GMS 401 Chapter Notes - Chapter 7: Continual Improvement Process, Coq, Root Mean Square
2 Nov 2016
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An operations manager"s objective is to build a total quality management (tqm) system that identi es and satis es customer needs. >managing quality supports differentiation, low cost, and response strategy. >quality helps rms increase sales and reduce cost. >but building a quality organization is a demanding task. Quality: the ability of a product or service to meet customer needs. User based (quality lies in the eyes of the beholder) Manufacturing based (making it right the 1st time) Three reasons why quality is important: company reputation, product liability, global implication. Internal failure: costs that results from production of defective parts or services before delivery to customer: external costs: costs that occur after delivery of defective parts or services. The rst three costs can be reasonably estimated, but external costs are very hard to quantify. One of the most important jobs is to deliver healthy, safe, and quality products and services to customers.
