1. Introduction to Quality
Chapter 1
Introduction to Quality
Slide 1.1
1999 South-Western College Publishing 1

2. 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
Slide 1.2 2

3. Quality Assurance is any action directed toward providing customers with goods and services of appropriate quality.
Slide 1.3 3

4. History of Quality Assurance (1 of 2)
Skilled craftsmanship during Middle Ages
Industrial Revolution: rise of inspection and separate quality departments
Statistical methods at Bell System
Quality control during World War II
Quality management in Japan
Slide 1.4 4

5. History of Quality Assurance (2 of 2)
Quality awareness in U.S. manufacturing industry during 1980s
Malcolm Baldrige National Quality Award (1987)
Quality in service industries, government, health care, and education
Current challenge: keep progress in quality management alive
Slide 1.5 5

6. 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
Slide 1.6 6

7. Key Dimensions of Quality
Performance
Features
Reliability
Conformance
Durability
Serviceability
Aesthetics
Perceived quality
Slide 1.7 7

8. Quality Perspectives transcendent & product-based user-based
Customer
Distribution
products
and
services
needs
transcendent &
product-based
user-based
manufacturing-
based
value-based
Marketing
Design
Manufacturing
Information flow
Product flow
Slide 1.8 8

9. Customer-Driven Quality
“Meeting or exceeding customer expectations”
Consumers
External customers
Internal customers
Slide 1.9 9

10. Quality in Production Systems
Production is the process of converting resources into goods and services
Production systems consists of:
Inputs
Outputs
Processes
Slide 1.10 10

11. 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
Slide 1.11 11

12. 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
Slide 1.12 12

13. GAO TQM Model Product and service quality Customer satisfaction
Leadership for
continuous
improvement
Quality systems and
employee involvement
Competitiveness
Organization
benefits
Reliability
On-time delivery
Error/defects
Overall satisfaction
Customer retention
Complaints
Costs
Cycle time
Turnover
Satisfaction
Safety & health
Productivity
Market share
Profits
Slide 1.13 13

14. Quality as Important Source of Competitive Advantage
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
Slide 1.14 14

15. Quality and Profitability
Improved quality
of design
Higher perceived
value
Increased market
share
Higher
prices
Increased
revenues
of conformance
Lower
manufacturing
and service costs
Higher profitability
Slide 1.15 15

16. Quality and Personal Values
Personal initiative has a positive impact on business success
Quality begins with personal attitudes
Quality-focused individuals often exceed customer expectations
Attitudes can be changed through awareness and effort (e.g., personal quality checklists)
Slide 1.16 16