Upgrade to remove ads
Only $35.99/year

Operations Managment

Terms in this set (26)

Prevention Costs
-Costs associated with preventing poor quality expended before a product or service is produced.
-Costs of reducing the potential for defects
Appraisal Costs
-Costs that are incurred for the inspection and testing to determine the condition of the product during and after it is produced but before it is released to the customer
-Costs of inspecting and evaluating products
Failure Costs
-Cost of letting a customer purchase a defective part/product or faulty service.
-2 categories: Internal and External failure costs.
Forecast
Rational prediction of future performance of a specific quantity of interest, based on past results/observed occurrences
Strategic Importance
-Human Resources
-Demand
-Capacity
-Supply-Chain Managment
Human Resources
Hiring, training, laying off workers
Demand
Predict sales volume and revenue
Capacity
Capacity shortages can result in undependable delivery, loss of customers, loss of market share
Supply-Chain Managment
Good supplier relations and price adcance
Service Quality
Technical and functional quality
Technical Quality
Related to the core element of service
Functional Quality
Relates to the customers' perception of how the service is delivered
Customer Focus
Quality is the ability of the service to consistently meet or exceed customer expectations
Gap 1
Not knowing what the customer expects
-Difference between what customers want and what managers think customers want
Gap 2
The wrong service quality standards
-Difference between what managers think customers want and the service they designed and delivered
-inadequate conformance to standards
Gap 3
Service performance gap
-Differences between service specifications and the actual service delivered
-When employees are unable/ unwilling to perform service at the desired level
Gap 4
When promises do not match delivery
- difference between what was promised and what was actually delivered
- exaggeration of claimed performance
Gap 5
Expected vs. Perceived Service
-Differences between what a customer expected and what he thinks he got
-Depends on subjectivity of customer
- MOST IMPORTANT GAP
TQM
Total Quality Management
Stresses company wide drive towards excellence
Quality Managment
Emphasis not on total but focuses just on Quality management, more targeted
W. Edward Deming
14 points Special and common causes of variations
Joseph M Juran
Quality is fitness for use-- Quality trilogy
Phillip Crosby
Quality is free. Prevention of problems zero defects (do it right the first time)
Kaoru Ishikawa
Cause and effect (CE) diagrams. -- Quality circles
Deming's 14 points
1 Create consistency of purpose
2 Lead to promote change
3 build quality into the products
4 Build long term relationships
5 Continuously improve product, quality and service
6 Start training
7 emphasized leadership
8 Drive out fear
9 Break down barriers between departments
10 Stop haraug
...
...
Students also viewed