week5-qcand tm1week5-qcand tqm1week5-qcand tqm1week5-qcand tqm1.ppt

Quality Management What does the term quality mean? Quality is the ability of a product or service to consistently meet or exceed customer expectations. Dimensions of Quality Performance - main characteristics of the product/service Aesthetics - appearance, feel, smell, taste Special features - extra characteristics Conformance - how well product/service conforms to customer’s expectations Safety - Risk of injury Reliability - consistency of performance Dimensions of Quality (Cont’d) Durability - useful life of the product/service Perceived Quality - indirect evaluation of quality (e.g. reputation) Service after sale - handling of customer complaints or checking on customer satisfaction Determinants of Quality The Consequences of Poor Quality Loss of business Liability Productivity Costs Responsibility for Quality Top management Design Procurement Production/operations Quality assurance Packaging and shipping Marketing and sales Customer service Costs of Quality Failure Costs - costs incurred by defective parts/products or faulty services. Internal Failure Costs Costs incurred to fix problems that are detected before the product/service is delivered to the customer. External Failure Costs All costs incurred to fix problems that are detected after the product/service is delivered to the customer. Costs of Quality (continued) Appraisal Costs All product and/or service inspection costs. Prevention Costs All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring Ethics and Quality Substandard work Defective products Substandard service Poor designs Substandard parts and materials Quality Certification ISO 9000 Set of international standards on quality management and Quality assurance, critical to international Business ISO 9000 series standards, briefly, require firms to document their quality-control systems at every step (incoming raw materials, product design, in-process monitoring and s