2025/2026
1 Quality and strat- - Managing quality supports ditterentiation,
. low cost, and response strategies
egy
Quality helps firms increasse sales and reduce costs
Building a quality organization is a demanding task
2. Two ways 1. Sales gains via:
quali- ty -Improved response
improves prof-
-Flexible pricing
itability
-Improved reputation
2. Reduced costs via:
-Increased productivity
-Lower rework and scrap
-Lower warranty costs
3. The flow of ac- 1. Organizational practices:
tivities to -Leadership, mission statement, ettective operating procedures, statt
achieve TQM support, and training
-Yields: What is importatn and what is to be accomplished
2. Quality principles:
-Customer focus, continuous improvement, benchmarking, Just-in-time,
Tools of TQM
Yields: How to do what is important and to be accomplished
3. Employee fulfillment:
-Empowerment, organizational commitment
-Yields: Employee attitudes that can accomplish what is important
4. Customer satisfaction:
-Winning orders, repeat customers
-Yields: An ettective organization with a competitive advantage
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4 Defining
r qualityThe totality of features and characteristics of a
. product or service that bears on its
ability to satisfy stated or implied needs
5 Operations man- To build a total quality management (TQM)
. system that identifies and satisfies
ager's objectivecustomer needs.
6. Different -User based: Better performance, more features
views
on quality (3) -Product based: Specific and measurable attributes of the product
-Manufacturing based: Conformance to standards, making it right the first
time
7. Implications
1.Company reputation:
of quality
-Perception of new products
-Employment practices
-Supplier relations
2.Product liability
-Reduce risk
3.Global implications
-Improved ability to compete
8. Costs of quality - Prevention costs: Reducing the potential for defects (training, quality
improve-
ment systems)
-Appraisal costs: Evaluating products, parts, and services
-Internal failure costs: Producing defective part or service before delivery
-External failure costs: Defects discovered after delivery
,9. Takumi A Japanese character that symbolizes:
, OM 300 Test 2
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a broader dimension than quality
a deeper process than education
a more perfect method than persistence
10.Ethics and quality - Operations managers must deliver healthy, safe,
and quality products and
manageme services
nt
-Poor quality risks injuries, lawsuits, recalls, and regulation
-Ethical conduct must dictate response to problems
-All stakeholders must be
considered ISO 9000 Series:
11. Internation
al
quality standards - Set of international standards on quality management and quality
insurance to help companies document quality systems
-Not specific to any industry
-Can help a company satisfy its customers, meet regulatory
requirements, and achieve improvement
12. Total quali- -Encompasses entire organization from supplier to customer
ty -Stresses a commitment by management to have a continuing
management companywide drive toward excellence in all aspects of product and
(TQM)
services that are important to the customer
1. Create consistency of purpose
13. Deming's 14
2. Lead to promote change
points for
3. Build quality into the product; stop depending on inspections to
imple-
catch prob- lems
menting
quality 4. Build long-term relationships based on performance instead
improvement of awarding business on price
5. Continuously improve product, quality, and service