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Chapter 7 Operations Quality Management Overview Nature of Quality Traditional Quality Management Modern Quality Management Quality Management Recognition Total Quality Management (TQM) Programs Quality Management in Services Wrap-Up: What World-Class Producers Do What is Quality? “The quality of a product or service is a customer’s perception of the degree to which the product or service meets his or her expectations.” Nature of Quality Dimensions of Quality Determinants of Quality Costs of Quality Best-In-Class and World-Class Customers’ expectations of quality are not the same for different classes of products or services. Best-in-class quality means being the best product or service in a particular class of products or services. Being a world-class company means that each of its products and services are considered best-in-class by its customers. Some Dimensions of Product Quality Performance – relative to customer’s intended use Features – special characteristics Reliability – likelihood of breakdowns, malfunctions Serviceability – speed/cost/convenience of servicing Durability – amount of time/use before repairs Appearance – effects on human senses Customer service – treatment before/during/after sale Safety – user protection before/during/after use Determinants of Quality Quality of design – products/service designed based on customers’ expectations and desires Quality capability of production processes – processes must be capable of producing the products designed for the customers Quality of conformance – capable processes can produce inferior product if not operated properly Quality of customer service – a superior product does not mean success; must have quality service also Organization quality culture – superior product and service requires organization-wide focus on quality Costs of Quality Scrap and rework - rescheduling, repairing, retesting Defective products in the hands of the customer - recalls, warranty claims, law suits, lost business, … D
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