Chapter 1
Introduction to Quality
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.
Quality Assurance
...is any action directed toward providing
customers with goods and services of
appropriate quality.
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Benchmarking
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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
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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
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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
and
services
value-based
Design
manufacturingbased
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
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•
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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
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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
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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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Deming’s View of a
Production System
Suppliers of
materials and
equipment
Design and
Redesign
Receipt and test
of materials
A
B
C
D
Consumer
research
Consumers
Production, assembly
inspection
Distribution
Tests of processes, machines, methods
INPUTS
PROCESSES
OUTPUTS
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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
Practices
Tools
Strategic
Planning
HRM
Performance
appraisal
Process
mgt.
Data and information
management
Training
Trend chart
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TQ Infrastructure
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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 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
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Quality and Profitability
Improved quality
of design
Improved quality
of conformance
Higher perceived
value
Higher
prices
Increased market
share
Increased
revenues
Lower
manufacturing and
service costs
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
Product and
service quality On-time delivery
Error/defects
Leadership for
continuous
improvement
Quality systems and
employee involvement
Overall satisfaction
Customer
satisfaction Customer retention
Complaints
Competitiveness
Market share
Profits
Organization
benefits
Costs
Cycle time
Turnover
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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