total quality management
managing the entire organization so that it excels on all levels of products and services
Malcome Baldrige National Quality Award
award given by US gov’t to companies with superior quality
design quality
inherent value of the product in the marketplace
conformance quality
the degree to which the product or design specifications are met
quality at the source
the person who does the work is responsible for the meeting the specifications
dimensions of quality
criteria by which the quality is measured
cost of quality
expenditures related to achieving product or service quality
4 quality costs
internal failure costs
external failure costs
appraisal costs
prevention costs
appraisal costs
costs of inspection and testing
prevention costs ( and examples)
sum of all the costs to prevent defects
- identify defect
- correct defect
- train personell
- redesign
- purchase new equipment
internal failure costs
costs for defects incurred within the system
- scrap
- work
- repair
external failure costs
costs for defects that pass through the system
- customer warranty replacements
- loss of customers
- complaints
- product repair
ISO’s
formal standards for quality certification created by the international organization for standardization
ISO 9000
business-to-business focus
ISO 14000
environmental focus
seven ISO 9000 standards
customer focus leadership involvement of people process approach continuous improvement factual approach to decision making mutually beneficial supplier relationship
ISO 14000 three-pronged approach
- Definition of more than 350 international standards for monitoring the quality of air, water, and soil
- Defining the requirements of an environmental management system that can be implemented using the monitoring tools
- Environmental standard encourages the inclusion of environmental aspects in product design and encourages the development of profitable environment-friendly products and services
Three forms of certification
- First party: A firm audits itself against ISO 9000 standards
- Second party: A customer audits its supplier
- -Third party: A “qualified” national or international standards or certifying agency serves as an auditor (best certification)
External benchmarking:
looking outside the company to examine what excellent performers inside and outside the company’s industry are doing in the way of quality
two steps of external benchmarking
Identify processes needing improvement
Analyze data
Six Sigma
statistical term to describe the quality goal of no more than 3.4 defects out of every million units- refers to a quality improvement philosophy and program
Defects per million opportunities (DPMO):
metric used to describe the variability of a process- requires three pieces of data:
three pieces of data needed for DPMO
- Unit- item produced or being serviced
- Defect- any item or event that does not meet the customer’s requirements
- Opportunity- chance for a defect to occur
Six Sigma Methodology
Define (D) Measure (M) Analyze (A) Improve (I) Control (C)
