Total Quality Management (TQM) Philosophy 1. customer focus 2. continuous improvement 3. employee empowerment 4. use of quality tools 5. product design 6. process management 7. managing supplier quality Process Capability Index (Cpk) Basic function of Six Sigma. Measures the process potential and performance of processes. The higher the range of Cpk, the improved is the ability of the process to complete its necessities. Six Sigma A disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process - from manufacturing to transactional and from product to service. Design Capacity The theoretical maximum output of a system in a given period under ideal conditions. Location Analysis proximity to customers, transportation, source of labor, community attitude, proximity to suppliers, and many other factors. The technique for determining location decisions. Line Processes A type of process used to produce a large volume of a standardized product. ■ Limited customization and high volume Batch Processes A type of process used to produce a small number of products in groups or batches based on customer orders or specifications. ■ High customization moderate volume Project Processes A type of process used to make a one-at-a-time product exactly to customer specifications. ■ Most custom and lowest volume Continuous Processes A type of process that operates continually to produce a high volume of a fully standardized product. - No customization and as high a volume as possible Bottleneck