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QDC1: Quality, Operations, and Decision Sciences ch9

affinity diagram

a tool used to organize data into logical categories.

appraisal costs

costs related to appraising quality, such as inspection, testing, and so on.

Baldrige Award

created by Congress to stimulate efforts to improve quality, and to recognize quality achievements. Limited to U.S. companies.


the process of measuring performance against the best in the same or another industry.


a technique for generating a free flow of ideas in a group of people.

cause-and-effect diagram

also called a fishbone diagram; a problem solving tool resembling the skeleton of a fish.

check sheet

a tool for recording data to identify a problcustomer expectations.


the characteristics of the product satisfy the established standard for the characteristics.

continuous improvement

philosophy that seeks to make never-ending improvements in the process of converting inputs into outputs.

control chart

a statistical chart of time-ordered values of a sample statistic.

dimensions of quality

used for operational definitions of quality. Included are performance, special features, reliability, durability, perceived (or reputed) quality, and service after the sale, etc

European Quality Award

Europe's most prestigious award for organizational excellence.

external failure costs

costs incurred because of defective products or faulty services which are discovered after the sale.


elements are incorporated into the design of the product which make it virtually impossible for an employee or a customer to do something incorrectly.

fishbone diagram

see cause-and-effect diagram.

5W2H approach

A set of basic questions, five that begin with a W (Who? What? Where? When? Why?) and two that begin with an H (How? and How much?). Used as a basis for process improvement


a diagram of the steps in a process.


a chart of an empirical frequency distribution.

internal failure costs

costs incurred because of defective products or faulty services which are discovered before the sale.


a technique for identifying problems and collecting information.

ISO 9000

a series of standards that outline the requirements for quality management systems. Developed by the International Organization for Standardization, which is comprised of 91 countries, including the U.S. Essential for companies that want to deal with the European Economic Community (EC).


a set of standards which was introduced by the International Organization for Standardization. It is intended to assess a company's performance in terms of environmental responsibility.


Japanese term for continuous improvement.


the legal responsibility of a producer for defects of a product or service that cause injury, harm, or property damage.

Pareto analysis

analysis that organizes categories of items according to degree of importance or frequency of occurrence. The purpose is to direct efforts to those items which have the greatest potential for improvement.

plan-do-study-act (PDSA) cycle

is the conceptual basis for continuous improvement. It provides a structure for improvement efforts.

prevention costs

costs associated with attempts to prevent mistakes from occurring. These include planning and administrative costs, training costs, monitoring operations, working with vendors, and so on.

process improvement

a systematic approach to improving a process.


the ability of a product or service to consistently meet or exceed the customers' expectations.

quality at the source

making each worker responsible for the quality of his or her work.

quality circles

groups of workers who meet to discuss ways of improving products or processes.

quality of conformance

achieving the intent of design in producing a product or delivering a service.

quality of design

the extent to which a product or service possesses features that can meet or exceed the customers' expectations.

return on quality

an approach that evaluates the financial return on investments in quality.

run chart

a tool for tracking results over a period of time.

Six Sigma

a business process for improving quality, reducing costs, and increasing customer satisfaction.

scatter diagram

a graph that shows the degree and direction of the relationship between two variables.

total quality management (TQM)

a philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.

Superior Quality

An organization's reputation for __________ can give it a competitive advantage in the marketplace and can enhance the reputation of the firm, increase its market share, increase the loyalty of the customers, reduce the risk of liability claims, reduce costs, and increase productivity.

Poor Quality

The consequences of ________ relate to loss of business, deterioration of the firm's reputation, product liability and higher costs and expenses. Costs can be categorized as failure costs, appraisal costs, and prevention costs

Improving Quality

by R & D efforts, by efforts of improvement teams, and by suggestions from employees and customers.

Evolution of Quality

Modern quality management stresses prevention of mistakes rather than finding and correcting mistakes after they occur. This has placed increased emphasis on both product design and process design.

Quality Gurus

such as Deming, Juran, Crosby, and Ishikawa have greatly influenced current thinking and practice of quality management.


is best known for his '14 points' for achieving quality and is the namesake of the _________ Prize awarded by the Japanese government to quality programs.


may be best known for the concept of zero defects and 'do it right the first time'.


championed tools such as cause-and-effect diagrams and quality circles.


recognized as one of the first to measure the 'cost of quality' and viewed quality as 'fitness for use.'

Quality Tools

flow charts, check sheets, Pareto analysis, brainstorming, control charts, interviewing, quality circles, benchmarking, cause-and-effect diagrams, and run charts.

Balanced Implementation

Organizations need to avoid the trap of over-emphasizing TQM. Sometimes priorities other than quality may be more important. Failure to plan a program carefully can lead to false starts, employee confusion and meaningless results. A balanced approach is generally the best approach, giving measured emphasis to quality while continuing to give appropriate attention to other aspects of the organization.

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