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57 Cards in this Set

  • Front
  • Back

Based on the degree to which the product or service meets the needs and expectations of the user.

User Based

Based on the degree to which the product or service contains precise and measurable variables and attributes.

Product Based

Based on the degree to which the product or service conforms to pre-established standards and specifications.
Manufacturing Based

The degree to which a product's physical and performance characteristics match pre-established standards.

Conformance

The functioning of the primary operating characteristics of a product.

Performance

The secondary characteristics that supplement the basic functioning of the product. (The special touches, appointments, or accessories of a product.)
Features

The probability that a product will function as expected without failure; surviving fora stated period of time under normal conditions of use.

Reliability

The ability of a product to function when subjected to hard and frequent use, or to function beyond its life expectancy.
Durability

The ability to have a product repaired in a speedy, courteous, and competent manner.

Serviceability

The sensory perceptions of a product (the look, feel, sound, taste, or smell of a product).

Aesthetics

When there is a physical commodity accompanying the service delivery, any of the determinants of product quality might be appropriate to use.

Tangibles

Service provider can be depended upon to provide the service in an accurate andtimely fashion

Reliability

Service personnel can react quickly to resolve unexpected problems.

Responsiveness

Service personnel possess the required skills and knowledge to perform the service.

Competence

Service location ease of contact, approachability, hours of operation, parking, etc.

Access

Service personnel demeanor

Courtesy

Service personnel’s ability to converse with customers in a clear and understandable manner.

Communication

Trustworthiness, believability, and honesty of service personnel.

Credibility

Customer freedom from danger, risk, or doubt in the service encounter.

Security

Service provider’s awareness of customers’ specific needs and expectations.

Understanding

When there are exceptions or problems with the service delivery, it is important for organizations to have _____.




This falls into the area of responsiveness; front-line employees need to be trained and empowered to institute corrective actions to immediately solve a problem with a service delivery.

Service Recovery Strategies

Costs over which managers have direct control

Prevention Cost


Appraisal Cost

Costs over which managers have indirect control

Internal Failure Cost


External Failure Cost

Expenditures for any activities which attempt to prevent nonconforming product or service output from occurring.

Prevention Cost

Expenditures for any activities which aid in the detection of nonconforming product or service output.

Appraisal Cost

Any cost incurred as a result of nonconforming product or service output that is detected before it reaches the customer.

Internal Failure Cost

Any cost incurred as a result of nonconforming product or service output that reaches the customer.

External Failure Cost

Prevention Cost attributes

· Quality planning andadministration


· Process analysis and improvement


· Design and development of quality information equipment


· Quality training and work-force development


· Equipment replacement

Appraisal Cost attributes

· Test and inspection of purchased materials


· Laboratory acceptance testing and other measurement services


· In-process inspection and testing


· Finished product testing and inspecting


· Test and inspection equipment and material


· Field testing


· Training costs for inspectors

Internal Failure Cost attributes

· Scrap (labor + material)


· Rework (labor + material)


· Additional material procurement costs


· Disposal costs


· Downgrading costs


· Product and production engineering time spent on quality problems


· Production disruption ,downtime, and rescheduling

External Failure Cost attributes

· Warranty costs


· Complaints out of warranty


· Service cost to correct defects


· Product liability


· Product recall


· Product returns


· Loss of reputation, sales, and profits

Impact of Prevention Expenditure on Failure Costs

-Increased Prevention Expenditure


leads to...


-Reduced Percent Nonconforming


leads to...


-Reduced External Failure Cost and Reduced Internal Failure Cost

Impact of Appraisal Expenditure on Failure Costs

-Increased Appraisal Expenditure


leads to...


-Increased Percent Nonconforming Detected


leads to...
-Reduced External Failure Cost and Increased Internal Failure Cost

Ideal value for some aspect of the product or service.

Target

Acceptable deviations from the target.

Tolerances

Target and Tolerances examples

Manufacturing Example:

The diameter of a manufactured part is supposed to be 5 centimeters ± .2 centimeters




Service Example:


A steak ordered medium is supposed to be cooked to an internal temperature of 160F ± 5F

As long as the observed reading for the item being assessed was within the stated tolerance range, the item was deemed to be conforming (not defective). If the observed reading for the item was outside the stated tolerance range, the item was deemed to be non-conforming (defective).




This has since fallen out of favor

Traditional Thinking or Goalpost Mentality

When its within range, its not a complete service gain or lost, but rather a degree of the position in the range (it can be within range and still have some loss)




V-shaped on a graph

Modern View or Taguchi Loss Function

Failure costs occur when we are either above or below the target




Not all situations relate to this

Two Sided Loss Functions

Deviations below the Target Are Acceptable


Deviations above the Target Are Acceptable




Below: Car was advertised to go 0-60 in 8 seconds, but it really can in 7 seconds



Above: Car was advertised to get 25 mpg, when it really gets 28 mpg

One Sided Loss Functions

Total Quality Management (TQM) attributes

Customer Focus


Continuous Improvement


Employee Empowerment

Defines quality as meeting or exceeding customer expectations. This means listening to the voice of the customers, gathering information about their wants, needs, and expectations, then translating these into the product or service design. Adheres to a user based definition of quality.

Customer Focus

Prescribes that we always look for ways to improve the product, process or service, even if the improvements are seemingly minor. This is often facilitated by using a process known as benchmarking.

Continuous Improvement

Recognizes that front line employees are closest to the action and can often provide valuable knowledge to help improve operations. They are given the authority to make decisions to improve quality and enhance customer satisfaction.This is often facilitated by the use of quality circles.

Employee Empowerment

Involves selecting a set of products, services, costs, or practices that represent the very best performance, and then emulating (or copying) that performance on similar processes or activities within your organization.

Benchmarking

This type of benchmarking is typical for large organizations that have many divisions or business units. They may find exceptional performance within one or more of their own units, in which case they can then use those high levels of performance as their benchmark standards.

Internal Benchmarking

This type of benchmarking occurs when organizations focus on identifying and emulating the best in class products, services, and/or practices of their direct competitors.

Competitive Benchmarking

This type of benchmarking occurs when organizations identify and emulate superior processes, practices, and business functions of the best companies, regardless of their industry.

Generic Benchmarking

A small group of employees (usually about 8-10 or so) who meet regularly (typically weekly, on company time) to solve problems or identify areas for improvement within their work area. Team members receive training in group planning, problem solving, and statistical quality control.

Quality Circles

A form designed for collecting and recording data related to problems, defects, complaints, or nonconformance.

Check Sheet

A bar chart that shows the frequency distribution of observed values for the nonconforming incidents.

Histogram

A chart that rearranges the histogram bars into decreasing order of magnitude, and then superimposes a cumulative proportion curve on the chart to display cumulative percent of total nonconformance occurrences due to a particular set of incidents or problems.
Pareto Chart

A device used to record measurements from successive samples of a process to determine whether the process is operating according to expectations. It can further corroborate the fact that there is a problem to be dealt with, or an issue of concern.

Control Chart

A schematic diagram displaying the sequence of steps involved in an operation or process.

Flowchart

Graphical device that organizes potential causes of a particular quality problem into categories. Also called a fish-bone chart or Ishikawa diagram.

Cause-And-Effect Diagram

A graph that shows how two variables are related to one another.

Scatter Diagram

Add Graphs Later

Add Graphs Later