Ops Management Chp. 6 Definitions

Front 1

defect

Back 1

any instance when a process fails to satisfy its customer

Front 2

prevention costs

Back 2

cost associated with preventing defects before they happen

Front 3

appraisal costs

Back 3

costs incurred when the firm assesses the performance level of its processes

Front 4

internal failure costs

Back 4

costs resulting from defects that are discovered during the production of a service or product

Front 5

external failure costs

Back 5

costs that arise when a defect is discovered after the customer receives the service or product

Front 6

warranty

Back 6

a written guarantee that the producer will replace or repair defective parts or perform the service to the cutomer's satisfaction

Front 7

total quality management (tqm)

Back 7

a philosophy that stresses three principles for achieving high levels of process and quality: customer satisfaction, employee involvement, and continuous improvement in performance

Front 8

quality

Back 8

a term used by customers to describe their general satisfaction with a service or product

Front 9

quality at the source

Back 9

a philosphy whereby defects are caught and corrected when they were created

Front 10

teams

Back 10

small groups of people who have a common purpose, set their own performance goals and approaches, and hold themselves accountable for success

Front 11

employee empowerment

Back 11

an approach to teamwork that moves responsibility for decisions further down the organizational chart---to the level of the employee actually doing the job

Front 12

quality circles

Back 12

another name for problem-solving teams; small groups of supervisors and employees who meet to identify, analyze, and solve process and quality problems

Front 13

special-purpose teams

Back 13

groups that address issues of paramount concern to management, labor, or both

Front 14

self-managed team

Back 14

a small group of employees who work together to produce a major portion, or sometimes all, of a service or product

Front 15

continous improvement

Back 15

the philosophy of continually seeking ways to improve processes based on a Japanese concept called kaizen

Front 16

plan-do-check-act cycle

Back 16

A cycle, also called the Deming Wheel, used by firms actively engaged in continous improvement to train their work teams in problem solving.

Front 17

statistical process control (SPC)

Back 17

the application of statistical techniques to determine whether a process is delivering what the customer wants

Front 18

acceptance smapling

Back 18

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

Front 19

variables

Back 19

service or product characteristics, such as weight, length, volume, or time, that can be measured

Front 20

attributes

Back 20

service or product characterisitcs that can be quickly counted for acceptance performance

Front 21

sampling plan

Back 21

a plan that specifies a sample size, the time between successive samples, and decision rules that determine when action should be taken

Front 22

sample size

Back 22

a quantity of randomly selected observations of process outputs

Front 23

common causes of variation

Back 23

the purely random, unidentifiable sources of variation that are unavoidable with the current process

Front 24

assignable causes of variation

Back 24

any variation-causing factors that can be identified and eliminated.

Front 25

control chart

Back 25

a time-ordered diagram that is used to determine whether observed variations and abnormal

Front 26

type 1 error

Back 26

an error that 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

Front 27

type 2 error

Back 27

an error that 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

Front 28

R-chart

Back 28

A chart usedto monitor process variability

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x chart

Back 29

A chart 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

Front 30

p-chart

Back 30

A chart used for contolling the proportion of defective services or products generated by the process.

Front 31

c-chart

Back 31

A chart used for controlling the number of defects when more than one defect can be present in a service or product

Front 32

process capability

Back 32

the ability of the process to meet the design specifications for a service or product

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nominal value

Back 33

a target for design specifications

Front 34

tolerance

Back 34

an allowance above or below the nominal value

Front 35

process capability ration, Cp

Back 35

The tolerance with divided by 6 standard deviations (process variability);
Cp= upper specification-lower specification/6(standard deviation of the process distribution)

Front 36

quality engineering

Back 36

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.

Front 37

quality loss function

Back 37

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

Front 38

Six Sigma

Back 38

A comprehensive and flexible system for achieving, sustaining, and maximizing business success by minimizing defects and variability in processes

Front 39

Green Belt

Back 39

An 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

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Black Belt

Back 40

An employee who reacted the highest level of training in a Six Sigma program and spends all of his or her time teaching and leading teams involved in Six Sigma projects

Front 41

Master Black Belt

Back 41

Full-time teachers and mentors to several Black Belts

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ISO 9000

Back 42

A set of standards governing documentation of a quality program

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ISO 14000

Back 43

Documentation standards that require participating companies to keep track of their raw materials use and their generation, treatment, and disposal of hazardous wastes

Front 44

Malcolm Baldridge National Quality Award

Back 44

An award named for the late secretary of commerce, who was a strong proponent of enhancing quality as a means of reducing the trade deficit; the award promotes, recognizes, and publicizes quality strategies and achievements.