Semester “Fall 2010”
“Total Quality Management (MGT 510)”
This is to inform you that Graded Discussion Board (GDB) has been opened according to the following schedule:
Schedule
Opening Date and Time January 26, 2011 At 12:01 A.M. (Mid-Night)
Closing Date and Time January 27, 2011 At 11:59 P.M. (Mid-Night
Note: No extra or bonus/grace period is available for attempting GBD.
Discussion Question
“Total Quality costs reduce the overall cost of the organization. Costs such as prevention, appraisal and failure costs are incurred to improve quality and reduce costs (of loosing customers etc) rather than to increase cost. Discuss with an example in Pakistan’s business sector.”
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Solution:
In the old paradigm, managers define quality in terms of meeting specifications. Quality is assured by weeding out the “bad” products before they are shipped to customers. Managers make tradeoffs among quality, cost, and scheduling under the assumption that relationships among these outcomes are fixed.
By contrast, in the new paradigm, managers recognize that product quality is only one component of customer value, and managers seek synergies among quality, cost, and schedule, not just tradeoffs. For example, improving quality by reducing variation in outputs reduces defects, reduces costs, and makes performance to schedule more predictable. Further, quality is more broadly defined than just product quality. Quality applies to every aspect of the organization. It must be managed into processes and systems, and not jut inspected into products. Systems’ thinking included to think of all interdependent parts of the system into one whole.
Juran maintains that the Japanese experience leaves little doubt as to the significance of the return on quality training in competitive advantage, reduced failure costs, higher productivity, smaller inventories, and better delivery performance.
Most human error is caused by lack of attention rather than lack of knowledge. Lack of attention is created when we assume that error is inevitable. If we consider this condition carefully and pledge ourselves to make a constant conscious effort to do our jobs right the first time, we will take a giant step toward eliminating the waste of rework, scrap, and repair that increases cost and reduces individual opportunity.
Total quality costs are the sum of the above costs to produce a product or to deliver a service. This represents the difference between the actual cost of a product or service and what the reduced cost would be if there were no possibility of substandard service, failure of products or defects in their manufacture. The measure of revenue saved by producing the right product the first time and every time will actually be the return one gets by implementing the system of quality.
Hence we need to learn that quality system is an investment which ultimately reduces the total cost of production or working as we have to consider every effort of ours financially accountable to make quality a business case.
Quality is a continuous journey and hence not a destination.
.....................
Solution:
In the old paradigm, managers define quality in terms of meeting specifications. Quality is assured by weeding out the “bad” products before they are shipped to customers. Managers make tradeoffs among quality, cost, and scheduling under the assumption that relationships among these outcomes are fixed.
By contrast, in the new paradigm, managers recognize that product quality is only one component of customer value, and managers seek synergies among quality, cost, and schedule, not just tradeoffs. For example, improving quality by reducing variation in outputs reduces defects, reduces costs, and makes performance to schedule more predictable. Further, quality is more broadly defined than just product quality. Quality applies to every aspect of the organization. It must be managed into processes and systems, and not jut inspected into products. Systems’ thinking included to think of all interdependent parts of the system into one whole.
Juran maintains that the Japanese experience leaves little doubt as to the significance of the return on quality training in competitive advantage, reduced failure costs, higher productivity, smaller inventories, and better delivery performance.
Most human error is caused by lack of attention rather than lack of knowledge. Lack of attention is created when we assume that error is inevitable. If we consider this condition carefully and pledge ourselves to make a constant conscious effort to do our jobs right the first time, we will take a giant step toward eliminating the waste of rework, scrap, and repair that increases cost and reduces individual opportunity.
Total quality costs are the sum of the above costs to produce a product or to deliver a service. This represents the difference between the actual cost of a product or service and what the reduced cost would be if there were no possibility of substandard service, failure of products or defects in their manufacture. The measure of revenue saved by producing the right product the first time and every time will actually be the return one gets by implementing the system of quality.
Hence we need to learn that quality system is an investment which ultimately reduces the total cost of production or working as we have to consider every effort of ours financially accountable to make quality a business case.
Quality is a continuous journey and hence not a destination.
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