Chapter 1 Introduction to Quality Slide 1 1

Chapter 1 Introduction to Quality Slide 1. 1

Importance of Quality u Slide 1. 2 “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

u Quality Assurance is any action directed toward providing customers with goods and services of appropriate quality. Slide 1. 3

History of Quality Assurance (1 of 3) u The Age of Craftsmanship X X X u The Early 20 th Century X X X Slide 1. 4 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 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

History of Quality Assurance (2 of 3) u Post-World War II (1940 – 1950) X X Slide 1. 5 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 1970 s, Japanese companies made significant penetration into western markets

History of Quality Assurance (2 of 2) u U. S. Quality Revolution X In the 1980 s, the following factors helped ignite the U. S. quality revolution u u u X X X Slide 1. 6 A recognition that foreign import products possessed superior quality The t. v. special entitled “If Japan Can, Why Can’t We? ” The space shuttle Challenger disaster In the 1980 s, 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

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 Slide 1. 7 Compliance with policies and procedures

Definitions of Quality u u u Slide 1. 8 Transcendent definition: X Recognizable, a mark of uncompromising standards and high achievement X Most difficult to measure and analyze X Example: Mercedes-Benz, Rolex watch Product-based definition: X quantities of product attributes (the higher the price, the higher the quality) X Example: measuring the quality of a lap top by the type of microprocessor chip User-based definition: X Quality is determined by what the customer wants X Fitness for intended use X How well the product performs its intended function X Example: Cadillac vs. Jeep

Definitions of Quality cont… u Value-based definition: X X u Manufacturing-based definition: X X X Slide 1. 9 Quality vs. price Example: purchasing generic medicine over brandname Conformance to specifications Product specifications determined by designers of products and services Example: Pistons, cams, etc. .

Key Dimensions of Quality u u Slide 1. 10 Performance Features Reliability Conformance u u Durability Serviceability Aesthetics Perceived quality

Quality Perspectives transcendent & product-based Customer products and services user-based needs Marketing value-based Design manufacturingbased Manufacturing Distribution Information flow Product flow Slide 1. 11

Customer-Driven Quality u u “Meeting or exceeding customer expectations” Customers can be. . . X Consumers X External customers X Internal customers Slide 1. 12

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. Slide 1. 13

Quality in Production Systems u Production is the process of converting resources into goods and services u Production systems consists of: X Inputs X Outputs X Processes Slide 1. 14

Deming’s View of a Production System Suppliers of materials and equipment Design and Redesign Receipt and test of materials A B C D Production, assembly inspection Consumers Distribution Tests of processes, machines, methods INPUTS Slide 1. 15 Consumer research PROCESSES OUTPUTS

Three Levels of Quality u Organizational level: X X u Process level: X X u Linking external and internal customer requirements Units are classified as functions or departments Performer/job level: X X Slide 1. 16 Quality concerns should center on meeting external customer requirements Top management is actively involved Meeting internal customer requirements Example: supervisor meeting with each of his/her workers to determine individual needs

Quality as Important Source of Competitive Advantage u u u Slide 1. 17 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 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 Slide 1. 18

Quality and Personal Values u u u Personal initiative has a positive impact on business success Quality begins with personal attitudes Quality-focused individuals often exceed customer expectations X u Slide 1. 19 Example: Walt Disney World/Retainer Attitudes can be changed through awareness and effort (e. g. , personal quality checklists)