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Quality in Business v1.6 Walter Shawlee 2, Sphere Research Corporation

Explore the concept of quality in business and the importance of meeting acceptable standards. Discover the impact of customer expectations, the role of equitable transactions, and the need for conscious design and vigilance. Learn from existing examples and understand how failures can be inevitable but must be fixed and taken responsibility for.

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Quality in Business v1.6 Walter Shawlee 2, Sphere Research Corporation

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  1. Quality in Businessv1.6Walter Shawlee 2, Sphere Research Corporation • What exactly is it ? • What is acceptable, what is unacceptable? Merriam-Webster

  2. Quality in Business • It would be great if there was an understandable quantum unit of quality (the Qualitron), as there are both absolute and relative aspects to quality. • Sadly, we do not have such a thing, and thus have to rely on comparatives and percentages to indicate quality. Lack of an external reference standard can be a serious problem in establishing quality.

  3. Quality in Business • What determines quality in school? • Would you really want to go to a doctor that scored 50% on his exams? Is 70% really better? What is YOUR personal daily expectation of quality from others? How about from yourself? • If you go to a restaurant, and they get 4 things right out of 5, is that a commendable B grade? Are you happy?

  4. Quality in Business • Many things have THRESHOLD or QUANTUM quality levels, so that anything below that is of no real value. Numbers, the alphabet, your pizza order, etc.

  5. Quality in Business • If you accept the notion that 70% knowledge on a topic is OK, what 30% is unimportant? • What job could be effectively done with 30% ignorance? Cardiac surgery, nuclear engineering, baby sitting?

  6. Quality in Business • What is the real goal of education? • Sadly, there is no escape from the unqualified, everyone needs to be competent. • The real quality standard YOU EXPECT every day is 100%.

  7. Quality in Business 100% • If you only know 70%, what happens to the people you teach? • What happens to the people they teach? • Where are we really, on that steadily degrading curve? 70% 49%

  8. Quality in Business • What is the purpose of business?

  9. Quality in Business • No, that’s not it.

  10. Quality in Business • All successful business is based on equitable transaction. • A reasonable price for goods and services of acceptable quality. • However, every possible business pattern exists, the question is always for how long?

  11. Quality in Business • We can summarize these areas by saying that the purpose of business is to satisfy the needs of customers in a mutually beneficial way. • Great companies anticipate these needs before customers do, and always put out their best possible solution, leaving competitors very little opportunity to respond.

  12. Quality in Business • There is nothing wrong with making a profit, that is your just reward for good work and service, and without it, business cannot continue. But it is a BYPRODUCT of good business, just not the PURPOSE of it. • Transactions need to be mutually beneficial for the business pattern to continue unless it is criminal in nature.

  13. Quality in Business • This is in no way a new idea, as far back at the New Testament (KJV 1Timothy 6:9 & 10): • But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition. For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows. • Money is not evil, but the love of it at the expense of others can certainly be.

  14. Quality in Business • The minute customers fall out of the purpose equation, eventual business failure is inevitable. =

  15. Quality in Business • Who determines what is acceptable quality?

  16. Quality in Business • Who determines what is acceptable quality? • CUSTOMERS determine acceptable quality, and they only get pickier as time goes on.

  17. A Current Example • Keurig just recalled 6,600,000 single serving coffee makers because of 90 reported events of escaping steam injuries. A frankly impressive mathematical failure rate, but not in the minds of customers or government agencies. Small problem populations can have huge impacts.

  18. Quality in Business • Existing quality can be satisfactory until an item of far better quality appears, this shifts the relative standard upwards. • Some aspects are absolute, such as functionality and completeness.

  19. Bad Quality expressed in Vehicle Recalls • Total 2014 vehicle recalls in Canada: 8 million in 600 notices with an ongoing problem with Takata airbags still unresolved. That affects over 1 in 3 of every motor vehicle (23M) in Canada (Statscan).

  20. Quality in Business • You cannot “inspect in” quality, it is driven by the system, company values and the robustness of designs. • It has to be there by conscious design and maintained by vigilant action. It never hurts to check, but that should really be for your peace of mind.

  21. Quality in Business • Some failures are simply inevitable, that’s what experimental science is all about. • Try not to keep doing it, and learn as much and as quickly as you can. Fix it and take responsibility for it.

  22. Quality in Business Why is it doing that? • Nothing has had a more powerful negative impact on the global quality of all things than the software industry. • Ship before it’s ready, patch it poorly in the field, leave tons of security holes. Yay...

  23. Quality in Business • Who determines what is a reasonable price? • Regardless of what you decide, CUSTOMERS determine a reasonable price.

  24. Quality in Business • If price is your only sales tool, it will lead you straight to insolvency… • Price should reflect value, and remember that they go down much easier than they go up.

  25. Quality in Business • Price is just not everything, but quality really does matter, whether it’s tires, food, medicine or a novel.

  26. Quality in Business • Past good performance cannot insure future success, but poor performance makes it impossible. • History is not destiny. The future is full of surprises. • Sadly,sometimes the world just doesn’t need any more 8” floppy drives, Betamax tapes or bell bottom jeans no matter how well made they are.

  27. Quality in Business • Tragically, Carelessness, Poor Design and Upset Events can kill off even the best technology and service. Challenger Titanic

  28. Quality in Business • Where a company gets its money will determine the emphasis it puts on quality relative to other issues. • A net profit of 10% is only one month’s cushion against business failure.

  29. Quality in Business • Corporate financing through public shareholding shifts the emphasis to short term gains, and often makes quality and other key issues suffer. Every decision is forced to revolve around money.

  30. Quality in Business • What is the best possible corporate attitude about quality? • "Improve constantly and forever every process for planning, production and service." W. Edwards Deming

  31. Quality in Business • Walter’s 4 Useful Rules: 1. A good product should delight the user and depress the competition. 2. Do not fall for your own propaganda. 3. God isn’t finished yet. 4. Kindness is never wasted.

  32. Quality in Business • Money is not the same as value. • Money has almost no intrinsic value today, and little stability. It’s worth only what we agree it’s worth. It’s a tool of administrative convenience, not a galactic constant.

  33. Quality in Business • People are often surprised to learn that money has dropped in value dramatically, the high prices of commodities like food, gold and oil are really a reflection of low dollar values and relentless inflation.

  34. Quality in Business • Holders of US or Canadian Dollars are far better off than Russians, who saw their at-dollar-parity Rubles prior to 1991 drop to roughly US$0.019 today. US$100

  35. Quality in Business • You should learn what has real value, and base your life and business on those things.

  36. This is important: • Plato’s statement that “The unexamined life is not worth living” also applies to every business activity. • “It’s just business” does not excuse evil, immoral, unethical, stupid, negligent, cruel, criminal or illegal behaviour.

  37. This is important: • Everything you do, every decision, both personally and in business, selects for and against certain things. • Learn to look ahead at the consequences of decisions, and see them from other viewpoints than your own.

  38. This is important: • Western logical thinking tends to foster tunnel vision, something can only be This or That. This kind of thinking cannot help you. • In reality everything is multi-valued, and changes dramatically with perspective. You need to see what others see to be effective.

  39. To understand quality you should read: • W. Edwards Deming’s “Out of the Crisis”

  40. Designers Should Read: • Donald A. Norman’s “The Design of Everyday Things”

  41. And possibly: • “1 boat” • http://www.sphere.bc.ca/document.html

  42. Thank you! • Class materials are at: http://www.sphere.bc.ca/class

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