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Reading 11: The importance of quality (Quality management (Achieving…
Reading 11: The importance of quality
Quality & business sustainability
Importance
Relates to long term sustainability of the business
Poor quality can affect a business's relationship with its customers
Effect on brand reputation
Increased costs
Arising from waste or reworking
Impact on planning, stock control & resource management
Issues can escalate & accumulate
Six Sigma
Management approach to improving business processes by reducing the probability an error or defect will occur
Target: failures reduced to point that 99.99966% of time failure does not occur
Tech def: all results within 6 standard deviations of the mean are successful
Quality management
Consider from perspective of customer
Quality: what the customer needs?
Organisational performance = customers' expectations
Quality: meeting and/or exceeding customer's expectations (Reeves and Bednar, 1994)
Achieving quality
Quality management is responsibility of whole organisation
Internal processes are dealt with as customer-supplier processes
Above focus on 'looking for improvements' at each stage of the process, rather than 'not making errors'
Individuals take personal responsibility
Need for customer-focused definition of quality
Quality assurance & quality control
Quality assurance
Criteria for finished product to meets customers' expectations
Design, marketing, finance, operations & HR
Making sure different systems work together correctly to avoid quality issues
Proactive approach to quality
Quality control
Covers all elements needed to fulfil the technical product or service requirements for quality
Focuses on manufacturing or delivery end
Monitoring outputs to detect quality issues
Reactive approach to quality
Cost of quality
Appraisal costs
Internal costs of defects (during production)
Prevention costs
External costs of defects (after reaching customer)
Lean management
Aim for perfection
Less expensive to meet needs of customers than not meet them
Quality systems
Strategies can be costly & require expertise
ISO 9000 - internationally recognised quality management system
EFQM Excellence Model