BBA 330 Chapter 2 vocabulary

  1. Quality
    The ability of a product (a good or service) to consistently meet or exceed customer expectations.
  2. Ability
    Competence that enables one to do something well.
  3. Consistently
    Reliable or steady pattern of performance
  4. Expectations
    State of anticipation about a future outcome
  5. Internal failure cost
    The cost of poor quality if the error is caught within the production facility.
  6. External failure cost
    The cost of poor quality if the error is caught after the product has been sold to the customer
  7. Assurance costs
    The cost of sampling the inspection
  8. Prevention costs
    All costs and efforts associated with preventing quality problems from occurring
  9. American Customer Satisfaction Index (ACSI)
    An ongoing index for tracking customer satisfaction for a wide range or products and services in the United States
  10. Objective quality
    The quality of a good or a service based entirely on its determinants
  11. Perceived quality
    The quality of a product a service as a perceived by the customer.
  12. Sampling
    The selection of a few randomly selected products from the production line for quality checks.
  13. Inspection
    The process of comparing a sampled product with established guidelines
  14. Statistical process control (SPC)
    a statistical technique for determining whether the quality of a production process is in control
  15. Deming prize
    one of the highest honors for quality achievement given to a company by the emperor of Japan
  16. Malcolm Baldrige National Quality Award
    Highest honor for quality and performance excellence for a United States-based manufacturing, service, small business, education, or healthcare organization.
  17. ISO 9000 and ISO 14000
    • International standards for quality and environmental management
    • Continuous improvement philosophy
    • An approach involving continuously searching for ideas for improving the quality of goods and services
  18. Cause and effect diagram
    visually displays all possible causes of a quality problem, with the goal of finding the reasons for the imperfections.
  19. Quality circle
    A small group of employees who are responsible for similar or related work functions. This volunteer group meets regularly to identify, analyze, and solve quality and production problems related to its work.
  20. Quality planning
    Activities such as identifying the customer, determining customer needs, translating customer needs into production language, and optimizing product features to meet customer needs.
  21. Quality improvement
    Developing and optimizing a process that is able to produce a specified high-quality product
  22. Quality control
    Proving that the process can operate under normal conditions without the need for inspection.
  23. Quality loss function
    A mathematical formula for determining the cost of poor quality
  24. Robust quality
    An experimental design and statistical analysis approach for identifying the optimum product design configuration
  25. Total quality management
    A quality management framework that ddresses all areas and all employees of an organization emphasizes customer satisfaction and uses continuous improvement tools and techniques.
  26. Six sigma
    Comprehensive and flexible system for achieving, sustaining and maximizing business success; uniquely driven by a close understanding of customer needs; disciplined use of facts, data and statistical analysis; and diligent attention to managing, improving and reinventing business processes
  27. DMAIC
    • Define, measure, analyze improve and control. Five-Step plan of a six sigma approach
    • Acceptable quality range
    • The range of values that represents good quality
  28. Upper and lower tolerance limits
    Two values that represent the highest and the lowest value that a product, service or process can have and still be considered to have acceptable quality.
Card Set
BBA 330 Chapter 2 vocabulary
Chapter 2 vocabulary