Quality Concepts
Economics - ANS The production, distribution, and consumption of goods and services.
What happens when competition is low? - ANS Production can be inefficient, without being penalized
and manpower and other resources can be wasted. Competition leads to lower prices.
When you move from monopolies to more competition, is innovation less or more? - ANS More
innovation and less cost.
Why are companies in business? - ANS to make money
1-10-100 rule - ANS As work moves through a process the price to correct it increases. prevention is less
costly than correction is less costly than failure.
When you are setting up your customer, what are the basic questions you ask them? - ANS - What do
you need from me?
- What will you do with what I give you?
- Do you understand What I can give you?
- Do we agree on What the requirements are?
Is it important to cut 2% of any process in the company? - ANS Cutting 2% of a process is extremely
important as long as the process in unnecessary. Non-essential processes should be cut to increase
profit as much as possible.
Ex. Some companies operate on 2% profit.
The Cost of Quality - ANS The cost of not creating a quality product or service. Any cost that would not
have been expended if quality were perfect contributes to the cost of quality. Every time work has to be
redone the cost of quality increases.
, Seven obvious examples of the cost of quality. - ANS - The reworking of a manufactured item.
- The retesting of an assembly.
- The rebuilding of a tool.
- The correction of a bank statement.
- The reworking of a service.
- The cost of exceeding customer requirements.
-The cost of lost opportunities.
Failure Cost (6 types) - ANS - Scrap
- Rework
- Reinspection
- Retesting
- Material review
- Downgrading
Flow Chart - ANS A map that tracks a process from start to finish. Used to identify potential trouble
spots, redundancies, and unnecessary complexities in almost any process.
Run Chart - ANS Simple graphs that track a process or activity over time to identify trends or shifts or to
see the results of a change in a process.
Cause and Effect diagram - ANS Also called a "Fishbone" diagram; a graph of the causes of a quality
problem divided into categories. Used to help people understand the complex relationship between an
effect (a problem/goal) and its causes, and aids in problem solving. Often used along with
brainstorming.
Economics - ANS The production, distribution, and consumption of goods and services.
What happens when competition is low? - ANS Production can be inefficient, without being penalized
and manpower and other resources can be wasted. Competition leads to lower prices.
When you move from monopolies to more competition, is innovation less or more? - ANS More
innovation and less cost.
Why are companies in business? - ANS to make money
1-10-100 rule - ANS As work moves through a process the price to correct it increases. prevention is less
costly than correction is less costly than failure.
When you are setting up your customer, what are the basic questions you ask them? - ANS - What do
you need from me?
- What will you do with what I give you?
- Do you understand What I can give you?
- Do we agree on What the requirements are?
Is it important to cut 2% of any process in the company? - ANS Cutting 2% of a process is extremely
important as long as the process in unnecessary. Non-essential processes should be cut to increase
profit as much as possible.
Ex. Some companies operate on 2% profit.
The Cost of Quality - ANS The cost of not creating a quality product or service. Any cost that would not
have been expended if quality were perfect contributes to the cost of quality. Every time work has to be
redone the cost of quality increases.
, Seven obvious examples of the cost of quality. - ANS - The reworking of a manufactured item.
- The retesting of an assembly.
- The rebuilding of a tool.
- The correction of a bank statement.
- The reworking of a service.
- The cost of exceeding customer requirements.
-The cost of lost opportunities.
Failure Cost (6 types) - ANS - Scrap
- Rework
- Reinspection
- Retesting
- Material review
- Downgrading
Flow Chart - ANS A map that tracks a process from start to finish. Used to identify potential trouble
spots, redundancies, and unnecessary complexities in almost any process.
Run Chart - ANS Simple graphs that track a process or activity over time to identify trends or shifts or to
see the results of a change in a process.
Cause and Effect diagram - ANS Also called a "Fishbone" diagram; a graph of the causes of a quality
problem divided into categories. Used to help people understand the complex relationship between an
effect (a problem/goal) and its causes, and aids in problem solving. Often used along with
brainstorming.
