Quality matters because it affects customer satisfaction, costs, productivity, and a company’s ability to compete. This lesson explains how organizations can build quality into their operations rather than relying only on final inspections.
Customers judge quality by how well a product or service serves its purpose. Manufacturers also assess quality by asking whether the product conforms to predetermined standards. A reliable product that meets customer expectations can support loyalty and repeat sales. Defects, by contrast, waste materials and time, raise costs, and can drive customers away.
All flashcards
What is Total Quality Management (TQM)?
A company-wide approach that applies quality principles throughout production and operations, emphasizes preventing problems, and continually improves processes.
What does continuous improvement mean?
A commitment to keep looking for better ways of working so an organization can improve quality and efficiency.
What is Six Sigma’s defect target?
Six Sigma aims for no more than 3.4 defects per million opportunities while working toward as few defects as possible.
What does DMAIC stand for?
Define, Measure, Analyze, Improve, and Control—the stages used to identify quality needs, assess performance, understand problems, improve processes, and maintain gains.
How do ISO 9001 and ISO 14001 differ?
ISO 9001 is a certifiable standard for quality-management requirements. ISO 14001 focuses on environmental management, continual improvement, and pollution prevention.
Quiz questions
How does a manufacturer commonly define product quality?Answer: The degree to which a product conforms to predetermined standards.
What did W. Edwards Deming emphasize about quality control?Answer: Quality control should be a company-wide goal supported by top management.
Which consideration is central to the Malcolm Baldrige National Quality Award?Answer: How effectively an organization meets customer expectations.
In a just-in-time system, how are materials and products pulled through production?Answer: In response to customer demand.
What does ISO 9001 provide for organizations seeking quality certification?Answer: Certifiable quality-management requirements assessed through an audit.
Based on Introduction to Business 2e by Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, James C. Hyatt (OpenStax), licensed CC BY 4.0. Adapted into a summary, flashcards and quizzes.