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ODC1 (week 1)
Operations Management chapter 9
| Term | Definition |
|---|---|
| Affinity diagram | A tool used to organize data into logical categories |
| brainstorming | technique for generating a free flow of ideas in a group of people |
| Quality circles | Group of workers who meet to discuss ways of improving products or processes |
| Appraisal costs | Costs of activities designed to ensure quality or uncover defects |
| Prevention costs | Cost of preventing defects from occurring |
| Failure costs | Incurred by defective parts or products or by faulty services |
| Internal failure | Those defects discovered during the production process |
| External failure | Those defects discovered after delivery to the customers |
| If Internal failure occurs: | Defective materials, incorrect machine settings, faulty equipment, incorrect methods, incorrect processing, faulty material handling |
| Costs of internal failure | Loss production time, scrap and rework, investigation costs, possible equipment damaged, possible employee injury, |
| If External failure occurs | Defective products or poor services that go undetected by the producer |
| External failure costs | Warranty work, handling complaints, replacements, liability, litigation, payments to customers |
| Failure costs | Cost caused by defective parts or products or by faulty services |
| Return on quality | An approach that evaluates the financial return of investments in quality |
| ROQ | Return on quality--focuses on the economics of quality efforts |
| Quality awards | Established to generate awareness and interest in quality |
| Baldrige | Malcolm Baldrige award given by US government to recognize achievements of US companies |
| European Quality award | European award for organizational excellence in Europe |
| ISO | International organization for Standardization |
| ISO-9000 | A set of international standards on QM and Q assurance critical to international business |
| ISO 14000 | A set of international standards for assessing a company environmental performance |
| ISO 9000 standards | system requirements, management requirements, resource requirements, realization of requirements, remedial requirements |
| 8 Quality Management principles | Customer focus, leadership, involvement of ppl, process approach, system approach to management, continual improvement, use of factual approach to decision making, mutually beneficial supplier relationship |
| Standards for ISO 14000 certification | Management systems, operations, environmental systems, |
| Management systems (ISO 14000) | Systems development and integration of environmental responsibilities into business planning |
| Operations systems (ISO 14000) | Consumption of natural resources energy |
| Environmental systems (ISO 14000) | Measuring assessing and managing emissions, effluents, and other waste streams |
| ISO 24700 | International standards that pertains to the quality and performance of office equipment that contains reused components |
| Total quality management | A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction |
| Fail safing | Incorporation design elements that prevent incorrect procedures |
| Continuous improvement (Kaizen) | Seek to make never ending improvement |
| Six sigma | Business process for improving quality, reducing costs, and increasing customer satisfaction |
| DMAIC | Define, measure, analyze, improve,control |
| PDSA | Plan--Do--Study--Act |
| interviewing | Technique for identifying problems collecting information |
| benchmarking | Process of measuring performance against he best in the same or another industry |
| Dimensions of quality | Performance, aesthetics, special features, conformance, reliability, durability, perceived quality, and serviceability |
| Quality of design | intention of designers to include or exclude features in a product or service |
| Quality of conformance | The degree to which goods or services conform to the intent of the designers |
| Benefits of good quality | good reputation, demand premium prices, increased market share, customer loyalty |
| Consequences for poor quality | Loss of business, liability, productivity, costs |
Created by:
nashanta
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