Chapter 1

Flows-Process-Information = Supply Chain-Material-Of Funds

Problems-Too internally oriented

*Upstream processes – Processes relating to our dealing with suppliers (negotiating, selecting, and improving supplier performance*Downstream processes – Processes delievering products and services and serving customers

Product Quality Definitions by David Garvin1) Transcedent – Quality is something that is intuitively understood but nearly impossible to communicate, such as beauty or love.2) Product-Based – Quality is found in the components and attributes of a product3)User-Based – If the customer is satisfied, the product has good quality4)Manufacturing-based – If the product conforms to design specifications, it has good quality5)Value-Based – If the product is perceived as providing good value for the price, it has good quality.

Product Quality Dimensions by Garvin1) Performance2) Features3) Reliability4) Conformance – If in allowable range of tolerance of specification5) Durability6) Serviceability7) Aesthetics8) Perceived Quality – Customer opinion

PZ&B Service Quality Dimensions

1) Tangibles – Physical appearance of facility, equipment, personnel, communication materials

2) Service Reliability – Ability to perform service dependably and accurately3) Responsiveness -- Willingness to be helpful and prompt4) Assurance5) Empathy – individualized attention to customers

Value Chain-Inbound logistics-Core processes -Outbound logistics

Six Sigma – Procedure for implementing quality improvement analysis

1) Define2) Measure3) Analyze4) Improve5) Control (DMAIC)-related activities6) Design of experiments (DOE)

*Strategy – planning procedures used to achieve a set of long-term goals

*Mission – States why the organization exists*Core Values – Refers to guiding operating principles that simplify decision making

Three Spheres of Quality

1) Management2) Assurance3) Control

*Contingency theory – that there is no theory or method for operating a business that can be applied in all instances