WGU C215- Operations Management Chapter 5-6

Total Quality Management (TQM)

An integrated effort design to improve quality performance at every level of the organization.

Customer-defined quality

The meaning of quality as defined by the customer.

Conformance to specifications

How will a product or service meets the targets and tolerance is determined by its designers.

fitness for use

A definition of quality that evaluates have all the product performs for its intended use.

Value for price paid

Quality to find in terms of product or service usefulness for the price paid.

Support Services

Quality defined in terms of the support provided after the product or service is purchase.

Psychological criteria

A way of defining quality that focuses on judge mental valuations of what constitutes product or service excellence.

Prevention Costs

Cost incurred in the process of preventing poor quality from occurring.

appraisal costs

Costs incurred in the process of uncovering defects.

Internal failure costs

Costs associated with discovering poor product quality before the product reaches the customer.

external failure costs

Cost associated with quality problems that occur at the customer site

Walter A. Shewart

Was a statistician at the labs during the 1920s and 30s his main contributions were two understanding of process variability and developed the concept of statistical control charts.

W. Edwards Deming

Is often referred to as the father of quality control his main contributions are: stressed managements responsibility for quality, developed 14 points to guide companies in quality improvement.

Joseph M. Juran

Is considered to have the greatest impact on quality management he defined quality as fitness for use, and developed concept of cost of quality.

Armand Feigenbaum

Introduced concept of total quality control

Philip Crosby

Coined the phrase quality is free and introduce concept of zero defects.

Kaoru Ishikawa

Developed a cause and affect diagrams and identified concept of internal customer.

Genichi Taguchi

Focused on product design quality. Developed Taguchi loss function.

Robust Design

A design that results in a product that can perform over a wide range of conditions.

Taguchi Loss Function

Costs of quality increase as a quadratic function as conformance values move away from the target

continuous improvement

A philosophy of never ending improvement

Concepts of the total quality management philosophy

Customer focus, continuous improvement, employee empowerment, use of quality tools, product design, process management and managing supplier quality

Customer Focus

Goal to identify and meet customer needs

Employee Empowerment

Employees are expected to seek out, identify, and correct quality problems.

Use of quality tools

Ongoing employee training in the use of quality tools

product design

Products need to be designed to meet customer expectation

Process Management

Qualities should be built into the process; sources of quality problems should be identified and corrected

Managing Supplier Quality

Quality concepts must extend to a company's suppliers.

Kaizen

A Japanese term that describes the notion of a company continually striving to better through learning and problem-solving.

Plan-do-study-act (PDSA) cycle

A diagram that describes the activities that need to be performed to incorporate continuous improvement into the operation.

Benchmarking

Studying the business practices of other companies for purposes of comparison.

Quality Circles (QC)

A team of volunteers production employees and their supervisors who meet regularly to self quality problems.

cause and effect diagram

A chart that identifies potential causes of particular quality problems. They are often referred to as a Fishbone diagram because they look like the bones of a fish the head of the fish is the quality problems such as damaged zipper on a Garmin or broken valves on a tire.

Flow Chart (process map)

A schematic of the sequence of steps involved in an operational process. It provides a visual tool that is easy to use and understand. I seen the steps involved in an operation or process, everyone develops a clear picture of how the operation works and where problems could arise.

Checklist

A list of common defects and the number of observed occurrences of these defects. It is a simple yet effective fact-finding tool that allows the worker to collect specific information regarding the defects observed.

Control charts

Charts used to evaluate whether a process is operating within set expectations. When a product or process is operating within expectations we say that it is "in control".

Scatter diagrams

Graphs that show how to variables are related to each other

Pareto Analysis

A technique used to identify quality problems based on their degree of importance it is a chart that ranks the causes of poor quality in decreasing order based on the percentage of defects each has caused.

Histogram

A chart that shows the frequency distribution of observed values of a variable

Quality Function Deployment (QFD)

A tool used to translate the preferences of the customer into specific technical

Reliability

The probability that a product service or part will perform as intended.

Quality at the source

The belief that it is best to uncover the source of quality problems and eliminate it.

Malcolm Baldrige National Quality Award

An award established by the U.S. Department of Commerce given annually to companies that excel in quality.

Malcolm Baldrige national quality award criteria

Leadership categories, strategic planning, customer in market focus, information and analysis, human resources focus, project management, and business results.

Deming prize

A Japanese award given to companies to recognize efforts in quality improvement.

ISO 9000

A set of international quality standards and a certification demos demonstrating that companies have met all the standards specified.

ISO 14000

A set of international standards in a certification focusing on a companies environmental responsibility

Acceptable Quality Level (AQL)

The small percentage of defects that consumers are willing to except

Acceptance Sampling

The process of randomly inspecting a sample of goods and deciding whether to except the entire lot based on the results.

Assignable causes of variation

Causes that can be identified and eliminated

Attributes

A product characteristic that has a discrete value and can be counted

Average ongoing quality

The expected proportion of defective items that will be passed to the consumer under the sampling plan.

C- Chart

A control chart used to monitor the number of defects per unit.

Common

Random causes that cannot be identified.

Consumers risk

The chance of excepting a lot that contains a greater number of defects then be LTPD limit.

Control Chart

A graph that shows whether a sample of data falls within the common or normal range of variation.

descriptive statistics

Statistics used to describe quality characteristics in relationships.

Lot tolerance percent defective (LTPD)

The upper limit of the percentage of defective items consumers are willing to tolerate.

Mean

Hey statistic that measures the central tendency of a set of data.

Operating Characteristic Curve (OC Curve)

A graph that shows the probability or chance of excepting a lot given various proportions of defects in the lot.

Out of control

The situation in which a plot of data falls outside present control limits.

P charts

A control chart that monitors the proportion of defects in a sample.

Process capability

The ability of a production process to meet or exceed present

Process capability index

And index used to measure process capability.

Producers risk

The chance that a lot containing an acceptable quality level will be rejected.

Product specifications

Present ranges of acceptable quality characteris

Range

The difference between the largest and smallest observations in a data set.

Range (

A control chart that monitors changes in the dispersion or variability of a process.

Sampling Plan

A plan for acceptance sampling that precisely specifies the parameters of the sampling process and the acceptance rejection criteria.

Six sigma

A high level of quality associated with approximately 3.4 defective parts per million

standard deviation

A statistic that measures the amount of data dispersion around the mean.

Statistical Process Control (SPC)

A statistical tool that involves inspecting a random sample of the output from a process and deciding whether the process is producing products with characteristics that fall within a predetermined range.

Statistical Quality Control (SQC)

The general category of statistical tools used to evaluate organizational quality.

Variables

He product characteristic that can be measured and has a continuum of values (example height weight or volume).

X bar chart

A control chart used to monitor changes in the mean value of a process.

Process capability - CP

Assumes that the process is centered in the specification range

Process capability CPK

Helps to address a possible lack of centering of the process.

Cp = 1

process variability just meets specifications

Cp greater than 1:

Process exceeds minimal specifications

Cp less than 1:

Process not capable of producing within specifications.

Cp = Cpk

When process is centered.