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*Managing Quality chapter 5 - Coggle Diagram
*Managing Quality chapter 5
Quality and Strategy
Managing quality supports differentiation, low cost, and response.
strategies quality helps firms increase sales and reduce costs.
Building a quality organization is a demanding task
Two Ways Quality Improves Profitability
Increased Profits
Improved Quality
The Flow of Activities
Organizational Practices
Quality Principles
Employee Fulfillment
Customer Satisfaction
Defining Quality
An operations manager’s objective is to build a total quality management system that identifies and satisfies customer needs
The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs
Different Views
User based: better performance, more features
Manufacturing based: conformance to standards, making it right the first time
Product based: specific and measurable attributes of the product
Implications of Quality
Company reputation
Product liability
Global implications
ISO 9000 International Quality Standards
International recognition
Encourages quality management procedures, detailed documentation, work instructions, and recordkeeping
2015 revision gives greater emphasis to risk-based thinking
Over one million certifications in 206 countries
Critical for global business
Costs of Quality
Prevention costs - reducing the potential for defects
Appraisal costs - evaluating products, parts, and services
Internal failure costs - producing defective parts or service before delivery
External failure costs - defects discovered after delivery
Total Quality Management
Encompasses entire organization from supplier to customer
Seven Concepts of TQM
Continuous improvement
Six Sigma
Employee empowerment
Benchmarking
Just-in-time (JIT)
Taguchi concepts
Knowledge of TQM tools
Quality Circles
Group of employees who meet regularly to solve problems
Trained in planning, problem solving, and statistical methods
Often led by a facilitator
Very effective when done properly
Tool TQM
Toot for generating label
tool to organize the data
tool to identifying problem
seven tool TQM
Statistical control
Inspection
Involves examining items
Detect a defective product
Issues
When and Where to Inspect
At the supplier’s plant while the supplier is producing
At your facility upon receipt of goods from your supplier
-Before costly or irreversible processes
-During the step-by-step production process
-When production or service is complete
-At the point of customer contact
TQM In Services
Service quality is more difficult to measure than the quality of goods
Service quality perceptions depend on Intangible differences between products
and Intangible expectations customers have of those products
Service Quality
The tangible component of services is important
The service process is important
The service is judged against the customer’s expectations
Exceptions will occur