mgmt339-exam2

• Reactive
• Emphasis is on finding and correcting defects before they reach the market.

• Proactive
• Focuses on preventing mistakes from occurring.
• Greater emphasis on customer satisfaction.
• Involves all manager and workers in a continuing effect to improve quality.

• Quality of design
• Quality of comformance
• Ease-of-Use and user instructions
• After-the-sale service

Intention of designers to include or exclude features in a product or service.

The degree to which goods or services conform to the intent of the designers.

Increase the likelihood that a product will be used for its intended purpose and in such a way that it will continue to function properly and safely.

Taking care of issues and problems that arise after the sale.

promotes worldwide standards for the improvement of quality, productivity, and operating efficiency through a series of standards and guidelines.

Set of international standards on quality management and quality assurance, critical to international business.

A set of international standards for assessing a company's environmental performance.

A framework for problem solving and improvement activities.

• Begin by studying and documenting the current process.
• Collect data ont he process or problem.
• Analyze the data and develop a planf or improvement
• Specify measures for evaluating the plan.

Implement the plan, document any changes made, collect data for analysis.

• Evaluate the data collection during the do phase.
• Check results against goals formulated during the plan phase.

• If the results are successful, standardize the new method and communicate it to the relevant personnel.
• Implement training for the new method.
• If unsuccessful, revise the plan and repeat the process.

• What?
• Why?
• Where?
• When?
• Who?
• How?
• How much?

*SEE PG. 446*

• Random variation (common cause)
• Assignable variation (special cause)

Natural variation in the output of a process, created by countless minor factors.

A variation whose cause can be identified.

• A time ordered plot of representative sample statistics obtained from an ongoing process (e.g. sample means), used to distinguish between random and nonrandom variability.
• Upper and lower control limits define the range of acceptable variation.

Generate data that are measured.

Generate data that are counted.

• Mean control charts
• Range control charts

• Used to monitor the central tendency of a process.
• x-bar charts

• Used to monitor the process dispersion.
• R-charts

• p-chart
• c-chart

Control chart used to monitor the proportion of defectives in a process.

Control chart used to monitor the number of defects per unit.

• The sequence of organization - their facilities, functions, and activities - that are involved in producing and delivering a product or service.
• Sometimes referred to as value chains.

• 1. Purchasing receives the requisition
• 2. Purchasing selects a supplier
• 3. Purchasing places the order with a vendor
• 4. Monitoring orders
• 5. Receiving orders

Evaluating the sources of supply in terms of price, quality, reputation, and service.

• Inventory location
• Inventory velocity
• The bullwhip effect

• Centralized inventories
• Decentralized inventories

The speed at which goods move through a supply chain.

Inventory oscillations that become increasingly larger looking backward through the supply chain.

A technology that uses radio waves to identify objects, such as goods in supply chains.

• Are able to convey much more information.
• Do not require line-of-sight for reading.
• Do not need to be read one at a time.

• Active - on-board power supply, more expensive
• Passive - less expensive

• the use of electronic techonlogy to facilitate business transactions.
• Applications include - internet buying and selling, e-mail, order and shipment tracking, electronic data interchange, product and service promotion, and provide information about products and services.

• Appraisal Costs
• Prevention Costs
• Failure Costs

Costs of activities designed to ensure quality or uncover defects.

All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring.

• costs insurred by defective parts/products or faulty services.
• Internal failure costs - costs incurred to fix problems that are detected before the product/service is delivered to the customer.
• External failure costs - all costs incurred to fix problem that are detected after the product/service is delivered to the customer.