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Flashcards in Ch 7 Deck (34)
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1
Q

Common supply requirements

A

Quality, quantity, delivery, price, and service

2
Q

Quality output, there are three choices

A
  1. Better than out competitors
  2. Same quality as our competitors
  3. Lower quality than our competitors
3
Q

Value- added concept

A

Each department or function must add value and strive to minimize cost of doing so by process control and continuous improvement in congruence with org goals and strategies

4
Q

Quality

A

The ability of the supplier to provide goods and services in conformance with specifications.
-whether the item performs in the actual use to the expectations of the original requisitioned, regardless of conformance with specifications

5
Q

Function

A

The actions that an item of service is designed to perform

Eg: “something that fastens”

6
Q

Suitability

A

The ability of a material, good, or service to meet the intended functional use
- ignores the commercial considerations, refers to FITNESS FOR USE.

7
Q

Reliability

A

Mathematical probability that a product will function for a stipulated period of time.
-complexity = enemy because of the multiplicative effect of probabilities of failure of components

8
Q

Quality dimensions (8 of them)

A
  1. Performance - primary function
  2. Features - bells and whistles
  3. Reliability - probability of failure with in a specified time period
  4. Durability - life expectancy
  5. Conformance - meeting of specifications
  6. Serviceability - maintainable and ease of fixing
  7. Aesthetics - the look, smell, feel and sound
  8. Perceived quality - image in the eyes of consumer

.. Procurement POV , 9th dimension is “procurability” - short and long term availability on the market at reasonable prices and subject to cont. improvement

9
Q

“Best Buy”

A

Certain minimum measure of suitability but considers ultimate customer needs, cost, and procurability, transportation, and disposal as well.
-combination of characteristics

10
Q

5 major cost categories applicable to quality of goods and services

A

Prevention, appraisal, internal failure, external failure, morale

11
Q

Prevention costs

A

Relate to all activities that eliminate the occurrence of future defects of no conformance to requirements
-include diverse costs as various quality assurance programs, employee training, awareness programs, preventative maintenance , etc

12
Q

Appraisal costs

A

Represents the costs of inspection, testing, measuring, and other activities, designed to ensure conformance of the product or service to quality standards and performance requirements
-occur at both the sellers, and buyers org, as each uses a variety of inspection systems to ensure quality conformance

13
Q

Internal failure costs

A

Costs incurred within the operating system as a result of poor quality

  • returns to suppliers, scrap, rework, reinspection, and retesting, lost labor, order delays
  • all costs associated with expediting replacement materials or parts or the carrying of extra safety stock
14
Q

External failure costs

A

Incurred when poor quality goods or services are passed on to the customer
-cost of returns, replacement services, warranty costs, MGT time handling customer complaints.

15
Q

Morale costs

A

Producing (or having to use) defective products or services
-remove pride in ones work or the incentive to keep searching for cont improvement
“Don’t care” attitude

16
Q

Lean enterprise

A

Philosophy focused on maximizing customer value while minimizing waste

  • overproduction, waiting, transportation, nonvalue adding processes, inventory, motion and cost of quality
  • also called JUST-IN-TIME (JIT) manufacturing
17
Q

Goal of lean enterprise

A

To optimize the flow of products and services through value streams that flow internally across technologies, assets, and dept to customers and externally with supply chain partners

18
Q

Value stream

A

A series of steps executed in the right way and at the right time to create value for the cistern

  • each step is valuable to the customer, capable, available, adequate, and flexible
  • require advance modeling tools to consider all costs, provide strategies
19
Q

Total quality management (TQM)

A

Philosophy and system of management focused on long-term success through customer satisfaction

  • all members participate in improving processes, products, services, and culture
  • top mgt develops vision and provide commitment and support
  • customer can be internal/external
20
Q

Demings 14 points

A

Concept in implementing TQM, set of mgt practices to help companies to increase their quality and productivity

21
Q

Continuous improvement

A

(Kaizen)
Relentless pursuit of product and process improvement through a series of small, progressive steps.
-integral part of both (JIT) and (TQM)
-follows Pareto analysis, histogram, scatter, check sheets, fish one, control charts
-plan-do-check-act cycle (Demings wheel) is good for continuous improvement

22
Q

Plan-do-check-act cycle

Deming Wheel

A

Plan: collect data and set performance target
Do: implement countermeasures
Check: measure and evaluate the results of countermeasures
Act: standardize and apply improvement to other parts of org

23
Q

Quality function deployment (QFD)

A

Important aspect of TQM

  • quality system aimed at satisfying customers throughout development and business process -end to end
  • method for listening and effectively responding to the voice of the customer to develop higher-quality new products at less cost and in less time
  • used both for tangible and no tangible products and services across business sectors
24
Q

QFD (quality function deployment), comprehensive quality system that

A
  • seek both spoken and unspoken customer needs
  • maximizes “positive” quality that creates value
  • translate these actions and designs by using transparent analytic and prioritization
  • empowers org to exceed normal expectations
  • provide a level of unanticipated excitement that generates value

Based on teamwork and customer involvement

25
Q

Six sigma

A

Approach to quality focuses on preventing defects by using data to reduce variation and waste

  • no more than 3.4 defects per million opportunities
  • close to zero defects and correspond to Cpk value of 2.0
  • have measurable goals like cost reduction or profit increase through improvements in cycle time, delivery, safety
26
Q

Statistical process control (SPC)

A

Sampling processes and using data and statistical analysis to establish performance criteria and monitor process
- technique that noodles testing a random sample of output from a process in order to detect if no random, assignable changes in the process are occurring

27
Q

Process control

A

Key aspect of TQM

-method of monitoring a process to prevent defects

28
Q

Sampling

A

Small number of items selected from a larger group or population of items

  • goal to secure a sample that is representative of the total population being tested
  • result: used to accept or reject the entire batch or lot
  • random sampling is common
29
Q

Random sampling

A

One in which every element in the population has an equal chance of being selected
- method will depend on the characteristic of the product to be inspected

30
Q

Sequential sampling

A

Used to reduce the number of items inspected in accept-reject decisions without loss of accuracy

  • based on cumulative effect of information that every additional item in the sample adds as it is inspected
  • 3 decisions: accept, reject, or sample another item
31
Q

100% inspection or screening

A

Most desirable inspection method … NOT TRUE
-seldom accomplishes a completely satisfactory job of separating the acceptable from the nonacceptable or measuring variables properly

32
Q

Testing

A

Testing products necessary before a commitment is made to purchase

  • original selection of a given item may be based on either a specific test or a preliminary trial
  • accept only samples that have some reasonable chance of being uses
  • buyers likely to accept samples rather to reject them
33
Q

Quality assurance and quality control

A

To establish and maintain effective controls for monitoring processes and quip net and supporting efforts to help supplies and to design, implement, and monitor continuous quality improvement programs

34
Q

ISO 9000 quality standards

A

Represents an international consensus on good quality management practices