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ODC1 (week 1)

Operations Management chapter 9

TermDefinition
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