Total Quality Management (TQM) Study Guide, Exams of Social Sciences

This study guide provides a comprehensive overview of total quality management (tqm) principles, including customer focus, continuous improvement, and employee empowerment. It covers key concepts such as the use of quality tools, product design, process management, and managing supplier quality. The guide also highlights the contributions of quality management pioneers like walter a. Shewhart, w. Edwards deming, and joseph m. Juran, along with essential tqm tools and techniques. It is designed to help students and professionals understand and apply tqm principles effectively.

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C215 STUDY GUIDE
Total Quality Management (TQM) Philosophy - Answer -Customer focus, Continuous
improvement, Employee empowerment, Use of quality tools, Product design, Process
management, Managing supplier quality
Customer focus (TQM) - Answer -Goal is to identify and meet customer needs.
Continuous improvement (TQM) - Answer -A philosophy of never-ending improvement.
Employee empowerment (TQM) - Answer -Employees are expected to seek out,
identify, and correct quality problems.
Use of quality tools (TQM) - Answer -Ongoing employee training in the use of quality
tools.
Product Design (TQM) - Answer -Products need to be designed to meet customer
expectations
Process Management (TQM) - Answer -Quality should be built into the process;
sources of quality problems should be identified and corrected
Managing supplier quality (TQM) - Answer -Quality concepts must extend to a
company's suppliers
Walter A. Shewhart - Answer -Contributed to understanding of process variability.
Developed concept of statistical control charts.
W. Edwards Deming - Answer -Stressed management's responsibility for quality.
Developed "14 Points" to guide companies in quality improvement.
Joseph M. Juran - Answer -Defined quality as "fitness for use."
Developed concept of cost of quality.
Armand V. Feigenbaum - Answer -Introduced concept of total quality control.
Philip B. Crosby - Answer -Coined phrase "quality is free."
Introduced concept of zero defects.
Kaoru Ishikawa - Answer -Developed cause-and-effect diagrams.
Identified concept of "internal customer."
Genichi Taguchi - Answer -Focused on product design quality.
Developed Taguchi loss function.
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C215 STUDY GUIDE

Total Quality Management (TQM) Philosophy - Answer - Customer focus, Continuous improvement, Employee empowerment, Use of quality tools, Product design, Process management, Managing supplier quality Customer focus (TQM) - Answer - Goal is to identify and meet customer needs. Continuous improvement (TQM) - Answer - A philosophy of never-ending improvement. Employee empowerment (TQM) - Answer - Employees are expected to seek out, identify, and correct quality problems. Use of quality tools (TQM) - Answer - Ongoing employee training in the use of quality tools. Product Design (TQM) - Answer - Products need to be designed to meet customer expectations Process Management (TQM) - Answer - Quality should be built into the process; sources of quality problems should be identified and corrected Managing supplier quality (TQM) - Answer - Quality concepts must extend to a company's suppliers Walter A. Shewhart - Answer - Contributed to understanding of process variability. Developed concept of statistical control charts. W. Edwards Deming - Answer - Stressed management's responsibility for quality. Developed "14 Points" to guide companies in quality improvement. Joseph M. Juran - Answer - Defined quality as "fitness for use." Developed concept of cost of quality. Armand V. Feigenbaum - Answer - Introduced concept of total quality control. Philip B. Crosby - Answer - Coined phrase "quality is free." Introduced concept of zero defects. Kaoru Ishikawa - Answer - Developed cause-and-effect diagrams. Identified concept of "internal customer." Genichi Taguchi - Answer - Focused on product design quality. Developed Taguchi loss function.

Prevention costs - Answer - Costs incurred in the process of preventing poor quality from occurring. Appraisal costs - Answer - Costs incurred in the process of uncovering defects. Testing, evaluating, and inspecting Internal failure costs - Answer - Costs associated with discovering poor product quality before the product reaches the customer. Scrap, rework, material loss External failure costs - Answer - Costs associated with quality problems that occur at the customer site. Returns, repairs, and recalls Plan (PDSA) - Answer - The first step in the PDSA cycle is to plan. Managers must evaluate the current process and make plans based on any problems they find Do (PDSA) - Answer - The next step in the cycle is implementing the plan (do). During the implementation process managers should document all changes made and collect data for evaluation. Study (PDSA) - Answer - The third step is to study the data collected in the previous phase. The data is evaluated to see whether the plan is achieving the goals established in the plan phase. Act (PDSA) - Answer - The last phase of the cycle is to act on the basis of the results of the first three phases. The best way to accomplish this is to communicate the results to other members of the company and then implement the new procedure if it has been successful. Statistical quality control (SQC) - Answer - the term used to describe the set of statistical tools used by quality professionals Descriptive statistics - (SQC) - Answer - used to describe quality characteristics and relationships. Included are statistics such as the mean, the standard deviation, the range, and a measure of the distribution of data. Statistical process control (SPC) - (SQC) - Answer - involves inspecting a random sample of the output from a process and deciding whether the process is producing products with characteristics that fall within a predetermined range. SPC answers the question of whether or not the process is functioning properly. Acceptance Sampling - (SQC) - Answer - is the process of randomly inspecting a sample of goods and deciding whether to accept the entire lot based on the results. Acceptance sampling determines whether a batch of goods should be accepted or rejected.

Capacity planning - Step 3 - Answer - Evaluate Capacity Alternatives - Evaluate the capacity alternatives and select the one alternative that will best meet the company's requirements. Location Selection Factors - Answer -- Proximity to Sources of Supply

  • Proximity to Customers
  • Proximity to Source of Labor
  • Community Considerations
  • Site Considerations
  • Quality-of-Life Issues Globalization - Advantages - Answer -- take advantage of foreign markets and reduces the stigma associated with buying imports
  • reduction of trade barriers
  • Cheap labor
  • growth of just-in-time manufacturing Globalization - Disadvantages - Answer -- Political risks
  • Using offshore suppliers might mean that a company may need to share some of its proprietary technology
  • Culture of cheap foreign labor
  • Underdeveloped infrastructure Project Process - Answer - A type of process used to make a one-at-a-time product exactly to customer specifications. Batch Process - Answer - A type of process used to produce a small quantity of products in groups or batches based on customer orders or specifications. Line Process - Answer - A type of process used to produce a large volume of a standardized product. Continuous Process - Answer - A type of process that operates continually to produce a high volume of a fully standardized product Process flowchart - Answer - a chart showing the sequence of steps in producing the product or service Process Performance Metrics - Answer - measurements of different process characteristics that tell how a process is performing Throughput time - Answer - Average amount of time product takes to move through the system Process Velocity - Answer - A measure of wasted time in the system
  • Throughput time/value-added time

Productivity - Answer - A measure of how well a company uses its resources

  • Output/input Utilization - Answer - The proportion of time a resource is actually used
  • Time a resource used/time a resource available Efficiency - Answer - Measures performance relative to a standard
  • Actual output/standard output Process layouts - Answer - layouts that group resources based on similar processes or functions Product layouts - Answer - layouts that arrange resources in sequence to allow for an efficient buildup of the product Hybrid layouts - Answer - Layouts that combine characteristics of process and product layouts. Group technology (GT) or cell layouts - Answer - hybrid layouts that create groups of products based on similar processing requirements Fixed-position layout - Answer - Layout in which the product or project remains stationary, and workers, materials, and equipment are moved as needed Process layouts attributes - Answer -- Able to produce a large number of different products.
  • Resources used are general-purpose.
  • Facilities are more labor intensive.
  • Greater flexibility relative to the market.
  • Slower processing rates.
  • High material handling costs.
  • Higher space requirements. Product layouts attributes - Answer -- Able to produce a small number of products efficiently.
  • Resources used are specialized.
  • Facilities are more capital intensive.
  • Low flexibility relative to the market.
  • Processing rates are faster.
  • Lower material handling costs.
  • Lower space requirements. Methods Analysis - Answer - analyzing how a job is done Methods Analysis - Step 1 - Answer - Identify the operation to be analyzed.

Why an organization should use standard time for a job - Answer - Standard time provides a benchmark for companies to use when evaluating other alternatives Core elements of a just-in-time (JIT) system - Answer -- Just-in-time manufacturing

  • Setup cost
  • Respect for people Just-in-time manufacturing - Answer - The element of JIT that focuses on the production system to achieve value-added manufacturing. Setup cost - Answer - Cost incurred when setting up equipment for a production run. Respect for people - Answer - An element of JIT that considers human resources as an essential part of the JIT philosophy. JIT philosophy - Answer - getting the right quantity of goods at the right place at the right time Benefits of JIT Systems - Answer --reduced lead time
  • increased product availability and lower inventory investment Push systems - Answer - systems in which services or products are produced based on forecasts Pull System - Answer - a concept that results in material being produced only when requested and moved to where it is needed just as it is needed
  • JIT and Kanban uses Theory of Constraints (TOC) - Answer - a system's output is determined by three kinds of constraints: internal resource constraint, market constraint, and policy constraint Theory of Constraints (TOC) - Step 1 - Answer - Identify the System's Bottleneck(s) Theory of Constraints (TOC) - Step 2 - Answer - Exploit the Bottleneck(s) Theory of Constraints (TOC) - Step 3 - Answer - Subordinate All Other Decisions to Step 2 Theory of Constraints (TOC) - Step 4 - Answer - Elevate the Bottleneck(s) Theory of Constraints (TOC) - Step 5 - Answer - Do Not Let Inertia Set In Components of a supply chain - Answer -- External suppliers
  • Internal functions
  • External distributors

External suppliers - Answer - All suppliers providing materials or services to manufacturing or service organizations, including the suppliers' suppliers. Internal functions - Answer - Activities performed by the final product company, such as processing, purchasing, production planning and control, quality assurance, and shipping. External distributors - Answer - Transport product or service to appropriate locations for eventual sale to customers. Insource Processes - Answer - Activities that are completed in-house Outsource Processes - Answer - Activities that are completed by suppliers Vertical integration - Answer - A measure of how much of the supply chain is actually owned or operated by the manufacturing company Backward integration - Answer - Owning or controlling sources of raw materials and components Forward integration - Answer - Owning or controlling the channels of distribution Organizational implementation of supply chain management - Answer -- Manufacturer or service provider integrating its internal functions

  • Integrating the external suppliers
  • Metrics to evaluate supply chain performance (ROI, profitability, market share, customer services levels, etc.)
  • Use the Supply Chain Operations Reference (SCOR) model to standardize its supply chain performance Supply chain management metrics - Answer -- Return on investment (ROI)
  • Profitability
  • Market share
  • Revenue growth Manufacturing - Answer - Raw materials, Components, Work-in-process Retail - Answer - the sale of goods in small quantities directly to consumers service industries - Answer - business that provides a service instead of making goods Objectives of Inventory Management - Answer -- Provide acceptable level of customer service (on-time delivery)
  • Buffer mismatches between supply and demand
  • Allow cost-efficient operations
  • Minimize inventory investment
  • Capacity-based options Demand-based options - Answer - A group of options that respond to demand fluctuations through the use of inventory or back orders, or by shifting the demand pattern.
  • Inventory
  • Back orders
  • Shifting demand Capacity-based options - Answer - A group of options that allow the firm to change its current operating capacity.
  • Overtime/undertime
  • Subcontracting
  • Hiring and firing ERP Benefits - Answer - 1. quality and efficiency
  1. decreased costs
  2. decision support
  3. enterprise agility Independent Demand - Answer - The demand for an item is unrelated to the demand for other items. Dependent Demand - Answer - The demand for component parts is based on the number of end items being produced. Material Requirements Planning (MRP) - Answer - A system that uses the MPS, inventory record data, and BOM to calculate material requirements. Describe the objectives of materials requirement planning (MRP) - Answer -- Determine the quantity and timing of material requirements
  • Maintain priorities Describe the role of capacity requirements planning (CRP) - Answer - Determines the labor and machine resources needed to fill the open and planned orders generated by the MRP Project Life Cycle - Answer -- Concept - Identify the need for the project.
  • Feasibility analysis or study - Evaluate costs, benefits, and risks.
  • Planning - Decide who does what, how long it should take, and what you need to do it.
  • Execution - Do the project.
  • Termination - End the project.