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Reading 11- The importance of quality (Quality and business sustainability…
Reading 11- The importance of quality
Quality and business sustainability
quality issues that cause waste could increase operational costs
lead to issues in planning, stock control and resource management
quality issues accumulate and escalate
six sigma- used to reduce defects and quality issues
quality management method
improve business processes by reducing probability an error or defect will occur
Quality management
look at quality from customers perspective
measure quality- equates firm performance with customer perception
how to achieve quality
Internal processes- customer-supplier processes
focus on looking for improvement at each stage of process
taking personal responsibility to deliver products/services to customers
right first time
whole organisation is responsible for quality management
defects per thousand
Cost of quality
achieve quality- aim for perfection in goods or services
lean manufacturing
Quality control requirement- chance errors can occur
Costs associated with quality
appraisal
measure level of quality in product or service
internal cost of defects
dealing with defects when found during prdn
prevention costs
make sure errors dont happen
external costs of defect
dealing with defect that reaches the customer
reputational cost considered
quality assurance and quality control
Quality assurance
span all elements of delivering the product; marketing, design, finance, operations and HR
different systems work together correctly
covers all elements to ensure product or service meets customer expectations or given criteria
More proactive approach to quality
Quality control
all elements needed to fulfill technical product or service requirements
focus- manufacturing/ delivery end/ monitor outputs
monitor process to reduce poor performance
reactive approach to quality
Quality systems
ISO 9000
internationally recognized quality management system
designed, licensed, assured by auditors
international standards help with customer perception
EFQM Excellence model
implementation- costly/ need expertise
use a externally designed and approved system