What is Quality Management? • Systematic policies, methods, and procedures – Used to ensure that goods and services are produced with appropriate levels of quality to meet the needs of customers • Deals with issues relating to how goods and services are designed, created, and delivered to meet customer expectations • Meeting or exceeding customers’ expectations • How well outputs of a manufacturing or service process conform to the design specifications What is Quality Management? – Quality of conformance: Extent to which a process is able to deliver outputs that conform to the design specifications • Specifications: Targets and tolerances determined by designers of goods and services Service Quality • Consistently meeting or exceeding customer expectations and servicedelivery system performance criteria • Dimensions – Tangibles – Reliability – Responsiveness – Assurance – Empathy Principles of Total Quality: – Focus on customers and stakeholders – Process focus supported by continuous improvement and learning – Participation and teamwork by an organization’s employees Quality Philosophies Edward Deming Focuses on improving product and service quality by reducing variability in goods and services design – Higher quality leads to higher productivity and lower costs • Leads to improved market share and long-term competitive strength – Deming cycle – Plan, do, study, and act (PDSA) Quality Philosophies Joseph Juran • Defined quality as fitness for use • Sought to improve quality by working within a familiar cultural system • Advocated the use of quality cost measurement • Focused on elimination of defects using statistical tools for analysis Quality Philosophies Philip Crosby • Quality means conformance to requirements, not elegance • There is no such thing as a quality problem • Doing the job right the first time is always cheaper • Only performance measurement is the cost of quality, which is the expense of nonconformance • Only performance standard is Zero Defects Gap Model • Evaluates the quality of both goods and services • Identifies where to focus design and improvement efforts • Recognizes that there are several ways to mismanage the creation and delivery of high levels of quality Gap Model Gap 1 Discrepancy between customer expectations and managers’ perceptions of what those expectations are Gap 2 Discrepancy between manager’s perceptions between what constitutes a target level of quality and the task of translating those perceptions into executable specifications.
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