QMT501
Introduction to Quality Management and Six Sigma- Cost of Quality
Cost of Quality Cost of quality is the widely used term and it is the price of not creating the quality service and product. The cost of quality increases every time when the work is done. There are two main components of Cost of Quality which includes the “Cost of Conformance” and “Cost of Non-Conformance (Deng, Lu, Wei & Zhang, 2010).
Value Chain Value Chain is a chain of activities that are operated by specific industry or firm to deliver a valuable service or product for the market. The concept of the Value Chain is first described by Michael Porter in the year 1985. The fifteen quality points of the Value Chain Diagram are discussed below:
1) Relations between the purchasing and suppliers are very important to realize and uncover the new value and can reduce the risk. Management of relationship with the supplier is the discipline of planning and managing strategically for all the interactions of the organization (Gereffi & Frederick, 2010).
2) It is important to maintain the quality of the materials that are being supplied by the supplier. This is because these materials and supplies have to be further utilized in the manufacturing process of the company.
3) Maintaining the quality of the product at the final assembly has the fundamental importance to the companies. This will address the economic logic of the existence of the organization at the first place.
4) The most critical stage in maintaining the quality is the manufacturing of the products. The materials and resources supplied by the supplier are manufactured accurately and effectively (Qian, Agarwal & Hoetker, 2012).
5) It is necessary for the company to maintain such system so that their systems and processes will move in a smooth way. If the raw materials are not sufficient to manufacture the products, it will create harm to the processes that are being held.
6) Manufacturing quality engineering is
Cost of Quality Cost of quality is the widely used term and it is the price of not creating the quality service and product. The cost of quality increases every time when the work is done. There are two main components of Cost of Quality which includes the “Cost of Conformance” and “Cost of Non-Conformance (Deng, Lu, Wei & Zhang, 2010).
Value Chain Value Chain is a chain of activities that are operated by specific industry or firm to deliver a valuable service or product for the market. The concept of the Value Chain is first described by Michael Porter in the year 1985. The fifteen quality points of the Value Chain Diagram are discussed below:
1) Relations between the purchasing and suppliers are very important to realize and uncover the new value and can reduce the risk. Management of relationship with the supplier is the discipline of planning and managing strategically for all the interactions of the organization (Gereffi & Frederick, 2010).
2) It is important to maintain the quality of the materials that are being supplied by the supplier. This is because these materials and supplies have to be further utilized in the manufacturing process of the company.
3) Maintaining the quality of the product at the final assembly has the fundamental importance to the companies. This will address the economic logic of the existence of the organization at the first place.
4) The most critical stage in maintaining the quality is the manufacturing of the products. The materials and resources supplied by the supplier are manufactured accurately and effectively (Qian, Agarwal & Hoetker, 2012).
5) It is necessary for the company to maintain such system so that their systems and processes will move in a smooth way. If the raw materials are not sufficient to manufacture the products, it will create harm to the processes that are being held.
6) Manufacturing quality engineering is
References: Deng, Z., Lu, Y., Wei, K. K., & Zhang, J. (2010). Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China. International Journal of Information Management, 30(4), 289-300. Retrieved from http://www.sciencedirect.com/science/article/pii/S0268401209001224 Gereffi, G., & Frederick, S. (2010). The global apparel value chain, trade and the crisis: challenges and opportunities for developing countries. World Bank Policy Research Working Paper Series, Vol. Retrieved from https://openknowledge.worldbank.org/bitstream/handle/10986/3769/WPS5281.pdf?sequence=1 Qian, L., Agarwal, R., & Hoetker, G. (2012). Configuration of value chain activities: The effect of pre-entry capabilities, transaction hazards, and industry evolution on decisions to internalize. Organization Science, 23(5), 1330-1349. Retrieved from http://www.rhsmith.umd.edu/faculty/rajshree/testing/research/40%20Qian,%20Agarwal,%20Hoetker%20-%202012.pdf