Definitions of Quality
ASQ
User-Based
Manufacturing-Based
Product-Based
The Malcolm Baldrige National Quality Award
an award established by the U.S. Congress in 1987 to raise awareness of quality management and recognize U.S. companies that have implemented successful quality management systems
ISO Quality Standards
a company or organization must submit documents that report its internal processes, procedures and standards. These documents (or Quality Management System) determines that a company is able to provide quality products and services consistently
Process-Focused Strategy
(Project, Job Shop, Batch Shop)
- Facilities are organized by process
- Similar processes are together
– Example: All drill presses are together, all saws
are together, - Low volume, high variety products
Repetitive Focused Strategy
(Assembly line, Production Line)
- Facilities often organized by assembly lines
- Characterized by modules
– Parts & assemblies made previously - Modules combined for many output options
Product-Focused Strategy
(Continuous Flow)
- Facilities are organized by product
- High volume, low variety products
Mass Customization
- Using technology and imagination to rapidly
mass-produce products that cater to sundry
unique customer desires. - Under mass customization the three process
models become so flexible that distinctions
between them blur, making variety and volume
issues less significant.
Capacity
The “throughput,” or number of units a
facility can hold, receive, store, or produce in a
period of time
Design capacity
Capacity a firm is designed to
have. Also called Best Operating Level
Utilization
Actual output as a percent of Design
Capacity
