MGT 302 Final Exam Study guide

Topics: Process capability, Six Sigma, Supply chain management Pages: 20 (3330 words) Published: May 4, 2015
Chapter 10
Learning Objectives:
1. Understand Total Quality Management
a. Total quality management
i. managing the entire organization so that it excels on all dimensions of products and services that are important to the customer b. Two fundamental operational goals
i. Careful design of the product or service
ii. Ensuring that the organization’s systems can consistently produce the design c. TQM Commitments
i. Commitment to total customer satisfaction
ii. Commitment to understanding and improving the organization’s processes iii. Commitment to employee involvement
iv. Commitment to data-based decision making
2. Discuss how quality is measured and the different dimensions of quality a. Developing Quality Specifications
i. Design quality - inherent value of the product in the marketplace 1. Dimensions of Design Quality
a. Performance- primary product or service characteristics
b. Features- Added touches, secondary characteristics
c. Reliability/durability- consistency of performance over time, probability of failing, useful life d. Serviceability- ease of repair
e. Aesthetics- sensory characteristic
f. Perceived quality- past performance and reputation
ii. Conformance quality - degree to which the product or service design specifications are met 1. Quality at the source
a. One of the commitments of TQM was employee involvement
b. Quality is everyone’s job, and the worker must engineer quality into the product i. Not rely upon an inspection step to validate quality
c. This drives each worker to be responsible for quality
i. Does this require extra education / training?
b. Cost of Quality- expenditures related to achieving product or service quality such as costs of prevention, appraisal, internal failure and external failure i. 3 basic assumptions
1. failures are caused
2. prevention is cheeper
3. performance can be measured
ii. Types of Quality Processes
1. Detection
a. Reacting to problems as they arise
2. Prevention
a. taking care of special cases by removing assignable or identifiable causes of system variation iii. 4 types of Cost of Quality
1. Appraisal costs - costs of the inspection and testing to ensure that the product or process is acceptable 2. Prevention costs - Sum of all the costs to prevent defects 3. Internal failure costs - costs for defects incurred within the system 4. External failure costs - costs for defects that pass through the system 3. Six Sigma Process

a. Six Sigma
i. A statistical term to describe the quality goal of no more than four defects out of every million units. ii. Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. iii. It uses a set of quality management methods, including statistical methods, and creates a special infrastructure of people within the organization ("Black Belts", "Green Belts", etc.) who are experts in these methods. iv. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified financial targets (cost reduction and/or profit increase). v. Key Concepts

1. Critical to Quality- attributes most important to customer 2. Defect- Failing to deliver what the customer wants
3. Process Capability- what your process can deliver
4. Variation- what the customer sees and feels
5. Stable Operations- ensuring consistent, predictable processes to improve variations 6. Design for Six Sigma: Designing to meet customer needs and process capabilities. 4. DMAIC
a. Six Sigma Methodology
i. Define, measure, analyze, improve, and control (DMAIC)
ii. Developed by General Electric as a means of focusing effort on quality using a methodological approach iii. Overall focus of the methodology is to understand and achieve what the customer wants iv. A Six-Sigma program seeks to reduce the variation in the processes that lead to these defects b. DMAIC Cycle

i. Define...
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