Chapter 5: Managing Quality
The characteristics of a product or service that bear on its ability to satisfy stated or implied needs; a product or service that is free of deficiencies.
A quality perspective that holds that quality must be judged, in part, by how well the characteristics of a particular product or service align with the needs of a specific user.
A quality perspective that focuses on whether or not a product was made or a service was performed as intended.
Eight Dimensions of Quality
- Perceived Quality
C osts an organization incurs to actually prevent defects from occurring to begin with.
Costs a company incurs for assessing its quality levels.
Internal failure costs
Costs caused by defects that occur prior to delivery to the customer.
External failure costs
Costs incurred by defects that are not detected until a product or service reaches the customer.
Total Quality Management
A managerial approach in which an entire organization is managed so that it excels in all quality dimensions that are important to customers.
- Customer focus
- Leadership involvement
- Continuous improvement
- Employee empowerment
- Quality assurance
- Strategic partnerships
- Strategic quality plan
Every employee has a customer whose expectations must be met whether internal or external to the company.
- Change must begin at the top.
- Managers should carry the message that quality counts to everyone in the company.
There will always be room for improvement no matter how well an organization is doing.
Giving employees the responsibility, authority, training, and tools necessary to manage quality.
The specific actions firms take to ensure that their products, services, and processes meet the quality requirements of their customers.
- Quality Function Deployment (QFD)
- Statistical Quality Control (SQC)
The commitment between companies and supply chain partners must be the same.
Strategic Quality Plan
An organizational plan that provides the vision, guidance, and measurements to drive the quality effort forward and shift the organization’s course when necessary.