W. Edwards Deming states that the correct cost for a well-run quality management
program should be under 0.5 percent of sales.
Highest-profit customer first is a queue discipline discussed in the textbook.
The term “freeze window” refers to the practice of building quality into the process and
not identifying quality by inspection.
If a person performing a task has been achieving an 80 percent learning curve and it
took 10 minutes to produce the first unit, the total time to produce 100 units will be
326.5 minutes.
Just-in-time (JIT) production was a major breakthrough in manufacturing philosophy
pioneered by the Japanese.
Lean manufacturing refers to just in time production coupled with total quality control.
In services, the product is developed first and then the process to produce the service is
developed.
Internet technology has made the sharing of reliable real-time information expensive.
A piece of equipment with twice the capacity of another piece typically costs twice as
much to purchase and to operate.
Low rates of capacity utilization in service organizations are never appropriate.
Because the factors governing demand for products are very complex, all forecasts of
demand contain error.
A learning curve shows the increase in time required for each successive unit
completed.
Services are defined and evaluated as a package of features that affect the five senses.