INTRODUCTION

TO
QUALITY
- Quality is a new concept in modern business.

- October 1887 William Cooper Procter told his employees that they
need to turn out quality merchandise that consumer will buy and
keep on buying

- Procter’s addresses three Issues that are the: Productivity, Cost And
Quality this create costumer satisfaction all contribute to
profitability.

- More than 700 CEOs and Executive from around the world that
QUALITY is uniquely positioned to accelerate organizational growth

- High – Quality goods and services can provide organization with a

competitive edge.

- A high quality can generate satisfied and Loyal costumers. With a

failing quality can also be devastating can cause a huge devastation.
Defining Quality

- Quality can be confusing concepts because people

view quality as subjectively and in relation to there are
differing criteria based on individual role in the
production.

- The meaning of Quality Continue to evolve as the

quality professions grows and mature.
◦ The managers of 86 firms in US was asked to define quality
in the eastern US and the different responses includes the
following:

Perfection
Consistency
Eliminating Waste
Speed Delivery
Compliance with policies and Procedures
Providing a good, usable product
doing it right the first time
delighting or pleasing costumers
total costumer service and satisfaction
Various perspectives from which quality is views in order to
identify the role it plays in the many part of Business
Organization.
Quality can be defines from six different perspective: Transcendent, Product,
Value, User, Manufacturing, and costumer.

Transcendent (Judgemental) Perspective

- One of the common notion of quality, and often used.

- Walter Shewhart one of the pioneers of quality control, and defined quality
as Goodness of a product. This view was referred as Transcendent, or
judgmental, definition type of quality.

-It is often related to the aesthetic characteristics of products that are promoted
by marketing and advertising.

- Excellence is abstract and subjective, and standard of excellence may vary

considerably among individuals.

- Transcendent definition is of little practical value to managers. It does not

provide a means of quality can be measures or assessed as basis for practical
business decisions.
Product Perspective

◦ Quality is related to the quantity.

◦ This implies that the larger the number of product attributes are equivalent to
the higher quality. So the designer often try to incorporate more features into
products.
◦ Good marketing research is needed to understand what features costumers
want in a product

User Perspective
◦ Individuals have different wants and needs and this lead to different
expectation of the products from any other users. The situation leads to user-
based definition of quality-fitness for intended use, or how will the product
perform on their desired function.
Visual Perspective
◦ Defining Quality based on its value, the relationship of the
product benefits to price.
◦ Consumers no longer after from the price, they are also
after the package of goods and services that the business
offers, and this lead to competition of each business with
related products.
◦ Competing on the basis of value became a key business
strategy in the early 1990s
◦ Competing also demands that businesses continually seek
to safety consumers needs at lower prices.
Manufacturing Perspective
◦ Consumers and organizations want consistency in goods and
services.
◦ Quality is about manufacturing a product that people can depend
on every time they reach for it.
◦ Having standard for goods and services and meeting these
standards leads to the fifth definition of quality: conformance is
specifications.
◦ Specifications are targets and tolerances determined by
designers of good and services.
◦ Unambiguous way to measure quality and determine if a good is
manufactures or a service is delivered as it was designed.
Costumers Perspective
◦ American National Standards Institute and American Society for
quality standardized official definition of quality terminology in
1978.
◦ Quality was defines as the totality of features and characteristics of
a product or service that bears on its ability to satisfy given needs.
◦ It is driven by the need to create satisfied the costumers.
◦ To understand the definition one must first understand the meaning
of “costumers”
◦ Meeting the expectation of consumers is the ultimate goal of any
business.
◦ We also have the External Customer and Internal Customers
◦ Customer – Driven quality is Fundamental to high-performing
organizations.
Integrating Quality Perspective in the Value Chain
◦ Individuals in different business function.
◦ Create and deliver good and services that will satisfy
consumers needs and expectation.
◦ The goods and services produced should meet customers’
needs and expectation.
◦ The manufacturing must translate customer into detailed
product and process specification.
◦ Product specification might address such attributes as
size, forms, finished, taste, tolerances, materials,
operational characteristics, and safety features.
 The early Twentieth Century
◦ The Early 1900s, the work of Frederick W. Taylor often
called the “father of scientific management.” lead into
new philosophy of production.
◦ Manufacturers were able to ship good-quality products but
at great costs.
◦ Manufacturing companies created separate quality
departments.
◦ 1900s this piece of history was not discovered until ford
Executives visited Japan in 1982to study Japanese
Management Practices.
◦ “The Book” which is the “ My Life and work”
◦ The bell system was the leader in the early modern history of
industrial quality management.
◦ Achieved its note-worthy quality through massive inspection
efforts.
◦ In the 1920s employees of Western Electric’s inspection
department.
◦ Quality Assurance – which refers to any planned systematic
activity directed towards providing consumers with products.
◦ Quality Control – is the evaluation of a process to determine if
corrective action is needed to ensure that a requisite level of
quality achieved.
◦ Statistical Quality Control (SQC)
◦ POST - WORLD WAR II
- late 1940s and early 1950s

◦ THE U.S. "QUALITY REVOLUTION“

- 1980s was a period of remarkable change and
growing awareness of quality.
◦ RAPID GROWTH OF QUALITY IN BUSINESS
- Business and industry began to focus on quality.

◦ FROM PRODUCT QUALITY TO TOTAL QUALITY MANAGEMENT

- Quality must not viewed solelyas technical discipline, but as
management discipline.

= Big Q-managing for quality in all organizational processes.

= Little q- focus solely on manufacturing quality.
TQM or TQ- broad scope of quality.
◦ Early Management Failures
◦ Performance Excellence
1. Delivery of ever - improving value to customers and stakeholders,
contributing to ongoing organizations success.
2.Improvement of overall organizational effectiveness and
capabilities
3.Learning for the organization and for people in the workplace

◦ Emergence of Six Sigma

Six sigma is customer focused, results - oriented approach to business
improvement that integrates many traditional quality improvements tools and
techniques that have been tested and validated.
◦ Globalization of Quality

◦ Current and Future Challenges

Eight ways forces that will influence the future of quality:

1. Global Responsibility
2.Consumers Awareness
3.Globalization
4.Increasing Rate of Change
5.Workforce of the future
6.Aging Population
7.Twenty - First Century Quality
8.Innovation
Quality of Manufacturing
Figure 1.2
Marketing and Sales
- marketing and sales have important responsibilities for quality, such as learning the products
and product features that consumers want and knowing the prices that consumers are willing to pay
for them.

Product Design and Engineering

Purchasing and Receiving

Purchase department can help a firm achieve quality by:
- Selecting quality conscious suppliers
- Ensuring that purchase orders clearly define the quality requirements specified by product
design and engineering.
- Bringing together technical staffs from both the buyers and suppliers companies to design
product and solve technical problems.
- Establishing long term supplier relationships based on trust
- Providing qualified - improvement training to suppliers
- Informing suppliers of any problem encountered with their goods
- Maintaining good communication with suppliers as quality requirement and design changes
occur.
Receiving Department
- is the link between purchasing and production.

Production and Planning and Scheduling

- A production plan specifies long term and short term production requirements for
filling customer orders and meeting anticipated demand.

Manufacturing and Assembly

- the role of manufacturing and assembly is to ensure that the product is made
correctly.

Tool Engineering

Industrial Engineering and Process design

- is to work product design engineers to develop realistic specification
Finished Goods Inspection and Testing
- As a manufacturer its responsibility is to inspect and test the product that is being
produced as there are circumstances that it would leads to consumers not being satisfied.
- Inspection and testing help to produce goods or products with a good if quality and
would a long lifespan of the product.

Packaging, Shipping, and Warehousing

- The main importance of these things is to preserve or to protect the quality of the
product.

Installation and Service

- Consumers are given a complete instruction or manual on how to use the product
as it help customer satisfaction and service should be provided correctly as based on
consumer’s rules and regulation.
QUALITY IN SERVICE ORGANIZATIONS

 include all nonmanufacturing organizations such as:

1.hotels,
2. Restaurants,
3. Financial and legal services, and
4. Transportation.

 except:
1. Agriculture,
2. Mining, and
3. Construction.
=service organization downside:

1. Probably behind for 10 years in implementing quality

approaches than manufacturing.

2. High turnover rate. Pay less than manufacturing jobs.

How to boost profits by 100%

-by retaining 5% more customers than their competitors retain.

Because acquiring new customers has much higher cost than
retaining customers.
Pure Service Business
> deliver intangible products.
Example: Law firm, and Health care organizations.
Contrast with manufacturing:
1.Customer needs and performance standard are difficult
to identity and measure.
2.Requires higher degree of customization than
manufacturing.
3.Service systems output- intangible. Manufacturing
systems output- tangible.
4. Services produced and consumed simultaneously,
whereas manufacturing goods are produced prior to
consumption.
5. Customers are present and involved in service process
while away from the customer in manufacturing process.
6. Service - Labor intensive. Manufacturing- capital
intensive.
7. Many service organizations must handle large number
of customer transactions.
COMPONENTS OF SERVICE QUALITY
> begins with CUSTOMER COMMITMENT.
Service quality may be viewed from a Manufacturing analogy.

Two important drivers of Service quality:

1. People, and
2. Technology.

How customers evaluate a service quality?

- by the quality of the human contact.
Service organizations motto: "if we take care of our
people, they will take care of our customers“

Company Credo (People, Service, Profits) - demonstrates

the importance of people.

Recruiting and Selecting right types of individual and

train them.

Supervisor- must act as coaches and mentors then

administrators.
Service Industries - exploit information technology to
achieve high customer service.
E-commerce - has the largest impact of information
technology takes place.
QUALITY IN BUSINESS SUPPORT FUNCTIONS
Finance and Accounting
Legal Services
Quality Assurance
QUALITY AND COMPETITIVE ADVANTAGE
Competitive Advantage- firm's ability to achieve
market superiority.
Strong competitive advantage provides: Customer
Value.
 QUALITY AND BUSINESS RESULTS
"The proof is in the pudding"

QUALITY AND PERSONAL VALUES

contact between organization and the customer.
SUMMARY OF KEYPOINTS AND TERMINOLOGY

THE EVOLUTION OF QUALITY AT XEROX

       Xerox 914, the first plain - paper copier.

FACING A COMPETITIVE CRISIS

      IBM and KODAK

LEADERSHIP THROUGH QUALITY

  David T. Kearns
Figure 1.4 Origin of the 1983 Xerox Quality Emperative

FOUR GOALS IN ALL XEROX ACTIVITIES:

• Customer Goal
• Employee Goal
• Business Goal
• Process Goal
 CRISIS AND QUALITY RENEWAL
 "Lean Six Sigma"

Figure 1.5   Restrengthening Quality to Address a New Crisis  

KEY COMPONENTS OF XEROX LEAN SIX SIGMA:

• Performance excellence process

• DMAIC ( define, measure, analyze, improve, control ) process

• Market trends and benchmarking

• Beahaviors and leadership

Figure 1.6      Xerox Performance Excellence Process