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Lecture

#5 - Importance of Quality.docx
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Department
Management
Course
MGMT 1000
Professor
Jean Adams
Semester
Fall

Description
Engaging Customers Products and Servicesthe Importance of Quality Promote Quality and Continuous LearningCan reduce costs increase profits and help create corporate cultures where continuous learning is way of lifeCommitment to quality and improvements has to become part of mindset shaping peoples approach to workQuality revolution businesses and services of all kind can reduce costs and increase profits by improving quality of their productsservicesoStarted in japan in 1950s and 1960s and thereafter spread throughout Europe and North America during 1970sCost vs quality paradox old logic suggest that increase in quality of productserviceincrease in costs of production oNew logic suggests that increasing quality can reduce costs of production because poor quality is expensivePoor quality production systems lead to low productivity defects and waste materials VISCIOUS LOOPoFaulty underperforming products annoy customersoDissatisfied customers spread the word and deter new customersoAs a result sales and marketing become increasingly expensive propositions with poor returnsHistory of Quality Movement high quality lower cost competition can transform businessoQuality movement set in motion on irreversible trend establishing quality and continuous improvementoQuality programs Total Quality Management and Continuous Improvement Edwards Demings methods of Statistical Process ControlPhilip Crosbys idea that Quality is Free and related organization change programsoMovement rewarded an interest in quality through the Malcolm Baldrige National Quality Award in the United States and the European Quality Award in EuropeDemings 14 points 1
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