Operations Management

Chapter 19 : Quality Management

Strategic Role of Quality
Performance
features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality-Role of Inspection in Quality Control
The Cost of Quality
Cost of prevention
Cost of detection/appraisal
Cost of failure
Statistical Concepts in Quality Control
Control charts
Essential steps in starting a control chart
Control charts for variables
Control charts for attributes
Acceptance plans
Computers in Quality Control
Concept of TQM

Chapter Summary

Quality is one of the key issues, which defines an organization's competitive position in the market. Till the mid-seventies quality was only defined by periodic maintenance, but companies today are using quality advantage as a competitive weapon against the competitors.

To gain competitive advantage in the market through quality, organizations have adopted the total quality management approach. The TQM philosophy states that maintaining and improving quality is not just the prerogative of quality control department but each and every employee of an organization is equally responsible.

A clever and well-executed advertising may attract customers initially, but if the product supplied does not match customer's quality expectations then in all probability the customer will shift to a competitor's product. Quality is conformance to requirements.

A well designed and properly produced product without any error may not be perceived as a quality product by the customers if it does not satisfy their requirements. There are eight different quality dimensions that a company can leverage to gain competitive advantage.

They are performance, features, reliability, conformance, durability, serviceability, aesthetics and perceived quality. Random samples, statistical control charts and acceptance plans are some of the tools that are used for quality control. Control charts are used to find out if the quality of the product is within acceptable limits.

The p chart is used to control the percentage of defectives in the sample. X and R charts are used to control sample means and sample ranges. Average outgoing quality (AOQ) curves and operating characteristics (OC) curves explain the workings of acceptance plans. For a service organization, the quality can be judged only through the feedback from the customers.

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