Chap. 2 Quality Management

Quality
the ability of a product (good or service) to consistently meet or exceed customer expectations
Different types of costs associated with quality improvement can be classified in four broad categories:
1. Internal failure cost 2. External failure cost 3. Assurance costs 4. Prevention costs
Why it is necessary for organizations to improve the quality of goods and services?
~High-quality products and srevices necessary for the survival, growth and competitiveness.
~Quality improvements reduce overall production costs.
~In long term, higher customer satisfaction, positive word of mouth, good reputation, increased market share and profitability improve
What eight dimensions determine quality in tangible goods?
1. performance 2.special features 3. reliability 4. conformance 5. duarability 6. serviceability 7. aesthetics 8. brand equity
What ten dimensions determine quality in service?
1.reliability 2. responsiveness 3. competence 4. access 5. courtesy 6. communication 7. credibility 8. security 9. understanding/knowing the customer 10. tangibles
Continuous improvement philosophy
an approach involving continuously searching for ideas for improving the quality of goods and services
Statistical process control (SPC)
a statistical technique for determining whether the quality of a production process is in control
Cause and effect diagram (fishbone diagram)
allows user to visualize all possible causes of a result and hopefully find the root cause of process imperfections
Quality loss function
a mathematical function that identifies all costs connected with poor quality and shows how these costs increase as product quality moves from what the customer wants.
Total quality management (TQM)
a quality management system that addresses all areas and employees of an organization, emphasizes customer satisfaction, and uses continuous improvement tools and techniques
Robust quality
an experimental design and statistica analysis approach for identifying the optimum product design configuration
Basis of ISO 9000 standards
Customer focus, leadership, involvement of people, process approach, system approach of management, continual improvement, factual approach to decision making, mutually beneficial supplier relationships
Six Sigma
comprehensive and flexible system for achieving, sustaining and maximizing business success
DMAIC
Define, Measure, Analyze, Improve, and Control. Is the five-step plan of a Six Sigma approach
The technical goal of Six Sigma is:
to ensure that the variations that are presented within a product process become so small that the distance of six standard deviations to either side of the mean is still within the acceptable quality range
Acceptable quality range is:
represented by upper and lower tolerance levels (UTL and LTL)
Process Sigma =
(UTL-Mean)/standard deviation OR (Mean-LTL)/ standard deviation
% of defective products =
1-NORMSDIST (Process Sigma)
Who emphasized the philosophy of continuous improvement and is known as the father of modern quality management?
W. Edwards Deming
Who defined quality as containing four absolutes?
Philip Crosby
What were Philip Crosby’s four absolutes?
1. Quality is defined as conformance to requirements, not as “goodness” or “elegance” 2. the system for causing quality is prevention, not appraisal 3. the performance standard must be zero defects, not “close enough” 4. measurement of quality is the price of nonconformance, not indicies
Who developed the concept of total quality control (TQC) which later evolved into total quality management (TQM)?
Armand Feigenbaum
Who created a cause and effect diagram (aka fishbone diagram)and also popularized the concept of quality circles?
Kaora Ishikawa
Who made many contributions to the field of quality management and wrote a “Quality Control Handbook” that is used as a reference for quality engineers.
Joseph Juran
Who is credited with creating the quality loss function?
Genichi Taguchi
Whom did the Japanese managers learn the concepts of quality management from?
Deming and Juran
Quality loss function
A formula for determining the cost of poor quality.
Who is known as the grandfather of quality management and preached the importance of adapting management processes to create profitable situations for both businesses and consumers?
Walter Shewhart
ISO 4000
focus is on minimizing the harmful effects on the environment caused by an organization’s activities and on achieving continual improvement in environmental performance
What two standards provide guidelines that are applicable to a wide range of organizations?
ISO 4000 and ISO 9000
Name an annual reward given to high-performing organizations within the U.S.
Malcolm Baldrige National Quality Award (MBNQA)