Lesson 6 - Quality Management Flashcards
(52 cards)
Quality
refers to the ability of a product/service to consistently meet/exceed customer requirements/expectations
Dimensions: Product Quality
Performance, Aesthetics, Special features,
Conformance (to design specifications), Reliability, Durability, Perceived Quality
(reputation), Serviceability (repairs), Consistency
Dimensions: Service Quality
Convenience (availability), Reliability, Responsiveness
(deal with unusual situations &customer problems), Time, Assurance (trustful, personnel), Courtesy (how customers are treated), Tangibles (physical appearance of
facilities), Consistency, Expectations. Service often assessed with tool called
SERVQUAL, which focuses on the italic written dimensions
Determinants of Quality
Design, Product Conformance, Ease of use, Service after delivery Quality of Design: intention of designers to inc/exclude features in product/service
Quality of Conformance: Degree to which goods conform the intent of designers
side fact
The evolution of quality took a shift from quality assurance (finding & correcting defective
products before they reached the market) to strategic approach (preventing mistakes from
occurring: already design quality into products)
Benefits of Good Quality
enhanced reputation, ability to command premium prices, increased
market share, greater customer loyalty, lower liability costs, fewer problems, fewer
complaints, higher profits/productivity
Consequences of Poor Quality
Loss of business or market share, potential liability due to
injuries or damages, loss of productivity
Cost of fixing a product - Appraisal Costs
related to measuring, evaluating & auditing/ inspection
Cost of fixing a product - Prevention Costs
related to reducing potential for quality problems (training,planning)
Cost of fixing a product - Internal Failure Costs
elated to defects before delivered to customer (scrap,.)
Cost of fixing a product - External Failure Costs
related to delivering substandard goods (returns, liabilities)
Awards to generate improvement in quality - Baldridge
Annual award by US government to recognize quality achievements: evaluates organization-wide excellence: leadership, strategy, customers,
knowledge management, workforce, operations and results
Awards to generate improvement in quality - European Quality
Europe’s prestigious award for organizational excellence
Awards to generate improvement in quality
Deming Price in honor of W. Edwards Deming recognizing quality efforts
Awards to generate improvement in quality - ISO
Certifications from International Organization for Standardization:
- ISO 9000 (quality management): what firm does to ensure products are
conform to customer requirements/ set of international standards, customer and process focused, continuous improvement required
- ISO 14000: what firm does to minimize harmful effect on environment
- ISO 24700: refers to standards to quality of equipment that contains reused components
Total Quality Management
philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction
Fail-Safing
incorporating design elements that prevent incorrect procedures
Find out what customers want, design a product & process accordingly, try to prevent mistakes, keep track of results and never stop improving (Japanese term: Kaizen)
The Plan-Do-Study-Act (PDSA) cycle
-Plan: Analyze process and develop plan for improvement
- Do: Implement plan (if possible on small-scale)
- Study: Evaluate data collection during implementation phas
- Act: If successful: standardize new method, otherwise revise plan
Six Sigma Methodology
having no more than 3.4 defects per million opportunities. But
generally just a program designed to reduce occurrence of defects, achieve lower costs and
increase customer satisfaction, reduce variation
Define-Measure-Analyze-Improve-Control (DMAIC)
- Define context and objectives for improvement
- Measure baseline performance & capability of process
- Analyze: Use data to understand cause-and-effect relationships of the process
- Improve: Develop modification that lead to validated improvement
- Control: establish plans to ensure improvements are sustained
Problem Solving Tools:
Flowcharts
visual representation of process: identify possible points where problems
could occur
Problem Solving Tools:
Check sheets
tool for recording & organizing data to identify a problem
Problem Solving Tools:
Histograms
getting a sense of the distribution of observed values
Problem Solving Tools:
Pareto Analysis
focus attention on most important problem areas. 80/20 rule: 80% of
problems come from 20% of items: classify cases according to importance