The goal of quality management is simple the main purpose is to provide a product or service and turn a profit. According to William Proctor of Procter and Gamble, “The first job we have is to turn out quality merchandise that consumers will buy and keep on buying. If we produce it efficiently and economically, we will earn a profit, in which all of you will share”(B). The theory of profitability is strengthened by various quality initiatives that enforce the transformation of inputs into a value added output. Additional infrastructure aside from quality initiatives is necessary to promote success. A transparent firm where all functional business roles synchronize effortlessly will promote future success.
Initially, the firm needs to have a strong understanding of what quality items for their good or service is needed. Various quality definitions are described in the text: transcendent definition, product-based definition, user-based definition, value-based definition, and manufacturing-based definition. Each quality definition specializes in emphasizing the most important measures related to that output. Definitions also rely heavily on perspectives of the consumer of the outputs working relative to customer satisfaction. Understanding the deliverables required by the consumer is typically the simplest method for defining quality. Customers can be considered prospects, existing customers and internal customers. Less commonly discussed internal customers are imperative in evaluating quality. Internal customers are stakeholders, employees, or shareholders. In any business function customers are at the heart of the operation.
The motive for a customer focused approach is the judging of quality. In...
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... switch to be equivalent in terms of quality and the cost savings would not impact the quality the consumer is accustomed too. However, the team did run into an issue. Jomar Group is a relatively small and changing components of products does not occur often. IT struggled to find a way to manage the old components in stock and track the new components. Regulating the bill of materials and accounting for inventory was difficult. The team was then faced with the question of whether or not they should use a FIFO or LIFO approach with the new component. If they have a large order from a wholesaler should they mix components in an order? This entire concept became apparent as they drove deeper into analyzing the small change. The moral of this story is that one small change of a single component in even a small organization can cause chaos if not appropriately handled.
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