Managing Quality: Integrating the Supply Chain, 6th Edition Solution Manual
Managing Quality: Integrating the Supply Chain, 6th Edition Solution Manual makes solving textbook questions easier with expertly crafted solutions.
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Page 1 of 13
Chapter 1: Differing Perspectives on Quality
Chapter Outline
• Differing Perspectives on Quality
▪ What is Quality?
▪ Recognizing both Product and Service Dimensions of Quality
▪ Differing Functional Perspectives on Quality
▪ Three Spheres of Quality
▪ Other Perspectives on Quality
▪ Arriving at a Common Understanding of Quality Using a Contingency
Perspective of Quality
Overview
The entire concept of quality is what one of my professors once called an “arm-
waiver.” We all intuitively know what it means, yet when we are asked to explain it, we
just sort of wave our arms.
Chapter 1 defines the terms. The author references various definitions of quality.
He makes the distinction between service and manufacturing from a quality perspective
and delves into “The Supply Chain.” Consideration of quality as it applies to the modern
supply chain expands our understanding of its application. Professor Foster has taken the
concept of the supply chain and made it integral to the subject of quality. Any book on
quality must discuss Deming. The author makes reference to Deming throughout the
book.
The focal point of the chapter is the question “What is Quality?” Professor Foster
supplies a list of topics product and service quality that can be ideally used in a class
discussion:
• Performance
• Features
• Reliability
• Conformance
• Durability
• Tangibles
• Service reliability
• Responsiveness
• Assurance
• Empathy
• Availability
• Professionalism
• Timeliness
Chapter 1: Differing Perspectives on Quality
Chapter Outline
• Differing Perspectives on Quality
▪ What is Quality?
▪ Recognizing both Product and Service Dimensions of Quality
▪ Differing Functional Perspectives on Quality
▪ Three Spheres of Quality
▪ Other Perspectives on Quality
▪ Arriving at a Common Understanding of Quality Using a Contingency
Perspective of Quality
Overview
The entire concept of quality is what one of my professors once called an “arm-
waiver.” We all intuitively know what it means, yet when we are asked to explain it, we
just sort of wave our arms.
Chapter 1 defines the terms. The author references various definitions of quality.
He makes the distinction between service and manufacturing from a quality perspective
and delves into “The Supply Chain.” Consideration of quality as it applies to the modern
supply chain expands our understanding of its application. Professor Foster has taken the
concept of the supply chain and made it integral to the subject of quality. Any book on
quality must discuss Deming. The author makes reference to Deming throughout the
book.
The focal point of the chapter is the question “What is Quality?” Professor Foster
supplies a list of topics product and service quality that can be ideally used in a class
discussion:
• Performance
• Features
• Reliability
• Conformance
• Durability
• Tangibles
• Service reliability
• Responsiveness
• Assurance
• Empathy
• Availability
• Professionalism
• Timeliness
Page 1 of 13
Chapter 1: Differing Perspectives on Quality
Chapter Outline
• Differing Perspectives on Quality
▪ What is Quality?
▪ Recognizing both Product and Service Dimensions of Quality
▪ Differing Functional Perspectives on Quality
▪ Three Spheres of Quality
▪ Other Perspectives on Quality
▪ Arriving at a Common Understanding of Quality Using a Contingency
Perspective of Quality
Overview
The entire concept of quality is what one of my professors once called an “arm-
waiver.” We all intuitively know what it means, yet when we are asked to explain it, we
just sort of wave our arms.
Chapter 1 defines the terms. The author references various definitions of quality.
He makes the distinction between service and manufacturing from a quality perspective
and delves into “The Supply Chain.” Consideration of quality as it applies to the modern
supply chain expands our understanding of its application. Professor Foster has taken the
concept of the supply chain and made it integral to the subject of quality. Any book on
quality must discuss Deming. The author makes reference to Deming throughout the
book.
The focal point of the chapter is the question “What is Quality?” Professor Foster
supplies a list of topics product and service quality that can be ideally used in a class
discussion:
• Performance
• Features
• Reliability
• Conformance
• Durability
• Tangibles
• Service reliability
• Responsiveness
• Assurance
• Empathy
• Availability
• Professionalism
• Timeliness
Chapter 1: Differing Perspectives on Quality
Chapter Outline
• Differing Perspectives on Quality
▪ What is Quality?
▪ Recognizing both Product and Service Dimensions of Quality
▪ Differing Functional Perspectives on Quality
▪ Three Spheres of Quality
▪ Other Perspectives on Quality
▪ Arriving at a Common Understanding of Quality Using a Contingency
Perspective of Quality
Overview
The entire concept of quality is what one of my professors once called an “arm-
waiver.” We all intuitively know what it means, yet when we are asked to explain it, we
just sort of wave our arms.
Chapter 1 defines the terms. The author references various definitions of quality.
He makes the distinction between service and manufacturing from a quality perspective
and delves into “The Supply Chain.” Consideration of quality as it applies to the modern
supply chain expands our understanding of its application. Professor Foster has taken the
concept of the supply chain and made it integral to the subject of quality. Any book on
quality must discuss Deming. The author makes reference to Deming throughout the
book.
The focal point of the chapter is the question “What is Quality?” Professor Foster
supplies a list of topics product and service quality that can be ideally used in a class
discussion:
• Performance
• Features
• Reliability
• Conformance
• Durability
• Tangibles
• Service reliability
• Responsiveness
• Assurance
• Empathy
• Availability
• Professionalism
• Timeliness
Page 2 of 13
The author looks at quality from different perspectives. This list is also an excellent
starting point for class discussion:
• Supply chain
• Engineering
• Operations
• Strategic management
• Marketing
• Financial
• Human resources
Figure 1-1 A Global Supply Chain Model Source: Foster, S. Thomas; Sampson, Scott E.; Wallin, Cynthia; Webb, Scott W,
Managing Supply Chain And Operations: An Integrative Approach, 1st Ed., © 2016, p.15. Reprinted and Electronically reproduced
by permission of Pearson Education, Inc., New York, NY.
Chapter 1 will ideally fit into a standard 100-minute class period.
The author looks at quality from different perspectives. This list is also an excellent
starting point for class discussion:
• Supply chain
• Engineering
• Operations
• Strategic management
• Marketing
• Financial
• Human resources
Figure 1-1 A Global Supply Chain Model Source: Foster, S. Thomas; Sampson, Scott E.; Wallin, Cynthia; Webb, Scott W,
Managing Supply Chain And Operations: An Integrative Approach, 1st Ed., © 2016, p.15. Reprinted and Electronically reproduced
by permission of Pearson Education, Inc., New York, NY.
Chapter 1 will ideally fit into a standard 100-minute class period.
Page 3 of 13
Discussion Questions
1. Why is quality a difficult term to define? How can we improve our understanding
of quality?
This is an ideal question to open the discussion of the topic of quality. Ask the class to
define quality and record their comments. You will typically find a myriad of answers,
but there should be a common theme among them.
2. Briefly discuss Garvin’s eight dimensions of quality. Is Garvin’s multidimensional
approach a step forward in improving our understanding of quality? Why or why
not?
Garvin lists the following:
• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Perceived quality
Using Garvin’s terminology, these terms identify five different aspects of quality. One
might say, “Quality is in the eye of the consumer.”
Discussion Questions
1. Why is quality a difficult term to define? How can we improve our understanding
of quality?
This is an ideal question to open the discussion of the topic of quality. Ask the class to
define quality and record their comments. You will typically find a myriad of answers,
but there should be a common theme among them.
2. Briefly discuss Garvin’s eight dimensions of quality. Is Garvin’s multidimensional
approach a step forward in improving our understanding of quality? Why or why
not?
Garvin lists the following:
• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Perceived quality
Using Garvin’s terminology, these terms identify five different aspects of quality. One
might say, “Quality is in the eye of the consumer.”
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3. Is there a difference between service quality and product quality? If so, what are
the implications of these differences for a manager of a service business, such as a
restaurant or a retail store?
Service quality suggests an achievement in a level of customer service and is more
subjective than the definition of product quality that is related to a tangible product.
Service quality is more difficult to define because of its numerous customer variations,
and it is therefore more difficult to achieve quality success based on this wide latitude of
customer opinion. You can demonstrate this in class buy surveying, for example, the
service quality of a major brand (e.g., AT&T, Verizon, etc.) and then surveying the
opinions of the class regarding one or more service quality dimensions.
4. Define the concept of empathy.
On page 6, the concept of empathy is discussed: Finally, consumers of services desire
empathy from the service provider. In other words, the customer desires caring,
individualized attention from the service firm.
The author’s discussion of empathy uses the relationship between a waiter and customer.
You might extend this conversation by asking for other examples. Does empathy enter
into a manufacturing situation? Dilbert’s Pointy-Haired-Manager is an excellent tool for
this discussion.
5. Why is communication within an organization an important part of the quality
improvement process?
On page 6, the author says: It is difficult to devise a coherent strategic plan relating to
quality when communication is imprecise.
Think about the people involved. Do the marketer, engineer, order processor, and
manager all speak the “same language?” Communication enables planning. In a
multidimensional environment, communication becomes more difficult simply due to
different backgrounds. How do you make this happen? What are the priorities that must
be shared?
6. Compare and contrast the engineering perspective and marketing perspective of
quality? How could an overemphasis on the engineering perspective work to the
disadvantage of a business organization?
The textbook (page 13) says: The marketer focuses on the perceived quality of products
and services as opposed to the engineering based conformance definition of quality. The
question then asks whether the engineering approach could be self-defeating.
This is pretty much a follow-up to question 5. Do the communications styles and
backgrounds influence the marketer and the engineer? What are the goals of the
3. Is there a difference between service quality and product quality? If so, what are
the implications of these differences for a manager of a service business, such as a
restaurant or a retail store?
Service quality suggests an achievement in a level of customer service and is more
subjective than the definition of product quality that is related to a tangible product.
Service quality is more difficult to define because of its numerous customer variations,
and it is therefore more difficult to achieve quality success based on this wide latitude of
customer opinion. You can demonstrate this in class buy surveying, for example, the
service quality of a major brand (e.g., AT&T, Verizon, etc.) and then surveying the
opinions of the class regarding one or more service quality dimensions.
4. Define the concept of empathy.
On page 6, the concept of empathy is discussed: Finally, consumers of services desire
empathy from the service provider. In other words, the customer desires caring,
individualized attention from the service firm.
The author’s discussion of empathy uses the relationship between a waiter and customer.
You might extend this conversation by asking for other examples. Does empathy enter
into a manufacturing situation? Dilbert’s Pointy-Haired-Manager is an excellent tool for
this discussion.
5. Why is communication within an organization an important part of the quality
improvement process?
On page 6, the author says: It is difficult to devise a coherent strategic plan relating to
quality when communication is imprecise.
Think about the people involved. Do the marketer, engineer, order processor, and
manager all speak the “same language?” Communication enables planning. In a
multidimensional environment, communication becomes more difficult simply due to
different backgrounds. How do you make this happen? What are the priorities that must
be shared?
6. Compare and contrast the engineering perspective and marketing perspective of
quality? How could an overemphasis on the engineering perspective work to the
disadvantage of a business organization?
The textbook (page 13) says: The marketer focuses on the perceived quality of products
and services as opposed to the engineering based conformance definition of quality. The
question then asks whether the engineering approach could be self-defeating.
This is pretty much a follow-up to question 5. Do the communications styles and
backgrounds influence the marketer and the engineer? What are the goals of the
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engineer? What are the goals of the marketer? Do they coincide or conflict? What should
the goals be in an efficiently run organization?
7. Describe the “systems view” that underlies modern quality management thinking.
Which of the perspectives of quality discussed in Chapter 1 is most closely aligned
with the systems view?
Some discussion questions might be:
A. What is the systems view?
B. What do the approaches have in common?
C. How are the approaches different?
D. How do the different approaches affect the ultimate consumer?
This diagram depicts the basic approach to planning.
engineer? What are the goals of the marketer? Do they coincide or conflict? What should
the goals be in an efficiently run organization?
7. Describe the “systems view” that underlies modern quality management thinking.
Which of the perspectives of quality discussed in Chapter 1 is most closely aligned
with the systems view?
Some discussion questions might be:
A. What is the systems view?
B. What do the approaches have in common?
C. How are the approaches different?
D. How do the different approaches affect the ultimate consumer?
This diagram depicts the basic approach to planning.
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8. Why is planning an important part of the quality process? How could a firm’s
quality management initiatives be adversely affected if planning was not a part of
the process?
Refer back to the question on communication (question 5). You might review Garvin’s
list:
• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Perceived quality
Which of these are the most dependent upon planning? Are any of them unaffected by
planning? Does poor planning adversely affect any of these items more than others?
9. Research has shown that quality is still a major concern of the majority of CEOs
in American corporations. Is this level of concern about quality warranted? Please
explain your answer.
A discussion about the competition between American and foreign products would be
productive. How has the automotive industry been affected by the apparent quality or
lack of quality of foreign cars? Have other industries been affected in this manner? Has
the movement of our nation from manufacturing to service been affected by quality,
either actual or perceived?
10. What is meant by the phrase cost of quality? How can this phrase help a firm
address its quality concerns?
The article Quality Strategy at GE contains the following statement: GE denied that such
problems forced GE to adopt its new quality program. “We are not in trouble,” they said,
citing the robust profits. But they conceded that “the time wasted, the money wasted, in
field fixes, in quality problems, in working things out, across corporate America, across
the world, is enormous.”
Does this give you any insight into the attitudes at GE after Welch’s departure? What
other aspects that have been discussed apply here? Look at the American automobile
industry again. Is the comparison that is being made between GE and the American
automobile industry valid? How does long-range planning affect quality in cases like
these?
8. Why is planning an important part of the quality process? How could a firm’s
quality management initiatives be adversely affected if planning was not a part of
the process?
Refer back to the question on communication (question 5). You might review Garvin’s
list:
• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Perceived quality
Which of these are the most dependent upon planning? Are any of them unaffected by
planning? Does poor planning adversely affect any of these items more than others?
9. Research has shown that quality is still a major concern of the majority of CEOs
in American corporations. Is this level of concern about quality warranted? Please
explain your answer.
A discussion about the competition between American and foreign products would be
productive. How has the automotive industry been affected by the apparent quality or
lack of quality of foreign cars? Have other industries been affected in this manner? Has
the movement of our nation from manufacturing to service been affected by quality,
either actual or perceived?
10. What is meant by the phrase cost of quality? How can this phrase help a firm
address its quality concerns?
The article Quality Strategy at GE contains the following statement: GE denied that such
problems forced GE to adopt its new quality program. “We are not in trouble,” they said,
citing the robust profits. But they conceded that “the time wasted, the money wasted, in
field fixes, in quality problems, in working things out, across corporate America, across
the world, is enormous.”
Does this give you any insight into the attitudes at GE after Welch’s departure? What
other aspects that have been discussed apply here? Look at the American automobile
industry again. Is the comparison that is being made between GE and the American
automobile industry valid? How does long-range planning affect quality in cases like
these?
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11. What are the major differences between traditional human resource
management and total quality human resource management? How does total
quality human resource management transcend traditional human resource
management in regard to providing an environment that is supportive of quality
concerns?
The table below lays out the question succinctly. This table should be an excellent
springboard for in-class discussion.
HRM versus TQHRM
Traditional HRM TQHRM
Process characteristics Unilateral role Consulting role
Centralization Decentralization
Pull Release
Administrative Developmental
Content characteristics Nomothetic Pluralistic
Compartmentalized Holistic
Worker-oriented System-oriented
Performance measures Satisfaction measures
Job-based Person-base
SOURCE: Adapted from R. Cardy and G. H. Dobbins, “Human Resources Management in a Total Quality
Environment,” Journal of Quality Management 1, 1 (1996):3.
12. Describe the three spheres of quality. How do these spheres provide another way
to place the field of quality in perspective?
11. What are the major differences between traditional human resource
management and total quality human resource management? How does total
quality human resource management transcend traditional human resource
management in regard to providing an environment that is supportive of quality
concerns?
The table below lays out the question succinctly. This table should be an excellent
springboard for in-class discussion.
HRM versus TQHRM
Traditional HRM TQHRM
Process characteristics Unilateral role Consulting role
Centralization Decentralization
Pull Release
Administrative Developmental
Content characteristics Nomothetic Pluralistic
Compartmentalized Holistic
Worker-oriented System-oriented
Performance measures Satisfaction measures
Job-based Person-base
SOURCE: Adapted from R. Cardy and G. H. Dobbins, “Human Resources Management in a Total Quality
Environment,” Journal of Quality Management 1, 1 (1996):3.
12. Describe the three spheres of quality. How do these spheres provide another way
to place the field of quality in perspective?
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Page 8 of 13
Notice the three quality descriptors:
• Management
• Assurance
• Control
How do they differ? How are they the same? Notice that the Venn diagram above shows
overlap. What are the implications of the overlapped areas? Where does quality
management end and where does quality assurance begin? How does quality control fit
into the picture?
13. Discuss the value-added perspective on quality. What are the implications of this
perspective for the manager of a business organization?
A value-added activity can be pinpointed by asking, “Would this activity matter to the
customer?” In other words, in most cases, a value-added activity will have economic
value to the customer.
Looking back at the GE example that is discussed in question 10:
• How does value added enter into the discussion?
• Look at our consumer goods: does the concept of value added influence your
purchasing decisions?
• Can you actually identify a value-added component?
• Is value added more obvious by it presence or absence?
More generally, how is quality a value-added item? Getting back to the automobile
industry, how did the influx of Japanese cars in the 1960s reflect on the concept of
quality adding value to a product?
14. How does contingency theory inform decision making when implementing
improvement efforts?
Page 19 states: Contingency theory presupposes that there is no theory or method for
operating a business that can be applied in all instances
A company that defines part of its mission as "valuing and satisfying our customers
through personalized service" likely will pursue a different technological approach
toward its customers than a company with the mission of "applying technology to solve
customer problems."
The contingency approach to quality also helps settle the different perceptions concerning
the definition of quality, for example:
• Do you as a consumer feel that quality is not as important in a lower priced
item?
• When a product has been on the market for an extended period of time, do you
Notice the three quality descriptors:
• Management
• Assurance
• Control
How do they differ? How are they the same? Notice that the Venn diagram above shows
overlap. What are the implications of the overlapped areas? Where does quality
management end and where does quality assurance begin? How does quality control fit
into the picture?
13. Discuss the value-added perspective on quality. What are the implications of this
perspective for the manager of a business organization?
A value-added activity can be pinpointed by asking, “Would this activity matter to the
customer?” In other words, in most cases, a value-added activity will have economic
value to the customer.
Looking back at the GE example that is discussed in question 10:
• How does value added enter into the discussion?
• Look at our consumer goods: does the concept of value added influence your
purchasing decisions?
• Can you actually identify a value-added component?
• Is value added more obvious by it presence or absence?
More generally, how is quality a value-added item? Getting back to the automobile
industry, how did the influx of Japanese cars in the 1960s reflect on the concept of
quality adding value to a product?
14. How does contingency theory inform decision making when implementing
improvement efforts?
Page 19 states: Contingency theory presupposes that there is no theory or method for
operating a business that can be applied in all instances
A company that defines part of its mission as "valuing and satisfying our customers
through personalized service" likely will pursue a different technological approach
toward its customers than a company with the mission of "applying technology to solve
customer problems."
The contingency approach to quality also helps settle the different perceptions concerning
the definition of quality, for example:
• Do you as a consumer feel that quality is not as important in a lower priced
item?
• When a product has been on the market for an extended period of time, do you
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Page 9 of 13
still observe quality?
• Do you have different expectations of quality for a high priced item than you
do for an inexpensive item? Why?
• Do you have the same expectation of quality on similarly priced items based
upon their use or application, for example, food vs. clothing?
15. Should a firm consider the law of diminishing marginal returns when striving to
improve quality? Why or why not?
On page 14, the statement is made that there is a point where the continued quest for
quality becomes uneconomical. Figure 1-6 illustrates this concept. Is there a subtle
problem here? How might the quality of one product affect the perception of overall
product quality? How does the cost of quality affect other products when the cost of
quality on another product has proven uneconomical? In that situation, what choices
exist? Can you think of any examples?
16. Are the perspectives of quality independent of one another? If not, describe ways
in which they are interrelated.
This chapter is named Differing Perspectives on Quality. Does the author make the point?
List the perspectives and identify the differences and similarities. Are there any trends or
common points? On what are these perspectives based? Given the preceding questions,
what conclusions can you make?
17. How can an understanding of the multiple dimensions of quality lead to
improved product and service designs?
As identified earlier, Garvin identified eight dimensions of quality:
• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Perceived quality
Do they apply differently to products or services? How does each of these dimensions
directly apply to a product or a service?
18. What is your concept of quality? Is it multidimensional, or does it focus on a
single dimension such as features, reliability, or conformance? Explain your answer.
still observe quality?
• Do you have different expectations of quality for a high priced item than you
do for an inexpensive item? Why?
• Do you have the same expectation of quality on similarly priced items based
upon their use or application, for example, food vs. clothing?
15. Should a firm consider the law of diminishing marginal returns when striving to
improve quality? Why or why not?
On page 14, the statement is made that there is a point where the continued quest for
quality becomes uneconomical. Figure 1-6 illustrates this concept. Is there a subtle
problem here? How might the quality of one product affect the perception of overall
product quality? How does the cost of quality affect other products when the cost of
quality on another product has proven uneconomical? In that situation, what choices
exist? Can you think of any examples?
16. Are the perspectives of quality independent of one another? If not, describe ways
in which they are interrelated.
This chapter is named Differing Perspectives on Quality. Does the author make the point?
List the perspectives and identify the differences and similarities. Are there any trends or
common points? On what are these perspectives based? Given the preceding questions,
what conclusions can you make?
17. How can an understanding of the multiple dimensions of quality lead to
improved product and service designs?
As identified earlier, Garvin identified eight dimensions of quality:
• Performance
• Features
• Reliability
• Conformance
• Durability
• Serviceability
• Aesthetics
• Perceived quality
Do they apply differently to products or services? How does each of these dimensions
directly apply to a product or a service?
18. What is your concept of quality? Is it multidimensional, or does it focus on a
single dimension such as features, reliability, or conformance? Explain your answer.
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Do you react differently as a consumer or a supplier? Can you use these attitudes in
business? As we have discussed, marketing and manufacturing approach quality from
different perspectives. What are the common points? How does management deal with
the differences or the similarities?
19. Describe an instance in which you and a coworker (or superior) perceived the
needs of a customer very differently. How did your differences in perception
influence how each of you wanted to meet your customer’s needs?
What aspects of quality made the most difference to you or your co-worker? Does your
superior view quality in the same manner as you do? Why? In the class environment, do
your needs and expectations differ from that of your instructors? Does the question of
quality differ for you and your instructors?
Do you react differently as a consumer or a supplier? Can you use these attitudes in
business? As we have discussed, marketing and manufacturing approach quality from
different perspectives. What are the common points? How does management deal with
the differences or the similarities?
19. Describe an instance in which you and a coworker (or superior) perceived the
needs of a customer very differently. How did your differences in perception
influence how each of you wanted to meet your customer’s needs?
What aspects of quality made the most difference to you or your co-worker? Does your
superior view quality in the same manner as you do? Why? In the class environment, do
your needs and expectations differ from that of your instructors? Does the question of
quality differ for you and your instructors?
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Case Study 1-1: FedEx: Managing Quality Day and Night
This cast study provides insight into the unique problems faced by a service-based
company. Central to this discussion are three questions that the company asks its
employees:
1. What do you need from me?
2. What do you do with what I give you?
3. Are there any gaps between what I give you and what I need?
This case also introduces the topic of Quality Improvement Process (QIP). This might be
a good time to set the tone of future lectures. This case study might be an excellent one to
use early in the semester.
Case Questions:
1. What is FedEx’s “common language” of quality? Is it important for a company to
establish a “common language” of quality? If so, why?
How does Fedex’s three-pronged “People-Service-Profit” reflect quality? How does
Fedex’s twelve component “Service Quality Indicator” reduce communications
difficulties.
2. There are several different perspectives of quality, including the operations
perspective, the strategic perspective, the marketing perspective, the financial
perspective, the HR perspective, and the systems perspective. Which of these
perspectives are being emphasized by FedEx? Why?
Does the “common language” allow personnel to cross boundaries? Does inclusion of
management in the teams affect the concept of quality? The SQI is a cross-functional
tool. How does this affect the situation? The case states that the SQI “ensures the
involvement of frontline employees, support personnel, and managers from all parts of
the corporation when needed.” Do the employee incentives assist this as well?
3. Is FedEx’s level of emphasis on quality appropriate? Why or why not?
Who is FedEx’s competition? Is quality a focal point in this industry? How does the
customer measure quality? What specific attributes do the customers use to judge
quality?
Case Study 1-1: FedEx: Managing Quality Day and Night
This cast study provides insight into the unique problems faced by a service-based
company. Central to this discussion are three questions that the company asks its
employees:
1. What do you need from me?
2. What do you do with what I give you?
3. Are there any gaps between what I give you and what I need?
This case also introduces the topic of Quality Improvement Process (QIP). This might be
a good time to set the tone of future lectures. This case study might be an excellent one to
use early in the semester.
Case Questions:
1. What is FedEx’s “common language” of quality? Is it important for a company to
establish a “common language” of quality? If so, why?
How does Fedex’s three-pronged “People-Service-Profit” reflect quality? How does
Fedex’s twelve component “Service Quality Indicator” reduce communications
difficulties.
2. There are several different perspectives of quality, including the operations
perspective, the strategic perspective, the marketing perspective, the financial
perspective, the HR perspective, and the systems perspective. Which of these
perspectives are being emphasized by FedEx? Why?
Does the “common language” allow personnel to cross boundaries? Does inclusion of
management in the teams affect the concept of quality? The SQI is a cross-functional
tool. How does this affect the situation? The case states that the SQI “ensures the
involvement of frontline employees, support personnel, and managers from all parts of
the corporation when needed.” Do the employee incentives assist this as well?
3. Is FedEx’s level of emphasis on quality appropriate? Why or why not?
Who is FedEx’s competition? Is quality a focal point in this industry? How does the
customer measure quality? What specific attributes do the customers use to judge
quality?
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Case Study 1-2: Granite Rock Company: Achieving Quality through
Employees
This case presents quality through the management perspective. A strategy for using this
case might be to ask the students to list the specific steps taken by Management to
address the quality issue. The case also discusses the individual employees IPDP, the
Individual Personal Development Plan. It might be interesting to contrast this approach
with both Managing by Objectives (MBO) and Managing by Exception (MBE). These
are two methods of management that have gained a major foothold in industry and could
yield a good discussion.
Case Questions:
1. Rather than focusing on human resource management (HRM) as a means of
supporting its quality initiatives, Granite Rock could have chosen another area as its
focal point (i.e., marketing, operations, information systems, and so on). How does a
focus on HRM support a company’s quality initiatives?
This statement might be the key: The managers at Granite Rock knew that a resulting
decline in customer satisfaction was inevitable and responded to this self-assessment by
deciding it needed to become more customer focused. …As explained by CEO Bruce
Woolpert, you can’t have employees out telling customers “yes” unless everyone else in
the company knows how to follow up on “yes.”
How does the focus on individual employee growth fit within the guidelines of HRM?
2. Discuss the different components of Granite Rock’s HRM initiatives. How can
each of these components support the company’s quality efforts?
The list of initiatives might include:
• Employee training
• Individual Personal Training Plan (IDPD)
• Atmosphere of trust between management and rank-and-file
• Winning the Malcolm Baldrige National Quality Award
While on the surface these might seem to be independent items, how are they related in
actuality? What is the effect of these items on the individual employee?
3. Discuss CEO Woolpert’s feelings about communication with the customers
(paragraph 2). What happens when others in the company don’t know what has
been promised to the customer? How can quality management help to overcome this
situation?
The key sentence in this paragraph is: As explained by CEO Bruce Woolpert, you can’t
have employees out telling customers “yes” unless everyone else in the company knows
how to follow up on “yes.”
Case Study 1-2: Granite Rock Company: Achieving Quality through
Employees
This case presents quality through the management perspective. A strategy for using this
case might be to ask the students to list the specific steps taken by Management to
address the quality issue. The case also discusses the individual employees IPDP, the
Individual Personal Development Plan. It might be interesting to contrast this approach
with both Managing by Objectives (MBO) and Managing by Exception (MBE). These
are two methods of management that have gained a major foothold in industry and could
yield a good discussion.
Case Questions:
1. Rather than focusing on human resource management (HRM) as a means of
supporting its quality initiatives, Granite Rock could have chosen another area as its
focal point (i.e., marketing, operations, information systems, and so on). How does a
focus on HRM support a company’s quality initiatives?
This statement might be the key: The managers at Granite Rock knew that a resulting
decline in customer satisfaction was inevitable and responded to this self-assessment by
deciding it needed to become more customer focused. …As explained by CEO Bruce
Woolpert, you can’t have employees out telling customers “yes” unless everyone else in
the company knows how to follow up on “yes.”
How does the focus on individual employee growth fit within the guidelines of HRM?
2. Discuss the different components of Granite Rock’s HRM initiatives. How can
each of these components support the company’s quality efforts?
The list of initiatives might include:
• Employee training
• Individual Personal Training Plan (IDPD)
• Atmosphere of trust between management and rank-and-file
• Winning the Malcolm Baldrige National Quality Award
While on the surface these might seem to be independent items, how are they related in
actuality? What is the effect of these items on the individual employee?
3. Discuss CEO Woolpert’s feelings about communication with the customers
(paragraph 2). What happens when others in the company don’t know what has
been promised to the customer? How can quality management help to overcome this
situation?
The key sentence in this paragraph is: As explained by CEO Bruce Woolpert, you can’t
have employees out telling customers “yes” unless everyone else in the company knows
how to follow up on “yes.”
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Page 13 of 13
While there had been discussion of the impact that management has upon quality, if the
employees do not feel empowered, quality will suffer. Do the actions that are directly
aimed at the employees affect quality? This communication is perhaps the core of the
topic.
Websites of Interest
http://www.nist.gov/baldrige/ -- The home site for the Baldridge National Quality
Program
http://www.asq.org/learn-about-quality/quality-tools.html -- American Society for
Quality
http://www.thecqi.org/ -- Chartered Quality Institute
http://www.managementhelp.org/plan_dec/mbo/mbo.htm -- A detailed look at
Management by Objectives
http://www.ge.com/en/company/companyinfo/quality/whatis.htm -- An overview of Six
Sigma from GE’s perspective
While there had been discussion of the impact that management has upon quality, if the
employees do not feel empowered, quality will suffer. Do the actions that are directly
aimed at the employees affect quality? This communication is perhaps the core of the
topic.
Websites of Interest
http://www.nist.gov/baldrige/ -- The home site for the Baldridge National Quality
Program
http://www.asq.org/learn-about-quality/quality-tools.html -- American Society for
Quality
http://www.thecqi.org/ -- Chartered Quality Institute
http://www.managementhelp.org/plan_dec/mbo/mbo.htm -- A detailed look at
Management by Objectives
http://www.ge.com/en/company/companyinfo/quality/whatis.htm -- An overview of Six
Sigma from GE’s perspective
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Page 1 of 13
Chapter 2: Quality Theory
Chapter Outline
• Quality Theory
▪ What is Theory?
▪ Leading Contributors to Quality Theory
• W. Edward Deming
• Joseph M. Duran
• Kaoru Ishikawa
• Armand Feigenbaum
• Philip Crosby
• Genichi Taguchi
• The Rest of the Pack
▪ Viewing Quality from a Contingency Perspective
▪ Resolving the Differences in Quality Approaches: An Integrative Approach
Overview
When the author discusses theory, he is not being philosophical; rather he
discusses the major “players” and their contributions to the subject. On page 26, the point
is made that “there is not a unified theory explaining quality improvement.” The author
also makes a statement that quality improvement is positively linked to employee morale.
He links quality improvement to the classic Theory X approach to management (and
Theory Z for that matter).
Chapter 2: Quality Theory
Chapter Outline
• Quality Theory
▪ What is Theory?
▪ Leading Contributors to Quality Theory
• W. Edward Deming
• Joseph M. Duran
• Kaoru Ishikawa
• Armand Feigenbaum
• Philip Crosby
• Genichi Taguchi
• The Rest of the Pack
▪ Viewing Quality from a Contingency Perspective
▪ Resolving the Differences in Quality Approaches: An Integrative Approach
Overview
When the author discusses theory, he is not being philosophical; rather he
discusses the major “players” and their contributions to the subject. On page 26, the point
is made that “there is not a unified theory explaining quality improvement.” The author
also makes a statement that quality improvement is positively linked to employee morale.
He links quality improvement to the classic Theory X approach to management (and
Theory Z for that matter).
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Page 2 of 13
Discussion Questions
1. Define theory. Why are theories important for managing quality in the supply
chain?
The author states that in order for a theory to be complete, it has to answer these
questions:
• What?
• How?
• Why?
• Who?
• Where?
• When?
How does practice relate to theory? You might also ask how this relates to the classic
definition of theory that we have studied in other disciplines.
The model the text presents is illustrated in Figure 2-1. A positive correlation is presented
between Quality Improvement and Worker Morale. To verify the model, we conduct
statistical research. This will either prove or disprove the theory.
2. Describe the differences between induction and deduction. If you developed a
theory based solely on your experiences of quality practices in business
organizations, would you be basing your theory on induction or deduction? Why?
On page 25, the text discusses a Morale Check at a Chicago-based company just after the
Cubs won the World Series. Morale is found to be positive. Students must decide: is this
inductive or deductive? What are examples of inductive and deductive theory from the
class’s perspective. If one looks at the classic theories – Evolution, Relatively, Theory X,
Y, and Z – are they individually inductive or deductive?
Discussion Questions
1. Define theory. Why are theories important for managing quality in the supply
chain?
The author states that in order for a theory to be complete, it has to answer these
questions:
• What?
• How?
• Why?
• Who?
• Where?
• When?
How does practice relate to theory? You might also ask how this relates to the classic
definition of theory that we have studied in other disciplines.
The model the text presents is illustrated in Figure 2-1. A positive correlation is presented
between Quality Improvement and Worker Morale. To verify the model, we conduct
statistical research. This will either prove or disprove the theory.
2. Describe the differences between induction and deduction. If you developed a
theory based solely on your experiences of quality practices in business
organizations, would you be basing your theory on induction or deduction? Why?
On page 25, the text discusses a Morale Check at a Chicago-based company just after the
Cubs won the World Series. Morale is found to be positive. Students must decide: is this
inductive or deductive? What are examples of inductive and deductive theory from the
class’s perspective. If one looks at the classic theories – Evolution, Relatively, Theory X,
Y, and Z – are they individually inductive or deductive?
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Page 3 of 13
If the theory is generated by observation and experience, the theory is inductive. If the
theory is developed through the Scientific method, it is deductive. Does the fact that in
the case the Cubs just won the World Series apply? Does this make the theory deductive
or inductive?
3. Do you believe that the development of a unified theory of quality management is
possible? What is a unified theory?
On page 26, “A Closer Look at Quality - The Product That is Quality” looks at the
different approaches to quality. As you discuss the key players, this might be a good
question to keep going on the side.
Einstein spent most of his later life searching for a unified theory in physics. He failed.
Do unified theories exist in any discipline? What would the implications be if there was a
unified theory for quality management? If you contrast the approaches of the major
players, do they all take the same approach? Does the fact that we are dealing with people
affect this situation?
4. Why do managers need to be cautious about purchasing material (e.g., courses,
workbooks, videos, and so on) on quality management from trainers and
consultants? How would you go about selecting this type of material?
In the quoted article, The Product That is Quality, the statement is made that, “Within
each approach, corporate managers are confronted by a numbing maze of acronyms and
buzzwords. There is TQC, TQM, fishbone diagramming, cause and effect, poka yoke, big
Q, and little q.” An entire industry has sprung up just to provide material to support
quality initiatives. The Juran Institute sells a $15,000 do-it-yourself kit complete with 16
videotapes, 10 workbooks, a leader’s manual, overhead transparencies, and a five-day
course to teach someone how to run the tapes.
Harvard’s Garvin observes that all of the Baldrige Award winners had developed their
own approach to quality. The most effective way to develop a solid quality approach is to
have it developed in-house.
5. Briefly describe the contributions W. Edwards Deming made to the field of
quality management. Why do you believe he is the most influential quality expert?
Deming outlined 14 points for management:
If the theory is generated by observation and experience, the theory is inductive. If the
theory is developed through the Scientific method, it is deductive. Does the fact that in
the case the Cubs just won the World Series apply? Does this make the theory deductive
or inductive?
3. Do you believe that the development of a unified theory of quality management is
possible? What is a unified theory?
On page 26, “A Closer Look at Quality - The Product That is Quality” looks at the
different approaches to quality. As you discuss the key players, this might be a good
question to keep going on the side.
Einstein spent most of his later life searching for a unified theory in physics. He failed.
Do unified theories exist in any discipline? What would the implications be if there was a
unified theory for quality management? If you contrast the approaches of the major
players, do they all take the same approach? Does the fact that we are dealing with people
affect this situation?
4. Why do managers need to be cautious about purchasing material (e.g., courses,
workbooks, videos, and so on) on quality management from trainers and
consultants? How would you go about selecting this type of material?
In the quoted article, The Product That is Quality, the statement is made that, “Within
each approach, corporate managers are confronted by a numbing maze of acronyms and
buzzwords. There is TQC, TQM, fishbone diagramming, cause and effect, poka yoke, big
Q, and little q.” An entire industry has sprung up just to provide material to support
quality initiatives. The Juran Institute sells a $15,000 do-it-yourself kit complete with 16
videotapes, 10 workbooks, a leader’s manual, overhead transparencies, and a five-day
course to teach someone how to run the tapes.
Harvard’s Garvin observes that all of the Baldrige Award winners had developed their
own approach to quality. The most effective way to develop a solid quality approach is to
have it developed in-house.
5. Briefly describe the contributions W. Edwards Deming made to the field of
quality management. Why do you believe he is the most influential quality expert?
Deming outlined 14 points for management:
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Page 4 of 13
In the 1950s, Japanese-made products were frequently called inferior, tinny, and shoddy.
Today, names such as Toyota and Sony are equated with high-quality manufacturing.
Deming stressed that consumers are well served by insisting that service and product
providers deliver high quality. He believed that the more consumers demand high-quality
products and services, the more firms will continually aspire to higher levels of
performance. As opposed to 20 years ago, consumers now expect high-quality products at
a reasonable cost.
6. Deming believed poor quality was not the fault of workers but resulted from poor
management of the system for quality improvement. Do you agree with Deming’s
stand on this issue? Why or why not?
Answers here will vary. Some things to consider: Deming raises the topic of “continual,
never-ending improvement.” How does this place the responsibility for quality on the
shoulders of management? What does this philosophy say about Deming’s general
approach to management? A key motivator in our culture is looking for the source of the
problem. Deming places the problem in management’s lap.
How do today’s management philosophies either support or deny this approach? Think
about Theory X and Y. Research Ouchi’s Theory Z. Also consider Maslow’s hierarchy of
needs. Is there commonality in these philosophies?
7. Deming was not an advocate of mass inspection as a means of ensuring product
quality. Please explain Deming’s beliefs in this area.
Taken out of context, the statement is curious. However, from page 29, we read:
“Eliminate the need for inspection on a mass basis by building quality into the product in
the first place.”
Is Deming discussing the place that quality must have in the general context of the
process? Is quality a feature that you add on at the end of the process? How revolutionary
is this statement? How does the popular literature about management address this
attitude? If you tie this back to the discussion of Jack Welch in Chapter 1, the importance
of visionary leadership is identified. Goldratt1 discusses the theory of constraints. He says
that constraints, or bottlenecks, affect the flow of product through the system. Can quality
be a constraint?
8. Select one of Deming’s 14 points for management and describe how this point
could have resulted in quality improvements in a business or volunteer organization
with which you have been involved.
Every successful manager can point to failures in his or her past. The difference between
a successful manager and an unsuccessful manager is how he or she reacts to those
1 http://www.goldratt.com/
In the 1950s, Japanese-made products were frequently called inferior, tinny, and shoddy.
Today, names such as Toyota and Sony are equated with high-quality manufacturing.
Deming stressed that consumers are well served by insisting that service and product
providers deliver high quality. He believed that the more consumers demand high-quality
products and services, the more firms will continually aspire to higher levels of
performance. As opposed to 20 years ago, consumers now expect high-quality products at
a reasonable cost.
6. Deming believed poor quality was not the fault of workers but resulted from poor
management of the system for quality improvement. Do you agree with Deming’s
stand on this issue? Why or why not?
Answers here will vary. Some things to consider: Deming raises the topic of “continual,
never-ending improvement.” How does this place the responsibility for quality on the
shoulders of management? What does this philosophy say about Deming’s general
approach to management? A key motivator in our culture is looking for the source of the
problem. Deming places the problem in management’s lap.
How do today’s management philosophies either support or deny this approach? Think
about Theory X and Y. Research Ouchi’s Theory Z. Also consider Maslow’s hierarchy of
needs. Is there commonality in these philosophies?
7. Deming was not an advocate of mass inspection as a means of ensuring product
quality. Please explain Deming’s beliefs in this area.
Taken out of context, the statement is curious. However, from page 29, we read:
“Eliminate the need for inspection on a mass basis by building quality into the product in
the first place.”
Is Deming discussing the place that quality must have in the general context of the
process? Is quality a feature that you add on at the end of the process? How revolutionary
is this statement? How does the popular literature about management address this
attitude? If you tie this back to the discussion of Jack Welch in Chapter 1, the importance
of visionary leadership is identified. Goldratt1 discusses the theory of constraints. He says
that constraints, or bottlenecks, affect the flow of product through the system. Can quality
be a constraint?
8. Select one of Deming’s 14 points for management and describe how this point
could have resulted in quality improvements in a business or volunteer organization
with which you have been involved.
Every successful manager can point to failures in his or her past. The difference between
a successful manager and an unsuccessful manager is how he or she reacts to those
1 http://www.goldratt.com/
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Page 5 of 13
failures. Although this concept is seldom discussed, writers like Deming and Juran are
sharing the remedies, either made or observed, to past failures.
The success of these writers is based upon the fact that they can help the new manager
avoid the common, but not obvious, pitfalls. Any person who has had a position of
authority should be able to read Deming’s list and identify a mistake that was made
relating to each one. This should prove to be a fascinating classroom session, especially if
the professor joins in the discussion and adds his or her own experiences.
9. Briefly describe the contributions that Joseph M. Juran made to the field of
quality management. What do you believe was Juran’s most significant
contribution?
Juran discusses three processes: planning, control, and improvement. He states that these
processes are sequential: first planning, then control, and then improvement. Juran’s
emphasis is on continued improvement – control, not breakthrough. Juran uses Pareto’s
law, the 80%/20% rule, to identify the quality problems.
10. Is the concept of scientific management compatible with employee
empowerment? Why or why not?
Frederick W. Taylor launched scientific management. It separated planning from
execution. Taylor gave the planning function to managers and engineers. He limited
supervisors and workers to the function of executing the plans. The result of the “Taylor
Revolution” was centralizing the quality function. How does this approach fit within the
framework established by Deming? Taylor published his treatise in 1911. How has the
culture of the workplace evolved since then?
11. Does the phrase “quality is the responsibility of the quality department” reflect a
healthy perspective of quality management? Please explain your answer.
This revolves around the question, “Whose job is quality?” By centralizing quality,
Taylor removed it from the day-to-day operation of the company. As the topic of quality
is removed from the production floor, what is management’s response going to be? If we
look back at Juran, is this now a control or a breakthrough function? Why?
Taylor notes that by delegating quality to the quality manager, the line supervisors and
managers could devote their own time to other matters. As they did so, they became
progressively less and less informed about quality. When a quality problem developed,
management lacked the expertise needed to choose a proper course of action.
failures. Although this concept is seldom discussed, writers like Deming and Juran are
sharing the remedies, either made or observed, to past failures.
The success of these writers is based upon the fact that they can help the new manager
avoid the common, but not obvious, pitfalls. Any person who has had a position of
authority should be able to read Deming’s list and identify a mistake that was made
relating to each one. This should prove to be a fascinating classroom session, especially if
the professor joins in the discussion and adds his or her own experiences.
9. Briefly describe the contributions that Joseph M. Juran made to the field of
quality management. What do you believe was Juran’s most significant
contribution?
Juran discusses three processes: planning, control, and improvement. He states that these
processes are sequential: first planning, then control, and then improvement. Juran’s
emphasis is on continued improvement – control, not breakthrough. Juran uses Pareto’s
law, the 80%/20% rule, to identify the quality problems.
10. Is the concept of scientific management compatible with employee
empowerment? Why or why not?
Frederick W. Taylor launched scientific management. It separated planning from
execution. Taylor gave the planning function to managers and engineers. He limited
supervisors and workers to the function of executing the plans. The result of the “Taylor
Revolution” was centralizing the quality function. How does this approach fit within the
framework established by Deming? Taylor published his treatise in 1911. How has the
culture of the workplace evolved since then?
11. Does the phrase “quality is the responsibility of the quality department” reflect a
healthy perspective of quality management? Please explain your answer.
This revolves around the question, “Whose job is quality?” By centralizing quality,
Taylor removed it from the day-to-day operation of the company. As the topic of quality
is removed from the production floor, what is management’s response going to be? If we
look back at Juran, is this now a control or a breakthrough function? Why?
Taylor notes that by delegating quality to the quality manager, the line supervisors and
managers could devote their own time to other matters. As they did so, they became
progressively less and less informed about quality. When a quality problem developed,
management lacked the expertise needed to choose a proper course of action.
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12. Briefly describe the Japanese quality revolution following World War II. What
can modern day managers learn from studying the history of this era?
After the war, the industrial leaders in Japan turned their attention toward improving the
quality of Japanese manufactured goods. The quality revolution in Japan was initiated
through the following steps:
• They sent teams abroad to learn how foreign countries achieved quality.
• They translated foreign literature into Japanese.
• They invited Deming to lecture in Japan and listened carefully to Deming's views
on quality.
To the credit of the Japanese people, they implemented what they learned about quality
management, and in many cases, eventually improved on what they learned. The result
was a virtual quality revolution in Japan in the years following World War II.
13. What was Joseph Juran’s primary contribution to quality thinking in America?
Discuss Juran’s three-step process to improving quality.
Juran’s three-step process was:
• Planning
• Control
• Improvement
This three-step process emphasized control over breakthrough. This was a major step
towards ongoing quality improvement, rather than mass inspections. This approach
moved the process of quality to the lowest possible level.
14. Hothouse quality refers to those quality programs that receive a lot of hoopla and
no follow-through. Provide several examples of management practices that can lead
to hothouse quality. How can hothouse quality be avoided?
Management practices that are focused on achieving short-term objectives and/or
immediate results are susceptible to hothouse quality. Hothouse quality programs often
promise dramatic increases in performance over a relatively short period of time.
Consistently productive decision makers typically see this as an unrealistic goal, and
avoid these types of programs. Less successful decision makers and decision makers
desperate to see quality improvement quickly may be more prone to investigate these
programs.
12. Briefly describe the Japanese quality revolution following World War II. What
can modern day managers learn from studying the history of this era?
After the war, the industrial leaders in Japan turned their attention toward improving the
quality of Japanese manufactured goods. The quality revolution in Japan was initiated
through the following steps:
• They sent teams abroad to learn how foreign countries achieved quality.
• They translated foreign literature into Japanese.
• They invited Deming to lecture in Japan and listened carefully to Deming's views
on quality.
To the credit of the Japanese people, they implemented what they learned about quality
management, and in many cases, eventually improved on what they learned. The result
was a virtual quality revolution in Japan in the years following World War II.
13. What was Joseph Juran’s primary contribution to quality thinking in America?
Discuss Juran’s three-step process to improving quality.
Juran’s three-step process was:
• Planning
• Control
• Improvement
This three-step process emphasized control over breakthrough. This was a major step
towards ongoing quality improvement, rather than mass inspections. This approach
moved the process of quality to the lowest possible level.
14. Hothouse quality refers to those quality programs that receive a lot of hoopla and
no follow-through. Provide several examples of management practices that can lead
to hothouse quality. How can hothouse quality be avoided?
Management practices that are focused on achieving short-term objectives and/or
immediate results are susceptible to hothouse quality. Hothouse quality programs often
promise dramatic increases in performance over a relatively short period of time.
Consistently productive decision makers typically see this as an unrealistic goal, and
avoid these types of programs. Less successful decision makers and decision makers
desperate to see quality improvement quickly may be more prone to investigate these
programs.
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15. Compare and contrast Deming’s, Juran’s, and Crosby’s perspectives of quality
management. What are the major similarities and differences between their
perspectives?
Deming addressed the entire process and focused primarily on the assertion that poor
quality is not the fault of the worker, but is the fault of the system. Deming also strongly
opposed the creation of quality inspection departments. He felt that quality should not be
the responsibility of the quality inspection departments. It should be built into the
product.
Juran's work focuses on the idea that organizational quality problems are largely the
result of insufficient and ineffective planning for quality. In addition, Juran fleshed out
many of the implementation issues involved with quality through his trilogy.
Crosby made two key points in his arguments about the responsibility of the quality
department, and not the individual worker. Crosby has enjoyed the most commercial
success of the three. First, he argued that quality, as a managed process, could be a source
of profit for an organization. Second, Crosby adopted a "zero defects" approach to quality
management, and emphasized the behavioral and motivational aspects of quality
improvement rather than statistical approaches.
Similarities: All three men were very passionate about the role of quality in business
organizations, and felt that quality is a process that must be deliberately managed. In
addition, all three of them saw quality as the focal point for organizational performance
and effectiveness.
Differences: Deming and Juran were more statistically oriented in their approach than
Crosby. The each emphasized different aspects of quality management in their
approaches. Crosby's zero defects approach probably goes further than would be
advocated by Deming or Juran. Crosby was also more prolific than Deming and Juran in
terms of the production of quality-related materials (e.g., videos, workbooks, lecture
series, etc.).
16. Describe Taguchi’s perspective of ideal quality. Does this perspective have
practical applications? If you were a manager, would you consider using the
Taguchi method? Why?
Table 2-4 on page 37 provides an overview of the Taguchi method.
15. Compare and contrast Deming’s, Juran’s, and Crosby’s perspectives of quality
management. What are the major similarities and differences between their
perspectives?
Deming addressed the entire process and focused primarily on the assertion that poor
quality is not the fault of the worker, but is the fault of the system. Deming also strongly
opposed the creation of quality inspection departments. He felt that quality should not be
the responsibility of the quality inspection departments. It should be built into the
product.
Juran's work focuses on the idea that organizational quality problems are largely the
result of insufficient and ineffective planning for quality. In addition, Juran fleshed out
many of the implementation issues involved with quality through his trilogy.
Crosby made two key points in his arguments about the responsibility of the quality
department, and not the individual worker. Crosby has enjoyed the most commercial
success of the three. First, he argued that quality, as a managed process, could be a source
of profit for an organization. Second, Crosby adopted a "zero defects" approach to quality
management, and emphasized the behavioral and motivational aspects of quality
improvement rather than statistical approaches.
Similarities: All three men were very passionate about the role of quality in business
organizations, and felt that quality is a process that must be deliberately managed. In
addition, all three of them saw quality as the focal point for organizational performance
and effectiveness.
Differences: Deming and Juran were more statistically oriented in their approach than
Crosby. The each emphasized different aspects of quality management in their
approaches. Crosby's zero defects approach probably goes further than would be
advocated by Deming or Juran. Crosby was also more prolific than Deming and Juran in
terms of the production of quality-related materials (e.g., videos, workbooks, lecture
series, etc.).
16. Describe Taguchi’s perspective of ideal quality. Does this perspective have
practical applications? If you were a manager, would you consider using the
Taguchi method? Why?
Table 2-4 on page 37 provides an overview of the Taguchi method.
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Taguchi accomplishes these steps by emphasizing a three-fold approach to quality:
• The definition of quality
• The quality loss function
• The concept of robust design
A key element of the Taguchi concept is that of robust design. This states that products
and services should be designed so that they are inherently defect-free and of high
quality. Taguchi sets his target high. The overall effect of this is desirable and
accomplishable.
17. Why do you think that reengineering programs have such a high failure rate?
Can you think of ways to improve the success rate of reengineering programs?
Reengineering bypasses the analysis and design steps and tries to piggyback on the past
successes of others. Reengineering programs have experienced a high failure rate
primarily because they tend to oversimplify extremely complex organizational issues, and
as a result, do not focus managers on the attention to detail and analysis that is necessary
to effect meaningful (and effective) organizational change. Reengineering programs
would probably be more successful if they were combined with more traditional and
well-founded approaches to effective organizational change.
18. Describe how the contingency perspective helps us understand why a single
approach to quality management may never emerge.
The text states that firms that are successful in quality do not adopt a blanket “Deming
approach to quality.” These firms utilize the applicable approaches that help them
improve. The author discusses this as the contingency perspective.
The direction is that different quality problems mandate different quality improvement
approaches. On page 40, the author states: From your own perspective, you need to make
correct quality-related decisions. In doing this, you should consider the different quality
experts in this chapter and choose those concepts and approaches that make sense for
you.
19. How can a philosophy of quality improvement help a firm in its overall efforts of
improving the quality of its products and services?
The one common element of all these approaches is that quality cannot be an adjunct to
the process. Quality must be an integral part of the development. For this to happen, a
philosophy of quality improvement must be ingrained into the corporate culture. The
point is made that quality starts in the design phase and continues through the product
manufacture
Any major change to a corporate culture must have full support from top management.
Quality is not any different.
Taguchi accomplishes these steps by emphasizing a three-fold approach to quality:
• The definition of quality
• The quality loss function
• The concept of robust design
A key element of the Taguchi concept is that of robust design. This states that products
and services should be designed so that they are inherently defect-free and of high
quality. Taguchi sets his target high. The overall effect of this is desirable and
accomplishable.
17. Why do you think that reengineering programs have such a high failure rate?
Can you think of ways to improve the success rate of reengineering programs?
Reengineering bypasses the analysis and design steps and tries to piggyback on the past
successes of others. Reengineering programs have experienced a high failure rate
primarily because they tend to oversimplify extremely complex organizational issues, and
as a result, do not focus managers on the attention to detail and analysis that is necessary
to effect meaningful (and effective) organizational change. Reengineering programs
would probably be more successful if they were combined with more traditional and
well-founded approaches to effective organizational change.
18. Describe how the contingency perspective helps us understand why a single
approach to quality management may never emerge.
The text states that firms that are successful in quality do not adopt a blanket “Deming
approach to quality.” These firms utilize the applicable approaches that help them
improve. The author discusses this as the contingency perspective.
The direction is that different quality problems mandate different quality improvement
approaches. On page 40, the author states: From your own perspective, you need to make
correct quality-related decisions. In doing this, you should consider the different quality
experts in this chapter and choose those concepts and approaches that make sense for
you.
19. How can a philosophy of quality improvement help a firm in its overall efforts of
improving the quality of its products and services?
The one common element of all these approaches is that quality cannot be an adjunct to
the process. Quality must be an integral part of the development. For this to happen, a
philosophy of quality improvement must be ingrained into the corporate culture. The
point is made that quality starts in the design phase and continues through the product
manufacture
Any major change to a corporate culture must have full support from top management.
Quality is not any different.
Loading page 22...
Page 9 of 13
20. Do you believe that CEOs and business managers should be skeptical about the
quality movement, or should they embrace the quality movement and try to involve
their firms in as many quality initiatives as possible? Please explain your answer.
The key to this question may be the phrase "as many quality initiatives as possible." Any
project requires planning. The more of an effect a project will have on a firm, the more
careful the planning must be. Integrating a quality program is no exception. Every part of
the firm is affected. Poor planning can be disastrous.
20. Do you believe that CEOs and business managers should be skeptical about the
quality movement, or should they embrace the quality movement and try to involve
their firms in as many quality initiatives as possible? Please explain your answer.
The key to this question may be the phrase "as many quality initiatives as possible." Any
project requires planning. The more of an effect a project will have on a firm, the more
careful the planning must be. Integrating a quality program is no exception. Every part of
the firm is affected. Poor planning can be disastrous.
Loading page 23...
Page 10 of 13
Case 2-1: Rheaco, Inc.: Making a Quality Turnabout byAsking for Advice
Discussion Questions:
1. Many companies fail in their efforts to improve quality without ever having asked
for advice. In your opinion, what are some of the reasons that inhibit firms from
asking for timely advice? If you were a manager at Rheaco, would you have sought
out an agency like the ARRI?
Many companies get into “fire fighting mode.” They are so busy solving immediate
problems that no one has time to dig into the cause of the problems.
Many of Deming’s 14 points speak to this problem:
Adopting a new philosophy (point 2), driving out fear (point 8), and remove barriers to
pride (point 12), all seem to be based on point 7, improve leadership. The problem is that
sometimes leadership does not realize that they are the roadblocks.
Firms can be insulated. Cultures can be stagnant. One solution is ensuring that
management participates in professional organizations. Another solution might be
encouraging employees to continue their education and bring in ideas from their classes.
A firm such as ARRI can be in the vanguard of conceptual development. The major
problem is finding out that they exist.
2. Discuss ARRI’s recommendations to Rheaco. How did these recommendations
help Rheaco improve its product quality?
First, AARI helped Rheaco develop an Enterprise Excellence Plan, which acted as a
roadmap for Rheaco's improvement efforts. Consistent with this effort, AARI helped
Rheaco implement several standard quality improvement programs, including cellular
manufacturing, just-in-time inventory control, total quality management, and employee
empowerment. Through this process, AARI worked in partnership with Rheaco to
implement the recommended initiatives and to gradually turn over the change process to
Rheaco itself. Other improvements were made, particularly in the areas of shipping and
receiving, inventory control, and human resource management. Collectively, these
changes had a profound influence on Rheaco's ability to improve its product quality.
Case 2-1: Rheaco, Inc.: Making a Quality Turnabout byAsking for Advice
Discussion Questions:
1. Many companies fail in their efforts to improve quality without ever having asked
for advice. In your opinion, what are some of the reasons that inhibit firms from
asking for timely advice? If you were a manager at Rheaco, would you have sought
out an agency like the ARRI?
Many companies get into “fire fighting mode.” They are so busy solving immediate
problems that no one has time to dig into the cause of the problems.
Many of Deming’s 14 points speak to this problem:
Adopting a new philosophy (point 2), driving out fear (point 8), and remove barriers to
pride (point 12), all seem to be based on point 7, improve leadership. The problem is that
sometimes leadership does not realize that they are the roadblocks.
Firms can be insulated. Cultures can be stagnant. One solution is ensuring that
management participates in professional organizations. Another solution might be
encouraging employees to continue their education and bring in ideas from their classes.
A firm such as ARRI can be in the vanguard of conceptual development. The major
problem is finding out that they exist.
2. Discuss ARRI’s recommendations to Rheaco. How did these recommendations
help Rheaco improve its product quality?
First, AARI helped Rheaco develop an Enterprise Excellence Plan, which acted as a
roadmap for Rheaco's improvement efforts. Consistent with this effort, AARI helped
Rheaco implement several standard quality improvement programs, including cellular
manufacturing, just-in-time inventory control, total quality management, and employee
empowerment. Through this process, AARI worked in partnership with Rheaco to
implement the recommended initiatives and to gradually turn over the change process to
Rheaco itself. Other improvements were made, particularly in the areas of shipping and
receiving, inventory control, and human resource management. Collectively, these
changes had a profound influence on Rheaco's ability to improve its product quality.
Loading page 24...
Page 11 of 13
A key statement is made on page 46: After ARRI had been working with Rheaco for a
period of time, the company started identifying and correcting problem on its own, which
is exactly what is supposed to happen.
People want to succeed. In an environment where success is rewarded, people will thrive
and bring the company along with them.
3. ARRI’s initial evaluation of Rheaco indicated that Rheaco’s employees, despite
the company’s difficulties, had an overall positive attitude. Do you believe that this
factor contributed to ARRI’s ability to provide Rheaco advice? Why or why not?
Most students will say that the attitude of Rheaco's employees was a significant factor in
AARI's ability to provide Rheaco advice. As discussed in Chapter 1, it is impossible to
implement quality without the commitment and action of employees. Because Rheaco's
employees had a positive attitude, the company started its quality improvement efforts
with one major obstacle already overcome. It would have been much more difficult for
Rheaco to accomplish what it did if it would have had to first convince its employees that
it was doing the right thing.
However, it is important to understand why the employees’ morale was positive in the
first place? How does management style enter into this? Could this enterprise have been
possible if management did not establish a positive environment? Figure 2.6 on page 44
identifies the role of leadership. In this diagram, everything revolves around leadership.
A key statement is made on page 46: After ARRI had been working with Rheaco for a
period of time, the company started identifying and correcting problem on its own, which
is exactly what is supposed to happen.
People want to succeed. In an environment where success is rewarded, people will thrive
and bring the company along with them.
3. ARRI’s initial evaluation of Rheaco indicated that Rheaco’s employees, despite
the company’s difficulties, had an overall positive attitude. Do you believe that this
factor contributed to ARRI’s ability to provide Rheaco advice? Why or why not?
Most students will say that the attitude of Rheaco's employees was a significant factor in
AARI's ability to provide Rheaco advice. As discussed in Chapter 1, it is impossible to
implement quality without the commitment and action of employees. Because Rheaco's
employees had a positive attitude, the company started its quality improvement efforts
with one major obstacle already overcome. It would have been much more difficult for
Rheaco to accomplish what it did if it would have had to first convince its employees that
it was doing the right thing.
However, it is important to understand why the employees’ morale was positive in the
first place? How does management style enter into this? Could this enterprise have been
possible if management did not establish a positive environment? Figure 2.6 on page 44
identifies the role of leadership. In this diagram, everything revolves around leadership.
Loading page 25...
Page 12 of 13
Case 2-2: Has Disney Developed a Theory of Quality Guest Services
Management?
Discussion Questions:
1. Is Disney’s level of emphasis on anticipating the behavior of its guests
appropriate, or does the company expend too much effort in this area? Explain your
answer.
Before Disneyland, carnivals had a reputation as being seedy and unscrupulous. Walt
Disney saw the need for a family-friendly wholesome theme park. In fact, Disneyland
was the very first theme park. The success of Disneyland and Disneyworld justifies the
process.
All successful theme parks have followed the Disney model. Deming’s 14 points
continuously emphasizes the value of customer satisfaction. The guest is the customer.
2. Is it appropriate to think in terms of developing a “theory” of how guests will
behave in a theme park or any other setting? If so, why?
On page 26 the text discusses this topic thusly:
The text goes on to discuss this topic in A Closer Look At Quality 2-1:
Case 2-2: Has Disney Developed a Theory of Quality Guest Services
Management?
Discussion Questions:
1. Is Disney’s level of emphasis on anticipating the behavior of its guests
appropriate, or does the company expend too much effort in this area? Explain your
answer.
Before Disneyland, carnivals had a reputation as being seedy and unscrupulous. Walt
Disney saw the need for a family-friendly wholesome theme park. In fact, Disneyland
was the very first theme park. The success of Disneyland and Disneyworld justifies the
process.
All successful theme parks have followed the Disney model. Deming’s 14 points
continuously emphasizes the value of customer satisfaction. The guest is the customer.
2. Is it appropriate to think in terms of developing a “theory” of how guests will
behave in a theme park or any other setting? If so, why?
On page 26 the text discusses this topic thusly:
The text goes on to discuss this topic in A Closer Look At Quality 2-1:
Loading page 26...
Page 13 of 13
Is there a difference between the way theme parks anticipate their guests’ behavior and
the way a supermarket arranges their shelving display to optimize sales?
3. Think about the last time that you visited a theme park. Were your expectations
met? Did you have a sense that the operator of the park attempts to “anticipate” the
behavior of the guests? If so, provide some specific examples.
This question can best be answered on a personal basis. What experiences did the class
have at theme parks? Theme parks are not inexpensive places. Was the general consensus
that value was there? Will they return? Who is the audience that the theme park targets:
parents, children, or subsections of the population?
An interesting aspect is the question: Why was Disneyland, Paris not as successful as
other Disney efforts?
Is there a difference between the way theme parks anticipate their guests’ behavior and
the way a supermarket arranges their shelving display to optimize sales?
3. Think about the last time that you visited a theme park. Were your expectations
met? Did you have a sense that the operator of the park attempts to “anticipate” the
behavior of the guests? If so, provide some specific examples.
This question can best be answered on a personal basis. What experiences did the class
have at theme parks? Theme parks are not inexpensive places. Was the general consensus
that value was there? Will they return? Who is the audience that the theme park targets:
parents, children, or subsections of the population?
An interesting aspect is the question: Why was Disneyland, Paris not as successful as
other Disney efforts?
Loading page 27...
Page 1 of 15
Chapter 3: Global Supply Chain Quality and International
Quality Standards
Chapter Outline
• Managing Quality for the Multinational Firm
• Quality Improvement:
o The American Way
o The Japanese Way
o The European Way
o The Chinese Way
• ISO 9000:2008
• Are Quality Approaches Influenced By Culture?
Overview
The task of managing quality is affected by increased globalization. This chapter
discusses the opportunities and obstacles created by globalization. The differences
between regions of the world also include discussions of various quality approaches that
have been developed in those regions and the awards that act as quality barometers within
each.
In an increasingly globalizing economy, it is important to understand the
approaches that various nations use to improve quality. It is clear that the trend is toward
greater participation in a global economy. As a result, the worker of the future will need
to adapt to approaches having roots in other cultures.
Chapter 3: Global Supply Chain Quality and International
Quality Standards
Chapter Outline
• Managing Quality for the Multinational Firm
• Quality Improvement:
o The American Way
o The Japanese Way
o The European Way
o The Chinese Way
• ISO 9000:2008
• Are Quality Approaches Influenced By Culture?
Overview
The task of managing quality is affected by increased globalization. This chapter
discusses the opportunities and obstacles created by globalization. The differences
between regions of the world also include discussions of various quality approaches that
have been developed in those regions and the awards that act as quality barometers within
each.
In an increasingly globalizing economy, it is important to understand the
approaches that various nations use to improve quality. It is clear that the trend is toward
greater participation in a global economy. As a result, the worker of the future will need
to adapt to approaches having roots in other cultures.
Loading page 28...
Page 2 of 15
In this chapter, the global economy was discussed and the role quality plays in
that world economy. We considered different quality models from different regions.
From an integrative perspective, it is reasonable to borrow from all these models if it
helps a firm perform better. The underlying theme in the chapter is the importance of
learning from other cultures to compete effectively.
Discussion Questions
1. What are the advantages or disadvantages of licensing as a means of gaining
access to foreign markets?
Through licensing, a firm expands its market and retains earnings made in a foreign
market. With markets as large as China, this is a considerable amount. A licensor may
also have an existing marketing establishment and existing contacts. The cultural aspects
are also worth considering: a product’s name or logo might well be considered offensive
in a foreign market. A good example is the Chevrolet Nova. In Spanish, “nova” means
“doesn’t go.” A local partner would observe the problem.
However, the disadvantages can be large also. The firm shares its profits with a foreign
firm, rather than selling the product or service itself in the foreign country.
2. What are the advantages and disadvantages of globalization? Provide an example
of a firm that has engaged in globalization. What are some of the potential
advantages and disadvantages of globalization for this particular organization?
The primary advantage of globalization is that a firm retains all of the profits from the
sale of its products or services in a foreign country. This is a significant advantage when
one thinks about the potential of a foreign market like China, which has over one billion
potential consumers.
As Figure 3-2 illustrates, the physical environment, the technical environment, and the
social environment affect quality. These factors are dependent upon the local culture to a
great degree.
In this chapter, the global economy was discussed and the role quality plays in
that world economy. We considered different quality models from different regions.
From an integrative perspective, it is reasonable to borrow from all these models if it
helps a firm perform better. The underlying theme in the chapter is the importance of
learning from other cultures to compete effectively.
Discussion Questions
1. What are the advantages or disadvantages of licensing as a means of gaining
access to foreign markets?
Through licensing, a firm expands its market and retains earnings made in a foreign
market. With markets as large as China, this is a considerable amount. A licensor may
also have an existing marketing establishment and existing contacts. The cultural aspects
are also worth considering: a product’s name or logo might well be considered offensive
in a foreign market. A good example is the Chevrolet Nova. In Spanish, “nova” means
“doesn’t go.” A local partner would observe the problem.
However, the disadvantages can be large also. The firm shares its profits with a foreign
firm, rather than selling the product or service itself in the foreign country.
2. What are the advantages and disadvantages of globalization? Provide an example
of a firm that has engaged in globalization. What are some of the potential
advantages and disadvantages of globalization for this particular organization?
The primary advantage of globalization is that a firm retains all of the profits from the
sale of its products or services in a foreign country. This is a significant advantage when
one thinks about the potential of a foreign market like China, which has over one billion
potential consumers.
As Figure 3-2 illustrates, the physical environment, the technical environment, and the
social environment affect quality. These factors are dependent upon the local culture to a
great degree.
Loading page 29...
Page 3 of 15
The primary disadvantage of globalization is that it is complicated and forces a firm to, in
essence, "set up shop" in a foreign country. By going abroad, a firm significantly changes
the physical environment, the task environment, and the societal environment in which it
operates. This may result in a number of challenges, ranging from becoming familiar
with a foreign culture to determining how to get the raw materials that a firm needs to
manufacture its product to a foreign destination. IBM is an example of a company that
engages in globalization. IBM manufactures products in many countries of the world.
The major advantage to globalization for IBM is that it vastly increases the number of
potential customers for its computer hardware products. However, IBM’s dark-suit
culture may be considered foreign in many parts of the world.
3. What motivates U.S. firms to compete for the Malcolm Baldrige Award? How
could a firm benefit from participating in the Baldrige competition, even if it did not
apply for the award?
Malcolm Baldrige was Secretary of Commerce from 1981 until his death in July 1987.
Baldrige was a proponent of quality management as a key to the U.S.’s prosperity and
long-term strength. He took a personal interest in the quality improvement act that was
eventually named after him and helped draft one of the early versions. In recognition of
his contributions, Congress named the award in his honor.1 As Figure 3-5 on page 56
illustrates, the Baldrige Award recognizes the interrelationship between the various facets
of the organization.
1 http://www.nist.gov/public_affairs/factseet/baldfaqs
The primary disadvantage of globalization is that it is complicated and forces a firm to, in
essence, "set up shop" in a foreign country. By going abroad, a firm significantly changes
the physical environment, the task environment, and the societal environment in which it
operates. This may result in a number of challenges, ranging from becoming familiar
with a foreign culture to determining how to get the raw materials that a firm needs to
manufacture its product to a foreign destination. IBM is an example of a company that
engages in globalization. IBM manufactures products in many countries of the world.
The major advantage to globalization for IBM is that it vastly increases the number of
potential customers for its computer hardware products. However, IBM’s dark-suit
culture may be considered foreign in many parts of the world.
3. What motivates U.S. firms to compete for the Malcolm Baldrige Award? How
could a firm benefit from participating in the Baldrige competition, even if it did not
apply for the award?
Malcolm Baldrige was Secretary of Commerce from 1981 until his death in July 1987.
Baldrige was a proponent of quality management as a key to the U.S.’s prosperity and
long-term strength. He took a personal interest in the quality improvement act that was
eventually named after him and helped draft one of the early versions. In recognition of
his contributions, Congress named the award in his honor.1 As Figure 3-5 on page 56
illustrates, the Baldrige Award recognizes the interrelationship between the various facets
of the organization.
1 http://www.nist.gov/public_affairs/factseet/baldfaqs
Loading page 30...
Page 4 of 15
There is great prestige in winning the Baldrige Award. Firms that do not win the award
but receive a site visit from Baldrige examiners often include in their company brochures
and other promotional material a mention of themselves as being "Baldrige Qualified."
The Baldrige Award, or even being Baldrige Qualified, helps firms attract high-quality
suppliers, customers, and other stakeholders.
The attention to quality from being involved in the Baldrige Award helps a firm establish
a culture of quality and helps a firm rally its employees around quality improvement
efforts.
4. Category 3 of the Baldrige criteria focuses on the importance of the customer in
assessing the quality of the products and services that a firm sells. Why do you think
the authors of the Baldrige criteria included this category? How is the customer
important in assessing the quality of the products and services that a company sells?
Ishikawa’s second point is: The first step in quality is to know the requirements of the
customer.
Deming, Juran, Feigenbaum and Parasuraman, Zeithamel, and Berry – all directly
address the customer. Figure 2-5 directly places “Customer Role” at the core of quality
management
There is great prestige in winning the Baldrige Award. Firms that do not win the award
but receive a site visit from Baldrige examiners often include in their company brochures
and other promotional material a mention of themselves as being "Baldrige Qualified."
The Baldrige Award, or even being Baldrige Qualified, helps firms attract high-quality
suppliers, customers, and other stakeholders.
The attention to quality from being involved in the Baldrige Award helps a firm establish
a culture of quality and helps a firm rally its employees around quality improvement
efforts.
4. Category 3 of the Baldrige criteria focuses on the importance of the customer in
assessing the quality of the products and services that a firm sells. Why do you think
the authors of the Baldrige criteria included this category? How is the customer
important in assessing the quality of the products and services that a company sells?
Ishikawa’s second point is: The first step in quality is to know the requirements of the
customer.
Deming, Juran, Feigenbaum and Parasuraman, Zeithamel, and Berry – all directly
address the customer. Figure 2-5 directly places “Customer Role” at the core of quality
management
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