42 Questions
What is the first step a firm must take in obtaining ISO certification?
Documenting and implementing their systems for quality management
What must the initial documents for ISO certification include?
Policy, procedures, and work instructions
Who is responsible for completing the audit required for ISO certification?
An accredited private company
What is the purpose of training all employees involved with the quality management systems?
To create comfort with new work procedures and documents
What role do ISO standards play in global trade development?
Assisting in entering new markets and facilitating international trade on a fair basis
What is the usual duration of the ISO certification process?
12 to 18 months
What is the main motivation that should drive organizations to implement any quality program, including ISO certification?
To improve internal performance
Which International Standard evaluates a firm's environmental performance?
ISO14001
What industry does the HACCP program primarily focus on?
Food processing
What are the potential benefits of implementing a HACCP program?
Enhancement of product quality
What is the purpose of HACCP principles?
To control food safety risks in a business
Which agency recommends HACCP compliance certification for all food businesses?
Canadian Food Inspection Agency
When did it become mandatory for federally registered meat and poultry establishments to become HACCP Certified?
2005
Who introduced the Six Sigma program in 1980?
Bill Smith
What does the term 'Six Sigma quality' refer to?
3.4 defects per million opportunities
What is the main focus of ISO9001 certification?
Improving customer satisfaction
What is one of the key goals of TQM (Total Quality Management)?
Minimizing errors and waste
In what way does ISO assist organizations through its standards?
By creating safe and reliable products
What is the function of quality circles within companies?
Identifying quality, efficiency, and work-related problems
What is a core principle of continuous improvement in TQM?
Making constant improvements in the design, production, and delivery of goods and services
What are the three common quality systems mentioned in the text?
TQM, ISO9001, Kaizen
What is the objective of Total Quality Management (TQM)?
Meeting or exceeding customers' defined specifications
How does a company adhere to TQM principles?
By focusing on customer satisfaction, employee involvement, and continuous improvement
What is the purpose of ISO9001 certification for organizations?
To ensure that organizations meet quality management standards and continuously improve
What are some examples of external failure costs mentioned in the text?
Potential law suits, product recalls, loss of future business
What does a 3 sigma quality level indicate?
99.73% of all output falls between plus and minus three standard deviations of the mean
What is the equivalent number of defects per million opportunities for a 3 sigma process?
2700
What is unique to Six Sigma?
DMAIC Improvement Model
What is used to analyze the frequency of problems or causes in the Measure step of the DMAIC model?
Pareto chart
What is the main focus of ISO9001 certification?
Customer satisfaction
Why do companies use surveys and other methods to monitor customer satisfaction?
To gauge customer feedback
Who is responsible for ensuring quality in a drive-through window service?
Every employee involved
Why is it important for managers to communicate the importance of quality to subordinates?
To motivate subordinates to focus on customer satisfaction
What is a key requirement for successful TQM according to the text?
Customer satisfaction commitment by everyone in the organization
What is the primary role of employees in ensuring quality assurance?
Detecting and correcting quality problems
How do companies encourage customers to define quality according to the text?
By identifying and offering product features that satisfy customer needs
What is the responsibility of every employee involved in a defective DVD?
Taking responsibility for its design, production, and shipping
What steps do companies take to ensure that providing quality is a factor in every facet of their operations?
They ensure that providing quality is a factor in every facet of their operations—from design to sales and service
What is the purpose of getting feedback on how well companies are doing according to the text?
To gauge customer satisfaction
The management of a pizza place would like to add a new line of small pizzas, which will require leasing new equipment for a monthly payment of $2,000. Variable costs would be $3 per pizza, and pizzas retail for $9 each.
How many pizzas must be sold per month to break even?
666.67
The management of a pizza place would like to add a new line of small pizzas, which will require leasing new equipment for a monthly payment of $2,000. Variable costs would be $3 per pizza, and pizzas retail for $9 each.
What would the profit (loss) be if 1200 pizzas were made and sold monthly?
$5,200
The management of a pizza place would like to add a new line of small pizzas, which will require leasing new equipment for a monthly payment of $2,000. Variable costs would be $3 per pizza, and pizzas retail for $9 each.
How many pizzas must be sold to realize a profit of $10,000 per month?
2000
Study Notes
ISO Certification
- The first step in obtaining ISO certification is to prepare initial documents that include a quality manual, quality objectives, and a quality policy.
- These documents must define the quality management system and outline the firm's quality objectives and policies.
ISO Standards and Global Trade
- ISO standards play a crucial role in global trade development by ensuring that products meet international standards, increasing customer confidence, and reducing trade barriers.
Importance of Employee Training
- Training all employees involved with the quality management system is essential to ensure they understand their roles and responsibilities in maintaining quality.
ISO Certification Process
- The usual duration of the ISO certification process varies, but it typically takes several months to a year to complete.
Motivation for Quality Programs
- The main motivation driving organizations to implement quality programs, including ISO certification, should be to meet customer requirements and enhance customer satisfaction.
Environmental Performance
- The International Standard that evaluates a firm's environmental performance is ISO 14001.
HACCP Program
- The HACCP program primarily focuses on the food industry, ensuring food safety and quality.
- The potential benefits of implementing a HACCP program include reduced foodborne illnesses, improved customer confidence, and reduced costs associated with product recalls.
- The purpose of HACCP principles is to identify and control hazards in the food production process.
- The FDA recommends HACCP compliance certification for all food businesses.
- It became mandatory for federally registered meat and poultry establishments to become HACCP Certified in 1998.
Six Sigma Program
- The Six Sigma program was introduced by Motorola in 1980.
- 'Six Sigma quality' refers to a level of quality that reduces defects to 3.4 per million opportunities.
- The main focus of Six Sigma is to reduce defects and variations in processes.
ISO9001 Certification
- The main focus of ISO9001 certification is to ensure that a firm's quality management system meets international standards.
- One of the key goals of Total Quality Management (TQM) is to achieve customer satisfaction through continuous improvement.
Total Quality Management (TQM)
- ISO assists organizations through its standards, enabling them to implement TQM principles and achieve customer satisfaction.
- Quality circles within companies are formed to identify and solve quality-related problems.
- Continuous improvement is a core principle of TQM, focusing on ongoing improvement of processes and products.
- The objective of Total Quality Management (TQM) is to achieve customer satisfaction through continuous improvement.
- Companies adhere to TQM principles by focusing on customer needs, continuous improvement, and employee involvement.
- The purpose of ISO9001 certification is to ensure that a firm's quality management system meets international standards.
Breaking Even and Profit Calculations
- To break even, the number of pizzas sold must cover the fixed and variable costs.
- If 1200 pizzas are sold monthly, the profit would be $2,400.
- To realize a profit of $10,000 per month, the management of the pizza place must sell 1,667 pizzas.
Test your knowledge about six sigma quality level, its significance, and implications for business operations. Learn about the amount of variation in data and its impact on quality standards.
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