Chapter 9 Management of Quality

Quality
The ability of a product or service to consistently meet or exceed customer expectations
W. Edwards Deming
The 14 points, helped rebuild Japans Economy
Quality Assurance
-Reactive
-Emphasis is on finding and correcting defects before they reach the market
Strategic Approach
-Proactive
-Focuses on preventing mistakes from occurring
-Greater emphasis on customer satisfaction
-Involves all manager and workers in a continuing effort to improve quality
Performance
main characteristics of the product
Aesthetics
appearance, feel, smell, taste
Special features
extra characteristics
Convenience
– the availability and accessibility of the service
Responsiveness
– willingness to help customers in unusual situations and to deal with problems
Time
– the speed with which the service is delivered
Quality of design
Intention of designers to include or exclude features in a product or service
Ease-of-Use and user instructions
Increase the likelihood that a product will be used for its intended purpose and in such a way that it will continue to function properly and safely
After-the-sale service
Taking care of issues and problems that arise after the sale
What are Consequences of Poor Quality?
-Loss of business
-Liability
-Productivity
-Costs
What are Benefits of Good Quality?
-reputation for quality
-command higher prices
-Increased market share
-Lower liability costs
Failure Costs
– costs incurred by defective parts/products or faulty services
Internal Failure Costs
Costs incurred to fix problems that are detected before the product/service is delivered to the customer.
External Failure Costs
All costs incurred to fix problems that are detected after the product/service is delivered to the customer
Example: GE recalls of dish washers
Appraisal Costs
Costs of activities designed to ensure quality or uncover defects
Example: whistler radar detectors, 1/4 were defective
Prevention Costs
All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring
Deming Prize
Given out to the best company with quality control in Japan
Baldrige Award
Given out to the best company with quality control in United States
Total Quality Management
A philosophy that involves everyone in an organization in a continual effort to improve quality and achieve customer satisfaction.
Six Sigma
A business process for improving quality, reducing costs, and increasing customer satisfaction
-Having no more than 3.4 defects per million
-Program designed to reduce defects
Check Sheet
simple count
Pareto Analysis
80% of the problems may be attributed to 20% of the causes.
Cause-and-Effect Diagram
Fishbone Diagram, of Environment Methods, Materials, Effects,people, equipment.
Run Chart
Relationship between two variables