Chapter 10 – Quality

Reading and discussion

A well-known book is Quality Is Free by Philip B. Crosby. He writes:

Doing things right the first time adds nothing to the cost of your product or service. Doing
things wrong is what costs money. The typical American corporation spends 15 20 per cent
of its sales dollar on reworking, scrapping, repeated service. inspection, testing, warranties
and oilier quality-related costs. Lapses in quality also damage corporate reputations and
provoke government regulation. Most, or all. of these headaches could be prevented by a
properly managed quality operation.

Quality is not only free but a bountiful source of profits.

1 Match up the words from the text with the definitions on the right:
1. Bountiful A. Changing or improving a product or service.
2. Headaches B. Guarantees: Written promises to repair or replace
3. Regulation products that develop a fault.
4. Reworking C. Providing a large amount of good things.
5. Scrapping D. Things that cause difficulties.
6. Service E. Official rules or the act of controlling something.
7. Warranties F. To examine a machine and repair any faulty parts.
G. Getting rid of things which are no longer useful or
wanted.

Reading: Total Quality Management

Total Quality Management (TQM) is a management approach designed to improve the

production quality of goods and services. Read the text below, and answer the comprehension
questions that follow.

TQM was developed by an American, W. Edwards Deming, in the 1940s, but was first taken
up by the Japanese, who adopted it to revive their post-war industry. Following the success of
the Japanese in world markets, many American companies began to use it in the 1980s.

TQM (today often just called Quality Management) involves an attitude and a corporate
culture that are dedicated to providing customers with products and services that satisfy their
needs. Products should have no defects (or 'zero defects') and services should be as close to
perfect as possible.

The principle is simply that the company or organization should do the right things, and do
them right, the first time and every time, which
should eliminate waste from its operations. But because products, services and processes
change, everything is capable of being improved all the time.

TQM requires all staff to be involved in the search for continuously improving quality, in all
the business's activities - not just production or customer service, but also in marketing, sales,
purchasing, design, engineering, R&D, finance, human resources, etc. The organization must
make use of the knowledge and experience of its entire staff to identify and correct faulty
systems and processes. Production workers should be empowered to stop production to solve
problems, as quality is more important than maximizing output or reducing costs.

Comprehension:
The following five statements are all false. Correct them.
1. TQM is a Japanese management theory.
2. TQM guarantees 'zero defect' production and no waste.
3. TQM stops when you have the perfect product.
4. TQM concerns production and customer service personnel.
5. TQM involves maximizing output and reducing costs.