1. Introduction to Quality
Chapter 1
Introduction to Quality

2. 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

3. What is Quality?
"The totality of features and characteristics of a product or service that bears on its ability to satisfy given needs."
"Meeting or exceeding customer expectations.

4. Quality is grounded on three core principles: focus on customers; participation and teamwork; and continuous improvement and learning. These are supported by the organizational infrastructure that includes: customer relationship management, leadership and strategic planning, human resources management, process management, and data and information management, as well as a set of management practices and tools.

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

6. Benchmarking Nordstrom vs. K-Mart L’ Avenue vs. La Caille
Cliff Lodge vs. Motel 6
Aerie’s vs. Chuckarama
John Nash vs. Ted Bundy
John Chambers vs. Albert Dunlap
Tom Brokaw vs. Randal Carlisle

7. 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

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

9. Contemporary Influences on Quality
Parterning
Learning systems
Adaptability and speed of change
Environmental sustainability
Globalization
Knowledge focus
Customization and differentiation
Shifting demographics

10. 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

11. 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

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

13. 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

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

15. 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

16. 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

17. Process Focus and Continuous Improvement
A process is a sequence of activities that is intended to achieve some result

18. 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

19. 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

20. 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

21. Infrastructure, Practices, and Tools
Leadership Strategic HRM Process Data and information
Planning mgt management
Practices
Performance Training
appraisal
Tools
Trend chart

22. TQ Infrastructure Customer relationship management
Leadership and strategic planning
Human resources management
Process management
Data and information management

23. 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

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

25. Evidence that Quality Impacts Business Results
General Accounting Office study of Baldrige Award applicants
Baldrige stock study (see
Hendricks and Singhal study of quality award winners
Performance results of Baldrige Award winners

26. GAO TQ 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

27. 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

28. 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)