Modern Buisness Environment Flashcards
Components of cost of quality
Price of conformance ( cost of good quality)
Price of non conformance ( cost of poor quality)
1) prevention cost
Incurred to prevent the poor quality of product or service
Before the actual operation
2: Appraisal cost
Ensure high quality level in all stages, confirmace to the quality std and performance requirements
3: internal failure cost
Detect found before the customer received the product
4: external failure cost
Defects discovered by the customer
Optimal COQ
Increased expenditure in prevention and Appraisal is likely to result in a substantial reduction in a failure costs
There may be a optimum operating level in which the combined costs are at a minimum
Steps of application of paf model
(Prevention, appraisal and failure)
1:Gather some information about the number of failure in the system
2: apply some assumption to that data in order to quantify the data
3: chart the data based on 4 elements
P A IF EF
4: allocates resources to combat the weak spots
5: do this study on a regular basis and evaluate the performance
What is Tqm
Tqm is a comprehensive management system which
TOM is a management philosophy that seeks to integrate all organizational function to focus on meeting customer needs and organizational objectives
Tqm aims to improve quality through continuous improvement of internal pratice
TQM’s objectives are to eradicate waste and increase efficiency
TQM is a comprehensive management system which:
TRINTC
1: Focuses on the way tasks are accomplished
2:Recognizes role of everyone in the organization
3:Views organization as an internal system with a common aim.
4:Focuses on meeting owner’s/ customer’s needs, by providing quality services at a reasonable cost
5:Emphasizes teamwork
6:Focuses on continuous improvement
Six c’s of TQM or successful implementation
1: Commitment
clear commitment, from the top must be provided
2:Culture
culture and attitudes.
3:Continuous Improvement
process’ not a ‘programme
4:Co-operation
Total Employee Involvement
5:Customer Focus
customer are the major driving thrust
6: control
Current best practice
Criticism of TQM
the focus on documentation of process and ill-measurable outcomes
emphasis on quality assurance rather than improvement
Total quantity service
TQM may not be appropriate for service based industries
because the standards-based approach of industry best practice’ ignores the culture of organisations.
He recommends a move towards TOS (total quality service), which is more customer oriented and creates an environment to promote enthusiasm and commitment
Business excellence models
developing and strengthening the management systems and processes alan organization to improve performance and, create value for stakeholders. The essence of this approach is to develop quality management principles that increase the overall efficiency of the operation, minimize waste in the production of goods and services, and help to increase employed loyalty
Efqm model
competitiveness of organizations
Competitiveness is achieved by (i) giving primary importance to the customers’ needs and (ii) taking a long term stakeholder centric view
3 modules for assessing the efqm
Direction
Execution
Result
Diagnostic tool of the efqm
RADAR
Results
Approach
Deploy
Assess and refine
EFQM and RADAR is a self assessment that has the following uses
BDS BS
1: build a holistic view of its current operations
2:drive transformation through well thought of course of actions (programs) that can change its current operations to achieve excellence in operations
3:sense and prepare a response for market disruptions
4:build the organization’s brand image and reputation
5:self-assessment tool for business excellence
Baldrige criteria for performance excellence
self-assess their business, innovate and improve in order to achieve performance excellence
built round thecategories i.e.,
LCM WROS
Leadership,
Strategy,
Customers,
Measurement, analysis, and knowledge management,
Workforce,
Operations
Results.
What is supply chain
What is push and pull model
All activities associated with flow and tranfer of good form raw mat to end use
Push mode
anticipated demands
Pull model
Actual demand
