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Operations Management: Managing Quality

Quality
The ability of a product or service to meet customer needs.
Cost of Quality (COQ)
The cost of doing things wrong–that is, the price of non conformance.
ISO 9000
A set of quality standards developed by the International Organization for Standardization (ISO)
ISO 14000
An environmental management standard established by the International Organization for Standardization (ISO)
Total Quality Management (TQM)
Management of an entire organization so that it excels in all aspects of products and services that are important to the customer.
PDCA
A continuous improvement model of plan, do check, act.
Six Sigma
A program to save time, improve quality, and lower costs.
What is DMAIC
A five step process improvement model

1. Define
2. Measure
3. Analyze
4. Improve
5. Control

Six Sigma- Defines..
the project’s purpose, scope, and outputs and then identifies the required process information, keeping in mind the customer’s definition of quality
Six Sigma- Measures..
the process and collects data.
Six Sigma – Analyzes..
the data, ensuring repeat-ability (the results can be duplicated), and reproducibility (others get the same result).
Six Sigma- Improves..
by modifying or redesigning, existing processes and procedures.
Six Sigma- Controls
the new process to make sure performance levels are maintained.
Employee empowerment
Enlarging employee jobs so that the added responsibility and authority is moved to the lowest level possible in the organization.
Quality Circle
A group of employees meeting regularly with a facilitator to solve work-related problems in their work area.
Benchmarking
Selecting a demonstrated standard of performance that represents the very best performance for a process or an activity.
Quality robust
Products that are consistently built to meet customer needs in spite of adverse conditions in the production process.
Quality loss function (QLF)
A mathematical function that identifies all costs connected with poor quality and shows how these costs increase as product quality moves from what the customer wants.
Target-oriented quality
A philosophy of continuous improvement to bring the product exactly on target.
Cause-and-effect diagram
A Schematic technique use to discover possible locations of quality problems.
Pareto Charts
Graphics that identify the few critical items as opposed to many less important ones.
Flowcharts
Block diagrams that graphically describe a process or system.
Statistical process control (SPC)
A process used to monitor standards, make measurements and take corrective action as a product or service is being produced.
Control Charts
Graphic presentations of process data over time, with predetermined control limits.
Inspection
A means of ensuring that an operation is producing at the quality level expected.
Source inspection
Controlling or monitoring at the point of production or purchase–at the source
Poka-yoke
Literally translated, “foolproof”; it has come to mean a device or technique that ensures the production of a good unit every time.
Attribute Inspection
An inspection that classifies items as being either good or defective.
Variable inspection
Classifications of inspected items as falling on a continuum scale, such as dimension, size, or strength.
Service recovery
Training and empowering front line workers to solve a problem immediately.
Reliability
involves consistency of performance and dependability. It means that the firm performs the service right the first time and that the firm honors its promises.
Responsiveness
concerns the willingness or readiness of employees to provide service. It involves timeliness of service.
Competence
means possession of the required skills and knowledge to perform the service.
Access
involves approach-ability and ease of contact.
Courtesty
involves politeness, respect, consideration, and friendliness of contact personnel (including receptionist, telephone operators, etc.)
Communicatoin
means keeping customers informed in language they can understand and listening to them. It may mean that the company has to adjust its language for different consumers–increasing the level of sophistication with a well-educated customer and speaking simply and plainly with a novice.
Credibilty
involves trustworthiness, believability, and honesty. It involves having the customer’s best interests at heart.
Security
is the freedom from danger, risk, or doubt.
Understanding/ knowing the customer
involves making the effort to understand the customer’s needs.
Tangibles
include the physical evidence of the service.

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