QDC CHAPTER 9: MANAGEMENT OF QUALITY

CONTINUOUS IMPROVEMENT

-philosophy that seeks to improve all factors related to the process of converting inputs into outputs on an ongoing basis is called continuous improvement. -It covers equipment, methods, materials, and people. -Under continuous improvement, the old adage "If it ain't broke, don't fix it" gets transformed into "Just because it isn't broke doesn't mean it can't be improved."

APPRAISAL COSTS

COSTS RELATED TO MEASURING, EVALUATING, AND AUDITING MATERIALS, PARTS, PRODUCTS, AND SERVICES TO ASSESS CONFORMANCE WITH QUALITY STANDARDS. EXAMPLE: INSPECTION EQUIPMENT, TESTING, LABS, INSPECTORS, AND THE INTERRUPTION OF PRODUCTION TO TAKE SAMPLES

PREVENTION COSTS

COSTS RELATED TO REDUCING THE POTENTIAL FOR QUALITY PROBLEMS EXAMPLE: QUALITY IMPROVEMENT PROGRAMS, TRAINING, MONITORING, DATA COLLECTION AND ANALYSIS, AND DESIGN COSTS.

Eight quality management principles form the basis of the latest version of ISO 9000:

-A customer focus -Leadership -Involvement of people -A process approach -A system approach to management -Continual improvement -Use of a factual approach to decision making -Mutually beneficial supplier relationships

SIX SIGMA

-Statistically, six sigma means having no more than 3.4 defects per million opportunities in any process, product, or service. -Conceptually, the term is much broader, referring to a program designed to reduce the occurrence of defects to achieve lower costs and improved customer satisfaction. -It is based on the application of certain tools and techniques to selected projects to achieve strategic business results. -In the business world, six-sigma programs have become a key way to improve quality, save time, and cut costs. -can be employed in design, production, service, inventory management, and delivery. -important for six sigma projects to be aligned with organization strategy.

ISO 9000 standards include the following categories:

-System requirements -Management requirements -Resource requirements -Realization of requirements -Remedial requirements

Total Quality Management

-a quest for quality in an organization. -There are three key philosophies in this approach. -a never-ending push to improve, which is referred to as continuous improvement; -the involvement of everyone in the organization -customer satisfaction, which means meeting or exceeding customer expectations. -TQM expands the traditional view of quality—looking only at the quality of the final product or services—to looking at the quality of every aspect of the process that produces the product or service. -TQM systems are intended to prevent poor quality from occurring.

International Organization for Standardization (ISO)

-promotes worldwide standards for the improvement of quality, productivity, and operating efficiency through a series of standards and guidelines. -Used by industrial and business organizations, regulatory agencies, governments, and trade organizations, the standards have important economic and social benefits. -Not only are they tremendously important for designers, manufacturers, suppliers, service providers, and customers, but the standards make a tremendous contribution to society in general: **increase the levels of quality and reliability, productivity, and safety, while making products and services affordable. **help facilitate international trade. **provide governments with a base for health, safety, and environmental legislation. **aid in transferring technology to developing countries.

ISO 9000

A set of international standards on quality management and quality assurance, critical to international business.

WHAT costs ARE associated with quality.

APPRAISAL COSTS, PREVENTION COSTS, INTERNAL AND EXTERNAL FAILURE COSTS.

INTERNAL FAILURE COSTS

COSTS RELATED TO DEFECTIVE PRODUCTS OR SERVICES BEFORE THEY ARE DELIVERED TO CUSTOMERS. EXAMPLES: REWORK COSTS, PROBLEM SOLVING, MATERIAL AND PRODUCT LOSSES, SCRAP, AND DOWNTIME.

EXTERNAL FAILURE COSTS

COSTS RELATED TO DELIVERING STANDARD PRODUCTS OR SERVICES TO CUSTOMERS EXAMPLE: RETURNED GOODS, REWORKING COSTS, WARRANTY COSTS, LOSS OF GOODWILL, LIABILITY CLAIMS, AND PENALTIES.

Identify the advantages of applying a team approach to total quality management.

The use of teams for problem solving and to achieve consensus takes advantage of group synergy, gets people involved, and promotes a spirit of cooperation and shared values among employees.