COMMERCE 2OC3 Chapter Notes - Chapter 6: Quality Circle, Customer Retention, Ishikawa Diagram
27 Feb 2017
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Document Summary
Managing quality helps build successful strategies of differentiation, low cost, and response. Improvements in quality often help firms increase sales and reduce costs, both of which increase profits. Quality or lack of quality affects the entire organization from supplier to customer, and from product design to maintenance. Successful quality strategies begin with an organizational culture that fosters quality, followed by an understanding of the principles of quality, and then engaging employees in the necessary activities to implement quality. Quality: the ability of a product or service to meet customer needs. It is an operations manager"s objective to build a total quality management system that identifies and satisfies customer needs. Quality can fall into several categories; user based (quality lies in the eyes of the beholder), manufacturing based (quality means conforming to standards), or product based (quality is a precise and measurable variable) Quality is critical to operations but is important for three other reasons.
