Please answer these questions about Quality

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The final definition of quality is the customer’s perception of a product’s or service’s

A- quality of conformance

B- quality of design

c- fitness for use

d- process capability

The answer is ()

2- From the producer’s perspective, an important consideration in achieving quality of conformance is

A- quality cost

B- product cost

C- design cost

D- labor cost

The answer is ()

3- The PDCA cycle is also known as

A- Total Quality Management

B- Six Sigma

c- the Deming Wheel

D- ISO:9001

The answer is ()

4- Match the following quality tools with the descriptions below.

A- The causes of quality problems, divided into categories

(Scatter diagram or Histogram or Cause and Effect Diagram or Pareto Diagram ) (please choose one)The answer is (.)

B- Chart that helps focus on quality problems that will result in the greatest immediate impact on quality improvement

(Scatter diagram or Histogram or Cause and Effect Diagram or Pareto Diagram ) (please choose one)The answer is (.)

c-
Shows the natural frequency of data related to a quality problem

(Scatter diagram or Histogram or Cause and Effect Diagram or Pareto Diagram ) (please choose one)The answer is (.)

D- Shows the relationship (or lack thereof) between two variables

(Scatter diagram or Histogram or Cause and Effect Diagram or Pareto Diagram ) (please choose one)The answer is (.)

5-Which of the following is NOT an effort to involve employees in quality improvement?

A-Kaizen

B-Process improvement teams

C-Quality circles

D-VoC

6-The Six Sigma process DMAIC stands for

A- design, manage, analyze, implement, continuous improvement

B-
define, measure, analyze, improve, control

c- design, make, assemble, inspect, complete

D- define, make, align, implement, control

The answer is ()

7- Which of the following is true about quality costs?

A- The cost of achieving good quality includes both internal and external failure costs.

B- Prevention costs are the costs of ensuring that product-quality specifications are being met.

C- External failure costs include both scrap and rework costs.

D-

Quality costs include both the cost of quality assurance and the cost of not conforming to specifications.

The answer is ()

8- Improving quality can have a positive effect on productivity by both increasing good output and reducing inputs.

A- True

B- False

The answer is ()

9- Which of the following is NOT true about quality management in services?

A-

Quality is difficult to manage in services because customers interact directly with the "production process."

B- Quality is difficult to manage in in services because many dimensions of service quality are subjective in nature.

C-

The quality tools are not as applicable in a service environment as in a manufacturing environment.

D-

Service firms typically lose more customers for quality reasons than they do for price.

The answer is ()

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The final definition of quality is the customer’s perception of a product’s or service’s A- quality of conformance B- quality of design c- fitness for use d- process capability The answer is ( ) 2- From the producer’s perspective, an important consideration in achieving quality of conformance is A- quality cost B- product cost C- design cost D- labor cost The answer is ( ) 3- The PDCA cycle is also known as A- Total Quality Management B- Six Sigma cthe Deming Wheel D- ISO:9001 The answer is ( ) 4- Match the following quality tools with the descriptions below. A- The causes of quality problems, divided into categories (Scatter diagram or Histogram or Cause and Effect Diagram or Pareto Diagram ) (please choose one) The answer is (. ) B- Chart that helps focus on quality problems that will result in the greatest immediate impact on quality improvement (Scatter diagram or Histogram or Cause and Effect Diagram or Pareto Diagram ) (please choose one) The answer is (. ) cShows the natural frequency of data related to a quality problem (Scatter diagram or Histogram or Cause and Effect Diagram or Pareto Diagram ) (please choose one) The answer is (. ) D- Shows the relationship (or lack thereof) between two variables (Scatter diagram or Histogram or Cause and Effect Diagram or Pareto Diagram ) (please choose one) The answer is (. ) 5-Which of the following is NOT an effort to involve employees in quality improvement? A-Kaizen B-Process improvement teams C-Quality circles D-VoC 6-The Six Sigma process DMAIC stands for A- design, manage, analyze, implement, continuous improvement Bdefine, measure, analyze, improve, control c- design, make, assemble, inspect, complete D- define, make, align, implement, control The answer is ( ) 7- Which of the following is true about quality costs? A- The cost of achieving good quality includes both internal and external failure costs. B- Prevention costs are the costs of ensuring that product-quality specifications are being met. C- External failure costs include both scrap and rework costs. DQuality costs include both the cost of quality assurance and the cost of not conforming to specifications. The answer is ( ) 8- Improving quality can have a positive effect on productivity by both increasing good output and reducing inputs. A- True B- False The answer is ( ) 9- Which of the following is NOT true about quality management in services? AQuality is difficult to manage in services because customers interact directly with the "production process." B- Quality is difficult to manage in in services because many dimensions of service quality are subjective in nature. CThe quality tools are not as applicable in a service environment as in a manufacturing environment. DService firms typically lose more customers for quality reasons than they do for price. The answer is ( ) Chapter 2 Quality Management Russell and Taylor Operations and Supply Chain Management, Lecture Outline - 1 • • • • • • What Is Quality? Quality Management Systems Quality Tools TQM and QMS Focus of Quality Management Role of Employees in Quality Improvement 2-2 Lecture Outline - 2 • • • • • • Quality in Services Six Sigma Cost of Quality Effect of Quality Management on Productivity Quality Awards ISO 9000 2-3 Learning Objectives • Discuss and define the dimensions of quality. • Articulate the benefits and costs of good quality, and the costs of poor quality • Understand how quality management systems have evolved and be able to assess the stage of quality evolution a particular company exhibits. • Utilize quality tools and the DMAIC methodology in problem solving • Explain the philosophy and magnitude of six sigma quality • Recognize quality awards and ISO certifications 2-4 What Is Quality? • Oxford American Dictionary • a degree or level of excellence • American Society for Quality • totality of features and characteristics that satisfy needs without deficiencies • Consumer’s and producer’s perspective 2-5 What Is Quality: Customer’s Perspective • Fitness for use • how well product or service does what it is supposed to • Quality of design • designing quality characteristics into a product or service • A Mercedes and a Ford are equally “fit for use,” but with different design dimensions. 2-6 Dimensions of Quality: Manufactured Products • Performance • basic operating characteristics of a product; how well a car handles or its gas mileage • Features • “extra” items added to basic features, such as a stereo CD or a leather interior in a car • Reliability • probability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven years 2-7 Dimensions of Quality: Manufactured Products • Conformance • degree to which a product meets pre–established standards • Durability • how long product lasts before replacement; with care, L. L. Bean boots may last a lifetime • Serviceability • ease of getting repairs, speed of repairs, courtesy and competence of repair person 2-8 Dimensions of Quality: Manufactured Products • Aesthetics • how a product looks, feels, sounds, smells, or tastes • Safety • assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobiles • Perceptions • subjective perceptions based on brand name, advertising, etc. 2-9 Stop & Think Think of a product you have recently purchased. How did these dimensions of quality affect your decision? 1-10 Quality in Services • Service defects are not always easy to measure because service output is not usually a tangible item • Services tend to be labor intensive • Services and manufacturing companies have similar inputs but different processes and outputs 2-11 Dimensions of Quality: Services • Time and timeliness • how long must a customer wait for service, and is it completed on time? • is an overnight package delivered overnight? • Completeness: • is everything customer asked for provided? • is a mail order from a catalogue company complete when delivered? 2-12 Dimensions of Quality: Service • Courtesy: • how are customers treated by employees? • are catalogue phone operators nice and are their voices pleasant? • Consistency • is same level of service provided to each customer each time? • is your newspaper delivered on time every morning? 2-13 Dimensions of Quality: Service • Accessibility and convenience • how easy is it to obtain service? • does service representative answer you calls quickly? • Accuracy • is service performed right every time? • is your bank or credit card statement correct every month? • Responsiveness • how well does company react to unusual situations? • how well is a telephone operator able to respond to a customer’s questions? 2-14 Stop & Think Think of a service business that you are a frequent customer of. How do you experience these quality dimensions? What could the service provider do better? 1-15 What Is Quality: Producer’s Perspective • Quality of conformance • making sure product or service is produced according to design • if new tires do not conform to specifications, they wobble • if a hotel room is not clean when a guest checks in, hotel is not functioning according to specifications of its design 2-16 Meaning of Quality 2-17 What Is Quality: A Final Perspective • Customer’s and producer’s perspectives depend on each other • Producer’s perspective: • production process and COST • Customer’s perspective: • fitness for use and PRICE • Customer’s view must dominate 2-18 Evolution of Quality Management: Quality Gurus • Walter Shewhart • In 1920s, developed control charts • Introduced term “quality assurance” • W. Edwards Deming • Developed courses during WW II to teach statistical qualitycontrol techniques to engineers and executives of military suppliers • After war, began teaching statistical quality control to Japanese companies • Joseph M. Juran • Followed Deming to Japan in 1954 • Focused on strategic quality planning • Quality improvement achieved by focusing on projects to solve problems and securing breakthrough solutions 2-19 Evolution of Quality Management: Quality Gurus • Armand V. Feigenbaum • In 1951, introduced concepts of total quality control and continuous quality improvement • Philip Crosby • In 1979, emphasized that costs of poor quality far outweigh cost of preventing poor quality • In 1984, defined absolutes of quality management— conformance to requirements, prevention, and “zero defects” • Kaoru Ishikawa • Promoted use of quality circles • Developed “fishbone” diagram • Emphasized importance of internal customer 2-20 Deming’s 14 Points 1. 2. 3. 4. 5. Create constancy of purpose Adopt philosophy of prevention Cease mass inspection Select a few suppliers based on quality Constantly improve system and workers 2-21 Deming’s 14 Points 6. 7. 8. 9. 10. Institute worker training Instill leadership among supervisors Eliminate fear among employees Eliminate barriers between departments Eliminate slogans 2-22 Deming’s 14 Points 11. Eliminate numerical quotas 12. Enhance worker pride 13. Institute vigorous training and education programs 14. Develop a commitment from top management to implement above 13 points 2-23 Deming Wheel: PDCA Cycle 2-24 Quality Tools • Process Flow Chart • Cause-and-Effect Diagram • Check Sheet • Pareto Analysis • Histogram • Scatter Diagram • Statistical Process Control Chart 2-25 Flow Chart • A diagram of the steps in a process • Helps focus on location of problem in a process 2-26 Cause-and-Effect Diagram • Cause-and-effect diagram (“fishbone” diagram) – chart showing different categories of problem causes 2-27 Cause-and-Effect Matrix • Cause-and-effect matrix – grid used to prioritize causes of quality problems 2-28 Check Sheets and Histograms • Tally number of defects from a list of causes • Frequency diagram of data for quality problem 2-29 Pareto Chart 2-30 Pareto Analysis • Pareto analysis – most quality problems result from a few causes 2-31 Scatter Diagram • Graph showing relationship between 2 variables in a process • Identifies pattern that may cause a quality problem 2-32 Control Chart • A chart with statistical upper and lower limits • If sample statistics remain between these limits we assume the process is in control 2-33 TQM and QMS • Total Quality Management (TQM) • customer-oriented, leadership, strategic planning, employee responsibility, continuous improvement, cooperation, statistical methods, and training and education • Quality Management System (QMS) • system to achieve customer satisfaction that complements other company systems 2-34 TQM Principles • Quality can and must be managed • The customer defines quality • Management must be involved and provide leadership • Continuous quality improvement is “the” strategic goal • Quality problems are found in processes • The quality standard is “no defects” • Quality must be measured • Note: Principles of TQM apply equally well to services and manufacturing 2-35 Focus of Quality Management— Customers • TQM and QMS • serve to achieve customer satisfaction • Satisfied customers are less likely to switch to a competitor • It costs 5-6 times more to attract new customers as to keep an existing one • 94-96% of dissatisfied customers don’t complain • Small increases in customer retention mean large increases in profits 2-36 Customer Satisfaction 2-37 Customer Satisfaction 2-38 Measuring Customer Satisfaction • An important component of any QMS • Use customer surveys to hear “Voice of the Customer” • American Customer Satisfaction Index (ACSI) 2-39 Stop & Think As a customer, how do you express your satisfaction? Your dissatisfaction? 1-40 Quality Management in the Supply Chain • Companies need support of their suppliers to satisfy their customers • Reduction in the number of suppliers allows for closer relationships • Partnering • a relationship between a company and its supplier based on mutual quality standards 2-41 Role of Employees in Quality Improvement • Participative problem solving • employees involved in quality-management • Example: every employee has undergone extensive training to provide quality service to Disney’s guests • Kaizen • involves everyone in process of continuous improvement • employees determining solutions to their own problems • Benchmark • “best” level of quality achievement in one company that other companies seek to achieve 2-42 Quality Circles • Voluntary group of workers and supervisors from same Presentation area who address Implementation Monitoring quality problems Organization 8-10 members Same area Supervisor/moderator Training Group processes Data collection Problem analysis Problem Identification Solution Problem results Problem Analysis List alternatives Consensus Brainstorming Cause and effect Data collection and analysis 2-43 Process (Quality) Improvement Teams • Focus attention on business processes rather than separate company functions • Includes members from the interrelated departments which make up a process • Important to understand the process the team is addressing • Process flowcharts are key tools 2-44 Six Sigma • A process for developing and delivering virtually perfect products and services • Six Sigma is a measure of how much a process deviates from perfection • Goal: 3.4 defects per million opportunities (DPMO) 2-45 Six Sigma Process 1. Align • executives create balanced scorecard 2. Mobilize • project teams formed and empowered to act 3. Accelerate • black and green belts execute project 4. Govern • monitor and review projects • Champion • an executive responsible for project success 2-46 Breakthrough Strategy: DMAIC • Define • problem is defined • Measure • process measured, data collected • Analyze • data analysis to find cause of problem • Improve • develop solutions to problem • Control • ensure improvement is continued 2-47 Six Sigma Process DEFINE MEASURE ANALYZE IMPROVE CONTROL 3.4 DPMO 67,000 DPMO cost = 25% of sales 2-48 Black Belts and Green Belts • Black Belt • project leader • Master Black Belt • a teacher and mentor for Black Belts • Green Belts • project team members 2-49 Six Sigma Tools - 1 • Quality Function Deployment (QFD) • capture the “voice of the customer” • Cause & Effect Matrix • identify and prioritize causes of a problem • Failure Modes and Affects Analysis (FMEA) • analyze potential problems before they occur 2-50 Six Sigma Tools - 2 • t-Test • test for differences between groups • Statistical Process Control (SPC) Chart • monitor a process over time for variations • Design of Experiments (DOE) • determining relationships between factors affecting inputs and outputs of a process 2-51 Design for Six Sigma (DFSS) • A systematic approach to designing products and processes that will achieve Six Sigma • Uses same basic approach as breakthrough strategy • Employs the strategy up front in the design and development phases • A more effective and less expensive way to achieve Six Sigma 2-52 Lean Six Sigma • • • • Integrate Six Sigma and “lean systems” (Ch 16) Lean seeks to optimize process flows Lean extends earlier efforts in efficiency Lean process improvement steps 1. 2. 3. 4. 5. determine what creates value for customers identify “value stream” remove waste in the value stream make process responsive to customer needs continually repeat attempts to remove waste 2-53 Lean Six Sigma • Six Sigma and Lean seek • process improvements • increased value to customers • They approach the goals in different, complementary ways 2-54 Profitability • The typical criterion for selecting Six Sigma projects • One of the factors distinguishing Six Sigma from TQM • “Quality is not only free, it is an honest-toeverything profit maker” • Quality improvements reduce costs of poor quality 2-55 Cost of Quality • Cost of Achieving Good Quality • Prevention costs • costs incurred during product design • Appraisal costs • costs of measuring, testing, and analyzing • Cost of Poor Quality • Internal failure costs • include scrap, rework, process failure, downtime, and price reductions • External failure costs • include complaints, returns, warranty claims, liability, and lost sales 2-56 Prevention Costs • Quality planning costs • costs of developing and implementing quality management program • Product-design costs • costs of designing products with quality characteristics • Process costs • costs expended to make sure productive process conforms to quality specifications • Training costs • costs of developing and putting on quality training programs for employees and management • Information costs • costs of acquiring and maintaining data related to quality, and development and analysis of reports on quality performance 2-57 Appraisal Costs • Inspection and testing • costs of testing and inspecting materials, parts, and product at various stages and at end of process • Test equipment costs • costs of maintaining equipment used in testing quality characteristics of products • Operator costs • costs of time spent by operators to gather data for testing product quality, to make equipment adjustments to maintain quality, and to stop work to assess quality 2-58 Internal Failure Costs • Scrap costs • Process downtime costs • costs of poor-quality products • costs of shutting down that must be discarded, productive process to fix including labor, material, and problem indirect costs • Price-downgrading costs • Rework costs • costs of discounting poor• costs of fixing defective quality products—that is, products to conform to quality selling products as specifications “seconds” • Process failure costs • costs of determining why production process is producing poor-quality products 2-59 External Failure Costs • Customer complaint costs • costs of investigating and satisfactorily responding to a customer complaint resulting from a poor-quality product • Product return costs • costs of handling and replacing poor-quality products returned by customer • Warranty claims costs • costs of complying with product warranties • Product liability costs • litigation costs resulting from product liability and customer injury • Lost sales costs • costs incurred because customers are dissatisfied with poorquality products and do not make additional purchases 2-60 Measuring and Reporting Quality Costs • Index numbers • ratios that measure quality costs against a base value • labor index • ratio of quality cost to labor hours • cost index • ratio of quality cost to manufacturing cost • sales index • ratio of quality cost to sales • production index • ratio of quality cost to units of final product 2-61 Quality–Cost Relationship • Cost of quality • difference between price of nonconformance and conformance • cost of doing things wrong • 20 to 35% of revenues • cost of doing things right • 3 to 4% of revenues 2-62 Effect of Quality Management on Productivity • Productivity = output / input • Quality impact on productivity • fewer defects increase output, and quality improvement reduces inputs • Yield • a measure of productivity 2-63 Quality Awards • Provide guidelines for quality management • Benchmarks to emulate • Successes are shared 2-64 Malcolm Baldrige Award • Created in 1987 to stimulate growth of quality management in United States • Named for Secretary of Commerce (why?) • Categories • • • • • • • Leadership Information and analysis Strategic planning Human resource focus Process management Business results Customer and market focus 2-65 Other Awards for Quality • National individual awards • Armand V. Feigenbaum Medal • Deming Medal • E. Jack Lancaster Medal • Edwards Medal • Shewhart Medal • Ishikawa Medal • International awards • European Quality Award • Canadian Quality Award • Australian Business Excellence Award • Deming Prize from Japan 2-66 ISO 9000 • Procedures and policies for international quality certification • ISO 9000:2008 • Quality Management Systems—Fundamentals and Vocabulary • defines fundamental terms and definitions used in ISO 9000 family • ISO 9001:2008 • Quality Management Systems—Requirements • standard to assess ability to achieve customer satisfaction 2-67 ISO 9000 • ISO 9004:2008 • Quality Management Systems—Guidelines for Performance Improvements • guidance to a company for continual improvement of its quality-management system 2-68 ISO 9000 Certification, Implications, and Registrars • ISO 9001:2008—only standard that carries third-party certification • Many overseas companies will not do business with a supplier unless it has ISO 9000 certification • ISO 9000 accreditation • ISO registrars 2-69 Quality in Your Life • Bring us stories next week of how you encountered quality (or lack thereof) in your life • Be prepared to explain your role in improving quality around you – both as a “producer” and a “consumer” 2-70
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