created by Congress to stimulate efforts to improve quality, and to recognize quality achievements. Limited to U.S. companies.
also called a fishbone diagram; a problem solving tool resembling the skeleton of a fish.
the characteristics of the product satisfy the established standard for the characteristics.
philosophy that seeks to make never-ending improvements in the process of converting inputs into outputs.
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
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.
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
internal failure costs
costs incurred because of defective products or faulty services which are discovered before the sale.
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.
the legal responsibility of a producer for defects of a product or service that cause injury, harm, or property damage.
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.
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.
the ability of a product or service to consistently meet or exceed the customers' expectations.
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.
a business process for improving quality, reducing costs, and increasing customer satisfaction.
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.
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.
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
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.
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.
recognized as one of the first to measure the 'cost of quality' and viewed quality as 'fitness for use.'
flow charts, check sheets, Pareto analysis, brainstorming, control charts, interviewing, quality circles, benchmarking, cause-and-effect diagrams, and run charts.
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.