Question

Consider​ Macy's department store as a production system in which the final product is a customer. For this​ system:

a. Define quality from the​ producer's and​ customer's prospective.

b. Develop a​ fitness-for-use description for final product quality at​ Macy's

c. Give examples of the cost of poor quality​ (internal and external failure​ costs) and the cost of quality assurance​ (prevention and​ appraisal) cost for​ Macy's

Answer 1

1. From a producer's perspective:

Meeting all the requirements of the customer is the main definition of quality.

The whole organisation seeks to use processes that help in meeting the requirements. For that, a specific person working on this makes sure that all procedures are used to incorporate all the requirements to obtain the product. In order to that, measurable metric need to be the backbone of the whole process until the finished good is produced. Also, while keeping metrics in mind, the producer seeks to obtain the right product, the right way, using the right cost in the right time.

From a customer's perspective:

The product must be fit enough to be used by the customer, irrespective of the requirements being met or not. The only element that matters to the customer here is the satisfaction he gets after using the product. This will only come in the picture if all his expectations are met by the product.

2. Fitness for use description:

The product is fit for use with the stated specifications that conform with the standards of the industry. The purpose may be decided by the manufacturer, producer or the customers, themselves. Fit for use provides the mark that the product can deliver the requirements that the product was initially made for and the stated outcomes can be expected.

3. COPQ:

Internal failure costs:

1. scrap material while packaging, so that the unused material remains in excess.

2. getting cheaper material that leads to quality issues.

External failure costs:

1. Product returns will involve refunds

2. Failure of product will lead to loss of sale of the product further.

COQA:

Prevention costs:

1. maintaining a quality system at the production and warehouse to avoid fall of the quality and maintenance of product and processes.

2. keeping metrics and account of product requirements well in advance to avoid bad quality production of products at the production system.

Appraisal costs:

1. supplier of materials require feedback and ratings so that a standard is maintained.

2. frequent audits conducted will keep a track of the quality of materials purchased for production.