C215 Final Exam Study Guide Total Quality Management & SQC | Accurate & Verified Answers to
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Competency 1: Quality Management Methods
CHAPTER 5 STUDY GUIDE - TOTAL QUALITY MANAGEMENT
Key Concepts – (As you review the chapter make notes by answering each of the questions)
What is the total quality management philosophy?
What characterizes TQM is the focus on identifying root causes of quality problems and
correcting them at the source, as opposed to inspecting the product after it has been
made. Not only does TQM encompass the entire organization but it stresses that quality
is customer driven. TQM attempts to embed quality in every aspect of the organization.
It is concerned with the technical aspects of quality as well as the involvement of people
in quality, such as customers, company employees, and suppliers.
What are the five definitions of quality?
Conformance to specifications How well a product or service meets the targets and
tolerances determined by its designers.
Fitness for use A definition of quality that evaluates how well the product performs for
its intended use.
Value for price paid Quality defined in terms of product or service usefulness for the
price paid.
Support services Quality defined in terms of the support provided after the product or
service is purchased.
Psychological criteria A subjective definition that focuses on the judgmental evaluation
of what constitutes product or service quality. A way of defining quality that focuses on
judgmental evaluations of what constitutes product or service excellence.
What are the differences of quality between Manufacturing and Service organizations?
Manufacturing Service Organizations
Conformance to specifications Intangible factors
Performance Consistency
Reliability Responsiveness to customer needs
Features Courtesy/friendliness
Durability Timeliness/promptness
Serviceability Atmosphere
,What are the different quality standards outlined in the text and what does each represent?
ISO 9000 A set of international quality standards and a certification demonstrating that
companies have met all the standards specified.
ISO 26000 A set of international standards developed to help organizations evaluate and
address their social responsibility.
ISO 14000 A set of international standards and a certification focusing on a company’s
environmental responsibility.
Who are the quality gurus and what were their contributions to the TQM concept?
Quality Guru Main Contribution
Walter A. Shewhart –Contributed to understanding of process
variability.
–Developed concept of statistical control
charts.
W. Edwards Deming –Stressed management’s responsibility for
quality.
–Developed “14 Points” to guide companies
in quality improvement.
Joseph M. Juran –Defined quality as “fitness for use.”
–Developed concept of cost of quality.
Armand V. Feigenbaum –Introduced concept of total quality control.
Philip B. Crosby –Coined phrase “quality is free.”
–Introduced concept of zero defects.
Kaoru Ishikawa –Developed cause-and-effect diagrams.
–Identified concept of “internal customer.”
Genichi Taguchi –Focused on product design quality.
–Developed Taguchi loss function.
What are the seven quality control tools management uses to analyze quality problems? Make
sure to highlight how each tool can be used.
Cause-and-effect diagrams identify potential causes of particular quality problems. They
are often called fishbone diagrams because they look like the bones of a fish. The
“head” of the fish is the quality problem, such as damaged zippers on a garment or
broken valves on a tire. The diagram is drawn so that the “spine” of the fish connects
the “head” to the possible cause of the problem. These causes could be related to the
machines, workers, measurement, suppliers, materials, and many other aspects of the
production process. Each of these possible causes can then have smaller “bones”
addressing specific issues that relate to each cause. For example, a problem with
machines could be due to a need for adjustment, old equipment, or tooling problems.
,Similarly, a problem with workers could be related to lack of training, poor supervision,
or fatigue. Cause-and-effect diagrams are problem-solving tools commonly used by
quality control teams. Specific causes of problems can be explored through
brainstorming. The development of a cause-and-effect diagram requires the team to
think through all the possible causes of poor quality.
A flowchart is a schematic diagram of the sequence of steps involved in an operation or
process. It provides a visual tool that is easy to use and understand. By seeing the steps
involved in an operation or process, everyone develops a clear picture of how the
operation works and where problems could arise.
A checklist is a list of common defects and the number of observed occurrences of these
defects. It is a simple yet effective fact-finding tool that allows the worker to collect
specific information regarding the defects observed. A checklist can also be used to
focus on other dimensions, such as location or time. For example, if a defect is being
observed frequently, a checklist can be developed that measures the number of
occurrences per shift, per machine, or per operator. In this fashion we can isolate the
location of the particular defect and then focus on correcting the problem.
Control charts are a very important quality control tool. We will study the use of control
charts at great length in the next chapter. These charts are used to evaluate whether a
process is operating within expectations relative to some measured value such as
weight, width, or volume. For example, we could measure the weight of a sack of flour,
the width of a tire, or the volume of a bottle of soft drink. When the production process
is operating within expectations, we say that it is “in control.”
Pareto analysis is a technique used to identify quality problems based on their degree of
importance. The logic behind Pareto analysis is that only a few quality problems are
important, whereas many others are not critical. The technique was named after
Vilfredo Pareto, a nineteenth-century Italian economist who determined that only a
small percentage of people controlled most of the wealth. This concept has often been
called the 80–20 rule and has been extended to many areas. In quality management the
logic behind Pareto’s principle is that most quality problems are a result of only a few
causes. The trick is to identify these causes.
A histogram is a chart that shows the frequency distribution of observed values of a
variable. We can see from the plot what type of distribution a particular variable
displays, such as whether it has a normal distribution and whether the distribution is
symmetrical.
, What are the different costs of quality? (List and define)
Prevention costs are incurred in the process of preventing poor quality from occurring.
They include quality planning costs, such as the costs of developing and implementing a
quality plan. Also included are the costs of product and process design, from collecting
customer information to designing processes that achieve conformance to
specifications. Employee training in quality measurement is included as part of this cost,
as well as the costs of maintaining records of information and data related to quality.
Appraisal costs are incurred in the process of uncovering defects. They include the cost
of quality inspections, product testing, and performing audits to make sure that quality
standards are being met. Also included in this category are the costs of worker time
spent measuring quality and the cost of equipment used for quality appraisal.
Internal failure costs are associated with discovering poor product quality before the
product reaches the customer. One type of internal failure cost is rework, which is the
cost of correcting the defective item. Sometimes the item is so defective that it cannot
Pass Actual Exam
Competency 1: Quality Management Methods
CHAPTER 5 STUDY GUIDE - TOTAL QUALITY MANAGEMENT
Key Concepts – (As you review the chapter make notes by answering each of the questions)
What is the total quality management philosophy?
What characterizes TQM is the focus on identifying root causes of quality problems and
correcting them at the source, as opposed to inspecting the product after it has been
made. Not only does TQM encompass the entire organization but it stresses that quality
is customer driven. TQM attempts to embed quality in every aspect of the organization.
It is concerned with the technical aspects of quality as well as the involvement of people
in quality, such as customers, company employees, and suppliers.
What are the five definitions of quality?
Conformance to specifications How well a product or service meets the targets and
tolerances determined by its designers.
Fitness for use A definition of quality that evaluates how well the product performs for
its intended use.
Value for price paid Quality defined in terms of product or service usefulness for the
price paid.
Support services Quality defined in terms of the support provided after the product or
service is purchased.
Psychological criteria A subjective definition that focuses on the judgmental evaluation
of what constitutes product or service quality. A way of defining quality that focuses on
judgmental evaluations of what constitutes product or service excellence.
What are the differences of quality between Manufacturing and Service organizations?
Manufacturing Service Organizations
Conformance to specifications Intangible factors
Performance Consistency
Reliability Responsiveness to customer needs
Features Courtesy/friendliness
Durability Timeliness/promptness
Serviceability Atmosphere
,What are the different quality standards outlined in the text and what does each represent?
ISO 9000 A set of international quality standards and a certification demonstrating that
companies have met all the standards specified.
ISO 26000 A set of international standards developed to help organizations evaluate and
address their social responsibility.
ISO 14000 A set of international standards and a certification focusing on a company’s
environmental responsibility.
Who are the quality gurus and what were their contributions to the TQM concept?
Quality Guru Main Contribution
Walter A. Shewhart –Contributed to understanding of process
variability.
–Developed concept of statistical control
charts.
W. Edwards Deming –Stressed management’s responsibility for
quality.
–Developed “14 Points” to guide companies
in quality improvement.
Joseph M. Juran –Defined quality as “fitness for use.”
–Developed concept of cost of quality.
Armand V. Feigenbaum –Introduced concept of total quality control.
Philip B. Crosby –Coined phrase “quality is free.”
–Introduced concept of zero defects.
Kaoru Ishikawa –Developed cause-and-effect diagrams.
–Identified concept of “internal customer.”
Genichi Taguchi –Focused on product design quality.
–Developed Taguchi loss function.
What are the seven quality control tools management uses to analyze quality problems? Make
sure to highlight how each tool can be used.
Cause-and-effect diagrams identify potential causes of particular quality problems. They
are often called fishbone diagrams because they look like the bones of a fish. The
“head” of the fish is the quality problem, such as damaged zippers on a garment or
broken valves on a tire. The diagram is drawn so that the “spine” of the fish connects
the “head” to the possible cause of the problem. These causes could be related to the
machines, workers, measurement, suppliers, materials, and many other aspects of the
production process. Each of these possible causes can then have smaller “bones”
addressing specific issues that relate to each cause. For example, a problem with
machines could be due to a need for adjustment, old equipment, or tooling problems.
,Similarly, a problem with workers could be related to lack of training, poor supervision,
or fatigue. Cause-and-effect diagrams are problem-solving tools commonly used by
quality control teams. Specific causes of problems can be explored through
brainstorming. The development of a cause-and-effect diagram requires the team to
think through all the possible causes of poor quality.
A flowchart is a schematic diagram of the sequence of steps involved in an operation or
process. It provides a visual tool that is easy to use and understand. By seeing the steps
involved in an operation or process, everyone develops a clear picture of how the
operation works and where problems could arise.
A checklist is a list of common defects and the number of observed occurrences of these
defects. It is a simple yet effective fact-finding tool that allows the worker to collect
specific information regarding the defects observed. A checklist can also be used to
focus on other dimensions, such as location or time. For example, if a defect is being
observed frequently, a checklist can be developed that measures the number of
occurrences per shift, per machine, or per operator. In this fashion we can isolate the
location of the particular defect and then focus on correcting the problem.
Control charts are a very important quality control tool. We will study the use of control
charts at great length in the next chapter. These charts are used to evaluate whether a
process is operating within expectations relative to some measured value such as
weight, width, or volume. For example, we could measure the weight of a sack of flour,
the width of a tire, or the volume of a bottle of soft drink. When the production process
is operating within expectations, we say that it is “in control.”
Pareto analysis is a technique used to identify quality problems based on their degree of
importance. The logic behind Pareto analysis is that only a few quality problems are
important, whereas many others are not critical. The technique was named after
Vilfredo Pareto, a nineteenth-century Italian economist who determined that only a
small percentage of people controlled most of the wealth. This concept has often been
called the 80–20 rule and has been extended to many areas. In quality management the
logic behind Pareto’s principle is that most quality problems are a result of only a few
causes. The trick is to identify these causes.
A histogram is a chart that shows the frequency distribution of observed values of a
variable. We can see from the plot what type of distribution a particular variable
displays, such as whether it has a normal distribution and whether the distribution is
symmetrical.
, What are the different costs of quality? (List and define)
Prevention costs are incurred in the process of preventing poor quality from occurring.
They include quality planning costs, such as the costs of developing and implementing a
quality plan. Also included are the costs of product and process design, from collecting
customer information to designing processes that achieve conformance to
specifications. Employee training in quality measurement is included as part of this cost,
as well as the costs of maintaining records of information and data related to quality.
Appraisal costs are incurred in the process of uncovering defects. They include the cost
of quality inspections, product testing, and performing audits to make sure that quality
standards are being met. Also included in this category are the costs of worker time
spent measuring quality and the cost of equipment used for quality appraisal.
Internal failure costs are associated with discovering poor product quality before the
product reaches the customer. One type of internal failure cost is rework, which is the
cost of correcting the defective item. Sometimes the item is so defective that it cannot
