Quality is Critical factor of Operation Management.

Posted by Hani on Friday 7 January 2011

Quality:


Production management is usually concerned with the amount of product that is being produced. A production rate indicates how many products are completed in a particular time period, often one day. If quality suffers at the expense of increased production rates, the cost of making that product can rise dramatically, and profits can suffer. Monitoring quality indicators while varying work instructions can lead to both increased production rates and improved product quality, which improves the bottom line.

So, Now Quality is very much necessary part of Production management.


Improved Quality Affects of

Sales Gains:
Improve response
Higher Prices
Improved Reputation

Reduced Cots:
Increased Productivity
Lower rework and scrap cost
Lower warranty cost

And Those criteria are result for Increase Profits.



How to measure quality?
Measuring quality is not always straightforward and easy due to the subjective nature of quality. The perceived quality depends on the context and the person assessing the product: a software engineer, product manager, marketing representative, or the end user may all have different expectations for the product. Each of these subjective viewpoints is important and should be considered.
Some aspects of quality can be measured and verified and thus be considered objective. For example, you can define specific and exact requirements for application maximum response times, and amounts of errors or findings in different reviews and testing along the development process. Meeting the project deadlines and milestones can be one metric for assessing the quality, as well as conformance with the requirement specification.
The focus of this dimension is for organizations to continually improve their products, services, processes, and practices with an emphasis on reducing variation and reducing cycle time. This dimension implies extensive use of the quality management tools, including cost of quality, process management approaches, and measurement techniques.


Conclusion:
Quality, or the absence of it, has a strategic impact on the organization. Consumers buy certain products and request services based on their knowledge and perception of the organization and what it provides. Few buyers knowingly buy poor quality. Accumulated experiences and perceptions of customers ultimately make or break an organization. The Baldrige Criteria doesn’t mention the word quality because every activity and decision contained in the structure of the criteriamust be a quality activity or decision. Under this assumption, quality is built in to the very fiber of the organization?the preferred way to conduct the business of the organization.

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