QUALITY.
Quality is important to the supply chain because it directly affects the quality of the products or services that are delivered to customers. Poor quality can lead to customer dissatisfaction, product returns, and damage to a company’s reputation. This can have significant negative impacts on a company’s bottom line, including lost sales and increased costs due to rework and defects.
In addition, quality is important to the supply chain because it can impact the efficiency and effectiveness of the supply chain itself. Poor quality can lead to disruptions and delays in the supply chain, which can impact delivery times and customer satisfaction. It can also increase the risk of costly recalls or other issues that can have a negative impact on the company’s operations.
Therefore, maintaining high standards of quality is crucial for the success of the supply chain. This may involve implementing quality control measures at various stages of the supply chain, such as supplier selection and qualification, quality inspections, and testing. It may also involve working with suppliers to improve their processes and address any quality issues that may arise.
Overall, the importance of quality to the supply chain cannot be overstated. By maintaining high standards of quality, companies can improve customer satisfaction, reduce costs, and drive business success.
Quality helps to lower cost and is one of the primary factors in Supply Chain. The level of quality also distinguishes a company’s product/service. A high quality product can command a high price where a low quality product will have a less expensive price tag.
Quality in manufacturing is generally measured by the number of defects compared to the output. When there is a defect in a product there are many costs that come with it including: rework, waste, labor usage, late deliveries and poor customer service.
Quality of the product is located in the:
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Product design
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Process design
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Labor (how skilled are the workers)
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Direct Material
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Equipment
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Number of inspection points
Costs associated with poor quality:
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Decreased sales
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Bad reputation
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Waste
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Rework
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Late Deliveries
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Poor customer service
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Labor usage
There are three gurus of quality that will most likely be mentioned during quality discussions. They include Dr. Edward Deming, Dr. Joseph Juran and Philip Crosby.