(C215-WGU) WGU C215 Study Guide – FINAL Latest Updated 2022 Already Passed

TQM: Total Quality Management is an integrated organizational effort designed to improve quality at every level. Customer Defined Quality TQM is about meeting quality expectations as defined by the customer. Conformance to specification measures how well the product or service meets the targets and tolerances determined by its designers. Example of Conformance to specification The wait for hotel room service may be specified as 20 minutes, but there may be an acceptable delay of an additional 10 minutes. Also, consider the amount of light delivered by a 60-watt light bulb. If the bulb delivers 50 watts, it does not conform to specifications. Fitness for use focuses on how well the product performs its intended function or use. Example of Fitness for use For example, a Mercedes-Benz and a Jeep Cherokee both meet a fitness for use definition if one considers transportation as the intended function. However, if the definition becomes more specific and assumes that the intended use is for transportation on mountain roads and carrying fishing gear, the Jeep Cherokee has a greater fitness for use. You can also see that fitness for use is a user-based definition in that it is intended to meet the needs of a specific user group. Value for a price paid is a definition of quality that consumers often use for product or service usefulness. This is the only definition that combines economics with consumer criteria; it assumes that the definition of quality is price sensitive. Examples of Value for a price paid For example, suppose that you wish to sign up for a personal finance seminar and discover that the same class is being taught at two different colleges at significantly different tuition rates. If you take the less expensive seminar, you will feel that you have received greater value for the price. Support Services provided are often how the quality of a product or service is judged. Quality does not apply only to the product or service itself; it also applies to the people, processes, and organizational environment associated with it. Example of Support Services For example, the quality of a university is judged not only by the quality of staff and course offerings but also by the efficiency and accuracy of processing paperwork. Psychological Criteria is a subjective definition that focuses on the judgmental evaluation of what constitutes product or service quality. Different factors contribute to the evaluation, such as the atmosphere of the environment or the perceived prestige of the product. Examples of Psychological Criteria For example, a hospital patient may receive average healthcare, but a very friendly staff may leave the impression of high quality. Similarly, we commonly associate certain products with excellence because of their reputation; Rolex watches and Mercedes-Benz automobiles are examples. Manufacturing Organizations Manufacturing organizations produce a tangible product that can be seen, touched, and directly measured. Examples include cars, CD players, clothes, computers, and food items. Quality in manufacturing organizations quality definitions in manufacturing usually focus on tangible product features. Common quality definition in manufacturing 1. Conformance: the degree to which a product characteristic meets preset standards. 2. Performance: such as acceleration of a vehicle 3. Reliability: meaning that the product will function as expected without failure 4. Features: the extras that are included beyond the basic characteristics 5. Durability: the expected operational life of the product 6. Serviceability: how readily a product can be repaired Service Organizations service organizations produce a product that is intangible. Usually, the complete product cannot be seen or touched. Rather, it is experienced. The intangible nature of the product makes defining quality difficult. Examples of Service Organizations delivery of healthcare, the experience of staying at a vacation resort, and learning at a university. Quality of Service is defined by perceptual factors 1. Responsiveness to customers needs/ 2. Courtesy and friendliness of staff. 3. Promptness in resolving complains. 4. Atmosphere 5. Time: the amount of time a customer has to wait for the service. 6. Consistency: the degree to which service is the same each time. Quality Control Costs Cost necessary for achieving high quality. Two types of Quality Control Costs 1. Prevention costs. 2. Appraisal costs. Prevention Costs are all costs incurred in the process of preventing poor quality from occurring. Costs includes the following. 1. quality planning costs, such as the costs of developing and implementing a quality plan. 2. cost of product and process design. 3. Employee training in quality measurement. 4. Cost of maintaining records of information and data related to quality. Appraisal Costs incurred in the process of uncovering defects. They include the following; 1. Cost of quality inspections. 2. Product testing. 3. performing audits to make sure that quality standards are being met. 4. costs of worker time spent measuring quality 5. cost of equipment used for quality appraisal. Quality Failure Costs Cost consequences of poor quality. Two types of Quality Failure Costs 1. External Failure Costs 2. Internal Failure Costs Internal Failure Costs are associated with discovering poor product quality before the product reaches the customer site. 1. rework: the cost of correcting the defective item. 2.Scrap: when item is so defective that it cannot be fixed and must be thrown away. Scrap cost includes all the material, labor, and machine cost spent in producing the defective product. 3. cost of machine downtime due to failures in the process and the costs of discounting defective items for salvage value. External Failure Costs are associated with quality problems that occur at the customer site. These costs can be particularly damaging because customer faith and loyalty can be difficult to regain. 1. Customer complaints 2. Product returns 3. repairs to warranty claims 4. recalls 5. litigation costs resulting from product liability issues 6. lost sales and lost customers Example of External Failure Costs manufacturers of lunch meats and hot dogs whose products have been recalled due to bacterial contamination have had to struggle to regain consumer confidence. Other examples include auto manufacturers whose products have been recalled due to major malfunctions such as problematic braking systems and airlines that have experienced a crash with many fatalities. External failure can sometimes put a company out of business almost overnight. External Failure Costs are particularly high where? External failure costs tend to be particularly high for service organizations. The reason is that with a service the customer spends much time in the service delivery system, and there are fewer opportunities to correct defects than there are in manufacturing. Examples of external failure in services include overbooking airline flights, long delays in airline service, and lost luggage. Walter A. Shewhart