Chapter 4,5,6 Test

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Flashcards on Chapter 4,5,6 Test, created by Tyler Fitzpatrick on 11/07/2016.
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DMAIC (Six Sigma) Six Sigma DMAIC Methodology: 1. Define. 2. Measure. 3. Analyze. 4. Improve. 5. Control.
DMAIC 1. Define · Describe problem in operational terms. · Drill down to specific problem statement, project scoping. · Identify customers and CTQs, performance metrics and cost/revenue implications.
2. Measure · Key data collecton questions: - What questions are we trying to answer? - What type iof data will we need to answer that question? - Where can we find the data? - Who can provide the data? - How can we collect the data with minimum effort and with minimum chance of error?
3. Analyze · Focus on why defects, errors, or excessive variation occur. · Seek the root cause. · 5-Why technique. · Experimentation and verification.
4. Improve 4. Improve: · Idea generation. · Brainstorming · Evaluation and selection. · Implementation planning.Answer…
5. Control 5. Control: 
 · Maintain improvements. · Standard operating procedures. · Training. · Checklist or reviews. · Statistical process control charts.
Histogram - Provides clues about characteristics of the parent population from which a sample is taken. - Patterns that would be difficult to see in an ordinary table of numbers become apparent. - One of seven QC tools. Benefits of Histogram: o Displays large amounts of data that are difficult to interpret in tabular form. o Shows centering, varation and shape. o Illustrates the underlying distribution of data. o Provides useful information for predicting future performance. o Helps to answer “Is the process capable of meeting requirements?”
Cause and Effect Diagram - Graphical method for presenting a chain of causes and effects for sorting out causese and organizing relationships between variables. Benefits of Cause and Effect Diagram: o Enables a team to focus on the content of a problem, not on the history of the problem or differing personal interests of team members. o Creates a snapshot of collective knowledge and consensus of a team; builds support for solutions. o Focuses the team on causes, not symptoms.
Stretch Goals - Goals that cannot be achieved by incremental or small improvements but require extending oneself to the limit to be actualized. Expressed in the saying, "You cannot cross a chasm in two steps." - Breakthrough improvements result from innovative and creative thinking; often these are motivated by stretch goals.
Best Practice - Approaches that produce exceptional results. Usually innovative in terms of the use of technology or human resources. Recogized by customers or industry experts.
Value - Define attitudes and policies for all employees, which are reinforced through conscious and subconscious behavior at all levels of the organization. - Example – Freese and Nichols: o We are ethical. o We deliver quality. o We are responsive. o We add value. o We improve continuously. o We are innovative. o We develop professionally o We respect others. o We give back to our communities.
Durability 1. Assurance or probability that an equipment, machine, or material will have a relatively long continuous useful life, without requiring an inordinate degree of maintenance. 2. Ability to undergo permanent deformation without cracking or fracturing. 3. Ability to exist for long without significant deterioration by resisting the effects of heavy use, drying, wetting, heating, freezing, thawing, corrosion, oxidation, volatilization, etc.
Responsiveness - Quality of a business process or supporting IT solution, which indicates its ability to respond to changing conditions and customer interactions as they occur.
Cycle Time - Time it takes to accomplish once cycle of a process.
Vertical Integration - Opposite of outsurcing is vertical integration. Certain business functions are acquired nd consolidated within a firm.
Juran’s contributions to teamwork relationship - Developed useful framework to disntigusish between adversarial and teamwork relationships with suppliers.
Product Attributes Measure Customer Satisfaction, Loyalty and Engagement - Customer satisfaction measures may include product attributes such as product quality, performance, usability, and maintainability; service attributes such as attitude, service time, on-time delivery, exception handling, accountability, and technical support; image attributes such as reliability and price; and overall satisfaction measures.
Net Promoter Score Designations: - NPS is claimed to correlate strongly with market and revenue growth. - NPS is claimed to correlate strongly with market and revenue growth. The metric is based on one simple question, “ What is the likelihood that you would recommend us?” evaluated on a scale from 0 to 10. o Scores of 9 or 10 are usually associated with loyal customers who will typically be repeat customers (“promoters”) o Scores of 7 or 8 are associated with customers who are satisfied but may switch to competitors (“passives”); and o Scores of 6 or below represent unhappy customers who may spread negative comments (“detractors”). o NPS is the difference in the percentage of promoters and detractors.
Moments of Truth Manage Customer Relationships - Every instance in which a customer comes in contact with an employee of the company.
Seven QC Tools - Flow Chart . - Pareto Chart . - Control Chart. - Benchmarking.
Flowchart The Seven QC Tools - Flowchart or process map identifies the sequence of activities or the flow of marterials and imforation in a process. - Flowcharts help the people involved in the process understand it much better and more objectively by providing a picture of the steps needed to accomplish a task. - Benefits of Flowcharts: o Shows unexpected complexity, problem areas, redundancy, unnecessary loops, and where simplification may be possible. o Compares and contrasts actual versus ideal flow of a process. o Allows a team to reach agreement on process steps and identify activities that may impact performance. o Serves as a training tool.
Pareto Chart - Pareto distribution is one in which characteristics observerd are orderd from largest frequency to smallest. - A pareto diagram is histogram of data from largest frequcny to smallest. Benefits of Pareto Diagrams: o Helps a team focus on causes that have the greatest impact. o Displays the relative importance of problems in a simple visual format. o Helps prevent “shifting the problem” where the solution removes some causes but worsens others.
Control Chart Control charts show the performance and the variation of a process or some quality or productivity indicator over time in a graphical fashion that is easy to understand and interpret. They also identify process changes and trends over time and show the effects of corrective actions. Benefits of Control Charts: o Monitors performance of one or more processes over time to detect trends, shifts, or cycles. o Distinguishes special from common causes of variation. o Allows a team to compare performance before and after implementation of a solution to measure its impact. o Focuses attention on truly vital changes in the process.
Benchmarking The Search of industry best practices that lead to superior performance. - Best practices – approaches that produce exceptional results, are usually innovative in terms of the use of technology or human resources, and are recognized by customers or industry experts.
Competitive Advantage A firm’s ability to achieve market superiority over its competitors. Characteristics: o Is driven by customer wants and needs. o Makes significant contribution to business success. o Matches organization’s unique resources with opportunities. o Is durable and lasting. o Provides basis for further improvement. o Provides direction and motivation.
Reliability 1. The ability of an apparatus, machine, or system to consistently perform its intended or required function or mission, on demand and without degradation or failure. 2. Manufacturing: The probability of failure-free performance over an item's useful life, or a specified timeframe, under specified environmental and duty-cycle conditions. Often expressed as mean time between failures (MTBF) or reliability coefficient. Also called quality over time. See also availability. 3. Consistency and validity of test results determined through statistical methods after repeated trials.
Empathy The ability to identify and understand another's situation, feelings and motives. It's our capacity to recognize the concerns other people have. Empathy means: "putting yourself in the other person's shoes" or "seeing things through someone else's eyes."
Customer defined peroduct -
Core Competencies A unique ability that a company acquires from its founders or develops and that cannot be easily imitated. Core competencies are what give a company one or more competitive advantages, in creating and delivering value to its customers in its chosen field. Also called core capabilities or distinctive competencies. See also core rigidities.
QFD Visual decision making tool which shows how closely existing and proposed measures of a process are matched with customer needs. Also called mapping matrix.
7 QC Tools Cause-and-effect diagram Check sheet Control charts Histogram Pareto chart Scatter diagram Stratification
Check sheet A structured, prepared form for collecting and analyzing data; a generic tool that can be adapted for a wide variety of purposes.
Control charts Graphs used to study how a process changes over time.
Scatter diagram Graphs pairs of numerical data, one variable on each axis, to look for a relationship.
Stratification A technique that separates data gathered from a variety of sources so that patterns can be seen (some lists replace “stratification” with “flowchart” or “run chart”).
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