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1

Quality

Quality

The ability of a product or service to meet customer needs.

2

Implications of Quality (List 3)

Implications of Quality

1. Company Reputation- Quality will show up in perceptions about the firm’s new products, employment practices, and supplier relations.

2. Product Liability- The courts increasingly hold organizations that design, produce, or distribute faulty products or services liable for damages or injuries resulting from their use.

3. Global Implications- For both a company and a country to compete effectively in the global economy, products must meet global quality, design, and price expectations.

3

ISO 9000

ISO 9000

A set of quality standards developed by the International Organization for Standardization (ISO).

4

(ISO 9000) 8 Quality Management Principles

(ISO 9000) 8 Quality Management Principles

(1) top management leadership,
(2) customer satisfaction, (3) continual improvement, (4) involvement of people, (5) process analysis,
(6) use of data-driven decision making,
(7) a systems approach to management, and
(8) mutually beneficial supplier relationships.

5

Cost of quality (COQ) -List the 4

Cost of quality (COQ)

The cost of doing things wrong—that is, the price of nonconformance.

1. Prevention costs: costs associated with reducing the potential for defective parts or services (e.g., training, quality improvement programs).

2. Appraisal costs: costs related to evaluating products, processes, parts, and services (e.g., testing, labs, inspectors).

3. Internal failure costs: costs that result from production of defective parts or services before delivery to customers (e.g., rework, scrap, downtime).

4. External failure costs: costs that occur after delivery of defective parts or services (e.g., rework, returned goods, liabilities, lost goodwill, costs to society).

6

W. Edwards Deming

W. Edwards Deming

Deming insisted management accept responsibility for building good systems. The employee cannot produce products that on average exceed the quality of what the process is capable of producing. His 14 points for implementing quality improvement are presented in this chapter.

7

Joseph M. Juran

Joseph M. Juran

A pioneer in teaching the Japanese how to improve quality, Juran believed strongly in top-management commitment, support, and involvement in the quality effort. He was also a believer in teams that continually seek to raise quality standards. Juran varies from Deming somewhat in focusing on the customer and defining quality as fitness for use, not necessarily the written specifications.

8

Armand Feigenbaum

Armand Feigenbaum

His 1961 book Total Quality Control laid out 40 steps to quality improvement processes. He viewed quality not as a set of tools but as a total field that integrated the processes of a company. His work in how people learn from each other’s successes led to the field of cross-functional teamwork.

9

Philip B. Crosby

Philip B. Crosby

Quality Is Free was Crosby’s attention-getting book published in 1979. Crosby believed that in the traditional trade-off between the cost of improving quality and the cost of poor quality, the cost of poor quality is understated. The cost of poor quality should include all of the things that are involved in not doing the job right the first time. Crosby coined the term zero defects and stated, “There is absolutely no reason for having errors or defects in any product or service.”

10

Takumi

Takumi

Takumi is a Japanese character that symbolizes a broader dimension than quality, a deeper process than education, and a more perfect method than persistence.