Quality

Quality as defined by the American National Standard Institute (ANSI) and the American Society for Quality (ASQ) is the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs. Quality is a subjective term for which each person has his or her own definition. Quality can be also understood as a product or service free of deficiencies. Quality matters to any customer, future employee, or manager and it affects the entire organization from supplier to customer.

All processes in an organization are affected by quality, from locating a facility, designing products and services, planning production and service processes, designing jobs and work activities, and managing the supply chain, to planning and scheduling the flow of products or flow of customers through the system. Quality is a competitive strategic issue, because it leads to increased productivity, lower rework and scrap costs, lower warranty costs, lower production costs, increased profits, improved company reputation, higher customer satisfaction, and expanded markets. Poor quality can be very costly to businesses and investors in the form of product recalls and lost customers. Numerous recalls of cars by General Motors in 2005 (more than 300,000 car recalls) and Chinese toy recalls in 2007 provide examples of serious quality issues. Poor-quality products and services result not only in higher costs but also lead to injuries, deaths, lawsuits, and more government regulations.

20th-century Developments

During the last century, many leaders contributed to the field of quality and quality management. Walter Shewhart, who in 1931 introduced statistical process control (SPC) charts, noted that price has no meaning without quality. Dr. W Edwards Deming (1900–93), a famous quality guru, insisted that managers accept responsibility for building good systems. He recognized the importance of viewing management process statistically and as a system. During World War II, he taught quality courses to the U.S. military, and after the war, he was invited to Japan to help the country take a census. Deming's teaching was instrumental in improving Japanese industry. He received Japan's highest honor, the Royal Order of the Sacred Treasure, from the emperor, and the Union of Japanese [Page 1333]Scientists and Engineers (JUSE) established the Deming Application Prize to recognize companies that had a high level of achievement in quality practices.

Deming synthesized his approach to quality in 14 Management Points, known as “A System of Profound Knowledge,” which consists of four interrelated parts: appreciation for a system, understanding variation, theory of knowledge, and psychology. Deming identified two primary sources of process improvement: eliminating special causes of quality problems, such as specific equipment or an operator, and reducing common causes, such as poor product design or insufficient employee training. According to Deming, workers are responsible for 10 to 20 percent of the quality problems, and the remaining 80 to 90 percent are under management s control. He was against the use of final-product inspection as a waste of time and resources. He advocated continuous improvement, and he is known for developing a Plan-Do-Check-Act (PDCA) cycle, originally formulated by Walter Shewhart.

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