Topics: Quality control, Marketing, Good Pages: 5 (881 words) Published: April 20, 2015

Introduction to Quality Management and Six Sigma- Cost of Quality

Cost of Quality
Cost of quality is the widely used term and it is the price of not creating the quality service and product. The cost of quality increases every time when the work is done. There are two main components of Cost of Quality which includes the “Cost of Conformance” and “Cost of Non-Conformance (Deng, Lu, Wei & Zhang, 2010). Value Chain

Value Chain is a chain of activities that are operated by specific industry or firm to deliver a valuable service or product for the market. The concept of the Value Chain is first described by Michael Porter in the year 1985.

The fifteen quality points of the Value Chain Diagram are discussed below: 1) Relations between the purchasing and suppliers are very important to realize and uncover the new value and can reduce the risk. Management of relationship with the supplier is the discipline of planning and managing strategically for all the interactions of the organization (Gereffi & Frederick, 2010). 2) It is important to maintain the quality of the materials that are being supplied by the supplier. This is because these materials and supplies have to be further utilized in the manufacturing process of the company. 3) Maintaining the quality of the product at the final assembly has the fundamental importance to the companies. This will address the economic logic of the existence of the organization at the first place. 4) The most critical stage in maintaining the quality is the manufacturing of the products. The materials and resources supplied by the supplier are manufactured accurately and effectively (Qian, Agarwal & Hoetker, 2012). 5) It is necessary for the company to maintain such system so that their systems and processes will move in a smooth way. If the raw materials are not sufficient to manufacture the products, it will create harm to the processes that are being held. 6) Manufacturing quality engineering is necessary for the company to meet their customers’ expectations. Company must draw all on their engineering expertise to deliver the most innovative, unique and world changing solutions. 7) Company must have to maintain a check and balance system for finished goods. Company must make their products at the standards of the quality and must maintain the inspection of the end products (Gereffi & Frederick, 2010). 8) It is the objective of the company to take of their customers need and wants. Company must listen to the customer what they want and what they say. Company must ask question from the customer and elicit the information. 9) After making a clear view about the needs and wants of the customer, the company will market their product. The product must need to serve a purpose in the life of the customer and this will depend upon the functionality of the company’s product (Deng, Lu, Wei & Zhang, 2010). 10) Product design is the most important that grasp the attention of the customers. It is necessary for the company to focus on the effective design of their products. Company should work on the developing new methods or designs to attract most of the customers. 11) There is a chance of rejection or rework of the products that are being delivered to the customers. Company must need to find out the reason behind the rejection and must take necessary actions that it will not happen again. 12) As a leading market holder in production of the goods, it is necessary for the company to understand the problem of their customer that they are facing. Company should start the exploration of the problem and try to solve them as soon as soon as possible (Qian, Agarwal & Hoetker, 2012). 13) The products delivered to the customers must meet the expectations of the customers. Customer satisfaction is the key performance indicator within the business. It has become the key business strategy of the business and is seen as a key differentiator (Deng, Lu, Wei &...

References: Deng, Z., Lu, Y., Wei, K. K., & Zhang, J. (2010). Understanding customer satisfaction and loyalty: An empirical study of mobile instant messages in China. International Journal of Information Management, 30(4), 289-300. Retrieved from http://www.sciencedirect.com/science/article/pii/S0268401209001224
Gereffi, G., & Frederick, S. (2010). The global apparel value chain, trade and the crisis: challenges and opportunities for developing countries. World Bank Policy Research Working Paper Series, Vol. Retrieved from https://openknowledge.worldbank.org/bitstream/handle/10986/3769/WPS5281.pdf?sequence=1
Qian, L., Agarwal, R., & Hoetker, G. (2012). Configuration of value chain activities: The effect of pre-entry capabilities, transaction hazards, and industry evolution on decisions to internalize. Organization Science, 23(5), 1330-1349. Retrieved from http://www.rhsmith.umd.edu/faculty/rajshree/testing/research/40%20Qian,%20Agarwal,%20Hoetker%20-%202012.pdf
Continue Reading

Please join StudyMode to read the full document

Become a StudyMode Member

Sign Up - It's Free