UNIVERSITY OF ALABAMA - OM 300 -
CHILCUTT - SPRING '21 - CHAPTER 6
& 6S(RATED A+)
Define quality - ANSWERthe totality of features and characteristics of a product or
service that bears on its ability to satisfy stated or implied needs
What are prevention costs? - ANSWERThose costs incurred to prevent the customer
from receiving a poor quality or defective project or service (e.g. training,
documenting processes, equipment and taking the time to do work right)
What are appraisal costs? - ANSWERCosts incurred to find quality problems and to
check that the product or work processes are meeting project requirements (e.g.
testing, destructive testing loss, inspections)
What are internal failure costs? - ANSWERCosts incurred before the product or
service is released to the customer (e.g. costs to rework product or fix faults,
postponement of product release, scrapping the product where necessary and
wastage-related costs such as wasted time)
Define Total Quality Management - ANSWERall members of an organization
participate in improving processes, products, services, and the culture in which they
work
Quality helps firms ____ sales and ______ costs - ANSWERincrease, reduce
What are the two ways quality improves profitability - ANSWER-Sales gains (via
improved response, flexible pricing, and improved reputation)
-Reduce Costs (via increased productivity, lower rework or scrap costs, lower
warranty costs)
An operations manager's objective is - ANSWERto build a total quality management
system that identifies and satisfies customer needs
TQM (Total Quality Management) - ANSWERa management philosophy that focuses
on satisfying customers through empowering employees to be an active part of
continuous quality improvement
What are 3 different ways quality can be viewed or based? - ANSWER-User-based
(better performance, nicer features)
-Manufacturing based (conformance to standards, making it right the first time)
-Product based (specific and measurable attributes of a product)
What are the key dimensions of product quality? - ANSWER-Performance
, -Features
-Reliability
-Conformance to specifications
-Durability
-Serviceability
-Aesthetics
-Perceived Quality
-Value
Malcolm Baldrige National Quality Award - ANSWERAn award started in 1987 by the
US Department of Commerce to recognize companies that have achieved a level of
world-class competition through quality management
What are the categories of the Malcolm Baldrige National Quality Award? -
ANSWER-Manufacturing
-Services
-Small Business
-Education
-Healthcare
Deming Prize - ANSWERThe most prestigious quality award in Japan. Named after
W. Edwards Deming, given by the Union of Japanese Scientists and Engineers since
1951,
Who was the first US company to win the Deming Prize? - ANSWERFlorida Power &
Light
What are the 4 costs of quality? - ANSWER1. prevention costs
2. appraisal costs
3. internal failure costs
4. external failure costs
What are External failure costs? - ANSWERCost incurred only once the product or
service has been released and the customers are not satisfied that requirements
have been met (e.g. liability and penalty costs, warranty work, cost of developing and
distributing a product fix, technical support calls or visits and damage control costs)
What are the specific areas of external failure costs? - ANSWER- Customer
Complaints
-Returned Products
-Warranty Claims
-Liability Costs
- Lost Sales
What are the specific areas of internal failure costs? - ANSWER-Scrap
-Rework
-Production Downtime
-Price downgrading (seconds)
CHILCUTT - SPRING '21 - CHAPTER 6
& 6S(RATED A+)
Define quality - ANSWERthe totality of features and characteristics of a product or
service that bears on its ability to satisfy stated or implied needs
What are prevention costs? - ANSWERThose costs incurred to prevent the customer
from receiving a poor quality or defective project or service (e.g. training,
documenting processes, equipment and taking the time to do work right)
What are appraisal costs? - ANSWERCosts incurred to find quality problems and to
check that the product or work processes are meeting project requirements (e.g.
testing, destructive testing loss, inspections)
What are internal failure costs? - ANSWERCosts incurred before the product or
service is released to the customer (e.g. costs to rework product or fix faults,
postponement of product release, scrapping the product where necessary and
wastage-related costs such as wasted time)
Define Total Quality Management - ANSWERall members of an organization
participate in improving processes, products, services, and the culture in which they
work
Quality helps firms ____ sales and ______ costs - ANSWERincrease, reduce
What are the two ways quality improves profitability - ANSWER-Sales gains (via
improved response, flexible pricing, and improved reputation)
-Reduce Costs (via increased productivity, lower rework or scrap costs, lower
warranty costs)
An operations manager's objective is - ANSWERto build a total quality management
system that identifies and satisfies customer needs
TQM (Total Quality Management) - ANSWERa management philosophy that focuses
on satisfying customers through empowering employees to be an active part of
continuous quality improvement
What are 3 different ways quality can be viewed or based? - ANSWER-User-based
(better performance, nicer features)
-Manufacturing based (conformance to standards, making it right the first time)
-Product based (specific and measurable attributes of a product)
What are the key dimensions of product quality? - ANSWER-Performance
, -Features
-Reliability
-Conformance to specifications
-Durability
-Serviceability
-Aesthetics
-Perceived Quality
-Value
Malcolm Baldrige National Quality Award - ANSWERAn award started in 1987 by the
US Department of Commerce to recognize companies that have achieved a level of
world-class competition through quality management
What are the categories of the Malcolm Baldrige National Quality Award? -
ANSWER-Manufacturing
-Services
-Small Business
-Education
-Healthcare
Deming Prize - ANSWERThe most prestigious quality award in Japan. Named after
W. Edwards Deming, given by the Union of Japanese Scientists and Engineers since
1951,
Who was the first US company to win the Deming Prize? - ANSWERFlorida Power &
Light
What are the 4 costs of quality? - ANSWER1. prevention costs
2. appraisal costs
3. internal failure costs
4. external failure costs
What are External failure costs? - ANSWERCost incurred only once the product or
service has been released and the customers are not satisfied that requirements
have been met (e.g. liability and penalty costs, warranty work, cost of developing and
distributing a product fix, technical support calls or visits and damage control costs)
What are the specific areas of external failure costs? - ANSWER- Customer
Complaints
-Returned Products
-Warranty Claims
-Liability Costs
- Lost Sales
What are the specific areas of internal failure costs? - ANSWER-Scrap
-Rework
-Production Downtime
-Price downgrading (seconds)
