Ch. 6 - Chapter 6 Managing Quality QUALITY AND STRATEGY...

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Unformatted text preview: Chapter 6 Managing Quality QUALITY AND STRATEGY Managing quality helps building successful strategies of differentiation, low cost, and response. Improve in quality -> increase sales & decrease costs-> increase profitability DEFINING QUALITY Quality : the ability of a product or service to meet customer needs Implications of Quality Three reasons why quality is important 1. Company reputation 2. Product liability 3. Global implications Malcolm Baldrige National Quality Award The award is for quality achievement because the global implication of quality is so important Cost of Quality (COQ) : the cost of doing things wrong – that is, the price of nonconformance Four major categories of cost are associated with quality (COQ) 1. Prevention costs: reducing the potential for defective parts or service (Ex. training, quality, improvement 2. Appraisal costs: related to evaluating products, process, parts and service (Ex. testing, labs, inspectors) 3. Internal failure: result from production of defective parts or service before delivering to customer...
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This note was uploaded on 11/30/2011 for the course MANA 4301 taught by Professor Stevencassidy during the Spring '11 term at Dallas Baptist.

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Ch. 6 - Chapter 6 Managing Quality QUALITY AND STRATEGY...

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