Chapter 1
This presentation is the property of its rightful owner.
Sponsored Links
1 / 26

Chapter 1 PowerPoint PPT Presentation

  • Uploaded on
  • Presentation posted in: General

Chapter 1. Introduction to Quality. Modern 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.”

Download Presentation

Chapter 1

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript

Chapter 1

Chapter 1

Introduction to Quality

Modern importance of quality

Modern 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

Quality assurance

Quality Assurance any action directed toward providing customers with goods and services of appropriate quality.

History of quality assurance 1 of 3

History of Quality Assurance (1 of 3)

  • Skilled craftsmanship during the Middle Ages

    • Pride in workmanship

    • Quality assurance informal

  • Interchangeable parts

    • Quality assurance critical

  • Industrial Revolution

    • Rise of inspection and separate quality departments

History of quality assurance 2 of 3

History of Quality Assurance (2 of 3)

  • Statistical quality control (SQC) developed at Western Electric (Bell System)

  • Quality control during World War II

  • Quality management in Japan

    • Statistical quality control

    • Continuous improvement

History of quality assurance 3 of 3

History of Quality Assurance (3 of 3)

  • Quality awareness in U.S. manufacturing industry during 1980s

    • Malcolm Baldrige National Quality Award (1987)

  • American companies win Japan’s Deming Prize

  • Quality in service industries, government, health care, and education

Contemporary influences on quality

Contemporary Influences on Quality

  • Partnering

  • Learning systems

  • Adaptability and speed of change

  • Environmental sustainability

  • Globalization

  • Knowledge focus

  • Customization and differentiation

  • Shifting demographics

Definitions of quality

Definitions of Quality

  • Transcendent definition

    • excellence

  • Product-based definition

    • quantities of product attributes

  • User-based definition

    • fitness for intended use

  • Value-based definition

    • quality vs. price

  • Manufacturing-based definition

    • conformance to design specifications

Quality perspectives

transcendent &















Information flow

Product flow

Quality Perspectives

Customer driven quality

Customer-Driven Quality

  • “Meeting or exceeding customer expectations”

  • Customers can be...

    • Consumers

    • External customers

    • Internal customers

Total quality

Total Quality

  • People-focused management system

  • Focuses on increasing customer satisfaction and reducing costs

  • A systems approach that integrates organizational functions and the entire supply chain

  • Stresses learning and adaptation to change

  • Based on the scientific method

Principles of total quality

Principles of Total Quality

  • Customer and stakeholder focus

  • Participation and teamwork

  • Process focus and continuous improvement

...supported by an integrated organizational

infrastructure, a set of management practices,

and a set of tools and techniques

Customer and stakeholder focus

Customer and Stakeholder Focus

  • Customer is principal judge of quality

  • Organizations must first understand customers’ needs and expectations in order to meet and exceed them

  • Organizations must build relationships with customers

  • Customers include employees and society at large

Participation and teamwork

Participation and Teamwork

  • Employees know their jobs best and therefore, how to improve them

  • Management must develop the systems and procedures that foster participation and teamwork

  • Empowerment better serves customers, and creates trust and motivation

  • Teamwork and partnerships must exist both horizontally and vertically

Process focus and continuous improvement

Process Focus and Continuous Improvement

  • A process is a sequence of activities that is intended to achieve some result

Continuous improvement

Continuous Improvement

  • Enhancing value through new products and services

  • Reducing errors, defects, waste, and costs

  • Increasing productivity and effectiveness

  • Improving responsiveness and cycle time performance

Deming s view of a production system

Suppliers of

materials and


Design and




Receipt and test

of materials






Production, assembly



Tests of processes, machines, methods


Deming’s View of a Production System



  • The foundation for improvement … Understanding why changes are successful through feedback between practices and results, which leads to new goals and approaches

  • Learning cycle:

    • Planning

    • Execution of plans

    • Assessment of progress

    • Revision of plans based on assessment findings

Infrastructure practices and tools

Infrastructure, Practices, and Tools


Leadership Strategic HRM Process Data and information

Planning mgt. management

Performance Training



Trend chart


Total quality infrastructure

Total Quality Infrastructure

  • Customer relationship management

  • Leadership and strategic planning

  • Human resources management

  • Process management

  • Data and information management

Competitive advantage

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

Quality and profitability

Quality and Profitability

Improved quality of design

Improved quality of conformance

Higher perceived value

Higher prices

Lower manufacturing and service costs

Increased market share

Increased revenues

Higher profitability

Evidence that quality impacts business results

Evidence that Quality Impacts Business Results

  • General Accounting Office study of Baldrige Award applicants

  • Baldrige stock study


  • Hendricks and Singhal study of quality award winners

  • Performance results of Baldrige Award winners

Gao total quality model


Overall satisfaction

Product and

service quality



On-time delivery

Customer retention



Leadership for



Market share




Quality systems and

employee involvement

Cycle time





Safety & health


GAO Total Quality Model

Three levels of quality

Three Levels of Quality

  • Organizational level: meeting external customer requirements

  • Process level: linking external and internal customer requirements

  • Performer/job level: meeting internal customer requirements

Quality and personal values

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

  • Attitudes can be changed through awareness and effort (e.g., personal quality checklists)

  • Login