Chapter 1
Introduction to
Quality
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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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
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Key Idea
Building - and maintaining - quality into
an organization’s goods and services,
and more importantly, into the
infrastructure of the organization itself, is
not an easy task.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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History of Quality Management
(1 of 3)
 Skilled
craftsmanship during Middle Ages
 Industrial Revolution: rise of inspection
and separate quality departments
 Early 20th Century: statistical methods at
Bell System
 Quality control during World War II
 Post-war Japan: evolution of quality
management
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Dr. Juran was there!!
“On the assembly line at the Ford Motor Company in
1923, most of the workers producing Model T’s were
immigrants and could not speak English. Many were
also illiterate. Workers learned their trade by
modeling the actions of other workers. They were
unable to plan, problem-solve, and make decisions.
As a result, the Taylor scientific school of
management flourished, and MBAs and industrial
engineers were invented to do this work. Today,
however, the workforce is educated. Workers know
what is needed to improve their jobs, and companies
that do not tap into this significant source of
knowledge will truly be at a competitive
disadvantage.” (J. Juran, 1991)
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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History of Quality Management
(2 of 3)
 Quality
awareness in U.S.
manufacturing industry during 1980s:
from “Little q” - to “Big Q” (Total
Quality Management)
 Malcolm Baldrige National Quality
Award (1987)
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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History of Quality Management
(3 of 3)

Emergence of quality management in
service industries, government, health care,
and education
 Evolution of quality to performance
excellence
 Growth and adoption of Six Sigma and Lean
 Current and future challenge: continue to
apply the principles of quality and
performance excellence - Quality as “a race
without a finish line.”
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Key Idea
Although quality initiatives can lead to
business success, they cannot guarantee
it, and one must not infer that business
failures or stock price dives are the result
of poor quality.
Quality Management cannot help if the
consumer does not want what you are
selling!!
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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The Coca-Cola Company
Continuous Improvement Model
Empowerment/
Shared Leadership
Measurement
Measurement
Measurement
Customer
Satisfaction
Business
Results
Team
Management
Process
Improvement/
Problem
Solving
...
Measurement
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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TQM Quality Definitions

Meeting Customer’s Requirements

Doing (The Right) Things Right the First
Time; Freedom from Failure (Defects)

Consistency (Reduction in Variation)

Continuous Improvement

Quality in Everything We Do
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Customer-Driven Quality
 “Meeting
or exceeding customer
expectations”
 Customers can be...
 Consumers
 External
customers
 Internal customers
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Key Idea
Because individuals in different business
functions speak different “languages,”
the need for different views of what
constitutes quality at different points
inside and outside an organization is
necessary to create products of true
quality that will satisfy customers’ needs.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Key Idea
A process is a sequence of activities
that is intended to achieve some result
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Process Focus and Continuous
Improvement
A process is how work creates value for
customers
 Processes transform inputs (facilities,
materials, capital, equipment, people,
and energy) into outputs (goods and
services)
 Opportunities for major improvement
involve cross-functional processes

MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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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

MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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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

MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Key Idea
In any organization, the person who
best understands his or her job and
how to improve both the product and
the process is the one performing it.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Deming’s View of a
Production System
Suppliers of
materials and
equipment
Design and
Redesign
Receipt and test
of materials
A
B
C
D
Consumer
research
Production, assembly
inspection
Consumers
Distribution
Tests of processes, machines, methods
INPUTS
PROCESSES
OUTPUTS
Feedback
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Learning
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
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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QM Infrastructure
Customer relationship management
 Leadership and strategic planning
 Human resources management
 Process management
 Information and knowledge management

MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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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
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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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
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Key Idea
Considerable evidence exists that
quality initiatives positively impact
bottom-line results.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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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
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Quality and Personal Values





Personal initiative has a positive impact on
business success
Quality-focused individuals often exceed
customer expectations
Quality begins with personal attitudes
Attitudes can be changed through awareness and
effort (e.g., personal quality checklists)
Unless quality is internalized at the personal level,
it will never become rooted in the culture of an
organization. Thus, quality must begin at a
personal level (and this means you!).
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Leadership
• Empowerment requires leadership.
• Leaders must create the environment for
empowerment, and role-model the behaviors.
• Leaders must facilitate the creation of
organizational mission statements to give
direction and context to employees.
• Leadership should negotiate levels of
empowerment, based on skills, experience and
motivation of the worker.
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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Levels of Empowerment
Do it
Do it and report
periodically
Do it and report
immediately
Make a
Recommendation
Ask
Wait until told
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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MGS8760 Class Mission
 Treat
the course syllabus as a plan that can
be modified, based on customer needs
 Experience QM in the classroom
 Empower the class to share leadership by
providing input to the mission, content,
format and measurement of the course, and
through active participation
MANAGING FOR QUALITY AND PERFORMANCE EXCELLENCE, 7e, © 2008 Thomson Higher Education Publishing
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