chapter6

chapter6 - 6-1Operations Operations...

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Unformatted text preview: 6-1Operations Operations ManagementManagementManaging QualityManaging QualityChapter 6Chapter 66-2OutlineOutlineQuality and Strategy.Defining Quality.International Quality Standards.Total Quality Management.Tools of TQM.Inspection.TQM in Services.6-3Quality Improves ProfitabilityQuality Improves ProfitabilitySales GainsHigher sales.Higher prices.Improved reputation.Reduced CostsIncreased productivity.Lower rework and scrap costs.Lower warranty costs.Increased ProfitsImproved Quality6-4Definitions of QualityDefinitions of QualityProduct characteristics & features that affect customersatisfaction. (American Society for Quality)User-Based: What consumersays it is.Manufacturing-Based: Degree to which a product conforms to designspecification.6-5Operation or Performance.Reliability. Durability.Conformance.Serviceability.Appearance to senses.Perceived quality.QualityDimensions of Quality for GoodsDimensions of Quality for Goods6-6Company reputation.Real or perceived.Product liability.Large $ can be awarded.Global implications.Company quality affects national image.Implications of QualityImplications of Quality6-7International Quality StandardsInternational Quality StandardsISO 9000 series(Europe/EC)Common quality standards for products sold in Europe (even if made in U.S.).ISO 14000 series (Europe/EC)Standards for recycling, labeling etc.6-8Costs of QualityCosts of QualityPrevention costs (5-10%)- To prevent failures. Appraisal costs (15-40%)- To evaluate products.Failure costs (50-80%):Internal failure costs - Defective parts or services discovered in-house.External failure costs- Defective parts or services discovered by customer.Most organizations do not know the cost of poor quality.6-9Costs of QualityCosts of QualityInternal failure costs.Scrap and rework.Downtime.Safety stock inventory.Overtime.External failure costs.Complaint handling and replacement.Warranties.Liability.Loss of goodwill.6-10Traditional Traditional Quality Process (Manufacturing)Quality Process (Manufacturing)SpecifiesNeedCustomerInterpretsNeedMarketingDesignsProductDefinesQualityEngineeringProducesProductPlansQualityMonitorsQualityOperationsQualityisQualityiscustomerdriven!customerdriven!6-11TQM - Total Quality ManagementTQM - Total Quality ManagementEncompasses entire organization from supplier to customer.supplier to customer....
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This note was uploaded on 02/15/2012 for the course BA 252 taught by Professor Jamescampbell during the Winter '03 term at UMSL.

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chapter6 - 6-1Operations Operations...

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