Chapter 27 - Quality Management Flashcards
Quality Product
A good or service that meets customers’ expectations and therefore fulfills its intended purpose.
Quality Standards
The expectations of customers expressed in terms of the minimum acceptable production or service standards.
Importance of Quality
- Creates customer loyalty
- Reduces costs of customer complaints
- Prolonged product life cycle
- Reduced costs of advertising
- Can raise the price of the good
Quality Control
Checking based on inspection of the product or a sample of products.
Quality Assurance
A system of agreeing and meeting quality standards at each stage of production to ensure consumer satisfaction.
Quality Control Method
1) Prevention
2) Inspection
3) Correction and improvement
Quality Assurance Methods
1) Product Design
2) Quality of inputs
3) Production Quality
4) Delivery Systems
5) Customer Service, including after-sales service
ISO 9000
An internationally recognized standard that acknowledges the existence of a quality assurance method that meets certain conditions.
Total Quality Management
An approach to quality that aims to involve all employees in quality improvement.
Internal Customers
People within the organisation who depend upon the quality of work being done by others.
Zero Defects
A way of thinking to ensure that products meet customer expectations every time.
Benchmarking
Comparing a business against the performance standards of the best businesses in the same industry.
Benchmark Performance Indicators
The areas of business performance that are measured and compared with other businesses.
Benchmarking Stages
1) Identify performance indicators of the business to be benchmarked.
2) Measure performance in these areas
3) Identify the businesses in the industry that are considered to be the best.
4) Use BPI data from the best businesses to establish the weaknesses in the business
5) Set standards for improvement
6) Change processes to achieve the standards set
7) Re - Measure
