Chapter 9 MGT

Chapter 9 MGT - C hapter 9 Learning Objectives 1. Define...

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Chapter 9 Learning Objectives 1. Define the term quality (405) a. The ability of a product or service to consistently meet or exceed customer expectations. 2. Explain why quality is important and the consequences of poor quality (418) a. There are many benefits that come with quality such as enhanced reputation, the ability to command premium prices, an increased market share, greater customer loyalty, lower liability costs, fewer production or service problems, fewer complaints from customers, lower production costs, and higher profits b. Consequences of poor quality include loss of business, liability, productivity, and costs. 3. Identify the determinants of quality (416) a. Design: refers to the intention of designers to include or exclude features in a product or service. b. How well the product or service conforms to the design: refers to the degree to which goods and services conform to the intent of the designers. c. Ease of use: increases the chances, but do not guarantee, that a product will be used for its intended purposes and in such a way that it will continue to function properly and safely. d. Service after delivery: For a variety of reasons, products do not always perform as expected, and services do not always yield the desired results. It is therefore important from a quality standpoint to remedy the situation. 4. Describe the costs associated with quality (420) a. Appraisal costs: cost of activities designed to ensure quality or uncover defects. b. Prevention costs: costs of preventing defects from occurring
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c. Failure costs: costs caused by defective parts or products or by faulty services. 5. Describe the quality awards (422) a. The Baldrige award: named after the late Malcolm Baldrige. The purpose of the ward competition is to stimulate efforts to improve quality, to recognize quality achievements, and to publicize successful programs. b. European Quality Award: sits at the top of regional and
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This note was uploaded on 09/02/2011 for the course MGT 3305 taught by Professor Reed during the Spring '08 term at Baylor.

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Chapter 9 MGT - C hapter 9 Learning Objectives 1. Define...

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