founding father of tqm "The prevailing system of management has crushed fun out of the workplace!"
W Edwards Demining
facilitator
a spec trained team member helps train members and keeps meetings running smooth
service industry inspection points can be assigned at...
a wide range of locations
tangible component of many services is important ex
accurate bill at hotel, warmth of food, how well car runs after picking up from shop
employee empowerment
added respon, authority moved to lowest level poss involve employees in every step of production process Jack Welch at GE called it "high involvement"
Q control system must ___ and have a set of ____ ____ for less than optimal ____ ____
alt plans, op conditions
A successful quality strategy begins with an understanding of the principles of quality. satisfying customers and obtaining a competitive advantage. an organizational culture that fosters quality. engaging employees in the necessary activities to implement quality.
an org culture that fosters quality
then the manf process is organized to ensure tht products
are made precisely to specifications (manf based app to q)
jit improves Q
as jit shrinks lead time, keeps evidence of errors fresh and limits # of pot sources of error. creates an early earning syst for Q prob within firm and w vendors
ISO is like Baldrige bc is unlike baldridge bc
assment includes self appriaisal and problem identification org must be reaudited every 3 yrs
prevention costs and ex
assoc w reducing pot for dfective parts/s training, qual imporvement prog reasonably est
where to inspect:
at suppliers plaint while supplier is producing at ur facility upon receipt of goods from ur supplier before costly processes during step by step production process when production is complete before delivery to cust at point of cust contact
when inspections take place, Q char may be meas as ...
attributes or variables
op mgnmr objective
build a TQM system that identifies / satisfies cust needs
source inspection
consistent w concept of employee empowerment, where indiv employees check own work each supplier, process, and employee treats the next step in the process as the cust assisted by used of controls such as poka yoke controling/monitoring at the point of prod or purchase, at the source
the cost of poor quality is...bc..
consistently underestimated bc est costs hard to quantify
kaizen zero defects TQM
cont improvement efforts
target oriented Q
cont improvement to bring prod exactly on target.
7 effective TQM concepts program from Deming 14 points
continuous improvement six sigma employee empowerment benchmarking just in time taguchi concepts knowledge of TQM tools
COQ cost of quality categories
cost of doing things wrong: price of nonformance leaders in field of Qual mgmt: deming, juran, crosby prvention costs, appraisal cots, int failture, ext failure
improved quality allows....as
costs to drop .. productivity increases and lower rework scrap and warranty costs
qual prin ex..what it yields
cust focus, continuous improvement, benchmarking, just in time, tools of TQM how to do whats important and to be accomplished
quality is the ability of a p/s to meet
cust needs
differentiation, low cost, and response example
defining cust quality expectations, efficient processes, quality systems
keys to Q serv:
designing the product managing the service process matching cust expectations preparing for exceptions
steps for benchmark dev
determine what to benchmark form a benchmark team id bming parterns collect/analyze bming info take action to match/exceed the bm
intang differences __ ___ expectations __ __ __ __ attributes __ __ __ __
differences bt products expectations cust have of products attributes may not be defined (unspoken imgs in mind)
increase sales by
improved respon flex pricing improved rep
taguchi concepts
improving both prod/process Q: quality robustness, target oriented Q, Q loss function target oriented Qual
latest modification of ISO
in 2015 makesmore compatible w other mgmt systems greater emphasis to risk based thinking to provent undersirable outcomes
crobsy
in the trad trade off bt cost of improving Q and cost of poor Q cost of poor Q is understated, cost of poor q should incl all things not involved in not doing job right the first time coined zero defects no reason for having errors or defects in any p/s
poor q prod is bc of .....and results in...
inadequate deisgn/production processes higher production costs injuries, lawsuits, increased gov reg
the var in Q can be expected to ___ _ as the item __ _______ ___ from its target value
increase costs, output moves away
improvements in quality..which..
increase sales and reduces costs..increases profitability
Which of the following could reduce costs and increase profit? improved response flexible pricing improved reputation increased productivity
increased productivity
lower costs by:
increased productivity lower rework and scrap fewer warranty claims
a vehicle for improving the syst
inspection
Quality failure costs
int and ext failures cost more than Q controol costs
TQM
is the management of an entire organization so that it excels in all aspects of products and services that are important to the customer
attribute inspection
items are good or defective, doesnt address degree of failture
poka yoke and ex
literal trans: mistake proofing device/tech ensureing prod of good unit enery time foolproof tech ensures production of good units every time avoid errors and provide quick feedback of problems diesel gas pump not fit into unleaded gas tank mcdonalds french fry scoop hospitals prepackaged surgical coverings w exact items needed for procedures
implementing six sigma requires
major time commitment esp from top mngers
char tht connote Q must first be identified through .... a .... app to quality. these char then translated into .... a .... app to Q. then the manf process is org to ensure that ... a ... app to Q.
research, user based spec product attributes, product based products are made precisely to specifications, manf based
int failure costs and ex
result from production fo defective parts/s before delivery to cust rework, scrap, downtime reasonably est
2 ways quality improves profitability
sales gains via improved response, flex pricing, improved rep and reduced costs via increase productivity, lower rework, scrap, warranty costs
jit cuts cost of quality bc of
scrap rework inven investment and damage costs are dir rel to inven on hand. less inven on hand: costs are lower. inven hides bad qual, jit exposes bad q
benchmarking
sel a demonstrated stand of perf tht rep v. best perf for a process serv, costs, practices that rep very best perf for processes or activities very sim to own. dev a target at which to shoot and then dev a stand against which to compare ur perf. Technique for identifying, understanding, and adapting best practices of other organizations (internal or external) and applying them to your own.
9/10 of determinants of serv Q are rel to..
serv process
ISO 9000 int Q stand prin
set of qual stand dev by Int Org for Standardization (ISO) only qualty stand within int recog, critical to be on list if want to do bus globally top mgmt leadership cust satisfaction continual improvement involvement of ppl process analysis use of data driven dec making systems app to mgmt mut beneficial supplier rel
these char are then translated into
spec product attributes (prod bsaed app to q)
increase in sales occurs when..
speeds response, increase/lower sp, improve reputation for quality products
six sigma is a system of
strategy: bc focus on cust satisfaction discipline: follows DMAIC.. set of 7 tools
to create a quality g/s op mngers need to know what..
the cust expects
quality by American Society for Quality def
the totality of feat/char of a p/s that bears on its ability to satisfy/stated or implied needs
when nonconformance occurs
the worker is seldom at fault
2 diff failure w batteries led to root cause after samsung loss
then finally overhauled its safety testing process
manf based
thought by prod managers believe Q means conforming to standards and making it right the first time
knowledge of TQM tools
to empower employees and implement TQM as a cont effort, everyone in org must be trained in TQM tech.
idea of source inspection poka yokes and checklists is..
to guarantee 100% good p/s at each step of a process
juran
top mgmt commitment, support, inolvement in Q effort. teams to cont raise Q stand Q as fitness for use and cousing on cust
service recovery strat
train and empower frontline employees to immediately solve a problem
checklists
type of poka yoke ensure consistency and completeness in carrying out a task ex: software q assurance lists
malcolm baldrige national quality award
us est for quality achievement named after former secretary of commerce
inspection process has
variability
Product based
views Q as a precise and measurable var Ex really good ice cream has high butterfat levels
op mngers need to know critical points in the system:
when to inspect, where to inspect
ultimate goal
win cust
cust satisfaction ex..what it yields
winning orders, repeat cust an effective org w a competitive advantage