Introduction to Quality

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Chapter 1

• Introduction to Quality

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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 3)

• The Age of Craftsmanship
• Skilled craftsmanship during Middle Ages in
  Europe served both as manufacturer and inspector
• Quality was built into the final product
• The approach to quality was lost with the advent
  of unionization
• The Early 20th Century
• Industrial Revolution rise of inspection and
  separate quality departments
• Fredrick W. Taylor, Father of Scientific
  Management, led this philosophy of production by
  separating the planning function from the
  execution function
• Scientific Management led to wide-spread use of
  inspection

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History of Quality Assurance (2 of 3)

• Post-World War II (1940 1950)
• Production output was the top priority of U.S.
  manufacturing
• The term quality assurance originated form Bell
  Telephone Laboratories
• Joseph Juran and Edward Deming, consultants,
  introduced statistical quality control to the
  Japanese to aid them in their rebuilding
• By the 1970s, Japanese companies made significant
  penetration into western markets

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History of Quality Assurance (2 of 2)

• U.S. Quality Revolution
• In the 1980s, the following factors helped ignite
  the U.S. quality revolution
• A recognition that foreign import products
  possessed superior quality
• The t.v. special entitled If Japan Can, Why
  Cant We?
• The space shuttle Challenger disaster
• In the 1980s, U.S. companies began focusing on
  improving quality through management practices
• Malcolm Baldrige National Quality Award (1987)
  was created
• Quality in service industries, government, health
  care, and education

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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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Definitions of Quality

• Transcendent definition
• Recognizable, a mark of uncompromising standards
  and high achievement
• Most difficult to measure and analyze
• Example Mercedes-Benz, Rolex watch
• Product-based definition
• quantities of product attributes (the higher the
  price, the higher the quality)
• Example measuring the quality of a lap top by
  the type of microprocessor chip
• User-based definition
• Quality is determined by what the customer wants
• Fitness for intended use
• How well the product performs its intended
  function
• Example Cadillac vs. Jeep

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Definitions of Quality cont

• Value-based definition
• Quality vs. price
• Example purchasing generic medicine over
  brand-name
• Manufacturing-based definition
• Conformance to specifications
• Product specifications determined by designers of
  products and services
• Example Pistons, cams, etc..

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Key Dimensions of Quality

• Performance
• Features
• Reliability
• Conformance

• Durability
• Serviceability
• Aesthetics
• Perceived quality

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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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Key Idea
To meet or exceed customer expectations,
organizations must fully understand all product
and service attributes that contribute to
customer value and lead to satisfaction and
loyalty.
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Quality in Production Systems

• Production is the process of converting resources
  into goods and services
• Production systems consists of
• Inputs
• Outputs
• Processes

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Demings View of a Production System
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Three Levels of Quality

• Organizational level
• Quality concerns should center on meeting
  external customer requirements
• Top management is actively involved
• Process level
• Linking external and internal customer
  requirements
• Units are classified as functions or departments
• Performer/job level
• Meeting internal customer requirements
• Example supervisor meeting with each of his/her
  workers to determine individual needs

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Quality as Important Source of Competitive
Advantage

• 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

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Quality and Profitability
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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
• Example Walt Disney World/Retainer
• Attitudes can be changed through awareness and
  effort (e.g., personal quality checklists)

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