OMIS 338 Exam 2 Review - Part 2

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Understand the definition and dimensions of quality

  • Definition: Ability of a product or service to meet and exceed customer expectations
  • Dimensions:
    • Customer view (features, performance, reliability)
    • Operations (Cycle time, repair cost and scrap, design, overhead, logistics)
    • Society (Recycling of batteries and scrapped computers)

Understand ways to improve quality and what is included in cost of quality

  • Ways to improve quality:
    • Customer satisfaction
    • Reduce defects
    • Lower costs
    • Saves time
  • Costs of quality:
    • Prevention (reducing the potential for defects)
    • Appraisal (evaluating products, parts, and services)
    • Internal failure (producing defective parts or service before delivery)
    • External failure (defects discovered after delivery)

Know various concepts of TQM that improve quality and understand their approaches

Total Quality management

Utilize the 7 tools of quality management to generate ideas (7 tools on another slide as well)

  1. Check sheet
  2. Scatter diagram
  3. Cause-and-effect diagram

    Tools to organize the data
  4. Pareto chart
  5. Flowchart

    Tools for identifying problems
  6. histogram
  7. statistical process control chart

Understand the Six Sigma program

Comprehensive system for achieving and sustaining business success.

Defines the project's purpose then identifies the required process information keeping in mind the quality

the process and collects data

Data ensuring repeat and reproduce

modifying or redesigning existing processes and procedures

New process to make sure performance levels are maintained


Taguchi techniques

Promote robustness within product and process design

Foolproof devices or techniques designed to pass only acceptable products


Understand what Poka-yoke attempts to accomplish

Concept of foolproof devices or techniques designed to pass only acceptable products


Understand the basic purpose and methodology for each of the seven tools of quality and how they are used

  1. Check sheet (collect data in real time at location where data is generated)
  2. Control chart (statistical process control tool used to determine if a manufacturing or business process is in a state of control)
  3. Stratification (method of sampling from a population which can be partitioned into subpopulations)
  4. Pareto chart (often represents the most common sources of defects, the highest occurring type of defect, or the most frequent reasons for customer complaints)
  5. Histogram (approximate representation of the distribution of numerical/categorical data)
  6. Cause-and-effect diagram: also known as the "fishbone diagram" or Ishikawa diagram (identify potential factors causing an overall effect. )
  7. Scatter diagram

Know the difference between natural and assignable causes of variation

  • Natural Variation:
    • Common
    • Random
    • Inherent in any process
    • Output measures follow a probability distribution
    • In control when distribution output falls within acceptance limits
  • Assignable Variation:
    • Special
    • Not random
    • Identifiable factors
    • Identified and eliminated through operator or management action

Know the difference between attribute and variable data

  • Attribute Data:
    • Qualitative data
    • product characteristic evaluated with a discrete choice
    • good/bad
    • acceptable/unacceptable
    • p-charts
    • c-charts
  • Variable Data:
    • Quantitative data
      product characteristic that can be measured on a continuous scale
      length, size, weight, height, time, velocity
    • x-bar
    • r chart

Be able to determine when a process is in control and/or out of control

  • No sample points outside limits
  • Most points near process average
  • About equal number above and below center line
  • Points appear randomly distributed

What is the SPC two-step process

Statistical Process Control (SPC)

  • The creation of the limits and detailed procedures for using the chart
  • Using the chart by plotting sample averages, and interpreting whether the process is in control or not

Be able to calculate control limits for the three charts, ( p, X bar and R bar). Work SPC practice problems posted within the Exam Review Sheets.

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