BBA 330 Chapter 2 vocabulary
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The ability of a product (a good or service) to consistently meet or exceed customer expectations.
Competence that enables one to do something well.
Reliable or steady pattern of performance
State of anticipation about a future outcome
Internal failure cost
The cost of poor quality if the error is caught within the production facility.
External failure cost
The cost of poor quality if the error is caught after the product has been sold to the customer
The cost of sampling the inspection
All costs and efforts associated with preventing quality problems from occurring
American Customer Satisfaction Index (ACSI)
An ongoing index for tracking customer satisfaction for a wide range or products and services in the United States
The quality of a good or a service based entirely on its determinants
The quality of a product a service as a perceived by the customer.
The selection of a few randomly selected products from the production line for quality checks.
The process of comparing a sampled product with established guidelines
Statistical process control (SPC)
a statistical technique for determining whether the quality of a production process is in control
one of the highest honors for quality achievement given to a company by the emperor of Japan
Malcolm Baldrige National Quality Award
Highest honor for quality and performance excellence for a United States-based manufacturing, service, small business, education, or healthcare organization.
ISO 9000 and ISO 14000
- International standards for quality and environmental management
- Continuous improvement philosophy
- An approach involving continuously searching for ideas for improving the quality of goods and services
Cause and effect diagram
visually displays all possible causes of a quality problem, with the goal of finding the reasons for the imperfections.
A small group of employees who are responsible for similar or related work functions. This volunteer group meets regularly to identify, analyze, and solve quality and production problems related to its work.
Activities such as identifying the customer, determining customer needs, translating customer needs into production language, and optimizing product features to meet customer needs.
Developing and optimizing a process that is able to produce a specified high-quality product
Proving that the process can operate under normal conditions without the need for inspection.
Quality loss function
A mathematical formula for determining the cost of poor quality
An experimental design and statistical analysis approach for identifying the optimum product design configuration
Total quality management
A quality management framework that ddresses all areas and all employees of an organization emphasizes customer satisfaction and uses continuous improvement tools and techniques.
Comprehensive and flexible system for achieving, sustaining and maximizing business success; uniquely driven by a close understanding of customer needs; disciplined use of facts, data and statistical analysis; and diligent attention to managing, improving and reinventing business processes
- Define, measure, analyze improve and control. Five-Step plan of a six sigma approach
- Acceptable quality range
- The range of values that represents good quality
Upper and lower tolerance limits
Two values that represent the highest and the lowest value that a product, service or process can have and still be considered to have acceptable quality.
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