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ISO 9000 - PowerPoint PPT Presentation


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ISO 9000. International Organization for Standardization Internationally accepted guidelines for quality management and standards Cost of quality = 20 - 25 percent of sales. Quality and Strategic Cost Management. Quality and profitability are related

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iso 9000
ISO 9000
  • International Organization for Standardization
  • Internationally accepted guidelines for quality management and standards
  • Cost of quality = 20 - 25 percent of sales
quality and strategic cost management
Quality and Strategic Cost Management
  • Quality and profitability are related
  • Premium on quality leads to larger market share
  • Premium on quality leads to higher ROI
elements of tqm
Elements of TQM
  • Continuous improvement
  • Customer focus
  • Employee involvement
ima s tqm process
IMA’s TQM Process
  • Year One
    • Quality council and staff
    • Executive quality training
    • Quality audits
    • Gap analysis
    • Strategic quality improvement plans
  • Year Two
    • Employee quality training
    • Quality teams
    • Establish measurement system and goals
  • Year Three
    • Revise compensation system
    • Launch external initiatives (value chain)
    • Review and revise
other quality thoughts
Other Quality Thoughts
  • Poor quality is disastrous for service industries
  • Increased quality = increased productivity
  • True management accountants must increase their focus on quality
ansari mmqc
Ansari: MMQC
  • Quality costs: costs incurred to ensure products/services meet customers’ expectations
    • Features
    • Performance
slide7
MMQC
  • Strategic Implications of Quality Cost System
    • Supports quality as a strategic adv.
    • Provides the total cost of quality to a product
    • Assists in avoiding non-productive time
slide8
MMQC
  • Types of quality costs
    • Prevention
    • Appraisal
    • Internal failure
    • External failure
slide9
MMQC
  • Quality Management System
    • Understand customer requirements
    • Establish quality goals
    • Set work processes (P)
    • Perform work & monitor output (A & I)
    • Deliver product & monitor cust. satisf.(E)
    • Perform root cause analysis
slide10
MMQC
  • Quality Cost and Customer Satisfaction
    • Total firm spending
    • Spending by category
    • Amount of financial benefits
    • Focus on customer quality concerns
    • Elimination of root causes
slide11
MMQC
  • Value Index
    • Develop customer perf. rankings
    • Estimate quality costs for each element
    • Compute the value index
      • Cust. Perf. % / Cost %
  • Root cause analysis and “fish bones”
slide12
MMQC
  • Attribute Implications
    • Technical
      • Improved decision relevance
      • Process understanding
    • Behavioral
      • Focus on Customer Requirements
      • Improved quality attitudes
      • Better mgt. Visibility…but watch out for “padding”
    • Cultural
      • Quality as a way of life
      • Quality as an ethical value