Ch 1 introduction to quality

THE MANAGEMENT & CONTROL OF QUALITY, 7e, © 2008 Thomson Higher Education Publishing 1
Chapter 1
Introduction to
Quality

Modern Importance of Quality
“The first job we have is to turn out quality
merchandise that consumers will buy and
keep on buying. If we produce it efficiently
and economically, we will earn a profit, in
which you will share.”
- William Cooper Procter

Key Idea
Building—and maintaining—quality into
an organization’s goods and services,
and more importantly, into the
infrastructure of the organization itself, is
not an easy task.

Quality Assurance
...is any action directed toward
providing customers with goods and
services of appropriate quality.

History of Quality Assurance
(1 of 3)
 Skilled craftsmanship during Middle Ages
 Industrial Revolution: rise of inspection
and separate quality departments
 Early 20th
Century: statistical methods at
Bell System
 Quality control during World War II
 Post-war Japan: evolution of quality
management

(2 of 3)
 Quality awareness in U.S.
manufacturing industry during 1980s:
from “Little Q” to “Big Q” - Total
Quality Management
 Malcolm Baldrige National Quality
Award (1987)
 Disappointments and criticism

Key Idea
Although quality initiatives can lead to
business success, they cannot guarantee
it, and one must not infer that business
failures or stock price dives are the result
of poor quality.

(3 of 3)
 Emergence of quality management in
service industries, government, health care,
and education
 Evolution of quality to performance
excellence
 Growth and adoption of Six Sigma
 Current and future challenge: continue to
apply the principles of quality and
performance excellence. Quality is “a race
without a finish line.”

Contemporary Influences on
Quality
 Globalization
 Innovation/creativity/change
 Outsourcing
 Consumer sophistication
 Value creation
 Changes in quality

Defining Quality
Perfection
Consistency
Eliminating waste
Fast delivery
Compliance with policies and procedures
Providing a good, usable product
Doing it right the first time
Delighting or pleasing customers
Total customer service and satisfaction

Formal Definitions of Quality
 Transcendent definition: excellence
 Product-based definition: quantities of
product attributes
 User-based definition: fitness for intended
use
 Value-based definition: quality vs. price
 Manufacturing-based definition:
conformance to specifications

Quality Perspectives
CustomerCustomer
DistributionDistribution
productsproducts
andand
servicesservices
needsneeds
transcendent &transcendent &
product-basedproduct-based user-baseduser-based
manufacturing-manufacturing-
basedbased
value-basedvalue-based
MarketingMarketing
DesignDesign
ManufacturingManufacturing
Information flowInformation flow
Product flowProduct flow

Key Idea
Because individuals in different business
functions speak different “languages,”
the need for different views of what
constitutes quality at different points
inside and outside an organization is
necessary to create products of true
quality that will satisfy customers’ needs.

Customer-Driven Quality
 “Meeting or exceeding customer
expectations”
 Customers can be...
 Consumers
 External customers
 Internal customers

Total Quality
 People-focused management system
 Focus on increasing customer satisfaction
and reducing costs
 A systems approach that integrates
organizational functions and the entire
supply chain
 Stresses learning and adaptation to
change
 Based on the scientific method

Principles of Total Quality
 Customer and stakeholder focus
 Participation and teamwork
 Process focus supported by continuous
improvement and learning
…all supported by an integrated organizational
infrastructure, a set of management practices,
and a set of tools and techniques

Customer and Stakeholder
Focus
 Customer is principal judge of quality
 Organizations must first understand
customers’ needs and expectations in
order to meet and exceed them
 Organizations must build relationships
with customers
 Customers include employees and
society at large

Key Idea
To meet or exceed customer expectations,
organizations must fully understand all
product and service attributes that
contribute to customer value and lead to
satisfaction and loyalty.

Participation and Teamwork
 Employees know their jobs best and
therefore, how to improve them
 Management must develop the systems and
procedures that foster participation and
teamwork
 Empowerment better serves customers, and
creates trust and motivation
 Teamwork and partnerships must exist both
horizontally and vertically

Key Idea
In any organization, the person who
best understands his or her job and
how to improve both the product and
the process is the one performing it.

Process Focus and Continuous
Improvement
 A process is how work creates value for
customers
 Processes transform inputs (facilities,
materials, capital, equipment, people,
and energy) into outputs (goods and
services)
 Most processes are cross-functional

Key Idea
A process is a sequence of activities
that is intended to achieve some result

Continuous Improvement
 Enhancing value through new products
and services
 Reducing errors, defects, waste, and costs
 Increasing productivity and effectiveness
 Improving responsiveness and cycle time
performance

Key Idea
Major improvements in response time may
require significant simplification of work
processes and often drive simultaneous
improvements in quality and productivity.

Deming’s View of a
Production System
Suppliers of
materials and
equipment
Receipt and test
of materials
Design and
Redesign
Consumer
research
A
B
C
D
Production, assembly
inspection
Tests of processes, machines, methods
Distribution
Consumers
INPUTS PROCESSES OUTPUTS
Feedback

Learning
 The foundation for improvement …
Understanding why changes are successful
through feedback between practices and
results, which leads to new goals and
approaches
 Learning cycle:
 Planning
 Execution of plans
 Assessment of progress
 Revision of plans based on assessment findings

Infrastructure, Practices, and
Tools
Leadership Strategic HRM Process Information and knowledgeLeadership Strategic HRM Process Information and knowledge
Planning mgt. managementPlanning mgt. management
Performance TrainingPerformance Training
appraisalappraisal
Trend chartTrend chartToolsTools
PracticesPractices
InfrastructureInfrastructure

TQ Infrastructure
 Customer relationship management
 Leadership and strategic planning
 Human resources management
 Process management
 Information and knowledge management

Competitive Advantage
 Is driven by customer wants and needs
 Makes significant contribution to business
success
 Matches organization’s unique resources with
opportunities
 Is durable and lasting
 Provides basis for further improvement
 Provides direction and motivation
Quality supports each of these characteristics

Quality and Profitability
Improved quality
of design
Higher perceived
value
Increased market
share
Higher
prices
Increased
revenues
Improved quality
of conformance
Lower
manufacturing and
service costs
Higher profitability

Key Idea
Considerable evidence exists that
quality initiatives positively impact
bottom-line results.

Quality and Business Results
Studies
 General Accounting Office study of Baldrige
Award applicants
 Hendricks and Singhal study of quality
award winners
 Performance results of Baldrige Award
recipients

Key Idea
An organization that is committed to total
quality must apply it at three levels: the
organizational level, the process level, and
the performer/job level.

Three Levels of Quality
 Organizational level: meeting external
customer requirements
 Process level: linking external and
internal customer requirements
 Performer/job level: meeting internal
customer requirements

Quality and Personal Values
 Personal initiative has a positive impact on
business success
 Quality-focused individuals often exceed
customer expectations
 Quality begins with personal attitudes
 Attitudes can be changed through awareness and
effort (e.g., personal quality checklists)
 Unless quality is internalized at the personal level,
it will never become rooted in the culture of an
organization. Thus, quality must begin at a
personal level (and that means you!).

Key Idea
In the daily attempt to bring about change in the
individual parts of the organizational universe,
managers, employees, professors, and students
can find that personal quality is the key to unlock
the door to a wider understanding of what the
concept really is all about.

Ch 1 introduction to quality

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