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    Slide 9.1

    Lysons & Farrington, Purchasing and Supply Chain Management, 7thedition, Pearson Education Limited 2005

    Specifying and Managing Product Quality

    Definitions of Quality

    Conformity to requirements not goodness.

    The totality of features and characteristics of a product that

    bears on the ability to satisfy stated or implied needs.

    Fitness for use.

    ISO 8402

    CROSBY

    JURAN

    ISO 8402

    CROSBY

    JURAN

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    Slide 9.2

    Lysons & Farrington, Purchasing and Supply Chain Management, 7thedition, Pearson Education Limited 2005

    1

    2

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    5

    Specifying and Managing Product Quality

    Garvins Eight Dimensions of Quality

    Performance

    Reliability

    Serviceability

    Conformance

    Durability

    Features

    Aesthetics

    Perceived quality

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    Slide 9.3

    Lysons & Farrington, Purchasing and Supply Chain Management, 7thedition, Pearson Education Limited 2005

    A quality system is defined as the organisational structure,responsibilities, procedures, processes and resources for

    implementing quality management.

    Quality System and the Quality Loop

    Specifying and Managing Product Quality

    Design/specification engineering and

    product development

    Procurement

    Process planning and development

    Inspection, testing and examination

    Production

    Packaging and storage

    Producer

    /supplier

    Customer

    /consumer

    Marketing and market research

    Disposal after use

    Technical assistance and

    maintenance

    Installation and operation

    Sales and distribution

    The Quality Loop

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    Slide 9.4

    Lysons & Farrington, Purchasing and Supply Chain Management, 7thedition, Pearson Education Limited 2005

    Purchasingproduct innovation, supplier involvement and development

    A way of managing an organisation so that every job, every process, is

    carried out right, first time and every time.

    Definition of TQM

    TQMThree important principles

    1

    2

    3

    A focus on product improvement from the customersviewpoint

    A recognition that personnel at all levels share

    responsibility for product quality

    Recognition of the importance of a system to provide

    information to managers about quality processes that

    enable them to plan, control and evaluate performance

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    Slide 9.5

    Lysons & Farrington, Purchasing and Supply Chain Management, 7thedition, Pearson Education Limited 2005

    Specifying and Managing Product Quality

    Types of Specifications

    Those relating to things

    Raw materials

    Components

    Assemblers

    Final products

    Systems

    Complex structures

    Those relating to actions

    Functions

    Processes

    Procedures

    Services

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    Slide 9.6

    Lysons & Farrington, Purchasing and Supply Chain Management, 7thedition, Pearson Education Limited 2005

    Conditions in which the item or material is to be installed, used,

    manufactured or stored

    Characteristics

    Performance

    Life

    Reliability

    Control of quality checking

    Packaging and protection

    Requirement specified may relate to

    Information from the supplier to the user

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    Slide 9.7

    Lysons & Farrington, Purchasing and Supply Chain Management, 7thedition, Pearson Education Limited 2005

    Purchasing and StandardisationSpecifying and Managing Product Quality

    Advantages to the Buyer!

    Helps achieve reliability and reduces costs

    Eliminating the need to prepare company specifications

    Saving design time

    Accurate comparison of quotations

    Less dependency on specialist suppliers

    Reduction in error and conflict

    Facilitation of international sourcing

    Removal of uncertainty as to what is required

    Saving in inventory

    Reduced investment in spares

    Reduced cost of material handling

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    Slide 9.8

    Lysons & Farrington, Purchasing and Supply Chain Management, 7thedition, Pearson Education Limited 2005

    Approaches to Quality Assurance

    Quality systems including

    ISO 9000

    New design control

    Design of manufacturing

    processes

    Incoming materials control

    Supplier appraisal

    Specifying and Managing Product Quality

    http://images.google.co.uk/imgres?imgurl=http://www.infoagro.com/formacion/pub/images/sello_ISO9000.gif&imgrefurl=http://www.infoagro.com/formacion/pub/gestion_calidad.asp&h=252&w=248&sz=13&tbnid=vmL8vhalHjsJ:&tbnh=105&tbnw=104&start=1&prev=/images%3Fq%3DISO%2
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    Slide 9.9

    Lysons & Farrington, Purchasing and Supply Chain Management, 7thedition, Pearson Education Limited 2005

    Receiving Inspection

    Materials or

    components received

    from outside supplier

    are inspected for

    conformance to

    specifications.

    Inspection Activities

    Classification

    Inspection

    Inspection to

    separate parts

    into categories

    according to

    specifications.

    Control Inspection

    Inspection of periodic

    sample of

    work-in-progress

    of an end product

    to detect and

    correct deviations.

    Audit Inspection

    Ensuring that

    procedures and

    processes are

    being followed to

    ensure the validity

    and reliability ofinspection operations

    Specifying and Managing Product Quality

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    Slide 9.10

    Lysons & Farrington, Purchasing and Supply Chain Management, 7thedition, Pearson Education Limited 2005

    Customer

    requirements

    Q.F.D The House of Quality

    Specifying and Managing Product Quality

    Engineering characteristics that

    affect customer requirements

    Matrix showing interaction

    between each engineering

    characteristic and each customer

    requirement.

    Target engineering characteristics

    Importance of each

    requirements

    Customer perceived

    performance against

    competitors

    Matrix showing

    interaction between each

    engineering characteristic

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    Slide 9.11

    Lysons & Farrington, Purchasing and Supply Chain Management, 7thedition, Pearson Education Limited 2005

    Cost of QualityAppraisal Costs

    Review of test and inspection data

    Field (on-site) performance testing

    Internal testing and release

    Evaluation of field stock and spare parts

    Data processing inspection and test

    reports

    Laboratory acceptance testing

    Inspection tests (including Goods

    Inward)

    Product quality audits

    Set up for inspection and test

    Inspection and test material

    Product quality audit

    Appraisal Costs

    (Cost of assessing the quality achieved)

    Cost of Conformance

    Specifying and Managing Product Quality

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    Slide 9.12

    Lysons & Farrington, Purchasing and Supply Chain Management, 7thedition, Pearson Education Limited 2005

    MilesDefinition of Value Analysis

    The Value Analysis Checklist

    Specifying and Managing Product Quality

    A philosophy implemented by the use of a specific set of techniques, a body ofknowledge, and a group of learned skills. It is an organised, creative approach that

    has for its purpose the efficient identification of unnecessary cost, i.e., cost that

    provides neither quality nor use nor life, nor appearance nor customer features.

    1. Does its use contribute value?

    2. Is its cost proportionate to its usefulness?

    3. Does it need all its features?

    4. Is there anything better for the intended use?

    5. Can a usable part be made by a lower cost method?

    6. Can a standard product be found which will be usable?

    7. Is it made on proper toolingconsidering the quantities used?

    8. Are the specified tolerances and finishes really necessary?

    9. Do material, reasonable labour, overhead and profit total its cost?

    10. Can another dependable supplier provide it for less?

    11. Is anyone buying it for less?