Chapter 1

Introduction to Quality

THE MANAGEMENT AND CONTROL OF QUALITY, 5e, 2002 South-Western/Thomson LearningTM 1

 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

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

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 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

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 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

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 Contemporary Influences on
Quality
Parterning
Learning systems
Adaptability and speed of change
Environmental sustainability
Globalization
Knowledge focus
Customization and differentiation
Shifting demographics
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 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
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 Quality Perspectives
transcendent &
product-based user-based
needs
Marketing
Customer

products value-based Design

and manufacturing-
services based
Manufacturing
Distribution

Information flow
Product flow
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 Customer-Driven Quality
Meeting or exceeding customer
expectations
Customers can be...
Consumers
External customers
Internal customers

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

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 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

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

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 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
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 Infrastructure, Practices, and
Tools
Infrastructure

Leadership Strategic HRM Process Data and information

Planning mgt. management

Practices Performance Training

appraisal

Tools Trend chart

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

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 Competitive Advantage
Is driven by customer wants and needs
Makes significant contribution to business
success
Matches organizations unique resources with
opportunities
Is durable and lasting
Provides basis for further improvement
Provides direction and motivation
Quality supports each of these characteristics
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 Quality and Profitability
Improved quality Improved quality
of design of conformance

Higher perceived Higher Lower

value prices manufacturing and
service costs
Increased market Increased
share revenues

Higher profitability
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 Evidence that Quality Impacts
Business Results
General Accounting Office study of
Baldrige Award applicants
Baldrige stock study (see
www.quality.nist.gov)
Hendricks and Singhal study of quality
award winners
Performance results of Baldrige Award
winners
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 GAO TQ Model
Reliability Overall satisfaction
Product and Customer
service quality On-time delivery satisfaction Customer retention
Error/defects Complaints

Leadership for Market share

continuous Competitiveness
improvement Profits

Costs
Quality systems and
Cycle time
employee involvement Organization Turnover
benefits Satisfaction
Safety & health
Productivity
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 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

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 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)
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