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SCHM 2301 UPDATED QUESTIONS AND ANSWERS MARKED

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SCHM 2301 UPDATED QUESTIONS AND ANSWERS
MARKED A+
✔✔Service Quality - ✔✔Convenience
Reliability
Responsiveness
Time (speed)
Assurance
Courtesy
Tangibles
Consistency
Expectations

✔✔3 Types of Quality - ✔✔1. Quality of Design: happens BEFORE production
2. Quality of Conformance: happens DURING production. low conformance means
product is different from design
3. Quality of Performance: happens AFTER production.

✔✔Craft Production - ✔✔single worker makes product from start to finish. quality is
under one person's control.

✔✔Mass Production - ✔✔multiple workers work on different parts of the product. cost of
production decreases, but no one person is responsible for quality.

✔✔2 Approaches to Quality - ✔✔1. Quality Control School of Thought
2. Quality Assurance School of Thought

✔✔Quality Control School of Thought - ✔✔every process is subject to variation, you can
never produce two products that are exactly the same. best you can do is to separate
good products from defective products

✔✔Quality Assurance School of Thought - ✔✔find and eliminate sources of process
variation before/during instead of fixing the product afterwards. "Low quality is costly"

✔✔W. Edwards Deming - ✔✔father of the quality movement. The irony is that the
staggering success of the Japanese was built on the principles of an American, a
management intellectual, largely ignored in his own country.
Deming is a statistician by training.
When America joined the Second World War, deming's skills were used to train
managers who had to run the production lines for the war effort.
Deming's work methods are based on a rigorous application of statistics.
Eliminate waste was a key message.
The Americans sent consultants to advise on better management methods.
The Japanese were afraid that they had established a reputation for shoddy quality and
cheap price and that they could never undo it.

, "When I talked with management in Japan, I was talking to 80% of the capital.
Despite the dry statistics, Deming's statistics are very sensitive to people.
After the Second World War, even if the quality of American goods were only adequate
or even questionable, there was nowhere else to go. The dictums of Deming were
forgotten.

✔✔Total Quality Management (TQM) (Six Sigma) - ✔✔philosophy that involves
everyone in an organization in a continual effort to improve quality and achieve
customer satisfaction.

✔✔Comparison between Traditional and TQM - ✔✔Goal: max. profits, min. costs vs.
customer satisfaction
Focus: short term vs. long term
Solutions: reactive vs. proactive

✔✔Statistical Methods - ✔✔Input: acceptance sampling (used for raw materials)
Process: statistical process control (used for production/service processes)
Output: acceptance sampling (used for finished goods)

✔✔Sources of Variability - ✔✔-common variability: random variability that is natural in
the output of a process and DOES NOT NEED INTERVENTION
-assignable variability: non-random variability whose causes can be identified and
eliminated. INTERVENE bc SOMETHING IS WRONG

✔✔Control Charts - ✔✔tell you whether you have common or assignable variability.
relies on random sampling, establishes UCL/LCL.

✔✔Control Charts for Variables - ✔✔-use continuous scale/measurements
ex.) mean control chart, range control chart

✔✔Control Charts for Attributes - ✔✔-count attributes/total number of items
ex.) p chart, c chart

✔✔Run Tests - ✔✔a test for patterns in a sequence, looking at a process over time.
- if a process is stable, there should be no pattern in control chart, regularly random.
- if a process is not stable, chart displays trends, patterns, shifts in means and needs
intervention.

✔✔Hypothesis Testing - ✔✔- null hypothesis: says that process is in control, expect to
see common variability (no need for intervention)
- alternative hypothesis: says that process is not in control, expect to see
common+assignable variability (needs intervention)

✔✔Type I and Type II Errors - ✔✔TYPE I: When you reject the null, but the null is true
TYPE II: occurs when you accept the null, but the null is true

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