Quality Management

Question 1

Why have customer expectations of quality increased? (two reasons)

Answer 1

1) Automated manufacturing

2) Adoption of international quality standards

Question 2

What is the basic concept behind quality management?

Answer 2

Customer satisfaction- firms try to measure through surveys, the most common sales returns, warranty cost, and customer complaints

Question 3

What is the definition of Quality of Design?

Answer 3

Meeting or exceeding the needs and wants of customers

Question 4

What is the definition of quality of conformance?

Answer 4

Conforming to the design specifications

Question 5

The cost to make sure products have a high quality of conformance are known as COSTS OF QUALITY, WHAT ARE THE FOUR CATEGORIES?

Answer 5

Voluntary Cost of Quality

• Prevention Costs- Cost incurred to prevent the production of defective products
• Appraisal costs- Costs incurred to identify defective products during the manufacturing process (inspection and test of functionality)

Involuntary Cost of Quality

• Internal failure cost- cost of defective components and final products identified prior to delivery to the customer
• External failure cost- cost caused by failure of products in the hands of the product

Question 6

What is six-sigma?

Answer 6

Statistical measure that helps determine how close a product will come to meeting its quality goal

One Sigma = 68%

Three Sigma = 99.7%

Six-Signma= 99.999997% perfect