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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