Introduction to

Quality

MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 9e, © 2014 Cengage Publishing 1
 The Business Imperative
“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

Quality, productivity, and cost remain imperatives for modern organizations.

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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
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 Importance of Quality
 Quality is uniquely positioned to accelerate
organizational growth through better execution and
alignment
 Quality provides the voice of the customer critical
to developing innovative products and services.
 Quality can provide an organization with a
competitive edge
 “No quality, no sales. No sales, no profit. No profit,
no jobs.”

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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
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 Quality Profile – Motorola, Inc.
 Leader in the U.S. quality revolution during the
1980s
 Pioneer in continual reduction of defects and cycle
times
 Exceptional practices in managing human assets,
sharing data and information with employees,
customers, and suppliers, and aligning all its
business processes with key organizational
objectives.

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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
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 Quality Profile - MidwayUSA
 Catalog and Internet retailer offering “Just
About Everything (SM)” for shooters,
reloaders, gunsmiths, and hunters.
 Vision: “To be the best-run business in
America for the benefit of our Customers.”
 Focus on customers has yielded impressive
results.

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 Defining Quality
Perfection Fast delivery
Providing a good, usable product
Consistency
Eliminating waste
Doing it right the first time
Delighting or pleasing customers

Total customer service and satisfaction

Compliance with policies and procedures
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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
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 Formal Definitions of Quality
 Transcendent Perspective: excellence
 Product Perspective: quantities of product
attributes
 User Perspective: fitness for intended use
 Value Perspective: quality vs. price
 Manufacturing Perspective: conformance to
specifications
 Customer Perspective: meeting or exceeding
customer expectations
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 Customers
 Consumers
 Ultimate buyers of goods and services
 External customers
 Business-to-business
 Internal customers
 Anyone who receives goods or services from
someone else within an organization

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 Quality Perspectives

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 History of Quality Management
(1 of 4)

 Ancient History
 Zhou Dynasty in China
 The Age of Craftsmanship
 Skilled workers during the Middle Ages
 Industrial Revolution
 Early 20th Century
 Separate quality departments
 Ford Motor Company
 Statistical methods and quality assurance
 Professional societies and publications
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 History of Quality Management
(2 of 4)

 Post World War II

 Evolution of quality management in Japan
 W. Edwards Deming and Joseph Juran
 U.S. “Quality Revolution”
 Quality crisis around 1980
 Growth of product quality awareness in
manufacturing industries
 Early Successes
 Malcolm Baldrige National Quality Award (1987)
 Books, consulting, training
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 History of Quality Management
(3 of 4)

 From Product Quality to Total Quality

Management
 “Little Q” vs. “Big Q” and TQM
 Management Failures
 Cynicism and disinterest
 “No, TQM isn’t dead. TQM failures just prove that
bad management is still alive and kicking.”

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 History of Quality Management
(4 of 4)

 Performance Excellence
 Focus on customer value, organizational sustainability,
improvement of effectiveness and capabilities, and
organizational and personal learning
 Emergence of Six Sigma
 a customer-focused, results-oriented approach to business
improvement
 Current and future challenges
 Continue to apply the principles of quality and
performance excellence.
 Quality is “a race without a finish line.”

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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
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 Growth of Modern Quality
Management

Service Performance
quality excellence
Improved
product designs

Manufacturing
quality

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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
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 Contemporary Influences on
Quality
 Global Responsibility
 Consumer Awareness
 Globalization
 Increasing Rate of Change
 Workforce of the Future
 Aging Population
 Twenty-first Century Quality
 Innovation
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 Manufacturing Systems

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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
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 Quality in Marketing
Marketing and sales personnel are
responsible for determining the needs
and expectations of consumers.

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 Quality in Product Design
Product design and engineering functions
develop technical specifications for
products and production processes to
meet the requirements determined by the
marketing function.

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 Quality in Purchasing
A purchasing agent should not simply be
responsible for low-cost procurement, but
should maintain a clear focus on the
quality of purchased goods and materials.

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 Quality in Production
Planning & Scheduling
Poor quality often results from time
pressures caused by insufficient
planning and scheduling.

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 Quality in Manufacturing and
Assembly
Both technology and people
are essential to high-quality
manufacturing.

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 Quality in Process Design

Manufacturing processes must be

capable of producing output that
meets specifications consistently.

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 Quality in Finished Goods
Inspection and Testing
The purposes of final product inspection
are to judge the quality of manufacturing,
to discover and help to resolve production
problems that may arise, and to ensure
that no defective items reach the customer.

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 Quality in Installation and Service

Service after the sale is one of the

most important factors in establishing
customer perception of quality and
customer loyalty.

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 Quality in Services
 Service is defined as “any primary or
complementary activity that does not
directly produce a physical product – that
is, the non-goods part of the transaction
between buyer (customer) and seller
(provider).”

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 Critical Differences Between Service
and Manufacturing (1 of 2)
 Customer needs and performance
standards are more difficult to identify
and measure
 Services requires a higher degree of
customization
 Output is intangible

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 Critical Differences Between Service
and Manufacturing (2 of 2)
 Services are produced and consumed
simultaneously
 Customers are often involved in actual process
 Services are more labor-intensive than
manufacturing
 Services handle large numbers of transactions

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 Components of Service Quality
 People
 “If we take care of our people, they will
take care of our customers.”
 Technology
 Computers and information technology
 E-commerce

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 Quality in Business Support
Functions
 Finance and Accounting
 Budgeting, cost of quality
 Legal Services
 Liability
 Quality Assurance
 Coaching and special studies

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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 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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 Quality and Personal Values
 Personal initiative has a positive impact
on business success
 Quality-focused individuals often exceed
customer expectations
 Quality begins with personal attitudes
 Attitudes can be changed through
awareness and effort (e.g., personal
quality checklists)

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 Unless quality is internalized at the
personal level, it will never become
rooted in the culture of an organization.

Thus, quality must begin at a personal

level (and that means you!).

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2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part..
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