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McGraw-Hill/Irwin
Copyright 2007 by The McGraw-Hill Companies, Inc. All rights reserved.
9 Management of Quality 9-2 Learning Objectives Define the term quality. Explain why quality is important and the consequences of poor quality. Identify the determinants of quality. Describe the costs associated with quality. Describe the quality awards. 9-3 Quality Management What does the term quality mean? Quality is the ability of a product or service to consistently meet or exceed customer expectations. 9-4 Dimensions of Quality Performance - main characteristics of the product/service Aesthetics - appearance, feel, smell, taste Special Features - extra characteristics Conformance - how well product/service conforms to customers expectations Reliability - consistency of performance
9-5 Dimensions of Quality (Contd) Durability - useful life of the product/service Perceived Quality - indirect evaluation of quality (e.g. reputation) Serviceability - service after sale 9-6 Service Quality Convenience Reliability Responsiveness Time Assurance Courtesy Tangibles
9-7 Examples of Service Quality Dimension Examples 1. Convenience Was the service center conveniently located? 2. Reliability Was the problem fixed? 3. Responsiveness Were customer service personnel willing and able to answer questions? 4. Time How long did the customer wait? 5. Assurance Did the customer service personnel seem knowledgeable about the repair? 6. Courtesy Were customer service personnel and the cashier friendly and polite? 7. Tangibles Were the facilities clean, personnel neat? Table 9.4 9-8 Determinants of Quality (contd) Quality of design Intension of designers to include or exclude features in a product or service Quality of conformance The degree to which goods or services conform to the intent of the designers 9-9 The Consequences of Poor Quality Loss of business Liability Productivity Costs 9-10 Top management Design Procurement Production/operations Quality assurance Packaging and shipping Marketing and sales Customer service Responsibility for Quality 9-11 Basic Quality Tools Flowcharts Check sheets Histograms Pareto Charts Scatter diagrams Control charts Cause-and-effect diagrams Run charts 9-12 Check Sheet Billing Errors
Wrong Account
Wrong Amount
A/R Errors
Wrong Account
Wrong Amount
Monday 9-13 Pareto Analysis 80% of the problems may be attributed to 20% of the causes. Smeared print N u m b e r
o f
d e f e c t s
Off center Missing label Loose Other 9-14 Control Chart 970 980 990 1000 1010 1020 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 UCL LCL Figure 9.11 9-15 Cause-and-Effect Diagram Figure 9.12 Effect Materials Methods Equipment People Environment Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause Cause 9-16 Identify a critical process that needs improving Identify an organization that excels in this process Contact that organization Analyze the data Improve the critical process