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|Refers to systematic policies, methods, and procedures used to ensure that goods and services are produced with appropriate levels of quality to meet the needs of customers.
|Is consistently meeting or exceeding customer expectations (external focus) and service delivery system performance criteria (internal focus) during all service encounters.
|What the customer sees, such as physical facilities, equipment, and the appearance of service employees.
|The ability to provide what was promised, dependably and accurately.
|Caring, individual attention the firm provides its customers.
|The knowledge and courtesy of service providers and their ability to convey trust and confidence.
|The willingness to help customers and provide prompt service.
|The Deming Cycle
|Plan: study current situation Do: implement plan on trial basis Study: determine if trial is working correctly Act: standardize improvements
|Defined quality as “fitness for use.” Advocated use of quality cost measurement. Quality Trilogy: quality planning, quality control, and quality improvement. Focused on defect elimination using statistical tools.
|Philip B. Crosby
|Doing the job right the first time is always cheaper.The only performance measurement is the cost of quality, which is the expense of non-conformance.The only performance standard is Zero Defects.
|The GAP model
|Recognizes that there are several ways to mismanage the creation and delivery of high levels of quality.
|Based on eight principles: Customer-Focused Organization Leadership Involvement of People Process Approach System Approach to Management Continual Improvement Factual Approach to Decision Making Mutually Beneficial Supplier Relationships
|Cost of quality
|Refers to the costs associated with avoiding poor quality or those incurred as a result of poor quality.
|Costs expended to keep nonconforming goods and services from being made and reaching the customer.
|Costs incurred after poor-quality goods or services reach the customer.
|Costs incurred as a result of unsatisfactory quality that is found before delivery of good or service to the customer.
|Costs expended on ascertaining quality levels through measurement and analysis of data to detect and correct problems.
|Process mapping to identify the sequence of activities or flow of materials/ information in a process.
|Graphically represent frequency of values within a specified group.
|Simple tools for data collection, ensure completeness.
|Run Charts and Control Charts
|A line graph with data plotted over time; _____ charts include ______ limits.
|Separate the vital few from the trivial many causes; provide direction for selecting projects for improvement.
|Graphical component of regression analysis.
|Represent chain of relationships; often called a fishbone diagram.
|The root cause
|A term used to designate the source of a problem.
|Focuses on small, gradual, and frequent improvements over the long term with minimum financial investment and with participation by everyone in the organization.
|An intense and rapid improvement process in which a team or a department throws all its resources into an improvement project over a short time period, as opposed to traditional kaizen applications, which are performed on a part-time basis.
|An approach for mistake-proofing processes using automatic devices or methods to avoid simple human error.
|A business improvement approach that seeks to find and eliminate causes of defects and errors in manufacturing and service processes by focusing on outputs that are critical to customers and results in a clear financial return for the organization.
|defects per million opportunities (dpmo)
|(Number of defects discovered/ opportunities for error) X 1,000,000
|errors per million opportunities
|Define, Measure, Analyze, Improve, Control
|Identify customers and their priorities; identify and define a suitable project; identify CTQs (critical-to- quality characteristics).
|Determine how to measure the process and how it is performing; identify key internal processes that influence CTQs and measure current defects.
|Determine likely causes of defects and understand why defects are generated by identifying key variables that cause process variation.
|Identify means to remove causes of defects; confirm key variables; modify the process to stay within acceptable range.
|Determine how to maintain improvements; put tools in place to ensure that key variables remain within acceptable ranges under the modified process.
|To ensure that a good or service conforms to specifications and meets customer requirements by monitoring and measuring processes and making any necessary adjustments to maintain a specified level of performance.
|If a defect or error identified and corrected in the design stage, it might cost $1 to fix.If detected during the production process,it might cost $10 to fix.If the defect is not discovered until it reaches the customer,it might cost $100 to correct.
|Quality at the source
|Means the people responsible for the work control the quality of their processes by identifying and correcting any defects or errors when they first are recognized or occur.
|Statistical process control (SPC)
|A methodology for monitoring quality of manufacturing and service delivery processes to help identify and eliminate unwanted causes of variation.
|Common cause variation
|The result of complex interactions of variations in materials, tools, machines, information, workers, and the environment. 80-95%
|Special (assignable) cause variation
|Arises from external sources that are not inherent in the process, appear sporadically, and disrupt the random pattern of common causes. 15-20%
|When no special causes affect the output of a process
|Out of Control
|When special causes affect the output of a process
|Calculated from data that are measured as the degree of conformance to a specification on a continuous scale of measurement.
|Calculated from data that are counted.
|Monitors the number of nonconformances (i.e., a count of the number of defects or errors) per unit, when the size of the sampling unit or number of opportunities for errors is constant.
|Refers to the natural variation in a process that results from common causes.
|Process capability study
|A carefully planned study designed to yield specific information about the performance of a process under specified operating conditions.
|Process Capability Index
|The relationship between the natural variation and specifications is quantified by a measure known as _______
|Quality function deployment (QFD)
|An approach to guide the design, creation, and marketing of goods and services by integrating the voice of the customer into all decisions.
|A temporary and often customized initiative that consists of many smaller tasks and activities that must be coordinated and completed to finish the entire initiative on time and within budget.
|Involves all activities associated with planning, scheduling, and controlling projects.
|Discrete tasks that consume resources and time.
|Activities that must be completed immediately before an activity may start. Precedence relationships ensure that activities are performed in the proper sequence when they are scheduled.
|The work breakdown structure
|A hierarchical tree of end items that will be accomplished by the project team during the project.
|Consists of a set of circles or boxes called nodes, which represent activities, and a set of arrows called arcs, which define the precedence relationships between activities.
|The sequence of activities that takes the longest time and defines the total project completion time.
|EF = ES + T
|The ES time for an activity equals the largest EF time of all immediate predecessors.
|LS = LF – T
|The LF time for an activity is the smallest LS of all immediate successors.
|Crashing a project
|Refers to reducing the total time to complete the project to meet a revised due date.
|The shortest possible time the activity can realistically be completed.
|The total additional cost associated with completing an activity in its crash time rather than in its normal time.
|Crash cost per unit of time =
|Crash Cost – Normal Cost/Normal Time – Crash Time