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Chapter 5 TQM  External failure costs

-Costs associated with quality


problems that occur at the customer
 Total quality management (TQM) site.
-An integrated effort designed to  Robust design -A
improve quality performance at every design that results in a product that can
level of the organization. perform over a wide range of
 Customer defined quality conditions.
The meaning of quality as  Taguchi loss function
defined by the customer -Costs of quality increase as a
 Conformance to specifications quadratic function as conformance
-How well a product or service values move away from the target
meets the targets and tolerances  Continuous improvement
determined by its designers - A philosophy of neverending
 Fitness for use improvement.
- A definition of quality that evaluates  Kaizen A
how well the product performs for its -Japanese term that describes
intended use. the notion of a company continually
 Value for price paid striving to be better through learning
-Quality defined in terms of and problem solving.
product or service usefulness for the  Plan–do–study–act (PDSA) cycle
price paid. -A diagram that describes the
 Support services activities that need to be performed to
- Quality defined in terms of the incorporate continuous improvement
support provided after the product or into the operation
service is purchased.  Benchmarking -
 Psychological criteria Studying the business practices of other
-A way of defining quality that companies for purposes of comparison.
focuses on judgmental evaluations of  Quality circle
what constitutes product or service -A team of volunteer
excellence. production employees and their
 Prevention costs supervisors who meet regularly to solve
-Costs incurred in the process of quality problems.
preventing poor quality from occurring.  Cause-and-effect diagram
 Appraisal costs -A chart that identifies potential
-Costs incurred in the process of causes of particular quality problems.
uncovering defects.  Flowchart
 Internal failure costs -A schematic of the sequence of
-Costs associated with steps involved in an operation or
discovering poor product quality before process.
the product reaches the customer.

 Checklist
-A list of common defects and
the number of observed occurrences of
these defects
 Control charts -Charts
used to evaluate whether a process is
operating within set expectations.
 Scatter diagrams
-Graphs that show how two
variables are related to each other.
 Pareto analysis
-A technique used to identify
quality problems based on their degree
of importance.
 Histogram
-A chart that shows the
frequency distribution of observed
values of a variable
 Quality function deployment (QFD)
-A tool used to translate the
preferences of the customer into
specific technical requirements.
 Reliability
-The probability that a product,
service, or part will perform as intended
 Quality at the source
-The belief that it is best to
uncover the source of quality problems
and eliminate it.
 Deming Prize
-A Japanese award given to
companies to recognize efforts in
quality improvement.
 ISO 9000
-A set of international quality
standards and a certification
demonstrating that companies have
met all the standards specified.
 ISO 14000
-A set of international standards
and a certification focusing on a
company’s environmental
responsibility.