Emphasis is on finding and correcting defects before they reach the market.
What is strategic approach?
Focuses on preventing mistakes from occurring.
Greater emphasis on customer satisfaction.
Involves all manager and workers in a continuing effect to improve quality.
What are the four determinants of quality?
Quality of design
Quality of comformance
Ease-of-Use and user instructions
What is Quality of design?
Intention of designers to include or exclude features in a product or service.
What is Quality of comformance?
The degree to which goods or services conform to the intent of the designers.
What is Ease-of-Use and user instructions?
Increase the likelihood that a product will be used for its intended purpose and in such a way that it will continue to function properly and safely.
What is After-the-sale service?
Taking care of issues and problems that arise after the sale.
What is International Organization for Standardization (ISO)?
promotes worldwide standards for the improvement of quality, productivity, and operating efficiency through a series of standards and guidelines.
What is ISO 9000?
Set of international standards on quality management and quality assurance, critical to international business.
What is ISO 14000?
A set of international standards for assessing a company's environmental performance.
What is plan-do-study-act (PDSA) cycle?
A framework for problem solving and improvement activities.
What are the steps in Plan?
Begin by studying and documenting the current process.
Collect data ont he process or problem.
Analyze the data and develop a planf or improvement
Specify measures for evaluating the plan.
What are the steps in Do?
Implement the plan, document any changes made, collect data for analysis.
What are the steps in Study?
Evaluate the data collection during the do phase.
Check results against goals formulated during the plan phase.
What are the steps in Act?
If the results are successful, standardize the new method and communicate it to the relevant personnel.
Implement training for the new method.
If unsuccessful, revise the plan and repeat the process.
The 5W2H Approach
*SEE PG. 446*
What are the two types of variation?
Random variation (common cause)
Assignable variation (special cause)
What are random (common cause) variation?
Natural variation in the output of a process, created by countless minor factors.
What are assignable (special cause) variation?
A variation whose cause can be identified.
What are control charts?
A time ordered plot of representative sample statistics obtained from an ongoing process (e.g. sample means), used to distinguish between random and nonrandom variability.
Upper and lower control limits define the range of acceptable variation.
Control Chart (Example)
What are variables?
Generate data that are measured.
What are attributes?
Generate data that are counted.
What are the two control charts for variables?
Mean control charts
Range control charts
What are mean control charts?
Used to monitor the central tendency of a process.
What are range control charts?
Used to monitor the process dispersion.
What are the two control charts for attributes?
What are p-charts?
Control chart used to monitor the proportion of defectives in a process.
What are c-charts?
Control chart used to monitor the number of defects per unit.
What are supply chains?
The sequence of organization - their facilities, functions, and activities - that are involved in producing and delivering a product or service.
Sometimes referred to as value chains.
What are the main steps of the purchasing cycle?
1. Purchasing receives the requisition
2. Purchasing selects a supplier
3. Purchasing places the order with a vendor
4. Monitoring orders
5. Receiving orders
When choosing suppliers, what is vendor analysis?
Evaluating the sources of supply in terms of price, quality, reputation, and service.
What are the three inventory issues in supply chain management?
The bullwhip effect
What are the two types of inventory location?
What is inventory velocity?
The speed at which goods move through a supply chain.
What is the bullwhip effect?
Inventory oscillations that become increasingly larger looking backward through the supply chain.
What are radio frequency identification (RFID)?
A technology that uses radio waves to identify objects, such as goods in supply chains.
How are RFID similar to barcodes systems but better?
Are able to convey much more information.
Do not require line-of-sight for reading.
Do not need to be read one at a time.
What are the two types of RFID?
Active - on-board power supply, more expensive
Passive - less expensive
What is E-business?
the use of electronic techonlogy to facilitate business transactions.
Applications include - internet buying and selling, e-mail, order and shipment tracking, electronic data interchange, product and service promotion, and provide information about products and services.
What are the three costs of quality?
What are appraisal costs?
Costs of activities designed to ensure quality or uncover defects.
What are prevention costs?
All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring.
What are failure costs?
costs insurred by defective parts/products or faulty services.
Internal failure costs - costs incurred to fix problems that are detected before the product/service is delivered to the customer.
External failure costs - all costs incurred to fix problem that are detected after the product/service is delivered to the customer.