brings manufacturers, distributors, resellers, and customers together to
execute trade transactions and to share information regarding demand,
production, availability, etc.
2. “The Digital Divide.” While many networks can, in fact, be managed
via the Internet, others (especially those in developing countries) cannot
because of the lack of available, leading-edge technology.
Quality refers to meeting or exceeding the expectations of the customer. More
specifically, it incorporates conformance to specifications, value enhancement,
fitness for use, after-sales support, and psychological impressions (image).
A. Zero Defects
Acceptable quality level (AQL) is a premise that allows for a tolerable
(negotiable) level of defects that can be corrected through repair and service
warranties. Zero defects describe the refusal to tolerate defects of any kind.
B. Lean Manufacturing and Total Quality Management (TQM)
Total quality management (TQM) is a process that stresses three principles:
customer satisfaction, continuous improvement, and employee involvement. The
goal of TQM is to eliminate all defects. The goal is to eliminate all defects.
TQM often focuses on benchmarking world-class standards, product and service
design, process design, and purchasing.
a. Risks in Foreign Sourcing. Foreign sourcing can create big risks for
companies that use lean manufacturing and JIT because interruptions in
the supply line can cause havoc.
b. The Kanban System. A kanban system facilitates JIT by using cards to
control the flow of production through a factory.
C. Six Sigma
Six Sigma is a highly focused quality-control system designed to scrutinize a
firm’s entire production system and eliminate defects, slash product cycle time,
and cut costs across the board.
D. Quality Standards
There are three different levels of quality standards: general, industry-specific,
and company specific.
1. General-Level Standards. The International Organization for
Standardization (ISO) was created to facilitate the international
coordination and unification of industrial standards. It partners with the IEC
(International Electrotechnical Commission), the International
Telecommunications Union, and the World Trade Organization, and
represents a network of standard setters in 158 countries around the world.
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