Chapter 6 Olson

six sigma (2 meanings)

- a comprehensive system for achieving and sustaining business success 1. statistical: - definition of a process that is 99.9997% capable, 3.4 defects per million opportunities (DPMO) 2. program: - designed to reduce defects, lower costs, save time, and improve customer satisfaction

7 concepts of TQM

1. Continuous improvement 2. Six Sigma 3. Employee empowerment 4. Benchmarking 5. Just-in-time (JIT) 6. Taguchi concepts 7. Knowledge of TQM tools

8 dimensions of quality

1. Performance 2. Features 3. Reliability 4. Conformance 5. Durability 6. Serviceability 7. Aesthetics 8. Perceived Quality

Shewart's PDCA Model

1. Plan 2. Do 3. Check 4. Act

Employee empowerment

85% of quality problems are due to materials & process

Takumi

A Japanese character that symbolizes a broader dimension than quality, a deeper process than education, and a more perfect method than persistence

Cost of Quality (COQ)

All costs incurred over the life of the product by investment in preventing nonconformance to requirements, appraisal of the product or service for conformance to requirements, and failure to meet requirements.

User-based

Better performance, more features

DMAIC

Define, Measure, Analyze, Improve, Control

conformance

Delivering products that meet requirements and fitness for use under established standards, specifications, or regulatory requirements.

Prevention quality

Expenses incurred to prevent defects from occurring in the first place

Benchmarking requires the comparison of your firm to other organizations; it is not appropriate to benchmark by comparing one of your divisions to another of your divisions.

False

PDCA, developed by Shewhart, stands for which of the following?

Plan-Do-Check-Act

Improved quality for reduced costs

Reduced costs via: 1. Increased productivity 2. lower rework & scrap costs 3. fewer warranty costs

durablity

Relates to the lifespan & Robustness of the product

Which of the determinants of service quality involves performing the service right the first time?

Reliability

Improved Quality for sales gains

Sales gains via: 1. improved response 2. flexible pricing 3. improved reputation Reduced Costs via 1. increased productivity 2. lower rework and scrap costs 3. lower warranty costs

ISO 9000

Set of international standards on quality management and quality assurance, critical to international business

A manager tells her production employees, "It's no longer good enough that your work falls anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of:

Taguchi concepts.

Serviceability

The ease of maintenance, repair, and support through a product's life cycle.

performance

The manner in which something or somebody functions, operates, or behaves

Which of the following statements regarding "Six Sigma" is TRUE?

The term has two distinct meanings-one is statistical; the other is a comprehensive quality system.

Quality

The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs

Kaizen is similar to TQM in that both are focused on continuous improvement.

True

Continuous improvement

a commitment to constantly make things better one step at a time

Total Quality Management (TQM)

a comprehensive approach - led by top management and supported throughout the organization - dedicated to continuous quality improvement, training, and customer satisfaction

Benchmarking

a process by which a company compares its performance with that of high-performing organizations

TQM and zero defects

also used to describe continuous improvement

A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. To analyze trends or patterns in these returns, she has organized these complaints into a small number of sources or factors. This is most closely related to the ________ tool of TQM.

cause-and-effect diagram

features

characteristics & functionalities of the product beyond basic performance

A recent consumer survey conducted for a car dealership indicates that, when buying a car, customers are primarily concerned with the salesperson's ability to explain the car's features, the salesperson's friendliness, and the dealer's honesty. The dealership should be ESPECIALLY concerned with which determinants of service quality?

communication, courtesy, and credibility

manufacturing based

conformance to standards, making it right the first time

Kaizen

continuous improvement

Failure costs (External):

costs associated with product non-conformities or service failures found after the product is shipped or the service is provided to the customer

Failure Costs (Internal):

costs associated with product non-conformities or service failures found before the product is shipped or the service is provided to the customer

appraisial costs

expenses associated with assessing the quality of products or services to identify defects

Poka-yoke is the Japanese term for:

foolproof

If a sample of parts is measured and the mean of the measurements is outside the control limits, the process is:

out of control and the process should be investigated for assignable variation.

perceived quality

quality assessment based on customer opinion

5 dimensions of service quality

reliability, tangibles, responsiveness, assurance, empathy

product based

specific and measurable attributes of the product

Reliability

the consistency & stability of a product's performance over time and under various conditions

aesthetic

the visual appeal and design of the product