Midterm Study Guide

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Midterm Study Guide

Definition of Quality- Quality revolves around the concept of meeting or exceeding customer expectation applied to the product and service. Achieving high quality is an ever changing, or continuous, process therefore quality management emphasizes the ideas of working constantly toward improved quality. It involves every aspect of the company: processes, environment and people. Different perspectives include: judgemental , product-based, user-based, value based, manufacturing-based, integrating perspectives on quality, customer-driven. Other definition – The standard of something as measured against other things of a similar kind, the degree of excellence of something. Origins of quality management- Quality management in is not derived from a single idea or person. It is a collection of ideas, and has been called by various names and acronyms: TQM, total quality management; CQU, continuous quality improvement; SQC, statistical quality control; TQC, total quality control, etc. However each of these ideas encompasses the underlying idea of productivity initiatives that increase profit by improving the product. Though most writers trace the quality movement's origins to W. Edward Deming, Joseph M. Juran and Philip B. Crosby, the roots of quality can be traced even further back,

Trends and Patterns in quality management-

Total quality in organizations- Total quality stresses learning and adaptation to continual change as keys to organizational success. Adopting total quality philosophy requires significant changes in organization design, work process & culture.

Quality management as a framework- The philosophies of Deming, Juran, Crosby, and others provide much guidance and wisdom in the form of “best practices” to managers around the world, leading to the development of numerous awards and certifications for recognizing effective application of TQ principles. Although awards justifiably recognize only a select few, the award or certification criteria provide frameworks for managing from which every organization can benefit. The two frameworks that have had the most impact on quality management practices worldwide are the U.S. Malcolm Baldrige National Quality Award and international ISO 9000 certification process. Recently, the concept of Six Sigma has evolved into a unique framework for managing quality.

Cost of quality- The cost of quality."
It’s a term that's widely used – and widely misunderstood. The "cost of quality" isn't the price of creating a quality product or service. It's the cost of NOT creating a quality product or service. Every time work is redone, the cost of quality increases. Obvious examples include: * The reworking of a manufactured item.

* The retesting of an assembly.
* The rebuilding of a tool.
* The correction of a bank statement.
* The reworking of a service, such as the reprocessing of a loan operation or the replacement of a food order in a restaurant. In short, any cost that would not have been expended if quality were perfect contributes to the cost of quality.

Six Sigma- Six Sigma, which has garnered a significant amount of credibility over the last decade because of its acceptance at such major firms as Allied Signal (now part of Honeywell) and General Electric, is not as new a concept as it seems. Six Sigma incorporates many basic and advanced quality improvement and control tools that have found widespread application in fact-based management environments. However, the way it is practiced represents a departure from traditional management. The term “six sigma” is based on a statistical measure that equates to 3.4 or fewer errors or defects per million opportunities. An ultimate “stretch” goal of all organizations that adopt a Six Sigma philosophy is to have all critical processes, regardless of functional area, at a six-sigma level of capability. Six Sigma can be described as a business improvement approach that seeks to...
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