Introduction to Quality

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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

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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.

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• 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.

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Quality Assurance

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

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Benchmarking

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

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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
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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
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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
Performance Training appraisal
Practices
Trend chart
Tools
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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 of design
Improved quality of conformance
Higher perceived value
Higher prices
Lower manufacturing and service costs
Increased market share
Increased 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
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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)