142 Outcome: Quality of Goods and Services

What you’ll learn to do: identify the techniques that are available to ensure high-quality goods and services (Six Sigma, TQM, and SPC) and describe the costs of poor quality

At some point you may have found yourself in the situation pictured above—and it definitely was not what you expected or wanted. When consumers purchase a product, good, or service, there’s a certain expectation of quality. When things are defective, don’t function properly or “as advertised,” or wear out too quickly, the consumer’s disappointment can mean lost revenues, bad publicity, and, in some cases, lawsuits. For example, by the end of 2014, recalls of General Motors automobiles cost the company $4.1 BILLION. The recalls also cost in terms of brand loyalty, consumer confidence, investor relations, and government scrutiny. In both production and service businesses there are techniques and processes that can be utilized to ensure high-quality goods and services. In this module you’ll learn about some of these, including Six Sigma, TQM, and SPC.

LEARNING ACTIVITIES

The learning activities for this section include:

• Reading: Producing for Quality
• Reading: Outsourcing
• Self Check: Quality of Goods and Services

Take time to review and reflect on this activity in order to improve your performance on the assessment for this section.