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Explain how competition drives an economic
- The vitality of the American economy is based on competition between producers. Those business people who supply the best goods and services at the best prices are generally the most successful. Competition, like the forces involved in Darwinian evolution, is one of the factors that causes an economy to constantly evolve
- and change.
Describe two ways in which monopolies are bad
for a society.
- A monopoly can maximize profits while treating customers as shabbily as it wants.
- Monopolies are one reason why black markets thrive.
- Monopolies can also lead to technological starvation or lack of progress.
Explain the following statement: “The welfare of
the worker and the company depend on each other.”
Managers and workers who successfully improve are rewarded by being steadily employed and receiving consistent pay increases. Managers and workers who do not improve can be faced with the company going out of business or being bought out, which usually results in job cuts and a reduction in pay.
Discuss how information technology has affected the global marketplace.
Because of information technology today, hospitals compete worldwide for wealthy Arab or German heart patients because they can advertise their message, they can access and communicate with those customers, and speedy transportation makes getting to their hospital easy for people.
Explain why customers have more “power” today and how that power influences companies.
- ●Consumers have more choices (styles, models, colors, special features).
- ●They can get products from anywhere (China, Germany, France, India, and so on).
- ●More companies (worldwide) are competing for their attention and money. More competition, more choices, and more information put more power in the hands of consumers, and that, of course, drives the need for quality
Write a definition of a system.
A collection of processes dependent upon one another to complete a task or product. Systems are how work gets done.
List five subsystems associated with a styrene
- ●Utility systems—plant air, instrument air, electricity, natural gas, steam, and so on
- ●Auxiliary systems—hot oil, flare, cooling water, refrigeration, and so on
- ●Raw materials (feed, catalysts, additives)
- ●Process unit subsystems (reaction, separation, finishing sections)
- ●Quality control
Explain why it is important that all subsystems
The process technicians and unit engineers either cannot make on-specification styrene monomer product (1) economically or (2) sell it and make a profit, unless all of the subsystems operate correctly
List five quality metrics for a process unit.
- External Suppliers
- Internal Suppliers
- Core Process
- External Costumer
- Internal Customer
Define value-added work
Activities that are necessary to turn inputs into outputs that will meet or exceed customer requirements
Ultimately, only __________ pay revenue to a company
List four types of waste
- ●Wasted money on purchased products that aren’t reliable
- ●Wasted creativity in not implementing good ideas
- ●Wasted time and energy on documents or meetings that don’t get to the point
- ●Wasted organizational resources due to poor
List four costs of quality
- ●The reworking of a manufactured item.
- ●The retesting of an assembly.
- ●The rebuilding of a tool.
- ●The correction of a bank statement.
Explain why continuous improvement is needed to reduce or eliminate waste
Costs of quality can drain a company of 20 percent to 30 percent of its revenue. Key areas of waste in a company include material,capital, and time, of which time is the biggest cost.
Describe three tools that can be used to
- Failure costs- which are often grouped under the acronym cost of poor quality (COPQ), are those associated with the correction of nonconforming material, including scrap, rework, repair, warranty actions, and other costs related to the correction of nonconformances.
- Appraisal costs- Are those related to the detection of defects.
- Preventative costs- Are the costs of all activities specifically designed to prevent defects orpoor quality in products
- or services.
Explain what the term hidden factory means.
The third group of people whose efforts create a unit in the company. Workers that are part of the company are paid out of the operational budget to do rework, not production
List four examples of preventive quality costs.
- ●New product review
- ●Quality planning
- ●Supplier capability surveys
- ●Process capability evaluations
List four examples of appraisal quality costs
- ●Incoming testing of purchased material
- ●In-process and final inspections or tests
- ●Product, process, or service audits
- ●Calibration of measuring and test equipment
List four examples of failure quality costs.
Define internal failure and external failure
Internal failure costs are a measure of a company’s operating efficiencies, whereas external failure costs provide measures of both product quality and customer satisfaction.
Why should cost of quality be presented in
charts or graphs?
- A picture is worth a thousand words. They allow
- management to visualize the comparative size of the hidden factory mentioned earlier in this chapter.
Explain the function of quality tools
A quality tool can be a chart, graph, statistics, or a method of organizing or looking at things. Quality tools help individuals and teams to continuously improve their work processes by making improvements based on data and facts.
List three purposes for data collection
- ●Recognizing that improving business processes is everyone’s job
- ●Basing troubleshooting decisions on factual information
- ●Developing and tracking a scorecard of measures to monitor performance and guide improvement
What would you use the brainstorming tool for?
Brainstorming is useful when agroup needs to quickly generate a large number of ideas and consider many alternatives,and can help identify problems, explore causes, and develop solutions.
The check sheet tool reveals ____________.
The run chart tool reveals __________.
The root cause of a problem
The scatter diagram tool reveals _________.
whether a relationship exists between two variables in a process
The flowchart tool reveals _____.
potential trouble spots, redundancies, and unnecessary complexities in almost any process.
Explain what a pie chart graphically represents
- They represent the proportional amounts of relative quantities. It graphically represents
- percentage data.
The cause-and-effect diagram is used for____.
The histogram is used for_____________.
To determine anddisplay the data distribution for a process
The Pareto chart is used for_________.
Identifying the causes of problems
Explain the usefulness of the control chart
Control charts help distinguish between common and special causes of variation in a process. They also reveal when an abnormal change in the process has occurred to a special cause, and they help to identify and correct the change.