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POM Final - Productions Operations Management Final Study...

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Productions & Operations Management Final Study Guide Chapter 9 Prior to the increased level of Japanese competition in the US marketplace in the 1970s and 1980s, quality was not uppermost in the minds of US business organizations. They tended to focus more on cost and productivity than on quality. It wasn’t that quality was unimportant , it just wasn’t very important. Product 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 Reliability - consistency of performance Durability - useful life of the product/service Perceived Quality - indirect evaluation of quality (e.g. reputation) Serviceability - service after sale The Consequences of Poor Quality Loss of business Liability Productivity Costs Internal and external failure costs represent casts related to poor quality, whereas appraisal and prevention costs represent investments for achieving goo quality.
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Appraisal Costs - Costs of activities designed to ensure quality or uncover defects Prevention Costs - All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring 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. **Continuous improvement, involvement of everyone, & customer satisfaction** ***Toyota*** Total Quality Management (TQM) - A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction. (looking only at the quality of the final product / looking at the quality of every aspect of the process that produces the final product or service) 1. Find out what the customer wants 2. Design a product or service that meets or exceeds customer wants 3. Design processes that facilitates doing the job right the first time 4.
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