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Chapter 8Quality Management Total Quality Management Defined Quality Specifications and Costs Six Sigma Quality and Tools External Benchmarking ISO 9000 Service Quality Measurement Total Quality Management (TQM) Total quality management is defined as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer Quality Specifications Design quality: Inherent value of the product in the marketplace Dimensions include: Performance, Features, Reliability/Durability, Serviceability, Aesthetics, and Perceived Quality. Conformance quality: Degree to which the product or service design specifications are met Costs of Quality Six Sigma Quality A philosophy and set ofmethods companies use to eliminate defects in their products and processes Seeks to reduce variation in the processes that lead to product defects The name, “six sigma” refers to the variation that exists within plus or minus three standard deviations of the process outputs Six Sigma Quality Six Sigma allows managers to readily describe process performance using a common metric: Defects Per Million Opportunities (DPMO) Six Sigma Quality Example of Defects Per Million Opportunities (DPMO) calculation. Suppose we observe 200 letters delivered incorrectly to the wrong addresses in a small city during a single day when a total of 200,000 letters were delivered. What is the DPMO in this situation? Six Sigma Quality: DMAIC Cycle Define, Measure, Analyze, Improve, and Control (DMAIC) Developed by General Electric as a means of focusing effort on quality using a methodological approach Overall focus of the methodology is to understand and achieve what the customer wants A 6-sigma program seeks to reduce the variation in the processes that lead to these defects DMAIC consists of five steps…. Six Sigma Quality: DMAIC Cycle Example to illustrate the process We are the maker of this cereal. Consumer reports has just published an article that show