Lecture The management and control of quality - Chapter 1: Introduction to quality

In this chapter we shall be concerned with the definition of the concept of quality. Such definitions are important, for it may mean different things to different people in various circumstances. The industrial notions of quality, although dear and weIl stated, need not be the true measures of quality. Although they are important and serve many purposes, they are only part of a larger picture.

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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.”  

­ William Cooper Procter

October 1887

 Japanese success

 Impact of quality on productivity and  profit

 Costs of quality 

 Quality as a competitive advantage

Increased  Market share Experience­based scale 

economies

Higher Prices IncreasedProfits  

I.  Market Gains

manufacturing  costs

Lower service  costs

Lower warranty  and product  liability costs

Increased  Profits

II.  Cost Savings

Lower rework  and scrap costs

Relative Quality Boosts rates of  return

0 10

Relative quality (percentile)

%

Prevention Costs Appraisal Costs Internal Failure Costs External Failure Costs

Costs of Detecting Defects

Process Final testing Customer

Where defect is detected Figure 6.3

Hidden costs of poor Quality

 Is durable and lasting

 Provides basis for further improvement

 Provides direction and motivation

Quality supports each of these characteristics

 Early 20th Century: Scientific 

Management, statistical methods at Bell  System, Walter Shewhart, MIL­STD

 Post­World War II. Japan’s success 

 The U.S. quality revolution 

 Disappointments and criticism: 

Emergence of quality management in  service industries, government, health  care, and education,

 Product­based definition: quantities of 

product attributes

 Manufacturing­based definition: 

conformance to specifications

QUALITY

QUALITY OF PERFORMANCE

QUALITY OF DESIGN QUALITY OF CONFORMANCE CONSUMER NEEDS/REQUIREMENTS

WORK PROCESS/SYSTEM

Framework

 GE study

 Quality as a “management discipline”  and not just a “technical discipline”.

 Total quality control, companywide 

quality control, total quality 

management, TQ

and a set of tools and techniques

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

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

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

Process Focus and Continuous  Improvement

 A process is a sequence of activities 

that is intended to achieve some result

 Enhancing value through new products and services

 Reducing errors, defects, waste, and 

costs

 Increasing productivity and effectiveness

 Improving responsiveness and cycle time performance

Major improvements in response time may require significant simplification of work 

processes and often drive simultaneous 

improvements in quality and productivity

Consumer research

Tests of processes, machines, methods

Distribution Consumers

INPUTS      PROCESSES       OUTPUTS

Feedback

 The foundation for improvement … 

Understanding why changes are successful  through feedback between practices and 

Trend chart

Tools Practices

Infrastructure