CHAPTER 5 supply chain


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CHAPTER 6 MANAGING QUALITY I. DEFINING THE DIMENSIONS OF QUALITY - A corporate, proactive approach to the implementation and delivery of higher quality products and services in less time to the market - Quality mgmt can improve various dimensions of product quality Example : Hewlett-Packard they cut their defects in half per 1 million soldered components less internal rework, fewer inspections, improved reputation w/ customers, less inventory, reduced LTs, less floor space (for inspections and rework), lower costs, fewer product returns - Defined by: Product quality – product’s fitness for consumption in terms of meeting customers’ needs and desires Performance, features, reliability, durability, conformance, aesthetics, support/responsiveness, perceived quality (reputation/assurance/empathy) o See Table 6-1, pg. 158 o Table 6-2, pg. 159 Design quality – a measure of how well a product’s designed features match up to the requirements of a given customer group Conformance quality – a measure of whether or not a delivered product meets its design specifications Quality management – establishes an organization wide focus on quality - Functional Roles in Quality Mgmt A business management approach Encompasses many functional areas and activities w/in and across companies in the SC Customer ultimately decides whether a quality product has been delivered - Japan Known for building inferior products Managers looked for ways to restructure their firms and country’s economy as a whole after World War II Deming, Juran, Crosby, and Imai brought seeds of a mgmt philosophy to Japan and worked as part of American Occupation Force Deming and Juran spread word of quality o Deming – top mgmt o Juran – tactical/operational side of quality Total Quality Management (TQM) – transformed Japan’s economy II. TQM: A “TOTAL” VIEW OF QUALITY - Total Quality Management (TQM) – an integrated business mgmt strategy aimed at embedding awareness of quality in all organizational processes
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- Product’s quality determined by customer’s acceptance and use of the product Focus on attributes – total package that targeted customers will care about most - A total, organizationwide activity - Quality improvement requires a total commitment from all employees - Quality product results from good design combined w/ effective production and delivery methods - Commitment to high quality is required of everyone in firm - Recognizing the Total Impacts of Quality Performance Poor product quality can have hidden/indirect effects Affects inspection, rework and warranty costs Total costs and benefits of quality performance need to be understood by everyone in the org Requires an analysis Cost of quality (COQ) – a framework for quantifying the total cost of quality-related efforts and deficiencies Developed by Feigenbaum to help clarify cost impacts of poor
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