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TQM
TQM slides
11
Business
Undergraduate 3
04/30/2013

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Term
Why is high quality difficult to achieve?
Definition
-defined and measured by the agent
-measured in terms of customization (customers)
-how it compares to competitors (customers)
-conformance quality (producers)
-degree that product is reliable, maintainable, sustainable (support personnel)
Term
Why are service industries more difficult?
Definition
-high volume of transaction
-immediate consumption
-difficult to measure and control
-more labor intensive
-high degree of customization required
-each customer has unique expectations
-customer is present so perception of quality is a measure in terms of service outcome and processes
Term
Why is high quality difficult to achieve?
Definition
-defined and measured by the agent
-measured in terms of customization (customers)
-how it compares to competitors (customers)
-conformance quality (producers)
-degree that product is reliable, maintainable, sustainable (support personnel)
Term
Why are service industries more difficult?
Definition
-high volume of transaction
-immediate consumption
-difficult to measure and control
-more labor intensive
-high degree of customization required
-each customer has unique expectations
-customer is present so perception of quality is a measure in terms of service outcome and processes
Term
TQM definition
Definition
common sense dedication of to understanding what the customer wants and then using people and science to set up systems to deliver products and services that delight the customer
Term
basic concepts of TQM
Definition
Customer focused
• Continuous process improvement
• Employee empowerment
– Everyone is responsible for quality
• Focusondefectpreventionratherthandefect detection
Term
costs of quality
Definition
Prevention costs
Appraisal costs
Internal failure costs
− Costs associated with discovering defects during the production process
External failure costs
− Costs associated when a defect is discovered after the customer receives
Term
costs of defects
Definition
cost of defect y-axis
product design, product production, customer site on x-axis
Term
control chart
Definition
time ordered diagram used to determine whether observed variations are abnormal
Term
p-chart
Definition
-used to control proportion of defects generated by process
-performance characteristic counted, not measured
Term
c-chart
Definition
used for controlling number of defects when more than one defect can be present
-used when you want to reduce the number of defects per unit/service encounter
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