Quality Management Overview

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Questions and Answers

What do prevention costs primarily aim to achieve?

Increase production speed

Prevent defects from occurring (correct)

Reduce the need for training

Lower material costs

Which of the following is considered an external failure cost?

Materials used in production

Reworking defective products

Warranty costs on delivered goods (correct)

Employee training expenses

Internal failure costs are incurred when defects are discovered at which stage?

After training sessions

During the production process (correct)

When products are shipped to customers

Before quality control checks are done

What dimension of service quality refers to the availability and accessibility of the service?

Convenience Signup and view all the answers

What type of costs are associated with planning and administration systems to improve quality?

Prevention costs Signup and view all the answers

Which of the following is NOT included in internal failure costs?

Returned goods Signup and view all the answers

Which service quality dimension is concerned with the ability to perform a service dependably and accurately?

Reliability Signup and view all the answers

Which dimension of service quality involves the willingness of service providers to assist customers in unusual situations?

Responsiveness Signup and view all the answers

Appraisal costs mainly cover what type of activities?

Quality control procedures Signup and view all the answers

What is a key consequence of external failure costs?

Loss of goodwill Signup and view all the answers

What aspect of service quality pertains to the speed at which service is delivered?

Time Signup and view all the answers

Which dimension of quality reflects the knowledge displayed by service personnel and their ability to instill trust?

Assurance Signup and view all the answers

Which of the following costs would primarily result from defects identified before a product is delivered?

Internal failure costs Signup and view all the answers

What dimension of quality evaluates how customers are treated by employees?

Courtesy Signup and view all the answers

Which dimension of service quality is indicated by the physical appearance of facilities and personnel?

Tangibles Signup and view all the answers

What dimension measures whether a service meets or exceeds customer expectations?

Expectations Signup and view all the answers

What do appraisal costs primarily relate to?

Inspection, testing, and activities to assure quality standards. Signup and view all the answers

Which of the following is NOT a consequence of poor quality?

Enhanced reputation for quality. Signup and view all the answers

What is an example of internal failure costs?

The cost of re-inspection of faulty products. Signup and view all the answers

Which of the following would be categorized as prevention costs?

Employee training on quality standards. Signup and view all the answers

What is one of the benefits of good quality?

Ability to command premium prices. Signup and view all the answers

Which of the following best defines external failure costs?

Costs incurred when products fail to meet quality standards after delivery. Signup and view all the answers

Which of the following is a common example of appraisal costs?

Inspection equipment and quality audits. Signup and view all the answers

How can organizations reduce the costs associated with poor quality?

Implementing strict quality assurance practices. Signup and view all the answers

Study Notes

Management of Quality

Quality is the ability of a product or service to consistently meet or exceed customer requirements or expectations.
Key aspects of quality include durability, high performance, and features.

Evolution of Quality Management

Industrial Revolution: Skilled craftsmen previously performed all stages of production. Pride in workmanship and reputation motivated quality.
The Industrial Revolution led to a division of labor, making each worker responsible for a small portion of the product.

Key Figures in Quality Management

Frederick Winslow Taylor: Emphasized quality by including product inspection and gauging in manufacturing management.
G.S. Radford: Improved Taylor's methods by incorporating quality considerations into product design, leading to increased productivity and lower costs.
Bell Telephone Laboratories (1924): Introduced statistical control charts for monitoring production.
H.F. Dodge, H.G. Romig, and Bell Labs (1930): Introduced sampling tables for statistical quality control.

Foundations of Modern Quality Management

Walter Shewhart: Developed control charts for variance reduction.
W. Edwards Deming: Introduced 14 points, emphasizing special versus common causes of variation.
Joseph M. Juran: Defined quality as fitness-for-use and introduced the quality trilogy.
Armand Feigenbaum: Viewed quality as a total field, with the customer defining quality.
Philip B. Crosby: Argued quality is free and promoted the concept of zero defects.
Kaoru Ishikawa: Developed cause-and-effect diagrams and quality circles.
Genichi Taguchi: Introduced the Taguchi loss function.
Taiichi Ohno and Shigeo Shingo: Pioneered continuous improvement.

Insights on Quality Management

Successful quality management involves understanding operational definitions of quality, costs and benefits of quality, consequences of poor quality, and the need for ethical behavior.

Defining Quality: Dimensions of Quality

Product Quality:
Performance – main characteristic of the product.
Aesthetics – appearance, feel, smell, and taste.
Special features – added characteristics.
Conformance – how well the product meets design specifications.
Reliability – dependable performance over time.
Durability – ability to perform over time.
Perceived quality – indirect assessment of quality (e.g., reputation).
Serviceability – handling repairs or complaints.
Consistency – quality doesn't vary.
Service Quality: (different aspects than product quality)
Convenience – availability and accessibility of the service.
Reliability – dependable and consistent performance.
Responsiveness – willingness to help customers.
Time – speed of service delivery.
Assurance – knowledge and trust of personnel.
Courtesy – how customers are treated.
Tangibles – physical appearance of facilities, equipment, and personnel.
Consistency – delivering the same level of quality repeatedly.
Expectations – meeting or exceeding customer expectations.

Assessing Service Quality (SERVQUAL)

SERVQUAL is a tool to measure an organization's ability to provide quality service to customers.
Key aspects of SERVQUAL include tangibles, reliability, responsiveness, assurance, and empathy.

Determinants of Quality

Design: Intention of designers to include or exclude features in products or services.
Conformance: Degree to which goods or services meet the designers' intent.
Ease of use: How user-friendly it or it is.
Service after delivery: Handling of issues after product/service delivery

Responsibility for Quality

Top management: Ultimately responsible for quality.
Design: Quality products and services start with design.
Procurement: Procurement department obtains goods and services conforming to quality standards.
Production/Operations: Ensures processes meet quality specifications (related to manufacturing)

Benefits of Good Quality

Enhanced reputation for quality.
Ability to command premium prices.
Increased market share.
Greater customer loyalty.
Lower liability costs.
Fewer production or service problems.
Fewer complaints from customers.
Lower production costs.
Higher profits.

Consequences of Poor Quality

Loss of business.
Liability.
Productivity issues.
Increased costs.

Costs of Quality

Appraisal costs: Measuring, evaluating, and auditing quality standards.
Prevention costs: Preventing defects, planning, and training.
Internal failure costs: Defective products found before delivery.
External failure costs: Defective products found after delivery.

Ethics and Quality Management

All members of an organization have an obligation to perform their duties ethically.
Ethical behavior is crucial in quality management.

Quality Certification (ISO)

ISO (International Organization for Standardization) promotes quality standards and guidelines. ISO 9000 concerns quality management, ISO 14000 concerns environmental impact, and ISO 24700 pertains to quality office equipment with reused components.

Total Quality Management (TQM)

TQM is a quest for quality in an organization.
Focuses on meeting customer needs.
Importance of design, processes, and continuous improvement.
Emphasis on employee empowerment, teamwork, and customer focus
TQM may face obstacles to implementation and potential criticisms.

Critiques of TQM

Quality programs implemented blindly, without proper strategy.
Lack of meaningful links between quality programs and strategic organizational goals and decisions.
Difficulty integrating quality initiatives with broader organizational improvements.

Problem-Solving and Process Improvement (PDSA)

PDSA (Plan-Do-Study-Act) cycle: A framework for continuous improvement in a process.
Cycle involves identifying a problem in an existing process and working through steps to identify a solution. Tools for data collection are shown, too.

Six Sigma

Business process focused on improving quality, reducing costs, and enhancing customer satisfaction.
Data-driven approach based on reducing variation.
Utilizing DMAIC (Define, Measure, Analyze, Improve, Control) methodology.

Quality Tools

Various tools support data collection, interpretation, and decision-making in understanding the process. Include flowcharts, check sheets, histograms, Pareto charts, scatter diagrams, control charts, cause-and-effect diagrams, and run charts. These tools can be used together to understand a process.

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Description

Explore the fundamentals of quality management, including its definition, evolution, and key figures who contributed to its development. Understand the importance of quality in meeting customer expectations and how historical changes shaped modern practices.