MGMT 4000 Montgomery Final Review (Ch 12)

The ISO 9000 standards are based on a number of quality management principles. These principles focus on what related to the following areas in the firm? Check all that apply - Continual Improvement - Leadership - Process Approach - Collection of Data - Customer Focus - Getting good quality from suppliers - Involvement of people - Top leadership

- Continual Improvement - Leadership - Process Approach - Customer Focus - Involvement of people

External Benchmarking is analysis of which of the following? - Only the very best performing firm - Excellent performers outside the industry - Industry competitors - Companies that need improvement

- Excellent performers outside the industry - Industry competitors

Successful implementation of Six Sigma is based on using what

- Technical methodologies - Sound personnel practices

Which is the best form of ISO certification? Multiple choice question. - First party - Second party - Third party - There is no best form

- Third party

Which of the following are key aspects of the Shingo system? Check all that apply - Setting of stretch objectives for improvement - Use of source inspection and poke-yoke system to achieve zero defects - Drastic cuts in equipment setup times - Continuous reinforcement and rewards

- Use of source inspection and poke-yoke system to achieve zero defects - Drastic cuts in equipment setup times

Shingo's argument

-SQC methods do not prevent defects -Defects arise when people make errors -Defects can be prevented by providing workers with feedback on errors

2 fundamental operational goals of TQM

1. Careful design of the product or service 2. Ensuring that the organization's systems can consistently produce the design

DMAIC (Define, Measure, Analyze, Improve, Control)

1. Define - identify customers and their priorities ex. voice of customer 2. Measure - determine how to measure the process and how its performing ex. finding problems and defects 3. Analyze - the most likely cause of defects ex. which defect the worst 4. Improve - means to remove the cause of defects ex. run experiments/tests 5. Control - determine how to maintain the improvements ex. poka yolks, metrics, measure

3 Basic Assumptions that Justify Costs of Quality

1. Failures Occur 2. Prevention is cheaper 3. Performance can be measured

Dimensions of Design Quality

1. Performance - primary product or service characteristics 2. Features - added touches, bells & whistles 3. Reliability/Durability - consistency over time 4. Serviceability - ease of repair 5. Aesthetics - sound, feel, look 6. Perceived Quality - past performance/ reputation

PDCA cycle

1. Plan - recognize an opportunity and plan a change 2. Do - test the change 3. Check - review the test, analyze results, identify what you've learned 4. Act - take action on what you've learned didn't work -> do again worked -> incorporate on larger scale

2 Aspects of TQM

1. Quality Specifications - design quality - conformance quality 2. Quality Costs - Appraisal Costs - Prevention Costs - External Costs - Internal Costs

The cost of quality has been estimated at what percentage of every sales dollar? Multiple choice question. - 5-10% - 10-15% - 15-20% - 20-25% - Over 25%

15-20%

It is generally believed that the correct cost for a well-run quality management program should be under what amount?

2.5%

Six Sigma

A philosophy and set of methods companies use to eliminate defects in their products and processes

DPMO: Defect

Any item or event that does not meet the customers requirements

ISO standards ask a company first to document and implement its systems for quality management. It then asks the company to verify, by means ______________________ conducted by an independent accredited third party, the compliance of those systems with the requirements of the standards.

Audit

When comparing your company's performance to another company, you are performing what type of analysis? Multiple choice question. - Six Sigma - TQM - Benchmarking - DMAIC

Benchmarking

Lean Six Sigma

Combines the implementation and quality control tools of Six Sigma and the inventory management concept of lean manufacturing - high volume, low waste, JIT inventory

Quality at the source is often discussed in the context of ______________ quality. Multiple choice question. - low - conformance - extremely high - meeting

Conformance

Which quality term refers to the degree to which the product or service design specifications are met? Multiple choice question. - Dimension of quality - Conformance - Design - Quality at the source

Conformance

internal failure costs

Costs for defects incurred within the system: scrap, rework, repair

DMAIC Cycle

Define, Measure, Analyze, Improve, Control

What is the purpose of single-minute exchange of die (SMED) procedures in the Shingo System? - Drastic cuts in equipment setup times - Continuous reinforcement and rewards - Use of source inspection and the SMED to achieve zero defects

Drastic cuts in equipment setup times

Where in a process is there an opportunity for defects? Multiple choice question. - Critical steps or activities - Every step or activity - First step or activity - Final step or activity

Every step or activity

Cost of Quality (COQ)

Expenditures related to achieving product or service quality, such as the costs of prevention, appraisal, internal failure, and external failure.

What is required to prevent errors becoming defects? - Single-minute exchange of die (SMED) procedures - Feedback - Swift punishment

Feedback

Which is the ISO certification regarding environmental management? Multiple choice question. - ISO 26000 - ISO 31000 - ISO 9000 - ISO 14000

ISO 1400

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

ISO 9000

ISO

International Organization for Standardization standards for quality management and assurance

Expenditures related to achieving product or service quality include all of the following except: Multiple choice question. - Prevention costs - Manufacturing costs - Failure costs - Appraisal costs

Manufacturing Costs

Which of the following is not a quality management standard in ISO 9000? Multiple choice question. - Product design - Customer focus - Process approach - Continual improvement

Product Design

Six Sigma Tool: Control Charts

Similar to run charts only with upper and lower limits

Quality at the source

The philosophy of making workers responsible for the quality of their output

T/F An error is inevitable in production, defects can be prevented.

True

T/F: Lean Six Sigma combines the tools of Six Sigma with the concepts of lean manufacturing?

True

Six Sigma Tool: Flow Chart

Used to show the process steps

What do Six Sigma programs seek to reduce in processes? - variation - standardization - redundancy - excess

Variation

Third party ISO certification

a "qualified" national or international standards or certifying agency serves as auditor

Second party ISO certification

a customer audits its supplier

First party ISO certification

a firm audits itself against ISO 9000 standards

lean

a focus on reducing cost by lowering raw material, work-in-process, and finished goods inventory to an absolute minimum

Project champion

a person who promotes and supports a project usually drawn from executives and management

Six Sigma Tools: Checklist

basic form, standardized data collection

The idea behind the ISO standards is that defects can be prevented through the planning and application of ____________________ ___________________ at every stage of business

best practices

Six Sigma Tool: Pareto Chart

breaks down a problem into the relative contributions of its components

ISO 14000

concerned with environmental management

ISO 26000

concerned with social responsibilities

external failure costs

costs for defects that pass through the system: customer warranty replacements, loss of customers or goodwill, handling complaints, and product repair

appraisal costs

costs of the inspection and testing to ensure that the product or process is acceptable

Dimensions of Quality

criteria by which quality is measured

DPMO

defects per million opportunities Info needed to calculate: Defect, Opportunity, Unit = # of defects x 1M (# of opportunities for error * # of units) - Needs to be 3.4 or below for Six Sigma standards - refers to the variation when +- 3SD's - seeks to reduce variation that leads to defects

conformance quality

degree to which the product or service design specifications are met

Conformance Quality

degree to which the product or service design specifications are met - reliability of the product ex. helmets

Six Sigma Tool: Run Chart

depict trends in data over time, and thereby help in understanding the magnitude of a problem at the define stage

Self-Check

done by the individual worker and is appropriate by itself on all but items that require sensory judgment (such as existence or severity of scratches, or correct matching of shades of paint) - require successive checks

Six Sigma Tools: FMEA (failure mode and effect analysis)

failures prioritized according to how serious their consequences are, frequency, and detectability

ISO documents provide detailed requirements for meeting the standards and describing the tools used for improving quality in the firm. These documents are: Multiple choice question. - specific to a particular industry - generic, but do not apply to services - generic and applicable to any organization - generic, but do not apply to manufacturing

generic and applicable to any organization

Design Quality

inherent value of the product in the market place - performance vs. customer expectations - quality in the eyes of the beholder

Successive Check

inspection is performed by the next person in the process or by an objective evaluator

According to the Shingo System, the way to prevent defects from coming out at the end of a process is to what? - introduce controls within the process - use statistical quality control - have large numbers of inspections

introduce controls within the process

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

Where a product is involved, who is responsible for ensuring that quality specifications are met? - Top management - The operations manager - The suppliers of the parts used - Manufacturing management

manufacturing management

The Malcolm Baldrige National Quality Award is given annually in all of these categories except - service - health care - small business - movie - education

movie

Source Inspection

performed by the individual worker, except instead of checking for defects, the worker checks for the errors that will cause defects.

ISO 31000

primarily concerned with risk management

Six Sigma Tools: Failure mode and effect analysis

projects is a structured approach to identify, estimate, prioritize, and evaluate risk of possible failures at each stage of a process

ISO 9000

regards the quality management requirements in business-to-business dealings

Six Sigma Tools: Cause-and-effect diagrams

show hypothesized relationships between potential causes and the problem under study

Six Sigma Tools: Histogram

shows relationship between causes and problems - groups #'s into ranges - height of each bar shows how many fall into each range

Prevention Costs

sum of all the costs to prevent defects, such as the costs 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 equipment or make modifications.

DPMO: Unit

the item being produced or serviced - #of units= size of batch used to make calculation

Six Sigma Tools: Opportunity Flow Diagrams

used to separate value-added from non-value-added steps in a process