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Management of Quality in Purchasing and Supply (Cost of Quality…
Management of Quality in Purchasing and Supply
Quality
Combination of features and characteristics through which a product or service, when used, will meet or exceed the expectations of the customer by being able to satisfy a specific need
Cost of Quality
Prevention costs
Cost of preventing quality errors
e.g. Equipment calibration and adjustments
Appraisal costs
Incurred when product are inspected to ensure inadequate quality doesn't enter internal operational processes
Failure cost
Product with inadequate quality reaches customer
Internal
Incurred after production and before delivery
External
Customer returns,warranty claims, faulty products, legal action
Quality management systems
Total Quality Management(TQM)
Six sigma system of quality management
Quality consistent with 6 standard deviations from the mean
Define
Set improvement goals
Measure
Develop measures and instruments to determine baseline
Analyse
Use data to analyse and determine reason for deviations
Improve
International Organisation of Standardization (ISO)
Set of guidelines for implementation of quality programme