Question

Chapter 3: Quality and Performance

1) Explain why quality is important, what are the benefits of good quality and the consequences of poor quality.

2) Why is order of observation important in process control?

3) If all observations are within control limits, does that guarantee that the process is in control? Explain.

4) Briefly explain the purpose of each of these control charts:

a. x-bar

b. Range

Chapter 12: Supply Chain Management

1) Explain the importance of supply chain visibility and communication among channel partners.

Answer 1

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1. Quality is a very important concept in the organisayions as it is a critical aspect for determining the satisfaction level of your customers and helping the business to retail the loyalty of the customers as they continue to buy from you in the future events. These quality products have a direct positive as well as negative consequence in the market relying on the fact if the company is able to meet the customer's expectations towards the quality or not. Positive consequences are long term revenue, goodwill and a good market hold. Negative comsequences for not maintaining the quality are bad reputation in the market, decreased customer loyalty and retention, decrease in market shares.

2. The order of observation is consider as an important concept in the process control as it monitore the number of samples that lie outside the lower control limit and also the upper control limit for a series of observations. It helps in monitoring and investigating if the company is getting a consecutive series outside the limits because this directly conveys the poor performance of the company.

3. No, it doesn't mean that the process is in control. All points can be simply within the control limits but may show non random patterns in the data analysis which would then tell us about the out of control process. Checking for points within prescribed control limits reveal only extreme points that is falling outside the limits and thus, does not reveal the non random patterns.

4. X-bar: X bar is a control chart which is used to monitor the arithmetic means for the successive samples of the constant size. This type of chart is basically used for the characteristics that could be easily measured on a continous scale like the temperatur, weight etc. It helps in tracking the average performance and keep a track of variables.

Range chart is again one of the control charts that help in monitoring the difference and the activities that lie between the highest value and the lowest value in a sample, the main purpose is to serve and determine the siginificant changes and process variatione that happen between these two points.