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GMS 401 (200)
Chapter 9

Chapter 9

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Ryerson University
Global Management Studies
GMS 401
Kirk Bailey

CHAPTER 9 – M ANAGEMENT OF Q UALITY INTRODUCTION - Quality: the ability of a good or service to consistently meet or exceed customer expectations ⋅ Evolution of Quality Management - Industrial revolution and division of labour – each worker was responsible for only a small portion of each product. This reduced pride of workmanship - Quality control: monitoring, testing and correcting quality problems after they occur - 1950’s quality movement started to evolved into quality assurance - Quality assurance: providing confidence that a product’s quality will be good by preventing defects before they occur - 1970’s NASA and the Pillsbury company created a quality management system to assure and control food safety - Later, international Organization of Standards created ISO 9000 - 1980’s Total quality management – approach places greater emphasis on customer satisfaction and involved all levels of management in an effort to increase quality called continuous improvement: never-ending improvements to key processes as part of total quality management ⋅ Dimensions of Quality - Quality of goods – Dimensions of Quality of Goods include o Performance – main characteristics or function of the product o Aesthetics – appearance, feel, smell, taste o Special features – extra characteristics or secondary functions o Safety – reduction or elimination of risk of injury or harm o Reliability – consistency of performance over time (not failing for certain length of time) o Durability – long life o Perceived Quality – subjective evaluation of quality (e.g. reputation, image) o Service after sale – warranties, maintenance, and handling of complain o Latent quality – assumed quality (not expressed by customers but important) - “fitness for use” is used to define quality - Service Quality – dimensions include o Tangibles – the physical appearance of facility, equipment, personnel, and communication materials o Convenience – the availability and accessibility of the service o Reliability – the ability to perform a service dependably, consistently, and accurately for a certain length of time o Responsiveness – the willingness of service provider to help customers in unusual situations and to deal with problems o Time – the speed with which service is delivered o Assurance – the knowledge exhibited by personnel and their ability to convey trust and confidence o Courtesy – the way customers are treated by employees ⋅ Determinants of Quality - A product’s quality is determined during: 1. Product design o The started point for the level of quality eventually achieved o Involves decisions about the characteristics and specifications of product such as size, shape and material 2. Process design o Technical characteristics should be translated into process characteristics and specifications 3. Production o Conformance to design specifications: the degree to which produced goods or services conform to the specifications of the designers ⋅ Cost of Quality - Failure costs: costs caused by defective parts or products - Costs can be classified into four categories: 1. Internal failure costs: failures discovered during production 2. External failure costs: failures discovered after delivery to the customer 3. Appraisal (detection) costs: cost of inspection and testing 4. Prevention costs: costs of preventing defects from occurring ⋅ Quality Gurus - W. Edwards Deming o His message is basically that the cause of inefficiency and poor quality is the system and not the employees. o He felt that it was the management’s responsibility to correct the system to achieve the desired results o Believed that workers wanted to create and learn, but management unintentionally does things that rob workers of their internal motivation - Joseph M. Juran o Published a Quality Control Handbook o Believed that 80% of quality defects are controllable o Described quality management in terms of a trilogy consisting of  Quality planning  Quality control  Quality improvement - Armand Feigenbaum o Recognized that quality was not only a collection of tools and techniques, but also a “total field” o Saw that when improvements were made in a process, other areas of the company achieved improvements o Introduced the concept of quality at the source: every employee is responsible for inspecting his or her own work - Philip B. Crosby o Developed the concept of zero defects. Key points include: 1. Top management must demonstrate is commitment to quality and its willingness to give support to achieve good quality 2. Management must be persistent in efforts to achieve good quality 3. Management must spell out clearly what it wants in terms of quality and what workers must do to achieve that 4. Make it (or do it) right the first time ISO 9001 - The purpose of the International Organization for Standardisation (ISO) is to promote worldwide standards that will improve operating efficiency and production and reduce costs - ISO 9001: the international standard for a quality management system, critical to international business - The process of becoming certified takes 12 to 18 months - There are three types of documents created for ISO 9001: o A quality manual o A procedure manual o Detailed work instructions and other supporting documents - ISO 9001 Summary 1. Quality Management Systems 2. Management Responsibilities 3. Resource Management 4. Product Realization 5. Measurement, Analysis and Improvement Hazard Analysis and Critical Control Point (HACCP) - HACCP: a quality management system design for food processors - HACCP is enforced by the Canadian Food Inspection Agency (CFIA) - HACCP deals with food safety in particular, biological, chemical, and physical hazards - There are three main HACCP steps: 1. Perform hazards analysis o For each ingredient/processing step, identify potential hazards o
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