GMS 401 Chapter 7: Chapter 7- Managing Quality

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 401
• Professor: drorhermel

Document Summary

Quality and strategy: managing quality helps build successful strategies of differentiation, low cost, response. Improvements in quality help firm increase sales and reduce costs can aid in profitability: can also allow costs to drop as firms increase productivity, lower rework, scrap and warranty costs. Flow of activities that are necessary to achieve total quality management: top down type of process. Ope(cid:396)atio(cid:374) (cid:373)a(cid:374)age(cid:396)(cid:859)s o(cid:271)je(cid:272)ti(cid:448)e is to (cid:271)uild total (cid:395)uality (cid:373)a(cid:374)age(cid:373)e(cid:374)t (cid:894)tqm(cid:895) that identifies and satisfies customer needs; tqm takes care of customer. Key dimensions of quality: performance, features, reliability, conformance, durability, serviceability, aesthetics, perceived quality, value. National quality awards: creation of excellence, purpose of organization is to promote and recognize quality in public and private firms. Cost of quality: cost of doing things wrong, price of non- conformance; 4 categories: prevention costs- costs that are incurred when reducing the potential of defect parts, training, quality improvement programs.