Operations Midterm

Prevention Costs

Costs incurred to prevent defects, such as quality training, supplier certification, process improvements, and preventive maintenance.

Appraisal Costs

Costs associated with measuring and monitoring quality, including inspections, audits, testing, and quality assessments.

Internal Failure Costs

Costs arising from defects found before products reach the customer, including rework, scrap, and downtime.

External Failure Costs

Costs due to defects discovered after delivery, such as warranty claims, returns, product recalls, and reputational damage.

Fishbone Diagram

A tool that helps pinpoint root causes of quality problems by visualizing various potential causes.

Pareto Analysis

A technique that identifies the most frequent causes of defects, often summarized in the 80/20 rule.

Mission Statement

A statement that defines an organization's purpose, values, and direction.

Statistical Process Control (SPC)

A method for monitoring and controlling quality using statistical techniques.

Attribute Data

Qualitative data that measures binary outcomes (pass/fail or defective/non-defective).

Variable Data

Quantitative data that measures continuous characteristics, such as length, weight, or temperature.

p-chart

A control chart used to monitor the proportion of defective units in a sample.

X̄-chart

A control chart used to monitor changes in process mean.

Reliability

The probability that a product performs without failure over time.

Service Design Process

A process that includes steps like identifying customer expectations, conceptualizing service features, and continuous evaluation.

SERVQUAL Model

A model that measures service quality based on tangibles, reliability, responsiveness, assurance, and empathy.

What are the four categories of quality costs?

Prevention Costs, Appraisal Costs, Internal Failure Costs, External Failure Costs.

What tool helps identify root causes of quality problems?

Fishbone Diagram.

What is the primary purpose of a mission statement?

To outline an organization’s purpose and values.

What does SPC stand for?

Statistical Process Control.

Which control chart monitors process mean?

X̄-chart.

What does the SERVQUAL model assess?

Service quality based on customer expectations.

True or False: TQM focuses only on detecting defects after production.

False. TQM emphasizes continuous improvement and defect prevention.

True or False: A control chart helps identify if a process is in statistical control.

True.

True or False: The reliability of a product is measured using Mean Time Between Failures (MTBF).

True.