Learning Objectives
                 Learning Objectives
       When you complete this chapter you should be able to:
       When you complete this chapter you should be able to:
            1.  Define quality and TQM-Total Quality Management
            2.  Describe the (ISO-International Standards 
                Organization) international quality standards
            3.  Explain Six Sigma
            4.  Explain how benchmarking is used 
            5.  Explain quality robust products and Taguchi 
                concepts
            6.  Use the seven tools of TQM
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      Managing Quality Provides a 
       Managing Quality Provides a 
            Competitive Advantage
             Competitive Advantage
                            Arnold Palmer Hospital
            https://www.youtube.com/watch?v=U_GnYwReTzc
          Deliver over 16,000 babies annually
          Virtually every type of quality tool is employed
                Continuous improvement
                Employee empowerment
                Benchmarking
                Just-in-time
                Quality tools
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               Quality and Strategy
               Quality and Strategy
          An operations manager’s objective is 
          An operations manager’s objective is 
                to build a TQM - Total Quality 
                to build a TQM - Total Quality 
            Management system that identifies 
            Management system that identifies 
               and satisfies customer needs 
               and satisfies customer needs 
           e.g. Arnold Palmer Hospital meets all the components of service quality
           e.g. Arnold Palmer Hospital meets all the components of service quality
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               Quality and Strategy
               Quality and Strategy
        Managing quality -  Helps in building 
            strategies of differentiation, low cost, 
            and response strategies
        Quality helps firms increase sales and 
            reduce costs
        Building a quality organization is a 
            demanding task
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                       Two Ways Quality 
                       Two Ways Quality 
                  Improves Profitability
                   Improves Profitability
                           Sales Gains via
                       Improved response (Toyota)
                       Flexible pricing (Real Estate, Car dealers)
                       Improved reputation 
     Improved                                                                Increased 
       Quality              Reduced Costs via                                   Profits
                        Increased productivity
                        Lower rework and scrap costs
                        Lower warranty costs
                                                                                 Figure 6.1
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