CH_09_10_Edition - Management of Quality CHAPTER 9...

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Management of Quality CHAPTER 9 MANAGEMENT OF QUALITY KEY IDEAS 1. Defining Quality. Quality is defined as the ability of a product or service to consistently meet or exceed customer expectations. Operational definitions of quality generally refer to one or more dimensions of quality. For products, these include performance, special features, conformance to expectations, reliability, durability, service after delivery, aesthetics, safety, and perceived quality. For services these include, tangibles, convenience, reliability, responsiveness, time, assurance, and courtesy. 1. Superior Quality. An organization's reputation for superior quality can give it a competitive advantage in the marketplace. Superior quality can enhance the reputation of the firm, increase its market share, increase the loyalty of the customers, reduce the risk of liability claims, reduce costs, and increase productivity. 2. Poor Quality. The consequences of poor quality relate to loss of business, deterioration of the firm’s reputation, product liability and higher costs and expenses. Costs can be categorized as failure costs, appraisal costs, and prevention costs. 4.
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This note was uploaded on 07/19/2011 for the course OMIS 430 taught by Professor C.schnieder during the Spring '10 term at S.E. Louisiana.

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CH_09_10_Edition - Management of Quality CHAPTER 9...

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