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

Appraisal costs

Failure cost

Cost of preventing quality errors

e.g. Equipment calibration and adjustments

Incurred when product are inspected to ensure inadequate quality doesn't enter internal operational processes

Product with inadequate quality reaches customer

Internal

External

Incurred after production and before delivery

Customer returns,warranty claims, faulty products, legal action

Quality management systems

Total Quality Management(TQM)

Six sigma system of quality management

International Organisation of Standardization (ISO)

Quality consistent with 6 standard deviations from the mean

Define

Measure

Analyse

Improve

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Set improvement goals

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Use data to analyse and determine reason for deviations

Develop measures and instruments to determine baseline

Set of guidelines for implementation of quality programme

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