9/6/24, 5:13 C215 Final Exam Study
PM Guide
Operations Management C215 Study
Guide
Competency 1: Quality Management Methods
(16%) Chapter 5: Total Quality Management
• Total Quality management (TQM) Philosophy
o TQM focuses on identifying quality problem root causes
o Encompasses the entire organization
o Involves the technical as well as people
o Relies on seven basic concepts of
▪ Customer focus
▪ Continuous improvement
▪ Employee empowerment
▪ Use of quality tools
▪ Product design
▪ Process Management
▪ Managing supplier quantity
• Quality Gurus and their contributions to TQM
o Walter A. Shewhart: Contributed to understanding of process variability.
Developed concept of statistical control charts.
o W. Edwards Deming: Stressed management’s responsibility for quality.
Developed “14 Points’ to guide companies into quality improvement
o Joseph M. Juran: Defined quality as “fitness for use” and developed
concept of cost of quality.
o Armand V. Feigenbaum: Introduced concept of total quality control.
o Philip B. Crosby: Coined phrase “quality is free” and introduced concept
of zero defects.
o Kaoru lshkawa: Developed cause and effect diagrams. Identified concept of
“internal customer.”
o Genichi Taguchi: Focused on product design quality. Developed
Taguchi loss function.
• Definitions of Quality
o Conformance to Specifications: How well a product or service meets the targets
and tolerances set by designers
o Fitness for Use: How well the product performs its intended purpose or use.
o Value for Price Paid: Quality defined in terms of consumer’s
perception of usefulness of service or product related to prices
paid.
o Support Services: Quality defined in terms of the support provided after the
product or service is purchased
o Psychological Criteria: Way of dealing quality, focuses on the
judgmental evaluation of what constitutes product or service
excellence
• Four Costs of Quality
o Prevention and Appraisal: Costs that are incurred to prevent poor quality
o Internal and External Failure: Costs that the company hopes to prevent
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,9/6/24, 5:13 C215 Final Exam Study
PM Guide
• The Organizational impact of quality
o Quality function deployment (QFD) is a tool used to translate customer needs
into specific engineering requirements. Seven problem-solving tools are
used in managing quality. Often called the seven tools of quality control,
they are cause- and-effect diagrams, flowcharts, checklists, scatter
diagrams, Pareto analysis, control charts, and histograms.
• Plan-Do-Act-Study Cycle
o -Plan-do-act-study (PDSA) cycle describes the activities a company needs to
perform in order to incorporate continuous improvement in its operation.
o -Plan: Managers must evaluate the current process and make plans based
on any problems they find. Document all current procedures, collect
data, and identify problems.
o -Do: Implementing the plan (do). Managers should document all changes made
and collect data for evaluation.
o -Study: Managers must study the data collected in the previous phase.
The data are evaluated to see whether the plan is achieving the goals
established in the plan phase.
o -Act: Managers must act on the basis of the results. Communicate
results to other members of the company and then implement the new
procedure if it has been successful. The next step is to plan again and
restart the cycle.
•
o -Benchmarking: Another way companies implement continuous improvement is
by studying business practices of companies considered “best in class.”
The ability to learn and study how others do things. The benchmark
company does not need to be in the same business as long as it excels
at something the company is doing and wishes to emulate. (Ex. Lands’
End clothing catalog)
• ISO 9000 Standards
o Certification developed by International Organization for Standardization
o Set of internationally recognized quality standards
o Companies are periodically audited and certified
• ISO 14000 Standards
o Focuses on a company’s environmental responsibility
Review Chapter 6: Statistical Quality Control
• Definition of Statistical Quality Control
o The term used to describe the set of statistical tools used by quality professionals
to evaluate organizational quality
• Sources of Variation
o Can exist in all processes
o Common Causes
▪ Random causes that we cannot identify
▪ Unavoidable, (Ex. Slight differences in process variables like
diameter weight, service time, temperature)
about:bl 2/
, 9/6/24, 5:13 C215 Final Exam Study
PM Guide
about:bl 3/
PM Guide
Operations Management C215 Study
Guide
Competency 1: Quality Management Methods
(16%) Chapter 5: Total Quality Management
• Total Quality management (TQM) Philosophy
o TQM focuses on identifying quality problem root causes
o Encompasses the entire organization
o Involves the technical as well as people
o Relies on seven basic concepts of
▪ Customer focus
▪ Continuous improvement
▪ Employee empowerment
▪ Use of quality tools
▪ Product design
▪ Process Management
▪ Managing supplier quantity
• Quality Gurus and their contributions to TQM
o Walter A. Shewhart: Contributed to understanding of process variability.
Developed concept of statistical control charts.
o W. Edwards Deming: Stressed management’s responsibility for quality.
Developed “14 Points’ to guide companies into quality improvement
o Joseph M. Juran: Defined quality as “fitness for use” and developed
concept of cost of quality.
o Armand V. Feigenbaum: Introduced concept of total quality control.
o Philip B. Crosby: Coined phrase “quality is free” and introduced concept
of zero defects.
o Kaoru lshkawa: Developed cause and effect diagrams. Identified concept of
“internal customer.”
o Genichi Taguchi: Focused on product design quality. Developed
Taguchi loss function.
• Definitions of Quality
o Conformance to Specifications: How well a product or service meets the targets
and tolerances set by designers
o Fitness for Use: How well the product performs its intended purpose or use.
o Value for Price Paid: Quality defined in terms of consumer’s
perception of usefulness of service or product related to prices
paid.
o Support Services: Quality defined in terms of the support provided after the
product or service is purchased
o Psychological Criteria: Way of dealing quality, focuses on the
judgmental evaluation of what constitutes product or service
excellence
• Four Costs of Quality
o Prevention and Appraisal: Costs that are incurred to prevent poor quality
o Internal and External Failure: Costs that the company hopes to prevent
about:bl 1/
,9/6/24, 5:13 C215 Final Exam Study
PM Guide
• The Organizational impact of quality
o Quality function deployment (QFD) is a tool used to translate customer needs
into specific engineering requirements. Seven problem-solving tools are
used in managing quality. Often called the seven tools of quality control,
they are cause- and-effect diagrams, flowcharts, checklists, scatter
diagrams, Pareto analysis, control charts, and histograms.
• Plan-Do-Act-Study Cycle
o -Plan-do-act-study (PDSA) cycle describes the activities a company needs to
perform in order to incorporate continuous improvement in its operation.
o -Plan: Managers must evaluate the current process and make plans based
on any problems they find. Document all current procedures, collect
data, and identify problems.
o -Do: Implementing the plan (do). Managers should document all changes made
and collect data for evaluation.
o -Study: Managers must study the data collected in the previous phase.
The data are evaluated to see whether the plan is achieving the goals
established in the plan phase.
o -Act: Managers must act on the basis of the results. Communicate
results to other members of the company and then implement the new
procedure if it has been successful. The next step is to plan again and
restart the cycle.
•
o -Benchmarking: Another way companies implement continuous improvement is
by studying business practices of companies considered “best in class.”
The ability to learn and study how others do things. The benchmark
company does not need to be in the same business as long as it excels
at something the company is doing and wishes to emulate. (Ex. Lands’
End clothing catalog)
• ISO 9000 Standards
o Certification developed by International Organization for Standardization
o Set of internationally recognized quality standards
o Companies are periodically audited and certified
• ISO 14000 Standards
o Focuses on a company’s environmental responsibility
Review Chapter 6: Statistical Quality Control
• Definition of Statistical Quality Control
o The term used to describe the set of statistical tools used by quality professionals
to evaluate organizational quality
• Sources of Variation
o Can exist in all processes
o Common Causes
▪ Random causes that we cannot identify
▪ Unavoidable, (Ex. Slight differences in process variables like
diameter weight, service time, temperature)
about:bl 2/
, 9/6/24, 5:13 C215 Final Exam Study
PM Guide
about:bl 3/
