Chapter 5 TQM
-Costs associated with quality
 Total quality management (TQM)
-An integrated effort designed to
improve quality performance at every
level of the organization.
 Customer defined quality
The meaning of quality as
defined by the customer
 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 way of defining quality that
focuses on judgmental evaluations of
what constitutes product or service
excellence.
 Prevention costs
-Costs incurred in the process of
preventing poor quality from occurring.
 Appraisal costs
-Costs incurred in the process of
uncovering defects.
 Internal failure costs
-Costs associated with
discovering poor product quality before
the product reaches the customer.
 External failure costs
problems that occur at the customer
site.
 Robust design -A
design that results in a product that can
perform over a wide range of
conditions.
 Taguchi loss function
-Costs of quality increase as a
quadratic function as conformance
values move away from the target
 Continuous improvement
- A philosophy of neverending
improvement.
 Kaizen A
-Japanese term that describes
the notion of a company continually
striving to be better through learning
and problem solving.
 Plan–do–study–act (PDSA) cycle
-A diagram that describes the
activities that need to be performed to
incorporate continuous improvement
into the operation
 Benchmarking -
Studying the business practices of other
companies for purposes of comparison.
 Quality circle
-A team of volunteer
production employees and their
supervisors who meet regularly to solve
quality problems.
 Cause-and-effect diagram
-A chart that identifies potential
causes of particular quality problems.
 Flowchart
-A schematic of the sequence of
steps involved in an operation or
process.
 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.