Quality & Efficiency: key terms, formulas and examples
Quality means meeting the standard the first time. Use root cause analysis, Six Sigma, kaizen and quality control, and prevent mistakes by design with poka-yoke.
Example
2 defects in 100 units is a 2% defect rate.
Takeaway
Fix the process, not the people, and measure defects continuously.
Key terms
- Quality control
- Checking that products meet the required standard.
- Bottleneck
- The step that limits a whole process's speed.
- Automation
- Using technology to do tasks without manual work.
- Benchmarking
- Comparing your results with the best in your field.
- Six Sigma
- A data-driven method to cut defects and variation in processes.
- Lean manufacturing
- Cutting waste in production while keeping quality and value.
- Defect rate
- The share of products that fail quality standards.
- Quality assurance
- Preventing defects by improving the process.
- Kaizen
- Small, continuous improvements made by everyone.
- Root cause analysis
- Searching for the underlying cause of a problem.
- Supplier audit
- A check of a supplier's practices and quality.
- ISO certification
- Proof that a company meets an international standard.
- Recall
- A request to return products found to be defective.
- Total quality management
- Making quality everyone's job.
- Inspection
- Checking products against standards.
- Statistical process control
- Using data charts to keep a process stable.
- Poka-yoke
- Mistake-proofing a process by design.
Formulas
Production yieldG ÷ T × 100
Capacity utilizationA ÷ C × 100
Throughput (Little's law)WIP ÷ CT
Defect rateD ÷ U × 100
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