scm301 exam2 study guide
Defining Product Quality
What is TQM?
Total Quality Management
To improve quality, the entire supply chain organization must be involved
Quality measurement is essential - management and improvement based on facts and data
Defect = failure to satisfy the customer
Process improvement philosophy takes hold - eliminate defects and reduce lead times
Why is quality important?
Costs & market share
Company’s reputation
Product liability
International implications
Improved quality
Market Gains (Reputation, Volume, Price)
Lower Costs (Productivity, Rework/Scrap, Warranty)
Both leads to Increased Profits
Customer satisfaction is the key business criterion
Quality is the basis of a sustainable position in the market
Quality is the path to market share growth
Development of practices that exceed customer expectations
Definitions of quality: “The Gurus”
Deming (Chain Reaction)
Eliminate Waste & Improve Quality
Reduce COGS Lowers Price
Lower Price Increase Mkt. Share
Bigger Mkt. Share Means More Jobs
Crosby (Conformance to Specifications)
Product design includes measurable dimensions and characteristics
The extent to which the product matches these criteria (or conforms) determines quality
Convinced that “zero defects” should be the goal of management
Contends that defects are due to lack of knowledge lack of attention
Juran (As fitness to intended use)
Requires alignment of product design to features requested by the marketplace
Products match the customer’s expectations
Taguchi
Off-line QC refers to quality at the design and planning stage of products
Robust Design: For a range of operating conditions
Taguchi Quality Loss Function: Any deviation from the target value for a quality characteristic results in a loss to some segment of society
Conventional Wisdom vs. TQM
Conventional Wisdom
Quality costs money and time
Work is a series of events
Quantity is as important as quality
Quality means hitting preset goals
Hitting 96% is
What is TQM?
Total Quality Management
To improve quality, the entire supply chain organization must be involved
Quality measurement is essential - management and improvement based on facts and data
Defect = failure to satisfy the customer
Process improvement philosophy takes hold - eliminate defects and reduce lead times
Why is quality important?
Costs & market share
Company’s reputation
Product liability
International implications
Improved quality
Market Gains (Reputation, Volume, Price)
Lower Costs (Productivity, Rework/Scrap, Warranty)
Both leads to Increased Profits
Customer satisfaction is the key business criterion
Quality is the basis of a sustainable position in the market
Quality is the path to market share growth
Development of practices that exceed customer expectations
Definitions of quality: “The Gurus”
Deming (Chain Reaction)
Eliminate Waste & Improve Quality
Reduce COGS Lowers Price
Lower Price Increase Mkt. Share
Bigger Mkt. Share Means More Jobs
Crosby (Conformance to Specifications)
Product design includes measurable dimensions and characteristics
The extent to which the product matches these criteria (or conforms) determines quality
Convinced that “zero defects” should be the goal of management
Contends that defects are due to lack of knowledge lack of attention
Juran (As fitness to intended use)
Requires alignment of product design to features requested by the marketplace
Products match the customer’s expectations
Taguchi
Off-line QC refers to quality at the design and planning stage of products
Robust Design: For a range of operating conditions
Taguchi Quality Loss Function: Any deviation from the target value for a quality characteristic results in a loss to some segment of society
Conventional Wisdom vs. TQM
Conventional Wisdom
Quality costs money and time
Work is a series of events
Quantity is as important as quality
Quality means hitting preset goals
Hitting 96% is