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Quality Management and International Standards (The Flow of Activities…
Quality Management and International Standards
Quality and Strategy
Managing quality supports differentiation, low cost, and response strategies
Building a quality organization is a demanding task
Quality helps firms increase sales and reduce costs
Two Ways Quality Improves Profitability
Sales gains
Reduce costs
The Flow of Activities
Quality Principles
Employee Fulfillment
Organizational Practices
Customer Satisfaction
Defining Quality
An operations manager’s objective is to build a total quality management system that identifies and satisfies customer needs
The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
Implications of Quality
Product liability
Global implications
Company reputation
Malcolm Baldrige National Quality Award
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ISO 9000 International Quality Standards
Encourages quality management procedures, detailed documentation, work instructions, and recordkeeping
Costs of Quality
Appraisal costs
Internal failure costs (before delivery)
Prevention costs
External failure costs (after delivery)
Ethics and Quality Management
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Total Quality Management
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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Seven Concepts of TQM
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Six Sigma
Statistical definition of a process that is 99.9997% capable, 3.4 defects per million opportunities (DPMO)
A program designed to reduce defects, lower costs, save time, and improve customer satisfaction
A comprehensive system for achieving and sustaining business success
Defines-Measures-Analyzes-Improves-Controls
Implementing Six Sigma cannot be accomplished without a major commitment from top level management
Employee empowerment
Quality Circles
Continuous improvement
Shewhart’s PDCA Model (plan-do-check-act)
Benchmarking
Internal Benchmarking
Just-in-time (JIT)
Allows reduced inventory levels
Internal Benchmarking
Taguchi concepts
Engineering and experimental design methods to improve product and process design
Knowledge of TQM tools
TQM Tools
Tools for Identifying Problems
Pareto Chart
Flowchart
Tools for Identifying Problems
Histogram
Statistical Process Control Chart (SPC)
Tools for Generating Ideas
Scatter Diagram
Scatter Diagram
Cause-and-Effect Diagram
TQM In Services
Service quality is more difficult to measure than the quality of goods
Service Recovery Strategy
Marriott’s LEARN routine
Apologize
React
Empathize
Notify
Listen