MGT 302 Final Exam Study guide 
Chapter 10
Learning Objectives:
1. Understand Total Quality Management
a. Total quality management
i. managing the entire organization so that it excels on all dimensions of products and services that are important to the customer
b. Two fundamental operational goals
i. Careful design of the product or service ii. Ensuring that the organization’s systems can consistently produce the design
c. TQM Commitments
i. Commitment to total customer satisfaction ii. Commitment to understanding and improving the organization’s processes iii. Commitment to employee involvement iv. Commitment to data-based decision making
2. Discuss how quality is measured and the different dimensions of quality
a. Developing Quality Specifications
i. Design quality - inherent value of the product in the marketplace
1. Dimensions of Design Quality
a. Performance- primary product or service characteristics
b. Features- Added touches, secondary characteristics
c. Reliability/durability- consistency of performance over time, probability of failing, useful life
d. Serviceability- ease of repair
e. Aesthetics- sensory characteristic
f. Perceived quality- past performance and reputation ii. Conformance quality - degree to which the product or service design specifications are met
1. Quality at the source
a. One of the commitments of TQM was employee involvement
b. Quality is everyone’s job, and the worker must engineer quality into the product
i. Not rely upon an inspection step to validate quality
c. This drives each worker to be responsible for quality
i. Does this require extra education / training?
b. Cost of Quality- expenditures related to achieving product or service quality such as costs of prevention, appraisal, internal failure and external failure
i. 3 basic assumptions
1. failures are caused
2. prevention is cheeper
3. performance can be measured ii. Types of Quality Processes
1. Detection
a. Reacting to problems as they arise
2. Prevention
a. taking care of special cases by
Learning Objectives:
1. Understand Total Quality Management
a. Total quality management
i. managing the entire organization so that it excels on all dimensions of products and services that are important to the customer
b. Two fundamental operational goals
i. Careful design of the product or service ii. Ensuring that the organization’s systems can consistently produce the design
c. TQM Commitments
i. Commitment to total customer satisfaction ii. Commitment to understanding and improving the organization’s processes iii. Commitment to employee involvement iv. Commitment to data-based decision making
2. Discuss how quality is measured and the different dimensions of quality
a. Developing Quality Specifications
i. Design quality - inherent value of the product in the marketplace
1. Dimensions of Design Quality
a. Performance- primary product or service characteristics
b. Features- Added touches, secondary characteristics
c. Reliability/durability- consistency of performance over time, probability of failing, useful life
d. Serviceability- ease of repair
e. Aesthetics- sensory characteristic
f. Perceived quality- past performance and reputation ii. Conformance quality - degree to which the product or service design specifications are met
1. Quality at the source
a. One of the commitments of TQM was employee involvement
b. Quality is everyone’s job, and the worker must engineer quality into the product
i. Not rely upon an inspection step to validate quality
c. This drives each worker to be responsible for quality
i. Does this require extra education / training?
b. Cost of Quality- expenditures related to achieving product or service quality such as costs of prevention, appraisal, internal failure and external failure
i. 3 basic assumptions
1. failures are caused
2. prevention is cheeper
3. performance can be measured ii. Types of Quality Processes
1. Detection
a. Reacting to problems as they arise
2. Prevention
a. taking care of special cases by