Ch. 6 Quality

Total Quality Management

A management strategy and philosophy for continuously improving the quality of products, services and processes.

Which of the following DOES NOT increase profit by improving quality? A. Flexible pricing B. Increased productivity C. Higher warranty costs D. Improved reputation

C. Higher warranty costs

Managing quality helps build successful strategies of:

differentiation, low cost and response

Fitness For Use

How well a product or service does what it is supposed to do.

Which of the following costs is NOT a cost of quality? A. Lost goodwill B. Research and development C. Scrap D. Rework

B. Research and development

Producer Perspective

Degree to which product conforms to design specifications

Service Recovery

Training and empowering frontline employees to solve a problem immediately.

Quality of Design

Value in market place.

Quality

the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs