OM 300 TEST 2 NORTHAM STUDY GUIDE
Importance of Quality/TQM - Answers - Helps firms increases sales and reduce costs
Supports differentiation low cost and response strategies
Building a quality organization is a demanding task
2 ways quality improves profitability - Answers - 1. Sales Gains: Improved response,
Flexible Pricing, Improved reputation
2. Reduced Cost: Increased productivity, lower rework costs, lower warranty costs
The flow of activities to achieve TQM - Answers - Organizational Practices
Quality Principles
Employee Fulfillment
Customer Satisfaction
organizational pracitices - Answers - leadership, mission statement, effective operating
procedures, staff support, and training
Yields; what is important and what to be accomplished
quality principles - Answers - -Customer focus, Continuous improvement,
Benchmarking, Just-in-time, Tools of TQM
-Yields: How to do what is important and to be accomplished.
employee fufillment - Answers - empowerment, organization commitment
yield: employee attitude that can accomplish whats important
customer satisfaction - Answers - winning orders, repeat customer
Yields: effective organization with competitive advantage
operation managers objective - Answers - build a total quality management system that
identifies and satisfies customer needs
3 Views of Quality - Answers - user-based, manufacturing-based, and product-based
User-based - Answers - better performance, more features
product based - Answers - specific and measurable attributes of the product
manufacturing based - Answers - conformance to standards, making it right the first
time
Implications of Quality - Answers - 1. Company reputation: perception of new products
2. Product liability: reduce risk
3. Global implications: improved ability to compete
, 4 costs of quality - Answers - 1. prevention costs
2. appraisal costs
3. internal failure costs
4. external failure costs
Prevention Costs - Answers - reducing the potential for defects and traning quality
improvement programs
appraisal costs - Answers - evaluating products, parts, and services
internal failure costs - Answers - producing defective parts or service before delivery
external failure costs - Answers - defects discovered after delivery
takumi - Answers - A Japanese character that symbolizes a broader dimension than
quality, a deeper process than education, and a more perfect method than persistence
ethics and quality management - Answers - OM must deliver healthy safe quality
products
ethical conduct must dictate response to problems
ISO 9000 series - Answers - international standards on quality management developed
to help companies effectively document quality system elements needed to maintain
efficient quality system
Total Quality Management (TQM) - Answers - encompasses entire organization from
supplies to customer
7 concepts of TQM - Answers - 1. Continuous improvement
2. Six Sigma
3. Employee empowerment
4. Benchmarking
5. Just-in-time (JIT)
6. Taguchi concepts
7. Knowledge of TQM tools
continuous improvement - Answers - Never-ending process of continual improvement
Covers people, equipment, materials, procedures
Every operation can be improved
end goal is perfection
TQM and zero defects
PDCA cycle - Answers - 1. Plan: identify the pattern
2. Do: test
3. Check
Importance of Quality/TQM - Answers - Helps firms increases sales and reduce costs
Supports differentiation low cost and response strategies
Building a quality organization is a demanding task
2 ways quality improves profitability - Answers - 1. Sales Gains: Improved response,
Flexible Pricing, Improved reputation
2. Reduced Cost: Increased productivity, lower rework costs, lower warranty costs
The flow of activities to achieve TQM - Answers - Organizational Practices
Quality Principles
Employee Fulfillment
Customer Satisfaction
organizational pracitices - Answers - leadership, mission statement, effective operating
procedures, staff support, and training
Yields; what is important and what to be accomplished
quality principles - Answers - -Customer focus, Continuous improvement,
Benchmarking, Just-in-time, Tools of TQM
-Yields: How to do what is important and to be accomplished.
employee fufillment - Answers - empowerment, organization commitment
yield: employee attitude that can accomplish whats important
customer satisfaction - Answers - winning orders, repeat customer
Yields: effective organization with competitive advantage
operation managers objective - Answers - build a total quality management system that
identifies and satisfies customer needs
3 Views of Quality - Answers - user-based, manufacturing-based, and product-based
User-based - Answers - better performance, more features
product based - Answers - specific and measurable attributes of the product
manufacturing based - Answers - conformance to standards, making it right the first
time
Implications of Quality - Answers - 1. Company reputation: perception of new products
2. Product liability: reduce risk
3. Global implications: improved ability to compete
, 4 costs of quality - Answers - 1. prevention costs
2. appraisal costs
3. internal failure costs
4. external failure costs
Prevention Costs - Answers - reducing the potential for defects and traning quality
improvement programs
appraisal costs - Answers - evaluating products, parts, and services
internal failure costs - Answers - producing defective parts or service before delivery
external failure costs - Answers - defects discovered after delivery
takumi - Answers - A Japanese character that symbolizes a broader dimension than
quality, a deeper process than education, and a more perfect method than persistence
ethics and quality management - Answers - OM must deliver healthy safe quality
products
ethical conduct must dictate response to problems
ISO 9000 series - Answers - international standards on quality management developed
to help companies effectively document quality system elements needed to maintain
efficient quality system
Total Quality Management (TQM) - Answers - encompasses entire organization from
supplies to customer
7 concepts of TQM - Answers - 1. Continuous improvement
2. Six Sigma
3. Employee empowerment
4. Benchmarking
5. Just-in-time (JIT)
6. Taguchi concepts
7. Knowledge of TQM tools
continuous improvement - Answers - Never-ending process of continual improvement
Covers people, equipment, materials, procedures
Every operation can be improved
end goal is perfection
TQM and zero defects
PDCA cycle - Answers - 1. Plan: identify the pattern
2. Do: test
3. Check
