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					                       Total Quality in Your JA Company

OVERVIEW
The Participants will read and discuss Quality in Industry which deals with the quality of goods and services.


OBJECTIVES
The Participants will:
 learn about the importance of quality control in the production/service delivery process
 learn about some of the strategies companies implement to achieve “total quality”
 develop a plan to identify defects at each stage of their company’s production process.


PREPARATION CHECKLIST
 Make copies of the handout Quality in Industry for all the Participants.


PRESENTATION
Quality control, part of the production/service delivery process, is so important to JA Companies that it should be
stressed as part of the training program.

Distribute copies of the handout. This exercise can be done in groups of about four, or individually. Give the
Participants time to read the article and then answer the questions. When they have finished, discuss their answers
with the whole group.

Help the Participants apply the lessons learned from this exercise to the production/service planning and training
process. Emphasize the importance of prevention over inspection and rejection.

Develop a plan for identifying and counting defects or inadequacies at each stage of the process.

Once production/service operation is under way, help the Participants develop a flow chart to identify potential
“trouble spots”. Determine if the problems have been caused by materials, people, methods or the environment.
Challenge the Participants to develop a more efficient process that will improve quality and reduce waste.




CP-SV CA9 Total Quality V1.0                                                                              Supplementary
                               Quality in Industry
Hewlett-Packard (HP) is a large and successful manufacturer of computer chips and other electronic equipment. In
a famous study in 1980, a manager of HP’s Data Systems Division tested 300,000 computer chips from six
manufacturers — three from Japan and three from the United States. The failure rate for the U.S. chips was 11 to
19 per thousand. The Japanese chips had zero defects per thousand. After one thousand hours of use, only two
Japanese chips per thousand failed, but an average 27 U.S. computer chips failed. If you were in the market for
computer chips, where would you buy them?

It didn’t take HP executives long to answer that question, and they immediately began a successful campaign to
improve product quality tenfold during the 1980s. To remain competitive — to stay in business at all — HP had to
improve the quality of its products.

Attention to quality actually saves money because it reduces material and workers’ time and energy. Attention to
quality is also important to the success of service businesses. As you would expect, studies have shown that
customers continue to do business with a company if they are satisfied with the treatment they receive. Other
studies have found that it costs much more to attract a new customer than to keep an old one.

Today, many businesses are trying to achieve “total quality” by implementing a variety of production and
management strategies. Some of them are described below.

ACHIEVING QUALITY

Establish a Commitment to Excellence: By establishing company-wide goals and training programs,
companies have been able to develop a commitment to excellence while providing employees with the skills,
information and tools that can improve their performance. Often, companies will adopt slogans to remind
employees and customers of the company’s commitment to quality. For example, in the past, Ford Motor Co.
adopted the slogan, “Quality is Job One” for use in advertising campaigns. This slogan served to let customers
know that quality was important at Ford, and as a reminder for employees that high-quality work was important in all
areas of the company’s operation.

Meet Customer Expectations: Determine exactly what product or service characteristics your customers
expect, then deliver the product or service according to specifications, on schedule.

As more and more companies make commitments to quality, they in turn expect greater quality from their suppliers.
Companies that take pride in producing high-quality products do not want to buy materials that may be of mixed
quality or include defects. (This is why your JA Company’s first quality check should be the unassembled raw
materials.)

Strive for Continuous Improvement: Almost any production process can be improved. Companies
committed to excellence are using several interesting techniques to make improvements. Here are three examples:

     Empowering Employees: Workers closest to a process are given the responsibility for discovering
     ways to improve the process, the product or the service. Employees also meet regularly in cross-functional
     groups to discuss ways to identify problems and improve a process. For example, an assembly line worker

CP-SV CA9 Total Quality V1.0                                                                             Supplementary
     might meet with the Purchasing Manager and Customer Service Representative to discuss material or part
     specifications.

     Just-In-Time Inventory Management: This technique involves working with suppliers of parts and
     raw materials to guarantee that production teams have the right parts at the right time. Productivity and quality
     decline when employees must wait for missing parts.

     The same concept can be applied to information. For example, product designers can waste time and energy if
     they don’t have the information they need from marketing about customer needs and wants.

     Statistical Process Control: In order to discover variations in product or service quality and the
     efficiency of the production or service process, workers and managers take frequent measurements to discover
     bottlenecks in production and defects in products. By analyzing the data to discover when and where problems
     occur, improvements can be made.

As more and more businesses focus on improving the quality of their goods and services, productivity will improve
and so will our standard of living.

1. Design a slogan that can be used to emphasize the quality of the product or service marketed by your
   company.




2. Suggest ways in which quality during the production or service process could be improved.




3. How could all of the members of the company be encouraged to contribute to the improvement of the total
   quality of the business?




4. What do your customers expect to receive from your product or service?




5. Does your company meet those expectations? Why or why not?


CP-SV CA9 Total Quality V1.0                                                                               Supplementary
CP-SV CA9 Total Quality V1.0   Supplementary