BUSQOM 1070 Chapter Notes - Chapter 6: Malcolm Baldrige National Quality Award, Total Quality Management, Iso 9000
23 Dec 2018
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Document Summary
Operations management: quality is a wonderful tonic for improving operations, managing quality helps build successful strategies of differentiation, low cost, and response. Improvements in quality help firms increase sales and reduce costs, both of which can increase profitability. Increases in sales often occur as firm"s speed response, increase or lower selling prices, and improve their reputation for quality products. Improved quality allows costs to drop as firms increase productivity and lower rework, scrap, and warranty costs: quality (or the lack of quality) affects the entire organization from supplier to customer and from product design to maintenance. Implications of quality: 3 other reasons why quality is important, 1. Company reputation: quality will show up in perceptions about the firm"s new products, employment practices, and supplier relations: 2. Product liability: the courts increasingly hold organizations that design, produce, or distribute faulty products or services liable for damages or injuries resulting from their use: 3.
