CHAPTER 01: QUALITY

Quality cost

• Waste • Pricing errors​

• Rejects • Billing errors,​
• Testing • Excessive turnover​
• Rework • Premium freight costs​
• Customer returns • Development​
• Inspection • Cost of the failed product​
• Recalls • Field service costs​
• Excessive overtime • Overdue world-class quality​
Quality culture definition

A quality culture is an organizational value system that results in an environment

that is conducive to the establishment and continual improvement of quality.

It consists of values, traditions, procedures, and expectations that promote quality.

Quality culture looks like

Widely shared philosophy of management

• Emphasis on the importance of human resources to the organization
• Ceremonies to celebrate organizational events
• Recognition and rewards for successful employees
• Effective internal network for communicating the culture
• Informal rules of behavior
• Strong value system
• High standards for performance
• Definite organizational character
Quality culture versus traditional culture

• Operating philosophy
• Objectives
• Management approach
• Attitude toward customers
• Problem-solving approach
• Supplier relationships
• Performance-improvement approach
Quality culture - Ativation

Implementing total quality necessitates cultural change in an

organization, for the following reasons:
• Change cannot occur in a hostile environment.
• Moving to total quality takes time.
• It can be difficult to overcome the past.
Quality culture – Change facilitation
• Who will be affected by this change and how?
• How will the change be perceived by those it affects?
• How can the concerns of those affected be alleviated?

• Fear
• Loss of control
• Uncertainty
• More work
Quality culture – Overcome resistance

To overcome resistance to change, advocates can apply the following strategies:

• Involve potential resisters.​ • Incorporate the change.​

• Avoid surprises.​ • Provide a policy/ procedure .​

• Move slowly at first.​ • Respond quickly and positively.​

• Start small and be flexible.​ • Work with established leaders.​

• Create a positive environment.​ • Treat people with dignity and respect.​

• Be constructive.
Quality culture - Establishing

1. Identify the changes needed.

2. Put the planned changes in writing.
3. Develop a plan for making the changes.
4. Understand the emotional transition process.
5. Identify key people and make them advocates.
6. Take a hearts-and-minds approach.
7. Apply courtship strategies.
8. Support.
Quality culture - Maintain

• Maintain an awareness of quality as a key cultural issue.

• Make sure that there is plenty of evidence of the management’s leadership.
• Empower employees and encourage self-development
• Keep employees involved.
• Recognize and reward the behaviors that tend to nurture and maintain the quality culture.