5-1: Explain the importance of quality, the difficulties in measuring quality, and the differences in quality for different people or groups.

Because there are different dimensions of quality, quality is often difficult to measure. Consequently, there is no single universal definition of quality that will suit all people for all circumstances. For example, the producer of a product might define quality as the product’s conformance to design specifications. On the other hand, a consumer might define quality as the product’s fitness for its intended use.

5-2: Outline the benefits and costs of creating quality products and services.

Companies that systematically manage quality reap the benefits of higher customer satisfaction, increased revenues, reduced costs, and increases in productivity. In achieving and managing quality, companies have to contend with four broad categories of costs: prevention costs, appraisal costs, internal failure costs, and external failure costs.

5-3: Describe the evolution of quality management and identify the pioneers who contributed to modern quality management methods.

Efforts to manage quality have evolved from inspection to statistical quality control, continuous improvement, quality planning, total quality control, quality circles, robust design, poka yoke methods, and total quality management. Some of the pioneers of the quality movement include Walter Shewhart, Edward Deming, Joseph Juran, Armand Feigenbaum, Kaoru Ishikawa, Philip Crosby, Shigeo Shingo, and Genichi Taguchi.

5-4: Compare these major quality management initiatives: total quality management (TQM), the ISO 9000 family of quality standards, the Baldrige Award, Six Sigma, and DMADV methodologies.

Among the major quality initiatives undertaken by businesses throughout the world, TQM focuses on the continuous improvement of the quality of processes, services, and processes. To achieve that goal, everyone who is involved in the creation or consumption of a product or service, including management and the workforce of the firm, its suppliers, and perhaps even the customers, should be responsible for its quality. The International Organization for Standardization (ISO) is the world’s largest developer and publisher of international standards for quality. Among the many standards published by ISO, the ISO 9000 family of standards focuses on managing quality in both manufacturing and service organizations. Organizations that meet the criteria can request to be certified by the ISO. The initial focus of the Baldrige Award was on the quality of products and services provided by superior organizations. This focus, however, has since changed and the award is now given annually to organizations in business, health care, education, and not-for-profit sectors that demonstrate “performance excellence.” Six Sigma, which was originally developed in 1986 by Motorola, is a fact-based, data-driven quality management method. It seeks to improve the quality of products and services by identifying and removing the causes of defects (errors) and minimizing process variations. The Six Sigma method consists of a sequence of five steps: define, measure, analyze, improve, and control (DMAIC). In certain situations, the DMADV (define, measure, analyze, design, and verify) methodology will offer better results. To be successful, Six Sigma efforts require the support of a firm’s managers and the collaboration of employees across different functions.

5-5: Identify and describe some of the basic tools managers and employees use to manage quality in their firms.

A number of analytical tools and statistical techniques are available to analyze data to effectively manage and control quality. Some of these tools include process flowcharts, check sheets, histograms, Pareto charts, scatter diagrams, cause-and-effect diagrams, process control charts, process capability analysis, and Taguchi methods. For managing service quality, two of the commonly used tools are the RATER model and GAP model.

5-6: Discuss the process of managing quality in supply chains.

Supply chain partners can improve their quality management practices by adopting the quality standards of organizations such as the International Organization for Standardization (ISO), the American National Standards Institute (ANSI), and the American Society for Quality (ASQ). In addition to adopting ISO, ANSI, and ASQ standards, firms involved in a supply chain can use other methods at different stages in the product life cycle—from procurement and design to production and final delivery of the product to the consumer.

5-7: Discuss the challenges of managing quality in global supply chains.

Managing quality in the global setting can be a very serious challenge for organizations. Not all quality management standards can be transplanted from one country to another, and managing facilities around the globe can be difficult when some countries may not have the technology or infrastructure needed to improve products and not all cultures place a high priority on quality. Language and communication barriers can also make it difficult to share information and collect the data needed to improve quality. Firms often employ technology networks and information systems to link together their geographically dispersed plants and offices. Furthermore, they must find the means to maintain sufficient levels of quality control among supply chain partners to ensure that no defective or substandard materials become part of the production process, leading to inferior products.

5-8: Describe the ethical and legal relationship among quality, sustainability, and corporate social responsibility.

Many laws and regulations require that products and services meet certain quality standards so that they are safe and free of defects. If those quality standards are not met, then the company has the responsibility to fix the quality problem even if it requires a worldwide recall of its products. In addition, if a company knows it has produced a defective product, it is ethically responsible to inform its customers about it and to take corrective action in a timely manner. Otherwise, the company can seriously damage its reputation and it may face lawsuits. Customers are increasingly demanding products that are created with quality materials, and they expect companies to use manufacturing techniques that do not threaten the environment. Therefore, building quality into its products and services can help a company with its sustainability efforts because a high-quality product typically lasts longer. Also, higher quality products lead to higher productivity and efficient use of energy because wasteful actions such as product rework and scrap are eliminated. Efforts to achieve greater sustainability by designing products that require fewer input materials improves product quality because it lowers the chances of defective raw materials entering the production process.

› Chapter Outline