Managing Quality Flashcards
Managing quality supports…
differentiation
low cost
response strategies
helps firms increase sales and reduce costs
quality
Two Ways Quality Improves Profitability
Sales gain via…
Improved Response
Flexible pricing
improves reputation
Two Ways Quality Improves Profitability
Reduced Cost via…
Increased Productivity
lower rework and scrap costs
Lower warranty costs
Flow of activities…
Organizational Practices
Quality principles
Employee fulfillment
Customer satisfaction
Organizational practice scopes in flow of activities
Leadership
Mission statement
effective operating procedures
staff support
training
Yields what is important and what is to be accomplished
Organizational practices
Quality principles scopes in flow of activities
Customer focus
Continuous Improvement
Bench-marking
Just-in-time
Tools of TQM
Yields how to do what is important and to be accomplished
Quality Principles
Employee Fulfillment scope in flow of activities
empowerment
organizational commitment
yields employee attitudes that can accomplish what is important
Employee fulfillment
Customer satisfaction scope in flow of activities
Winning orders
repeat customers
yields an effective organization with a competitive advantage
Customer satisfaction
objective is to build a total
quality management system that identifies and satisfies
customer needs
Operations manager
The totality of features and characteristics of a product or
service that bears on its ability to satisfy stated or implied
needs
and who quoted this definition
Quality
American Society for Quality
User based view of quality
better performance, more features
Manufacturing based view of quality
conformance to standards,
making it right the first time
Product based view of quality
specific and measurable attributes of the product
Implications of quality
Company reputation
Product liability
Global implications
- Established in 1988 by the U.S. government
- Designed to promote TQM practices
Malcolm Baldrige National Quality Award
Malcolm Baldrige National Quality Award was established in the year ___ by the US government
1988
Baldrige criteria categories …
-Leadership
-Strategic Planning
-Customer focus
-Measurement, Analysis, and Knowledge Management
-workforce focus
-Operations Focus
Points for every category..
-Leadership
-Strategic Planning
-Customer focus
-Measurement, Analysis, and Knowledge Management
-workforce focus
-Operations Focus
120
85
85
90
85
85
Total 450
- International recognition
- Encourages quality management procedures, detailed documentation, work instructions, and record-keeping
ISO 9000 International Quality Standards
2015 revision of ISO Standard gives greater emphasis to ..
risk-based thinking
ISO management principles
- Top management leadership
- Customer satisfaction
- Continual improvement
- Involvement of people
- Process analysis
- Use of data-driven decision making
- A systems approach to management
- Mutually beneficial supplier relationships
Types of costs of quality
Prevention cost
Appraisal Cost
Internal failure cost
external failure cost
cost of reducing the potential for defects
prevention cost
cost of evaluating products, parts, and services
Appraisal costs
cost of producing defective parts or service before delivery
Internal Failure Costs
cost of defects discovered after delivery
External Failure cost
A Japanese character that
symbolizes a broader
dimension than quality, a
deeper process than
education, and a more
perfect method than
persistence
Takumi
He insisted management accept responsibility for building good systems. The employee cannot produce products that on average exceed the quality of what the process is capable of producing.
W. Edwards Deming
A pioneer in teaching the Japanese how to improve
quality
Joseph M. Juran
believed strongly in top-management
commitment, support, and involvement in the quality
effort. He was also a believer in teams that continually
seek to raise quality standards.
Joseph M. Juran
His 1961 book Total Quality Control laid out 40 steps
to quality improvement processes.
Armand Feigenbaum
He viewed quality
not as a set of tools but as a total field that integrated
the processes of a company.
Armand Feigenbaum
His work in how people
learn from each other’s successes led to the field of
cross-functional teamwork.
Armand Feigenbaum
He said that quality is free
Philip B. Crosby
He believed that in the
traditional trade-off between the cost of improving
quality and the cost of poor quality, the cost of poor
quality is understated.
Philip B. Crosby
He said that the cost of poor quality should
include all of the things that are involved in not doing
the job right the first time.
Philip B. Crosby
He coined the term
zero defects and stated, “There is absolutely no
reason for having errors or defects in any product or
service.”
Philip B. Crosby