BUS 322 Lecture Notes - Lecture 9: Product Liability, Coq, Total Quality Management
Two important and interrelated aspects of quality: design quality. Measures how closely the product characteristics or services performed meet the needs and wants of consumers. A printer that offers printing, scanning, copier, and fax functions to meet customer needs: conformance ( ) quality. Measures performance of a product or service according to design and production specifications to reduce defects. Ideal level of quality: total quality management at any cost, return on quality up to cost-defining limit. Customers will seek out the highest quality product. Improving quality more than pays its own way by creating higher profits. Profit is highest at highest quality level: the(cid:396)efo(cid:396)e, (cid:395)ualit(cid:455) is (cid:862)f(cid:396)ee(cid:863) Critical factors: continuous improvement, focus on the customer. Specification for external suppliers: lower throughput time. W. edwards deming proposed that improving quality reduces cost and improves profitability: quality can be and should be improved continuously. Customers may not be willing to pay for the additional quality received.