Performance Quality: Design specifications and defined features
Conformance Quality: Execution of specifications and processes. After a product or service is defined, ongoing focus is conformance to the specification 100% of the time.
W. Edwards Deming and J.M. Juran in Japan
Total Quality Management (TQM) — Quality extended to the entire organization
Everyone in the workplace is responsible for quality
Everyone has a direct customer
ISO 9000 Quality Standards
International Organization for Standardization
ISO 9001:2008 — Standard for Quality Management System that can be certified
Cost of Poor Quality — Up to 10-15% of the revenue is lost in inefficiencies in a 3-sigma company
Returns
Warranties
Scrap
Quality team/Inspections
Lost sales and revenue
Unsatisfied / lost customers
Poor asset utilization
Inefficiencies throughout organization
Excess inventories
Expediting costs
Re-work
Long cycles (production, delivery, collection)
Foundation
Quality is Conformance to the specifications!
“85%” of the responsibility for quality is leadership
Leadership role is to provide tools, training and culture
Quality, Safety, Cost and Delivery are Equals
Everyone must be a zero defect producer — do it right the first time
Everyone must be an inspector –- catch defects as they happen
The system of Quality is prevention
The performance standard is Zero Defects
The measurement of Quality is the cost of non-conformance