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44 Cards in this Set

  • Front
  • Back
Process Capability Index, CPK
An index that measures the potential for a process to generate defective outputs relative to either upper or lower specifications.
Process Capability ratio, CP
The tolerance width divided by 6 standard deviations.
Quality
Term used by customers to describe their general satisfaction with a service or product
Quality at the source
Philosophy whereby defects are caught and corrected where they were created
Quality circles
Another name for problem-solving; small groups of supervisors and employees who meet to identify , analyze, and solve process and quality problems
Quality engineering
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 process.
Quality loss function
The rationale that a service or product that barely conforms to the specifications is more like a defective service or product than a pefect one
R-Chart
Monitors process variability
Sample Size
A quantitiy of randomly selected observations of process outputs
Sampling Plan
Specifies a sample size, the time between successive samples, and decision rules that determine action should be taken
acceptance sampling
application of stat tech. to determine whether a quantity of material should be accepted or rejected based on the inspection or test of a sample
appraisal costs
costs incurred when the firm assess the performance level of its processes
assignable causes of variation
any variation causing factors that can be identified and elimanted
attributes
service or product characteristic that can be quickly counted for acceptable performance
black belt
employee who reached the highest level of training in a six sigma program and spends all of his time teaching and leading teams involved in six sigma projects
common causes of variation
purely random unidentifiable sources of variation that are unaviodable with the current process
continous improvement
philosphy of continually seeking ways to improve processes based on a japanese concept called kaizen
control chart
time ordered diagram that is used to determine whether observed variations are abnormal
defect
instance when a process fails to satisfy its customer
employee empowerment
approach to teamwork that moves responsibility for decisions further down the organizational chart to the level of the employee actually doing thejob
external failure costs
costs that arise when a defect is discovered after the customer receives the srvice or products
green belt
employee who achieved the first level of training in a six sigma program and spends part of his or her time teaching and helping teams with their projects
internal failure costs
costs resulting from defects that are discovered during the production of a service or product
iso 9000:2000 200
set of standards giverning documentation of a quality program
iso 14000:2004 200
documentation standards that require participating comapnies to keep track of their raw materials use and their generation treatment and disposal of hazardous wastes
malcolm baldrige national quailty award
award anmed for the late secretary of commerce who was a string proponent of enhancing quality as a means of reducing the trade deficit; the award promotes recognizes and publicizes quality startegies and achievements
master black belt
full time teahcer and mentor to several black belts
nominal value
target for design specifications
p chart
chart used for controlling the proportion of defective services or products generated by the process
Self-managed team
Small group of employees who work together to produce a major portion, or sometimes all, of a service pr product
Six Sigma
Comprehensive and flexible system for achieving, sustaining, and maximizing business success by minimizing defects and variability in processes
Special-purpose teams
Groups that address issues of paramount concern to management, labor, or both
Statistical process control, SPC
The application of statistical techniques to determine whether a process is delivering what the customer wants
Teams
small groups of people who have a common purpose, set their own performance goals and spproaches, and hold themselves accountable for success
Tolerance
An allowance above or below the nominal value
Total Quality Management, TQM
Philosophy that stresses 3 principles for achieving high levels of process performance and quality;customer satisfaction, employee involvement, and continous improvement in performance
Type 1 error
Occurs when the employees 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
Type 2 error
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
Variables
Service or product charcteristics, such as weight, length, volume or time, that can be measured
plan do study act cycle
cycle also called the demng wheel used by firms actively engaged in continous improvement to train their work teams in problem solving
preventions costs
costs associated with preventing defects before they happen
process capability
ability of the process to meet the design specfications for a service or product.
Warranty
Written guarantee that the producer will replace or repair defective parts or perform the service to the customer's satisfaction
X- Chart
Sees whether the process is generating output, an 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 a past performance