GMS401 FINAL EXAM STUDY GUIDE
SOLUTIONS
Quality - ANSWER-the ability of a product or service to meet customer needs
4 Categories of Cost of Quality - ANSWER-1. Prevention costs
2. Appraisal costs
3. Internal failure
4. External costs
Prevention costs - ANSWER-reducing the potential for defec...
PDCA - ANSWER✔✔-a continuous improvement model that involves 4 stages: plan, do, check, act
Six Stigma - ANSWER✔✔-a program to save time, improve quality and lower cots (process with
99.9997% capability). Developed by Motorola in 1980s
DMAIC - ANSWER✔✔-Six stigma improvement model:
1. define (critical outputs and identify gaps for improvement)
2. measure (the work and collect process data)
3. analyze (the data)
4. improve (the process)
5. control (the new processes to make sure new performance is maintained)
Employee Empowerment - ANSWER✔✔-enlarging employee jobs so that the added responsibility and
authority is moved to the lowers level possible in the organization
Quality circle - ANSWER✔✔-a group of employees meeting regularly with a facilitator to solve work-
related problems in their work area
Benchmarking - ANSWER✔✔-selecting demonstrated standard of performance that represents the very
best performance for a process or an activity
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