L25_Quality - Lecture 25 Quality Management Slide 1 Le a...

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Slide 1 Lecture 25 Quality Management
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Slide 2 Le a rning  O b je c tive s Understand the costs of quality Understand different kinds of variations in the process  Understand sample mean and sample standard deviation Understand Type I and Type II errors Understand the trade-offs in statistical process control
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Slide 3 Why Quality Management?
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Slide 4 Quality -- is the ability of a product or service to consistently meet  or exceed  customer expectations.  Quality problems lead to Unsatisfied customer   potential lost sales Reduced process capacity (the example from  The Goal ) Waste of resource due to rework and scraps ……
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Slide 5 Managing Quality Quality Assurance Emphasis on finding and correcting defects  before reaching  market Strategic Approach Proactive, focusing on preventing mistakes  from occurring Greater emphasis on customer satisfaction
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Slide 6 The Costs of Quality Appraisal costs : Costs of activities designed to ensure quality or uncover  defects: inspection of equipment, testing, labs, inspectors, interruption of  production. Prevention costs : Costs of preventing defects from occurring. Planning and administration systems Working with vendors Training Quality control procedure Extra attention in both the design and production phases to decrease the  probability of defective workmanship
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Slide 7 The Costs of Quality (Cont.) Failure costs : Cost caused by defective parts or products, faulty services,  mis-calibrated equipment, poor methods, sloppy execution. Internal failure : Failure discovered during production: rework, scrap,  downtime, material and product losses. External failure : Failures discovered after delivery to the customer:  returns, recalls, liability, warranty costs, damage to reputation.  Per unit external failure cost is typically greater than internal cost
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L25_Quality - Lecture 25 Quality Management Slide 1 Le a...

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