COMMERCE 2OC3 Study Guide - Midterm Guide: Histogram, Johnsonville Foods, Scatter Plot
Perspectives of Quality
High quality products offer desirable attributes based on customer demand
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User-centric quality focuses on what customers want - good performance , more features, timely service, comprehensive
warranties
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Product-centric quality focuses on specific product attributes that can be measures
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Manufacturing-centric quality focuses on production processes - conformance to standards, output specifications, six sigma
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Examples: Baros Maldives Hotel, Rapscallion Rogue Eatery
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Quality is the totality of features and characteristics of a product or services that bears on its ability to satisfy explicit or implicit needs.
Quality Standards
ISO 9001 for international engineering standards
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ISO 14000 for environmental management
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Hazard Analysis Critical Control Point (HACCP) for food processors, including Diary Farmers of Canada, Alberta Beef Producers,
Steam Whistle Brewing
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Both a lack of quality, and quality (prevention, appraisal, internal failure, external costs) are costly
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Murphy's Law states that "anything that can go wrong, will go wrong" - make production process right the first time, before it
goes wrong for the consumer later
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Standards are sets of common procedures and metrics that assure customers and suppliers that a level of quality is being adhered to.
Encompasses entire organization from supplier to consumer
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Stresses commitment by management to have continuing, company-wide drive towards excellence in all aspects of products
and services that are important to the customer
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Total Quality Management
Continuous
improvement
Ongoing process denoted by kaizan -
always achieving for higher goals
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Continuously analyze and improve all processes
in company by applying Walter Shewhart's PDCA
Six sigma
Statistically reduce variability to identify
and remove causes of defects
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Developed by Motorola
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Limit to 3.4 defects per million
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Conceptually reduce defects to lower cost, save
time, and improve customer satisfaction
Define areas to improve
1.
Collect data
2.
Analyze data with statistical analysis
3.
Modify or redesign the process
4.
Maintain improvements
5.
Conceptual steps:
Subtopic: Process
capability
Capable process has a
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= process capability ratio
= process capability ratio
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Capable process has a
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Employee
Getting all employees involved in improvement of products and processes
Quality Management
January 30, 2018
2:42 PM
Operations Management Page 1