GMS401 FINAL
Steps to developing benchmarks - 1. determine what to benchmark
2. form a benchmark team
3. identify benchmarking partners
4. collect and analyze benchmarking information
5. take action to match or exceed the benchmark
ISO 9000 - A set of quality standards developed by the International Organization for
Standardization (ISO). Focus is to establish quality management procedures through leadership, detailed
documentation, work instructions and record keeping.
Quality - the ability of a product or service to meet customer needs
4 Categories of Cost of Quality - 1. Prevention costs
2. Appraisal costs
3. Internal failure
4. External costs
Prevention costs - reducing the potential for defects (training)
Appraisal costs - evaluating products, parts and services (testing, inspection)
Internal failure - producing defective parts or service before delivery (rework, scrap, downtime)
External costs - costs that occur after delivery of defective parts or services (returned goods,
liability, costs to society)
,ISO 14000 - A series of environmental management standards that contain 5 core elements:
environment management, auditing, performance evaluation, labelling and life cycle assessment
Total Quality Management (TQM) - management of an entire organization so that it excels in all
aspects of products and services that are important to the customer
Deming's 14 points for implementing quality improvement - 1. create consistency of purpose
2. lead to promote change
3. build quality into the product
4. build long-term relationships based on performance
5. continuously improve product, quality and service
6. start training
7. emphasize leadership
8. drive out fear
9. break down barriers between departments
10. stop haranguing (lecture) workers
11. support, help, improve
12. remove barriers to pride in work
13. institute a vigorous program of education and self-improvement
14. put everybody in the company to work on the transformation
7 Concepts of TQM - 1. continuous improvement
2. six stigma
3. employee empowerment
4. benchmarking
5. just-in-time (JIT)
6. taguchi concepts
7. knowledge of TQM tools
,PDCA - a continuous improvement model that involves 4 stages: plan, do, check, act
Six Stigma - a program to save time, improve quality and lower cots (process with 99.9997%
capability). Developed by Motorola in 1980s
DMAIC - Six stigma improvement model:
1. define (critical outputs and identify gaps for improvement)
2. measure (the work and collect process data)
3. analyze (the data)
4. improve (the process)
5. control (the new processes to make sure new performance is maintained)
Employee Empowerment - enlarging employee jobs so that the added responsibility and authority
is moved to the lowers level possible in the organization
Quality circle - a group of employees meeting regularly with a facilitator to solve work-related
problems in their work area
Benchmarking - selecting demonstrated standard of performance that represents the very best
performance for a process or an activity
3 ways JIT is related to quality - 1. JIT cuts the cost of quality
2. JIT improves quality
3. better quality means less inventory and a better, easier-to-employ JIT system
Taguchi concepts - 3 concepts aimed at improving both product and process quality:
-quality robust
-quality loss function (QLF)
-target-oriented quality
, Quality Robust - products that are consistently built to meet customer needs in spite of adverse
conditions in the production process
Quality Loss function (QLF) - a mathematical function that identifies all costs connected with poor
quality and shows how these costs increase as product quality moves from what the customer wants
Target-oriented quality - a philosophy of continuous improvement to bring a product exactly on
target
TQM Tools for generating ideas - -check sheets
-scatter diagrams
-cause-and-effect diagram
TQM Tools for organizing data - -Pareto charts
-flowcharts
TQM Tools for identifying problems - -histogram
-statistical process control chart
Check sheet - an organized method of collecting data
Scatter diagrams - a graph of the value of one variable vs. another
cause-and-effect diagram - tool that identifies process elements (cause) that might effect an
outcome (fish-bone diagram)
Pareto chart - a graph to identify and plot problems or defects in descending order of frequency
Flowchart - a chart that describes the steps in a process
Steps to developing benchmarks - 1. determine what to benchmark
2. form a benchmark team
3. identify benchmarking partners
4. collect and analyze benchmarking information
5. take action to match or exceed the benchmark
ISO 9000 - A set of quality standards developed by the International Organization for
Standardization (ISO). Focus is to establish quality management procedures through leadership, detailed
documentation, work instructions and record keeping.
Quality - the ability of a product or service to meet customer needs
4 Categories of Cost of Quality - 1. Prevention costs
2. Appraisal costs
3. Internal failure
4. External costs
Prevention costs - reducing the potential for defects (training)
Appraisal costs - evaluating products, parts and services (testing, inspection)
Internal failure - producing defective parts or service before delivery (rework, scrap, downtime)
External costs - costs that occur after delivery of defective parts or services (returned goods,
liability, costs to society)
,ISO 14000 - A series of environmental management standards that contain 5 core elements:
environment management, auditing, performance evaluation, labelling and life cycle assessment
Total Quality Management (TQM) - management of an entire organization so that it excels in all
aspects of products and services that are important to the customer
Deming's 14 points for implementing quality improvement - 1. create consistency of purpose
2. lead to promote change
3. build quality into the product
4. build long-term relationships based on performance
5. continuously improve product, quality and service
6. start training
7. emphasize leadership
8. drive out fear
9. break down barriers between departments
10. stop haranguing (lecture) workers
11. support, help, improve
12. remove barriers to pride in work
13. institute a vigorous program of education and self-improvement
14. put everybody in the company to work on the transformation
7 Concepts of TQM - 1. continuous improvement
2. six stigma
3. employee empowerment
4. benchmarking
5. just-in-time (JIT)
6. taguchi concepts
7. knowledge of TQM tools
,PDCA - a continuous improvement model that involves 4 stages: plan, do, check, act
Six Stigma - a program to save time, improve quality and lower cots (process with 99.9997%
capability). Developed by Motorola in 1980s
DMAIC - Six stigma improvement model:
1. define (critical outputs and identify gaps for improvement)
2. measure (the work and collect process data)
3. analyze (the data)
4. improve (the process)
5. control (the new processes to make sure new performance is maintained)
Employee Empowerment - enlarging employee jobs so that the added responsibility and authority
is moved to the lowers level possible in the organization
Quality circle - a group of employees meeting regularly with a facilitator to solve work-related
problems in their work area
Benchmarking - selecting demonstrated standard of performance that represents the very best
performance for a process or an activity
3 ways JIT is related to quality - 1. JIT cuts the cost of quality
2. JIT improves quality
3. better quality means less inventory and a better, easier-to-employ JIT system
Taguchi concepts - 3 concepts aimed at improving both product and process quality:
-quality robust
-quality loss function (QLF)
-target-oriented quality
, Quality Robust - products that are consistently built to meet customer needs in spite of adverse
conditions in the production process
Quality Loss function (QLF) - a mathematical function that identifies all costs connected with poor
quality and shows how these costs increase as product quality moves from what the customer wants
Target-oriented quality - a philosophy of continuous improvement to bring a product exactly on
target
TQM Tools for generating ideas - -check sheets
-scatter diagrams
-cause-and-effect diagram
TQM Tools for organizing data - -Pareto charts
-flowcharts
TQM Tools for identifying problems - -histogram
-statistical process control chart
Check sheet - an organized method of collecting data
Scatter diagrams - a graph of the value of one variable vs. another
cause-and-effect diagram - tool that identifies process elements (cause) that might effect an
outcome (fish-bone diagram)
Pareto chart - a graph to identify and plot problems or defects in descending order of frequency
Flowchart - a chart that describes the steps in a process
