Ch9 - Management of Quality CHAPTER 9 MANAGEMENT OF QUALITY...

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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. 2. 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. 3. 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. Improving Quality. Quality can be improved by R & D efforts, by efforts of improvement teams, and by suggestions from employees and customers. 5. Evolution of Quality. Modern quality management stresses prevention of mistakes rather than finding and correcting mistakes after they occur. This has placed increased emphasis on both product design and process design. 6. Quality Gurus. Quality gurus such as Deming, Juran, Crosby, and Ishikawa have greatly influenced current thinking and practice of quality management. Deming is best known for his ‘14 points’ for achieving quality and is the namesake of the Deming Prize awarded by the Japanese government to quality programs. Crosby may be best known for the concept of zero defects and ‘do it right the first time’, while Ishikawa championed tools such as cause-and-effect diagrams and quality circles. Juran is recognized as one of the first to measure the ‘cost of quality’ and viewed quality as ‘fitness for use.’ 7. Quality Awards. Quality awards, such as the Malcolm Baldrige Award and the Deming Prize have generated interest in quality improvement, and helped to focus attention on the importance of quality. They have also helped to educate business people on quality management. 8.
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Ch9 - Management of Quality CHAPTER 9 MANAGEMENT OF QUALITY...

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