After completing this unit, you should be able to: Define reliability, perform simple reliability computations, explain the term availability and perform simple calculations. | Chapter 5 - Total Quality Management Operations Management 6th Edition R. Dan Reid & Nada R. Sanders Copyright © 2016 John Wiley & Sons, Inc. Learning Objectives Explain the meaning of total quality management (TQM). Identify costs of quality. Describe the evolution of TQM. Identify features of the TQM philosophy. Describe quality awards and quality certifications. Understand why and how TQM efforts fail. Defining Quality Definition of quality is dependent on the people defining it There is no single, universal definition of quality “performance to standards”, “meeting customer’s needs”, “satisfying the customer” 5 common definitions (See next slide) Defining Quality – 5 Ways Conformance to specifications How well a product/service meet targets and tolerances defined by its designers. Fitness for use Evaluates performance for intended use Value for price paid Evaluation of usefulness vs. price paid Support services Quality of support after sale Psychological Ambiance, | Chapter 5 - Total Quality Management Operations Management 6th Edition R. Dan Reid & Nada R. Sanders Copyright © 2016 John Wiley & Sons, Inc. Learning Objectives Explain the meaning of total quality management (TQM). Identify costs of quality. Describe the evolution of TQM. Identify features of the TQM philosophy. Describe quality awards and quality certifications. Understand why and how TQM efforts fail. Defining Quality Definition of quality is dependent on the people defining it There is no single, universal definition of quality “performance to standards”, “meeting customer’s needs”, “satisfying the customer” 5 common definitions (See next slide) Defining Quality – 5 Ways Conformance to specifications How well a product/service meet targets and tolerances defined by its designers. Fitness for use Evaluates performance for intended use Value for price paid Evaluation of usefulness vs. price paid Support services Quality of support after sale Psychological Ambiance, prestige, friendly staff Manufacturing Quality vs. Service Quality Manufacturing focuses on tangible product features (can be seen, touched, directly managed) Conformance Performance Reliability Features Durability Serviceability Service produce intangible products that must be experienced (cannot be seen or touched) Intangible factors Consistency Responsiveness Courtesy, friendliness Promptness, timeliness Atmosphere Cost of Quality Quality affects all aspects of the organization Quality has dramatic cost implications of: Quality control costs (to achieve high quality) Prevention costs Appraisal costs Quality failure costs (consequences of poor quality) Internal failure costs External failure costs Cost of Quality – 4 Categories Evolution of TQM – New Focus Quality Gurus TQM Philosophy TQM focuses on identifying quality problem root causes Encompasses the entire organization Involves the technical as well as people Relies on seven basic concepts of Customer
