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Chapter 7. Quality. Market Niches for Quality. Quality. Better than Competitors. Same as Competitors. Lower than Competitors. The Transformation and Value-Added Chain. Customer. Supplier. Converter. Supplier. Converter. Customer. Converter. Customer. Supplier.
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Chapter 7 Quality
Market Niches for Quality Quality Better than Competitors Same as Competitors Lower than Competitors
The Transformation and Value-Added Chain Customer Supplier Converter Supplier Converter Customer Converter Customer Supplier
Eight Dimensions of Quality Performance: The primary function of the product or service Features: The bells and whistles. Reliability: The probability of failure within a specified time period. Durability: The life expectancy. Conformance: The meeting of specifications. Serviceability: The maintainability and ease of fixing. Aesthetics: The look, smell, feel, and sound. Perceived quality: The image in the eyes of the customer.
Five Major Cost of Quality Categories Prevention costs Appraisal costs Internal failure costs External failure costs Morale costs
Total Quality Management Quality must be integrated throughout the organization’s activities There must be employee commitment to continuous improvement The goal of customer satisfaction, and the systematic and continuous research process related to customer satisfaction, drives TQM Suppliers are partners in the TQM process
Objectives of Quality Function Deployment Seeks both spoken and unspoken customer needs Identifies positive quality and business opportunities Translates these into actions and designs by using transparent analytic and prioritization methods Empowers organizations to exceed normal expectations Provides a level of unanticipated excitement that generates value.
The Four Integrated Stages of Quality Function Deployment Product planning - to determine design requirements Parts deployment - to determine parts characteristics Process planning - to determine manufacturing requirements Production planning - to determine production requirements
The Role of Suppliers in QFD Product planning - Provide expertise in analyzing customer requirements and generating a list of new product ideas Parts deployment - Provide alternative design concepts and estimate the manufacturing costs of various parts Process planning - Suppliers can determine their existing processes’ constraints Production planning - Help develop performance measurement criteria for production planning
Common Elements of Six Sigma A management environment that supports the initiatives as business strategy Organizational support is provided by designated executives and champions who set the direction for project selection and deployment Well-defined projects with bottom-line impact Teams whose members have statistical training Master black belt and black, green, yellow and white belts Emphasis on the DMAIC approach
Process Control Process capability - The ability of the process to meet specifications consistently Causes of variation - Common causes and special/assignable causes Statistical process control (SPC) - A technique that involves testing a random sample of output from a process in order to detect if nonrandom changes in the process are occurring common causes versus special or nonrandom causes
Service Quality Evaluation Reliability: Ability to perform the promised service dependably and accurately Responsiveness: Willingness to help customers and provide prompt service Assurance: Knowledge and courtesy of employees and their ability to inspire trust and confidence Empathy: Caring, individualized attention the firm provides its customers Tangibles: Physical facilities, equipment and appearance of personnel Source: A. Prasuranman, V.A. Zeithaml and L.L. Berry, “A Conceptual Model of Service Quality and Its Implications for the Future”, Journal of Marketing, Fall 1985, p. 41-50.
A Framework for Analyzing Services Value of the service high, medium low Pareto/ABC analysis Degree of repetitiveness repetitive versus unique Degree of tangibility Low versus high Direction of the service Directed towards people or assets
A Framework for Analyzing Services Production of the service People, equipment or people and equipment Skill level of people Nature of demand Continuous, periodic or discrete Nature of service delivery Location, time Degree of standardization Standard or customized Skills required for the service
Quality Standards and Awards ISO 9000 International consensus on good quality management practices consisting of standards and guidelines relating to quality management systems and related supporting standards ISO 14000 Similar to ISO 9000 in management principles Focuses on environmental issues The Malcolm Baldrige National Quality Award Annual award for U.S. organizations in business, health care, education and nonprofit Recognizes excellence in quality achievement and quality management