Chapter 9 Management of Quality
A)Introduction
1. Quality (381)- The ability of product or service to consistently meet or exceed custom expectations.
B) The Foundations of Modern Quality Management: The Gurus
1. Deming Prize (383)- Prize established by the Japanese and awarded annually to firms that distinguish themselves with quality management programs.
C) Insights on Quality Management
a) Defining Quality: The Dimensions of Quality
1. Dimensions of Quality (386)- Performance, aesthetics, special features, conformance, reliability, durability, perceived quality, and serviceability.
b) The Determinants of Quality
1. Quality of Design (388)- Intention of designers to include or exclude features in a product or service.
2. Quality of Conformance (388)- The degree to which goods or services conform to the intent of the designer.
c) The Cost of Quality
1. Appraisal Costs ( 391)- Costs of activities designed to ensure quality or uncover defects.
2. Prevention Costs (391)- Costs of preventing defects from occurring.
3. Failure Costs (391)- Costs caused by defective parts or products or by faulty services.
4. Internal Failures (391)- Failures discovered during production.
5. External Failures (391)- Failures discovered after delivery to the customer.
6. Return on Quality (392)- An approach that evaluates the financial return of investments in quality.
D) Quality Awards
1. The Baldrige
Award (393)- Annual award given by the
2. The European Quality Award (395)- European award for organizational excellence.
E) Quality Certification
1. ISO 9000 (396)- A set of international standards on quality management
and quality assurance, critical to international business.
2. ISO 14000 (396)- A set of international standards for assessing a company’s environmental performance.
F) Total Quality Management
1. Total Quality Management (398)- A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.
2. Fail-Safing (398)- Incorporating design elements that prevent incorrect procedures.
3. Continuous Improvements (398)- Philosophy that seeks to make never ending improvements to the process of converting inputs to outputs.
4. Kaizen (399)- Japanese term for continuous improvements.
5. Quality at the Source (399)- The philosophy of making each worker responsible for the quality of his or her work.
6. Six Sigma (400)- A business process for improving quality, reducing costs, and increasing customer satisfaction.
G) Problem Solving
1. The Plan-Do-Study-Act (404)- A framework for problem solving and improvement activities.
H) Process Improvements
1. Process improvement (406)- A systematic approach to improving a process.
I) Quality Tools
1. Flowchart (407)- A diagram of the steps in a process.
2. Check Sheet (407)- A tool for recording and organizing data to identify a problem.
3. Histogram (407)- A chart of an empirical frequency distribution.
4. Pareto Analysis (407)- Technique for classifying problem areas according to degree of importance, and focusing on the most important.
5. Scatter Diagram (409)- A graph that shows the degree and direction of relationship between two variables.
6. Control Chart (411)- a statistical chart of time ordered values of a sample statistic.
7. Cause and Effect Diagram (411)- Used for the cause of a problem; Also called Fishbone diagram.
8. Run Charts (414)- Tool for tracking results over a period of time.
a) Methods for Generating Ideas
1. Brainstorming (415)- Technique for generating a free flow of ideas in a group of people.
2. Quality Circles (416)- Groups of workers who meet to discuss ways of improving products or processes.
3. Interviewing (417)- technique for identifying problems and collecting information.
4. Benchmarking (417)- Process of measuring performance problems and collecting information.
5.5W2H Approach (418)- A method of asking questions about a process that includes what, why, where, who, how and how much.