Quality Management

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Quality Management
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What is Quality?

• Ability of Product/Service to Consistently Meet
  or Exceed Expectations
• ASQ Definition Totality of Features and
  Characteristics of a Product or Service that
  Bears on Its Ability to Satisfy Given Needs

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Quality Determinants Manufacturing

• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Safety
• Goodwill and Subjective Perceptions

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Quality Determinants Services

• Timeliness
• Completeness
• Courtesy
• Consistency
• Accessibility and Convenience
• Accuracy
• Responsiveness

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Costs of Good Quality

• Quality Planning
• Inspection
• Test Equipment
• Operation Downtime
• Preventive Maintenance
• Product/Service Design
• Process
• Training
• Information

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Costs of Inferior Quality

• Scrap
• Rework
• Troubleshooting
• Process Downtime
• Disposal of Inferior Products
• Complaint Costs
• Warranty and Recalls
• Liability
• Loss of Goodwill

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Quality Cost Tradeoffs

• More Quality Effort Leads to Lower Costs of
  Inferior Quality but Higher Costs of Good Quality
• Problem is that Many Costs of Inferior Quality
  Hard to Assess and Measure
• Short-Term Thinking in Firms Can Lead to Poor
  Quality

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Types of Quality Control

• Acceptance Sampling Inspect Samples of
  Inventory and Weed Out Defective Items (1920s)
• Statistical Process Control (SPC) Inspect
  Directly from Process, On-Line (1950s)
• Quality at the Source Prevention of Mistakes
  (1980s)

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Quality Process

• 1. What Does the Customer Want? From Surveys and
  Marketing Analysis, Set Standards Both
  Qualitative and Quantitative.
• Design Product/Service that Conforms to
  Standards. Make It Easy to Produce and Use.
• Design Process that Has Checkpoints for
  Inspection Built In.

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Quality Process

1. Check Actual Results and Compare with Standards.
   Take Appropriate Action.
2. Extend Practices to Suppliers and Distributors
   Supply Chain Issues.

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Recent Quality Innovations

• Pareto Analysis Identify Causes of Poor
  Quality
• Quality Circles Process Improvement Teams
• Continuous Improvement
• Fishbone Diagram (Page 115) Cause and Effect
• ISO 9000 World Quality Standards
• Six Sigma Prevents Defects

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