(Quiz 2) Quality in Goods and Services

Quality of Design (Determinants of Quality)

Quality of Design (Determinants of Quality)

intention of designers to include/exclude features in a product/service

Conformance Quality (Determinants of Quality)

the degree to which goods/services conform to the intent of the designer

Ease-of-Use and User Instructions (Determinants of Quality)

increase the likelihood that a product will be used for its intended purpose and in such a way that it will function properly and safety

After-the-Sale Service (Determinants of Quality)

taking care of issues and problems that arise after the sale

Appraisal Costs

Costs of activities designed to ensure quality/uncover defects such as inspection

Prevention Costs

All TQ training, TQ planning, customer assessment, process control, and quality improvement costs to prevent defects from occurring

Failure Costs

costs incurred by defective parts/products or faulty services

Internal Failure Costs

costs incurred to fix problems that are detected before the product/service is delivered to the customer

• Internal = before

External Failure Costs

costs incurred to fix problems that are detected after the product/service is delivered to the customer

• External = after

Total Quality Management (TQM)

an approach for integrating quality at all levels of an org.

• Focuses on producing high quality goods and services

Elements of TQM

• Leadership

• Employee development

• Product/process excellence

• Continuous improvement

• Customer focus “fitness for use”

Continuous Improvement

a concept that recognizes that quality improvement is a journey with no end and that there’s a continuous need for looking for new approaches for improving quality

Design quality

specific characteristics of a product that determine its value in the marketplace

Conformance quality

the degree to which a product meets its design specifications

Deming Prize

recognizes the importance of high quality products

• Named after W. Edwards Deming

• Initiated by Japan in 1951

• One of individuals, application prize, and quality control for businesses units

Goal of Six Sigma

To reduce process variation to the point where only 3.4 defects per million are produced by a process that involves a high volume of manufactured units or service transactions on a continuous basis

Malcom Baldrige National Quality Award (MBNQA)

• Stimulate US companies to improve quality and productivity

• Establish guidelines and criteria to evaluate quality

• Recognize those firms that improve their quality

• Provide guidance in how to achieve quality

• Established in 1987

European Foundation for Quality Management (EFQM)

• Stimulate and assist European orgs in quality improvement activities

• Support managers in the adoption of TQM

EFQM Excellence Model

A non-prescriptive frame work based on nine criteria that recognizes that there are many approaches to achieving sustainable excellence

International Organization for Standardization (IOS)

9000: set of international standards on quality management and quality assurance, critical to international business

14000: a set of international standards for assessing a company’s environmental performance

20022: electronic banking standard that allows that banks- as well as numerous intermediaries - so their transaction can go through

Quality Circles

group of workers who meet to discuss ways to improve products or processes

• Less structured and more informal

• Have little authority to make any but the most minor changes