Managing A Total Quality Approach Flashcards
What is quality
-conformance to customer expectations
When is quality achieved
-> when a product or service contains all the features a customer would expect and when it performs in such a way that the customer is satisfied
Features are
Customer expectations
Performance is
Customer satisfaction
Total quality management
-> given to programmes which seek to ensure that goods and products and services supplied are of the highest quality
Get it right first time
-the cost of prevention is less than the cost of correction
Continuous improvement
-dissatisfaction with current situations, always possible to improve
Conformance costs
-> cost of achieving specified quality standards
1. Prevention costs = cost of ensuring defects do not occur in first place (preventative repairs & maintenance)
2. Appraisal costs = make sure output meets the required standards (inspection and testing, quality audits)
Non conformance costs
-> cost of achieving specified quality standards
1. Internal failure costs = identified before the transfer of ownership (cost of rework, system downtime, disposal of defective products)
2. External failure costs = identified after the transfer of ownership (complaint investigation, warranty claims, compensation costs, product recalls)
Defects of traditional measures / possible dysfunctional consequences arising from
- Efficiency / volume variances
- Purchase price variations
- Standard costing systems
- Need care when using
- Need new measures
Total quality management non financial measures
-> provide continuous feedback to managers and workers in their pursuit for better quality
1. Vendors / supplier performance
2. Production / service performance
3. Customer reaction
Supply chain issues
-> evaluate potential suppliers
-> ongoing gathering/sharing of knowledge
-> integrate/communicate performance
-> continuous process improvement
Define business process re-engineering
-> involves examining business processes and radically redesigning these processes to achieve cost reduction, improved quality and customer satisfaction
-> examples of how to improve quality and customer satisfaction
Evaluate potential implications that may be associated with hotels quality cost distribution
- Overall quality spend -> number -> impact on profits
- Reduced spend on conformance costs -> number -> increased instances of non conformance costs
- Significant increase in refunds -> number -> impact reputation
- Redistribute spending towards conformance costs
