GMS 401 Midterm: GMS Midterm 2 Exam: Lecture + Textbook Notes
16 May 2018
School
Department
Course
Professor
Chapter 7 – Managing Quality
Managing
Quality
Provides a
Competitive
Advantage
Arnold Palmer Hospital:
➢ Deliver over 16000 babies annually
➢ Virtually every type of quality tool is employed
- Continuous improvement
- Employee Empowerment
- Benchmarking
- Just-In-Time
- Quality Tools
Quality and
Strategy
➢ An operations manager’s objective is to build a total quality management system that identifies
and satisfies customer needs
➢ Managing quality supports differentiation, low cost, and response strategies
➢ Quality helps firms increase sales and reduce costs
➢ Building a quality organization is a demanding task
Defining
Quality
➢ The totality of features and characteristics of a product or service that bears on its ability to
satisfy stated or implied needs
Two ways
Quality
Improves
Profitability
The Flow of
Activities to
Achieve TQM
Different
Views
User Based:
➢ Better performance, More features
Manufacturing Based:
➢ Conformance to standards, making it right the first time
Product Based:
➢ Specific and measurable attributes of the product
Key
Dimensions of
Quality
➢ Performance
➢ Features
➢ Reliability
➢ Conformance
➢ Durability
➢ Serviceability
➢ Aesthetics
➢ Perceived Quality
➢ Value
National
Quality
Awards
➢ National Quality Institute in Canada issues various awards (www.nqi.ca)
➢ Malcome Baldrige National Quality Award (USA)
➢ Deming Prize (Japan)
Costs of
Quality
Prevention Costs:
➢ Reducing the potential for defects
Appraisal Costs:
➢ Evaluating products, parts and services
Internal Failure:
➢ Producing defective parts or service before delivery
External Costs:
➢ Defects discovered after delivery
Leaders in
Quality
W. Edwards Deming
➢ 14 Points for Management
1. Create Consistency of purpose
2. Lead to promote change
3. Build quality into the product; stop depending on inspections
4. Build long-term relationships based on performance instead of awarding business on price
5. Continiously improve product, quality, and service
6. Start Training
7. Emphasize leadership
8. Drive out fear
9. Break down barriers between departments
10. Stop haranguing workers
11. Support, help and improve
12. Remove barriers to pride in work
13. Institute education and self improvement
14. Put everyone to work on the transformation
Joseph M. Juran
➢ Top management commitment, fitness for use
Armand Feighenbaum
➢ Total Quality Control
Document Summary
Virtually every type of quality tool is employed. An operations manager"s objective is to build a total quality management system that identifies and satisfies customer needs. Managing quality supports differentiation, low cost, and response strategies. Quality helps firms increase sales and reduce costs. Building a quality organization is a demanding task. The totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. Conformance to standards, making it right the first time. Specific and measurable attributes of the product. National quality institute in canada issues various awards (www. nqi. ca) Producing defective parts or service before delivery. Operations managers must deliver healthy, safe quality products and services. Poor quality risks injuries, lawsuits, recalls and regulation. Organizations are judged by how they respond to problems. Common quality standards for products sold in europe (even if made in u. s) 2008 update places greater emphasis on leadership and customer requirements and satisfaction.
