Chapter 6 outline

Chapter 6 outline - Chapter6:ManagingQuality...

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Chapter 6: Managing Quality response increase profitability  Companies w/the highest quality were 5x, as productive as companies w/the poorest  quality Total quality management (TQM)- successful set of activities begins w/an organizational  environment that fosters quality, followed by an understanding of the principles of  quality Defining Quality Quality ability to satisfy stated or implied needs Marketing people like user based Production managers like manufacturing based Implications of Quality Quality is important: o Company reputation o Product liability o Global implications Malcolm Baldrige National Quality Award Global implications of quality are so important that US has established the award for  quality achievement Winners include- Motorola, Milliken, Xerox, federal express, Ritz-Carlton Hotels,  Cost of Quality (COQ)  - cost of doing things wrong, that is, the price of nonconformance Prevention costs- costs associated w/reducing potential for defective parts or  services (ex: training, quality improvement programs) (ex: testing, labs, inspectors) Internal failure- costs that result from production of defective parts or services before  delivery to customers (ex: rework, scrap, downtime) External costs- costs that occur after delivery of defective parts or services (ex:  rework, returned goods, liabilities, lost goodwill, cost to society) Ethics & Quality Management
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If a firm believes that it has introduced a questionable product, ethical conduct must  dictate the responsible action Manufacturer must accept responsibility for any poor-quality product released to the  public Management must ask if any of these stakeholders are being wronged Every company needs to develop core values that become day-to-day guidelines for  everyone International Quality Standards ISO 9000 - a set of quality standards developed by the International Standards  Organization Focus of the standards is to establish quality management procedures, through 
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This note was uploaded on 11/28/2010 for the course MGT 201 taught by Professor Asd during the Spring '07 term at Bryant.

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Chapter 6 outline - Chapter6:ManagingQuality...

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