Class 20 - AGENDA TEST 2 RESULTS TEST 2 RE-DO EXTRA CREDIT...

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AGENDA TEST 2 RESULTS TEST 2 RE-DO EXTRA CREDIT ASSIGNMENT INTRODUCE QUALITY
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Quality and Strategy þ Managing quality supports differentiation, low cost, and response strategies þ Quality helps firms increase sales and reduce costs þ Building a quality organization is a demanding task
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Two Ways Quality Improves Profitability Improved Quality Increased Profits þ Increased productivity þ Lower rework and scrap costs þ Lower warranty costs Reduced Costs via þ Improved response þ Flexible pricing þ Improved reputation Sales Gains via Figure 6.1
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Defining Quality The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs American Society for Quality
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Different Views þ User-based – better performance, more features þ Manufacturing-based – conformance to standards, making it right the first time þ Product-based – specific and measurable attributes of the product
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Key Dimensions of Quality þ Performance þ Features þ Reliability þ Conformance þ Durability þ Serviceability þ Aesthetics þ Perceived quality þ Value
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Costs of Quality þ Prevention costs - reducing the potential for defects þ Appraisal costs - evaluating products, parts, and services þ Internal failure - producing defective parts or service before delivery þ External costs - defects discovered after delivery
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External Failure Internal Failure Prevention Costs of Quality Appraisal Total Cost Quality Improvement Total Cost
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Leaders in Quality W. Edwards Deming 14 Points for Management Joseph M. Juran Top management commitment, fitness for use Armand Feigenbaum Total Quality Control Philip B. Crosby Quality is Free, zero defects
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Ethics and Quality Management þ Operations managers must deliver healthy, safe, quality products and services þ Poor quality risks injuries, lawsuits, recalls, and regulation þ Organizations are judged by how they respond to problems þ All stakeholders much be considered
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TQM Encompasses entire organization, from supplier to customer Stresses a commitment by management to have a continuing, companywide drive toward excellence in all aspects of products and services that are important to the customer
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Deming’s Fourteen Points 1. Create consistency of purpose 2. Lead to promote change 3. Build quality into the product; stop depending on inspection 4. Build long-term relationships based on performance, not price 5. Continuously improve product, quality, and service 6. Start training 7. Emphasize leadership Table 6.1
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This note was uploaded on 10/30/2011 for the course BUS 451 taught by Professor Bilbrey during the Spring '11 term at Anderson University SC.

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Class 20 - AGENDA TEST 2 RESULTS TEST 2 RE-DO EXTRA CREDIT...

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