This refers to the inherent value of the product in the marketplace and is a strategic decision for the firm.
Design Quality
Relates to how well a product or service meets design specifications.
Conformance Quality
Relates to how the customer views quality dimensions of a product or service.
Fitness for Use
The series of international quality standards.
ISO 9000
What is the enemy of good quality?
Variation
A Six Sigma process that is running at the center of its control limits would expect this defect rate.
2 parts
The standard quality improvement methodology developed by General Electric.
DMAIC cycle
Variation that can be clearly identified and possibly managed.
Assignable variation
Variation inherent in the process itself.
Common variation
If a process has a capability index of 1 and is running normally (centered on the mean), what percentage of the units would one expect to be defective?
Design limits are at +-3 sigma or 2.7 defects per thousand
An alternative to viewing an item as simply good or bad due to it falling in or out of the tolerance range.
Taguchi loss function
Quality characteristics that are classified as either conforming or not conforming to specification.
Attributes
A quality characteristic that is actually measured, such as the weight of an item.
Variable
A quality chart suitable for when an item is either good or bad.
P-Chart
A quality chart suitable for when a number of blemishes are expected on each unit, such as a spool of yarn.
C-chart
Useful for checking quality when we periodically purchase large quantities of an item and it would be very costly to check each unit individually.
Acceptance sampling
A chart that depicts the manufacturer's and consumer's risks associated with a sampling plan.
Operating characteristic curve