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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
Defect rateD ÷ U × 100

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