Total Quality Management (TQM) and Quality Assurance Systems

Flashcards covering key definitions, gurus, standards, and award models from the Total Quality Management lecture notes.

Quality

Totality of inherent characteristics and performance used to determine whether a product/service satisfies its intended use.

Subjective Quality

Perceived quality based on individual subjectivity, expectations, brand image and customer satisfaction.

Objective Quality

Conformance quality evaluated through engineering dimensions, mechanical performance, defect rates and test data.

Quality of Requirement

The quality that the user requires; quality must primarily be considered from the user's perspective.

Quality of Design

Quality incorporated into product specifications and design drawings to achieve the required quality.

Quality of Manufacture

Quality achieved when design quality is transformed into a physical product during manufacturing.

Quality of Conformance

The degree to which the produced product conforms to the established design and requirements.

Quality of Market

Quality evaluated by users after a product enters the market, reflected in its reputation and market feedback.

Quality Cost

All expenses a company incurs to ensure quality.

Invisible Quality Costs

Hidden costs such as customer defection, lost opportunities and market-share losses caused by poor quality.

Customer Churn Rate

The rate at which customers stop using or purchasing from a company.

Quality Synergy Effect

The effect where higher quality increases brand recognition and allows a company to charge higher prices.

Quality Competitiveness

The ability of a company to compete through the quality of its products and services.

Prevention Costs

Costs incurred to prevent defects from occurring in the production process.

Appraisal Costs

Costs incurred to detect defective products before they reach the customer.

Failure Costs

Costs resulting from defects occurring during or after production.

Internal Failure Costs

Failure costs occurring before a defective product reaches the customer, such as scrap and rework.

External Failure Costs

Failure costs occurring after delivery, such as returns, warranty costs and customer dissatisfaction.

Quality Assurance

Activities and systems designed to ensure that quality requirements are consistently fulfilled.

Three Principles of Quality Assurance

Prevent defects; prevent defective products from reaching customers; act quickly if defective products are delivered.

Taylorism

F.W. Taylor's scientific management approach based on work analysis, standardization, training and productivity.

Scientific Management

Taylor's approach using scientific analysis and standardized methods to improve work efficiency and productivity.

Industrial Engineering

Engineering approach to analyzing and improving work methods, tools, processes and productivity.

Control Chart

A statistical tool developed by Shewhart for determining when a process should remain unchanged or require corrective action.

Statistical Quality Control

Use of statistical methods to monitor and control quality and process variation.

Special Cause of Variation

A specific, identifiable cause that produces variation in a process.

Chance Cause of Variation

A random, inherent source of variation that is naturally present in a process.

Deming's 14 Points

14 management principles emphasizing quality, continuous improvement, leadership and employee involvement.

Deming's 7 Deadly Diseases

Seven management problems that hinder organizational quality and long-term improvement.

Constancy of Purpose

A clear, consistent long-term organizational direction focused on improvement.

Short-Term Gains

Immediate financial results prioritized over quality, innovation and long-term organizational development.

Management Mobility

Frequent turnover of managers that can undermine consistency and long-term improvement.

Numerical Metrics

Measurable numerical indicators that may fail to capture quality, customer satisfaction and employee morale.

Product Liability Costs

Costs associated with legal responsibility for defects and resulting damage caused by products.

Juran Trilogy

Juran's framework consisting of Quality Planning, Quality Control and Quality Improvement.

Quality Planning

Identifying customers and their requirements and designing processes to deliver the required quality.

Quality Control

Reviewing and evaluating products against customer requirements and correcting discovered problems.

Quality Improvement

Implementing mechanisms and projects to achieve continuous quality improvement.

Pareto Analysis

Analysis used to identify and diagnose the major/root causes of quality problems.

Quality Improvement Project

A structured project with clear improvement goals and timelines.

Breakthrough Sequence

Juran's sequence of attitude innovation, Pareto analysis, knowledge validation, culture innovation and work-practice innovation.

Crosby's Quality Philosophy

Quality means conformance to requirements and should be achieved through prevention rather than inspection.

Zero Defects (ZD)

A performance standard in which the goal is to produce products without defects.

Do It Right the First Time (DIRTFT)

Approach emphasizing prevention and doing work correctly from the beginning.

Cost of Nonconformance

The cost associated with failing to meet specified requirements.

Crosby's Quality Vaccine

A quality improvement approach based on determination, education and implementation.

Feigenbaum's Total Quality Control (TQC)

Company-wide quality approach in which every organizational function is responsible for quality.

Total Quality Control (TQC)

System integrating different organizational groups' efforts in quality development, maintenance and improvement.

Quality Relationship Chart

A tool for integrating the efforts and responsibilities of different organizational groups to achieve customer satisfaction.

Inspection-Centric Era

Era when quality control was mainly limited to inspecting finished products.

Sampling Inspection

Inspection of only part of a production lot to decide whether the entire lot should be accepted or rejected.

Average Out-of-Quality Limit (AOQL)

Concept addressing the limitation that an inspected sample may not fully represent the quality of the whole lot.

Quality Assurance Era

Era emphasizing prevention, quality costs, broader quality systems and reliability.

Reliability Engineering

Focus on ensuring that a product performs its specified function for a specified period under specified conditions.

Traditional Quality Cost View

View that prevention and appraisal costs trade off against failure costs and that some defect level may be economically acceptable.

Modern Quality Cost View

View that improving quality can reduce total quality costs because failure costs decrease substantially.

Quality Cost Model

Model describing quality-related costs, including prevention, appraisal and failure costs.

PAF Model

Quality cost model consisting of Prevention, Appraisal and Failure costs.

Conformance Costs

Costs incurred to achieve conformity with requirements; mainly prevention and appraisal costs.

Non-Conformance Costs

Costs resulting from poor quality; mainly internal and external failure costs.

1-10-100 Principle

Preventing a defect costs 1; correcting it during production costs 10; fixing it after reaching the customer costs 100.

Tip of the Iceberg

Concept that only a small portion of quality costs is visible while most quality costs are hidden.

Visible Quality Costs

Visible costs such as scrap, defects, inspections, returns and warranty repairs.

Invisible Quality Costs

Hidden costs such as prevention, appraisal, internal failures, external failures and lost opportunities.

Quality Cost Control

Managing quality-related costs by preventing problems and reducing failure costs.

Source Control

Preventing defects at their source rather than correcting them after they occur.

Continuous Improvement

Ongoing effort to improve quality, processes, productivity and cost performance.

Quality Cost Measurement

The process of identifying, collecting and analyzing quality-related cost information.

Activity-Based Costing (ABC)

A costing method that tracks activities and uses financial and operational information to calculate costs.

Balanced Scorecard (BSC)

A management framework used to evaluate performance from multiple perspectives.

Return on Quality (ROQ)

Approach for evaluating the financial return generated by quality-related investments.

Cost Allocation

The process of assigning quality costs to appropriate products, activities or organizational areas.

Quality Cost Reduction

Reduction of quality-related costs through prevention, process improvement and elimination of failures.

Customer Satisfaction

The degree to which products or services meet or exceed customer requirements and expectations.

Quality Competitiveness Crisis

The situation in which companies face competitive pressure from lower-cost and higher-quality competitors.

Quality and ROI

Relationship showing that higher-quality products can generate higher returns on investment.

Quality Innovation

Improvement of quality in ways that reduce costs, increase customer satisfaction and strengthen competitiveness.

Subjective Quality (Perceived Quality)

Quality evaluated based on individual subjectivity, expectations, brand image, and customer satisfaction level.

Objective Quality (Conformance Quality)

The totality of inherent characteristics and performance subject to evaluation, including engineering dimensions, mechanical performance, defect rates, and test data.

Quality of Design

The quality planned and incorporated into specifications, blueprints, and design drawings to satisfy required user quality.

Quality of Manufacture (Quality of Conformance)

The quality achieved during the manufacturing stage when design quality is transformed into a physical finished product through process design, procurement, and staffing.

Frederick Winslow Taylor

American mechanical engineer known as the father of scientific management and industrial engineering (IE), who published 'The Principles of Scientific Management' in 1911.

Walter Andrew Shewhart

American physicist, engineer, and statistician recognized as the father of statistical quality control, who developed the control chart and authored 'The Economic Control of Quality of Manufactured Products' (1931).

W. Edwards Deming

American statistician and consultant credited with transforming Japanese manufacturing from 1950 onward through statistical quality control, famous for formulating the 14 Points and 7 Deadly Diseases.

Deming's 7 Deadly Diseases

Key managerial obstacles identified by Deming: lack of constancy of purpose, excessive focus on short-term gains, annual performance reviews, manager mobility, reliance on visible metrics, excessive healthcare costs, and excessive product liability costs.

Juran Trilogy

A quality management framework proposed by Joseph M. Juran comprising three core processes: Quality Planning, Quality Control, and Quality Improvement.

Juran's Breakthrough Sequence

A 5-step quality innovation process consisting of Attitude Innovation, Pareto Analysis, Knowledge Validation, Culture Innovation, and Work Practice Innovation.

Prevention Costs

Costs associated with prevention activities to eliminate defects before they occur, such as quality planning, design review, training, engineering analysis, and supplier quality evaluation.

Appraisal Costs

Costs associated with evaluation and inspection to ensure conformity to requirements, including incoming inspection, process testing, final audits, and equipment calibration.

Internal Failure Costs

Costs resulting from defects discovered before delivery to the customer, such as scrap, rework, line downtime, failure analysis, and product downgrading.

External Failure Costs

Costs resulting from defects discovered after delivery to the customer, including warranty claims, replacement costs, refunds, customer complaint handling, and product liability.

Opportunity Loss Cost

An invisible quality cost representing the loss of revenue and profit caused by customer defection or churn due to quality dissatisfaction.

Zero Defects (ZD)

A performance standard popularized by Philip Crosby stating that organizations must perform defect-free work ('do it right the first time') rather than accepting acceptable quality levels.

Price of Nonconformance (PONC)

Philip Crosby's primary quantitative measurement of quality, representing the total financial cost incurred when products or services fail to conform to requirements.

Crosby's Quality Vaccine

A management framework designed to overcome internal quality issues, consisting of three core elements: Determination, Education, and Implementation.

Total Quality Control (TQC)

An effective system devised by Armand V. Feigenbaum that integrates quality development, maintenance, and improvement efforts across all departments to achieve full customer satisfaction economically.

1-10-100 Principle

A quality management rule stating that spending $1$ on prevention saves $10$ in appraisal costs and $100$ in failure costs.

Product Liability (PL) Act

A law that obligates manufacturers to compensate end consumers or third parties for damages to life, physical integrity, or property resulting from product defects.

ISO 9000 Series

An international set of quality management system standards established by the International Organization for Standardization to unify quality assurance requirements globally and ensure customer satisfaction.

ISO 14001

The international standard for Environmental Management Systems (EMS) that provides a framework for organizations to systematically identify, manage, and reduce environmental impacts across the product lifecycle.