QUESTION TYPE 1: COMPARING QUESTION

QUESTION TYPE 1: COMPARING QUESTION QUESTION TYPE 2: PREDICTING QUESTION TYPE 3: WHY QUESTION ............................................................................................ QUESTION TYPE 1: COMPARING QUESTION QUESTION TYPE 2: PREDICTING QUESTION TYPE 3: WHY QUESTION

Foreign Trade University CONTENT  Quality control  Quality specifications  Costs of quality  Functions of the Quality Control Department  Inspection Procedures  Quality tools  Total Quality Management (TQM) What is Quality Control?  A process that evaluates output relative to a standard, and takes corrective action when output does not meet standards Quality Specifications  Quality specifications of a product or service derive from decisions and actions made relative to the quality of its design and the quality of its conformance to that design  Design quality  Conformance quality Quality Specifications Design Quality  A strategic decision for the firm  Refers to the inherent value of the product in the marketplace => A firm designs a product or service to address the need of a particular market Quality Specifications Design quality  The dimensions of design quality Dimension Meaning Performance Primary product/ service characteristics Features Added touches, bells and whistles, secondary characteristics Reliability/ Durability Consistency of performance over time, probability of failing, useful life Serviceability Ease of repair Aesthetics Secondary characteristics (sound, feel, look, etc.) Perceived quality Past performance and reputation Quality Specifications Conformance quality  The degree to which the product or service design specifications are met  The activities involved in achieving conformance are of a tactical, day-to-day nature => A product/ service can have high design quality but low conformance quality, and vice versa Cost of Quality - COQ  Recognized by Joseph Juran in 1951  Costs of achieving/ not achieving quality specifications  It costs 15-20% of every sales dollar  typical types:  Appraisal costs  Prevention costs  Internal failure costs  External failure costs Cost of Quality - COQ  Appraisal costs: costs of inspection, testing, and other tasks to ensure that the product or process is acceptable  Prevention costs: the sum of all the costs to prevent defects such as costs of identify the cause of the defect, to implement corrective action to eliminate the cause, to train personnel, to redesign the product or system, and to purchase new equipment or make modifications  Internal failure costs: costs for defects incurred within the system: scrap, rework, repair…  External failure costs: costs for defects that pass through the system: customer warranty replacements, loss of customers of goodwill, handling complaints, product repair… Functions of The QC Department  Testing designs for their reliability in the lab and the     field; Gathering performance data on products and resolving quality problems in the field; Planning and budgeting the Quality Control program in the plant; Designing and overseeing quality control systems and inspection procedures; Carrying out inspection activities requiring special technical knowledge to accomplish Inspection Procedures Acceptance sampling sampling Process control Acceptance Approaches to Quality Assurance Inspection before/ Corrective action Quality built into after production during production the process Acceptance Sampling Process control The least progressive Continuous improvement The most progressive Quality Tools  Used for problem solving and process improvement  Flowchart  Check sheet  Histogram  Pareto chart  Scatter diagram  Control chart  Cause-and-effect diagram Total Quality Management  To be discussed ISO 9000 and ISO 14000  To be discussed ... achieving/ not achieving quality specifications  It costs 15-20% of every sales dollar  typical types:  Appraisal costs  Prevention costs  Internal failure costs  External failure costs Cost