Quadratic Loss Function
parabolic relationship between the dollars lost by a customer because of an off-target product performance and the measured deviation of the product from its intended performance.
ISO 8042 defines quality as the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Definitions:
Product: quality of product attributes
User-based: fitness for intended use
Value-based: quality vs. price
Manufacturing: conformance to specs
ISO 9000:2000 defines Quality Assurance as 'providing confidence that requirements will be met'. - update provided by J Broomfield; it can also be defined as 'the planned and systematic activities put in place to ensure quality requirements for a product or service will be fulfilled'.
Quality Assurance Plan
A detailed plan setting forth the process that will be used to measure supplier performance; defines what the organization must do to ensure that the supplier has performed in accordance with the performance standards.
teams that follow a standard process of problem identification, root cause analysis, problem solving and implementation. In Japanese firms there is a greater focus on statistical quality control, employees meet on own time and all employees receive a bonus for the performance of the entire organization. Guide to Quality Control, Dr. Kaoru Ishikawa, English version 1986. Also recommend 'Managing; A Revival of the Quality Circle' in NY Times. Also read - Landel, Robert,Quality Circles. Darden Case No. UVA-OM-0636 . Available at SSRN: http://ssrn.com/abstract=1421686. This note presents the basic elements and implementation issues within a quality-circle program. Top-management and middle-management support roles are discussed, and implementation obstacles are presented.
the observation techniques and activities used to fulfill requirements for quality.
Set of operational, managerial and engineering activities that a company uses to ensure that the quality characteristics of a product are at the nominal or required levels.
Quality Function Deployment
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Quality is inversely proportional to variability. Quality Improvement is the reduction of variability in products and processes.
this concept demonstrates that the earlier in the manufacturing process a quality correction or improvement is made, the greater the payoff - both in fixing the process and in reducing the costs. Theoretically, an investment in product engineering quality will give you a payback of 100:1 by the time your product is shipped. At the manufacturing engineering stage investment will have a payback of 10:1 greater than those made at final inspection.