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| Any instance when a process fails to satisfy its customer |
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| are associated with preventing defects before they happen |
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| are incurred when the firm assesses the performance level of its processes |
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| result from defects that are discovered during production of services or products. |
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| arise when a defect is discovered after the customer receives the service or product. |
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| A term used by customers to describe their general satisfaction with a service or product. |
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(TQM) is a philosophy that stresses three principles for achieving high levels of process performance and quality:
Customer satisfaction
Employee involvement
Continuous improvement in performance |
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| How a service or product conforms to performance specifications. |
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| How well the service or product serves its intended purpose at a price customers are willing to pay. |
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| How well a service or product performs its intended purpose. |
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| Support provided by the company after a service or product has been purchased. |
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| Psychological impressions |
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| atmosphere, image, or aesthetics |
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| is a philosophy whereby defects are caught and corrected where they were created. |
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| Small groups of people who have a common purpose, set their own performance goals and approaches, and hold themselves accountable for success. |
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| is an approach to teamwork that moves responsibility for decisions further down the organizational chart to the level of the employee actually doing the job. |
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| Another name for problem-solving teams; small groups of supervisors and employees who meet to identify, analyze, and solve process and quality problems. |
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| Groups that address issues of paramount concern to management, labor, or both. |
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| A small group of employees who work together to produce a major portion, or sometimes all, of a service or product. |
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is the philosophy of continually seeking ways to improve processes based on a Japanese concept called kaizen.
Train employees in the methods of statistical process control (SPC) and other tools.
Make SPC methods a normal aspect of operations.
Build work teams and encourage employee involvement.
Utilize problem-solving tools within the work teams.
Develop a sense of operator ownership in the process. |
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| Statistical process control |
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| is the application of statistical techniques to determine whether a process is delivering what the customer wants. |
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| is the application of statistical techniques to determine whether a quantity of material should be accepted or rejected based on the inspection or test of a sample. |
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| Service or product characteristics that can be measured, such as weight, length, volume, or time. |
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| Service or product characteristics that can be quickly counted for acceptable performance. |
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| A plan that specifies a sample size, the time between successive samples, and decision rules that determine when action should be taken. |
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| A quantity of randomly selected observations of process outputs. |
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| is the sum of the observations divided by the total number of observations |
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| is the difference between the largest observation in a sample and the smallest |
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| is the square root of the variance of a distribution. |
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| can be characterized by its location, spread, and shape. |
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| is measured by the mean of the distribution |
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| is measured by the range or standard deviation. |
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| process distributions can be characterized as either symmetric or skewed. |
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| has the same number of observations above and below the mean. |
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| has a greater number of observations either above or below the mean. |
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| are the purely random, unidentifiable sources of variation that are unavoidable with the current process. |
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| results solely from common causes of variation, a typical assumption is that the distribution is symmetric, with most observations near the center |
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| of variation are any variation-causing factors that can be identified and eliminated, such as a machine needing repair. |
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| occurs when the employee concludes that the process is out of control based on a sample result that falls outside the control limits, when in fact it was due to pure randomness. |
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| occurs when the employee concludes that the process is in control and only randomness is present, when actually the process is out of statistical control. |
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| is used to monitor process variability. |
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| is used to see whether the process is generating output, on average, consistent with a target value set by management for the process or whether its current performance, with respect to the average of the performance measure, is consistent with past performance. |
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A chart used for controlling the proportion of defective services or products generated by the process
p = p(1 – p)/n |
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| is the ability of the process to meet the design specifications for a service or product. |
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| is a target for design specifications. |
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| is an allowance above or below the nominal value. |
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| is an approach originated by Genichi Taguchi that involves combining engineering and statistical methods to reduce costs and improve quality by optimizing product design and manufacturing processes. |
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is the rationale that a service or product that barely conforms to the specifications is more like a defective service or product than a perfect one.
Quality loss function is optimum (zero) when the product’s quality measure is exactly on the target measure. |
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is a comprehensive and flexible system for achieving, sustaining, and maximizing business success by minimizing defects and variability in processes.
It relies heavily on the principles and tools of TQM
It is driven by a close understanding of customer needs; the disciplined use of facts, data, and statistical analysis; and diligent attention to managing, improving, and reinventing business processes. |
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| Six Sigma Improvement Model |
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1. Define Determine the current process characteristics critical to customer satisfaction and identify any gaps.
2. Measure Quantify the work the process does that affects the gap.
3. Analyze Use data on measures to perform process analysis.
4. Improve Modify or redesign existing methods to meet the new performance objectives.
5. Control Monitor the process to make sure high performance levels are maintained. |
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Top Down Commitment from corporate leaders.
Measurement Systems to Track Progress
Tough Goal Setting through benchmarking best-in-class companies.
Education: Employees must be trained in the “whys” and “how-tos” of quality.
Communication: Successes are as important to understanding as failures.
Customer Priorities: Never lose sight of the customer’s priorities. |
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