Ch 5 - Chapter5 XunLi LearningObjectives 1 DefiningQuality...

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Chapter 5.  Total Quality Management Xun Li
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2 Learning Objectives 1. Defining Quality 2. The Cost of Quality** 3. TQM & The Philosophy of TQM*
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LO1:  Defining Quality Definition of quality is dependent on the  people defining it There is a lack of  a single, universal  definition of quality 5 common definitions include (pp.138) 1. Conformance to specifications How well a product or service meets the targets and  tolerance determined by its designers?  2. Fitness for use How well the product performs for its intended use? 3
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LO1:  Defining Quality 5 common definitions include (pp.138) 3. Value for price paid Assumes that quality is price sensitive Evaluation of usefulness vs. price paid 3. Support services Available supported services after the product or service is  purchased 4. Psychological criteria  How do customers feel after purchasing the products or  services?  (e.g. Ambiance, prestige, friendly staff) 4
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LO2:  The Cost of Quality The Cost of Quality 1. Prevention costs Costs incurred in the process of  preventing  poor  quality from occurring Quality Planning Cost (e.g. costs of developing and implementing a  quality plan) Cost of product and process design Employee training 5
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