03 Aug Read and review the key points of chapter
Read and review the key points of chapter 22 Implementing Total Quality Management. Then find the
Critical Thinking Activities on p. 419. Read #1 for background on the E-Z Open Manufacturing Company
(do not develop the documents). Read #2 and answer the question “What would you have the company
do?” Read #3 and use your place of work (or any previous place of work) to answer the question “How
does (or could) TQM benefit it in general, and in particular, what improvement would you expect from
following the 20-step implementation process?” Finally, read #4 and use TCC as the model – how could
TQM benefit the college and students? Include specific areas for improvement.
Quality ManageMent for organizational excellence
introduction to total Quality
David L. Goetsch
Stanley B. Davis
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Library of Congress Cataloging-in-Publication Data is available from the Publisher upon request.
10 9 8 7 6 5 4 3 2 1
ISBN 10: 0-13-379185-8 ISBN 13: 978-0-13-379185-3
i PhilosoPhy and ConCePts 1
1 the total Quality approach to Quality Management: achieving organizational excellence 2
2 Quality and Global Competitiveness 18
3 strategic Management: Planning and execution for Competitive advantage 33
4 Quality Management, ethics, and Corporate social Responsibility 49
5 Partnering and strategic alliances 64
6 Quality Culture: Changing hearts, Minds, and attitudes 77
7 Customer satisfaction, Retention, and loyalty 91
8 employee empowerment 107
9 leadership and Change 118
10 team Building and teamwork 140
11 effective Communication 157
12 education and training 175
13 overcoming Politics, negativity, and Conflict in the Workplace 197
14 iso 9000 and total Quality: the Relationship 220
ii tools and teChniQues 231
15 overview of total Quality tools 232
16 Problem solving and decision Making 265
17 Quality Function deployment 282
18 optimizing and Controlling Processes through statistical Process Control 298
19 Continual improvement Methods with six sigma, lean, lean six sigma, and More 326
20 Benchmarking 351
21 Just-in-time/lean Manufacturing (Jit/lean) 366
22 implementing total Quality Management 396
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Quality Management Practices in Asian Countries 30 Summary 30 Key Terms and Concepts 31 Factual Review Questions 31 Critical Thinking Activity 31 Discussion Assignment 2.1 31 Discussion Assignment 2.2 31 Endnotes 32
3 Strategic Management: Planning and execution for competitive advantage 33 Learning Objectives 33 What is Strategic Management? 33 Competitive Strategy 33 Core Competencies and Competitive Advantage 34 Components of Strategic Management 34 Strategic Planning Overview 34 Executing the Strategic Plan 43 Strategic Planning in Action: A “Real-World” Case 44 Summary 47 Key Terms and Concepts 47 Factual Review Questions 48 Critical Thinking Activity 48 Endnote 48
4 Quality Management, ethics, and corporate Social responsibility 49 Learning Objectives 49 Definition and Overview of Ethics 49 Trust and Total Quality 51 Values and Total Quality 53 Integrity and Total Quality 53 Responsibility and Total Quality 53 Manager’s Role in Ethics 54 Organization’s Role in Ethics 54 Handling Ethical Dilemmas 55 Ethics Training and Codes of Business Conduct 55
Preface xi Acknowledgments xii About the Authors xiii
i PhiloSoPhy and concePtS 1
1 the total Quality approach to Quality Management: achieving organizational excellence 2 Learning Objectives 2 What is Quality? 2 The Total Quality Approach Defined 3 Two Views of Quality 6 Key Elements of Total Quality 7 Total Quality Pioneers 8 Keys to Total Quality Success 12 The Future of Quality Management in the Twenty-First Century 12 Quality Certifications 13 Summary 15 Key Terms and Concepts 15 Factual Review Questions 15 Critical Thinking Activity 16 Discussion Assignment 1.1 16 Discussion Assignment 1.2 16 Endnotes 17
2 Quality and global competitiveness 18 Learning Objectives 18 The Relationship Between Quality and Competitiveness 18 Cost of Poor Quality 19 Competitiveness and the U.S. Economy 20 Factors Inhibiting Competitiveness 21 Comparisons of International Competitors 25 Human Resources and Competitiveness 25 Characteristics of World-Class Organizations 26 Management-by-Accounting: Antithesis of Total Quality 28 U.S. Companies: Global Strengths and Weaknesses 28
Discussion Assignment 6.1 89 Endnotes 90
7 customer Satisfaction, retention, and loyalty 91 Learning Objectives 91 Understanding Who is a Customer 91 Understanding Customer-Defined Quality 92 Identifying External Customer Needs 93 Communicating with Customers 94 Customer Satisfaction Process 96 Customer-Defined Value 96 Customer Retention 97 Establishing a Customer Focus 99 Recognizing the Customer-Driven Organization 100 Value Perception and Customer Loyalty 100 Customer Loyalty Model 100 Customer Loyalty Versus Customer Profitability 101 Customers as Innovation Partners 102 Product Innovation Model for Customer Retention 103 Summary 104 Key Terms and Concepts 104 Factual Review Questions 104 Critical Thinking Activity 105 Discussion Assignment 7.1 105 Discussion Assignment 7.2 105 Endnotes 105
8 employee empowerment 107 Learning Objectives 107 Employee Empowerment Defined 107 Rationale for Empowerment 108 Inhibitors of Empowerment 109 Management’s Role in Empowerment 111 Implementing Empowerment 112 How to Recognize Empowered Employees 114 Empowerment Errors to Avoid 114 Beyond Empowerment to Enlistment 115 Summary 116 Key Terms and Concepts 116 Factual Review Questions 116 Critical Thinking Activity 116 Discussion Assignment 8.1 116 Discussion Assignment 8.2 117 Discussion Assignment 8.3 117 Endnotes 117
Models for Making Ethical Decisions 56 Beliefs Versus Behavior: Why the Disparity? 57 Ethical Dilemmas: Cases 58 Corporate Social Responsibility Defined 61 Summary 62 Key Terms and Concepts 62 Factual Review Questions 62 Critical Thinking Activity 63 Discussion Assignment 4.1 63 Endnotes 63
5 Partnering and Strategic alliances 64 Learning Objectives 64 Partnering or Strategic Alliances 64 Innovative Alliances and Partnerships 67 Internal Partnering 68 Partnering with Suppliers 68 Partnering with Customers 71 Partnering with Potential Competitors 72 Global Partnering 74 Education and Business Partnerships 74 Summary 75 Key Terms and Concepts 75 Factual Review Questions 75 Critical Thinking Activity 76 Discussion Assignment 5.1 76 Discussion Assignment 5.2 76 Endnotes 76
6 Quality culture: changing hearts, Minds, and attitudes 77 Learning Objectives 77 Understanding What a Quality Culture is 77 Quality Culture Versus Traditional Cultures 78 Activating Cultural Change 80 Changing Leaders to Activate Change 80 Laying the Foundation for a Quality Culture 81 Learning What a Quality Culture Looks Like 82 Countering Resistance to Cultural Change 82 Establishing a Quality Culture 85 Maintaining a Quality Culture 87 Summary 88 Key Terms and Concepts 88 Factual Review Questions 89 Critical Thinking Activity 89
Recognizing Inhibitors of Communication 159 Establishing a Conducive Communication Climate 161 Communicating by Listening 161 Understanding Nonverbal Communication Factors 165 Communicating Verbally 166 Communicating in Writing 167 Communicating Corrective Feedback 169 Improving Communication 170 How Interpersonal Skills Affect Communication 171 Personality and Communication 172 Summary 173 Key Terms and Concepts 173 Factual Review Questions 174 Critical Thinking Activity 174 Discussion Assignment 11.1 174 Endnotes 174
12 education and training 175 Learning Objectives 175 Overview of Education, Training, and Learning 175 Rationale for Training 179 Training Needs Assessment 181 Providing Training 183 Evaluating Training 184 Managers as Trainers 186 Workforce Literacy 191 Why Training Sometimes Fails 192 Quality Training Curriculum 192 Orientation Training 192 Customer Training 193 Ethics Training 193 Making E-Learning Work 194 Summary 194 Key Terms and Concepts 195 Factual Review Questions 195 Critical Thinking Activity 195 Discussion Assignment 12.1 196 Discussion Assignment 12.2 196 Endnotes 196
13 overcoming Politics, negativity, and conflict in the Workplace 197 Learning Objectives 197 Internal Politics Defined 197 Organizational Structure and Internal Politics 199 Internal Politics in Action 201
9 leadership and change 118 Learning Objectives 118 Leadership Defined 118 Leadership for Quality 121 Leadership Styles 123 Building and Maintaining a Following 124 Leadership Versus Management 126 Restructuring and Change 127 How to Lead Change 128 Lessons from Distinguished Leaders 131 Servant Leadership and Stewardship 135 Negative Influences on Leaders: How to Counter Them 135 Leaders as Mentors 136 Summary 137 Key Terms and Concepts 138 Factual Review Questions 138 Critical Thinking Activity 138 Discussion Assignment 9.1 139 Discussion Assignment 9.2 139 Endnotes 139
10 team Building and teamwork 140 Learning Objectives 140 Overview of Team Building and Teamwork 140 Building Teams and Making them Work 142 Four-Step Approach to Team Building 144 Character Traits and Teamwork 146 Teams are Coached—Not Bossed 147 Handling Conflict in Teams 149 Structural Inhibitors of Teamwork 151 Rewarding Team and Individual Performance 152 Recognizing Teamwork and Team Players 154 Leading Multicultural Teams 154 Summary 155 Key Terms and Concepts 155 Factual Review Questions 156 Critical Thinking Activity 156 Discussion Assignment 10.1 156 Endnotes 156
11 effective communication 157 Learning Objectives 157 Defining Communication 157 Understanding the Role of Communication in Total Quality 158 Understanding Communication as a Process 159
Cause-and-Effect Diagrams 235 Check Sheets 237 Histograms 240 Scatter Diagrams 246 Run Charts and Control Charts 249 Stratification 250 Some Other Important Tools Introduced 252 Management’s Role in Tool Deployment 258 Selecting the Right Tool for the Job 260 Summary 261 Key Terms and Concepts 261 Factual Review Questions 262 Critical Thinking Activities 262 Discussion Assignment 15.1 263 Endnotes 264
16 Problem Solving and decision Making 265 Learning Objectives 265 Problem Solving for Total Quality 265 Two Models for Solving and Preventing Problems 266 Problem-Solving and Decision-Making Tools 272 Decision Making for Total Quality 272 The Decision-Making Process 272 Objective Versus Subjective Decision Making 274 Scientific Decision Making and Problem Solving 275 Employee Involvement in Problem Solving and Decision Making 275 Role of Information in Decision Making 276 Creativity in Decision Making 277 Summary 278 Key Terms and Concepts 279 Factual Review Questions 279 Critical Thinking Activity 279 Discussion Assignment 16.1 280 Discussion Assignment 16.2 280 Endnotes 281
17 Quality function deployment 282 Learning Objectives 282 What is Quality Function Deployment? 282 Introducing Quality Function Deployment’s House of Quality 283 Developing the Set of Customer Needs (WHATs): House of Quality Matrix Number 1 284
Internal Politicians and Their Methods 204 Impact of Internal Politics on Quality 207 Controlling Internal Politics in Organizations 208 Overcoming Negativity in Organizations 213 Overcoming Territorial Behavior in Organizations 214 Managing Conflict in Organizations 215 Summary 217 Key Terms and Concepts 217 Factual Review Questions 218 Critical Thinking Activity 218 Discussion Assignment 13.1 218 Discussion Assignment 13.2 218 Endnotes 219
14 iSo 9000 and total Quality: the relationship 220 Learning Objectives 220 ISO 9000: The International Standard for Quality Management Systems 220 ISO 9000’s Objective 221 How ISO 9000 is Applied to Organizations 221 ISO 9000 Quality Management System: A Definition 222 Authority for Certification/Registration 222 ISO 9001 and Industry-Specific Applications 223 Organizational Registration to ISO 9001 223 The Benefits of ISO 9000 224 The Origin of ISO 9000 224 Comparative Scope of ISO 9000 and Total Quality Management 224 Management Motivation for Registration to ISO 9001 226 ISO 9000 and Total Quality Management Working Together 226 The Future of ISO 9000 227 ISO 9000: Versions/Updates 227 Summary 228 Key Terms and Concepts 229 Factual Review Questions 229 Critical Thinking Activity 229 Discussion Assignment 14.1 229
ii toolS and techniQueS 231
15 overview of total Quality tools 232 Learning Objectives 232 Total Quality Tools Defined 232 Pareto Charts 233
Development of Improvement Plans 329 Common Improvement Strategies 330 The Kaizen Approach 333 The CEDAC Approach 336 The Lean Approach 338 The Six Sigma Approach 340 The Lean Six Sigma Approach 346 The Theory of Constraints and Integrated TOC, Lean, Six Sigma (ITLS) Approach 347 Summary 348 Key Terms and Concepts 348 Factual Review Questions 349 Critical Thinking Activity 349 Endnotes 349
20 Benchmarking 351 Learning Objectives 351 Benchmarking Defined 351 Prerequisites to Benchmarking 354 Obstacles to Successful Benchmarking 355 Role of Management in Benchmarking 356 Benchmarking Approach and Process 357 Making Full use of Benchmarking Data 360 Perpetual Benchmarking 361 Benchmarking Resources 361 Summary 362 Key Terms and Concepts 362 Factual Review Questions 362 Critical Thinking Activity 362 Discussion Assignment 20.1 364 Discussion Assignment 20.2 364 Endnote 365
21 Just-in-time/lean Manufacturing (Jit/lean) 366 Learning Objectives 366 JIT/Lean Defined 366 Rationale for JIT/Lean 368 Development of JIT/Lean 369 Relationship of JIT/Lean to Total Quality and World-Class Manufacturing 373 Benefits of JIT/Lean 375 Requirements of JIT/Lean 381 Automation and JIT/Lean 393 Summary 393 Key Terms and Concepts 394 Factual Review Questions 394
Planning the Improvement Strategy: House of Quality Matrix Number 2 286 Selecting the Technical Requirements (HOWs): House of Quality Matrix Number 3 288 Evaluating Interrelationships between WHATs and HOWs: House of Quality Matrix Number 4 288 Evaluating the Direction of Correlation between HOWs: House of Quality Matrix Number 5 290 Selecting the Design Targets (Values) of the HOWs: House of Quality Matrix Number 6 291 Summary 296 Key Terms and Concepts 296 Factual Review Questions 296 Critical Thinking Activity 296 Discussion Assignment 17.1 296
18 optimizing and controlling Processes through Statistical Process control 298 Learning Objectives 298 Statistical Process Control Defined 298 Rationale for SPC 299 Control Chart Development 303 Management’s Role in SPC 312 Role of the Total Quality Tools 313 Authority Over Processes and Production 314 Implementation and Deployment of SPC 314 Inhibitors of SPC 318 Summary 320 Key Terms and Concepts 321 Factual Review Questions 321 Critical Thinking Activity 321 Discussion Assignment 18.1 321 Discussion Assignment 18.2 325 Discussion Assignment 18.3 325 Endnotes 325
19 continual improvement Methods with Six Sigma, lean, lean Six Sigma, and More 326 Learning Objectives 326 Rationale for Continual Improvement 326 Management’s Role in Continual Improvement 326 Essential Improvement Activities 327 Structure for Quality Improvement 328 The Scientific Approach 328 Identification of Improvement Needs 329
Critical Thinking Activities 394 Discussion Assignment 21.1 395 Endnotes 395
22 implementing total Quality Management 396 Learning Objectives 396 Rationale for Change 397 Requirements for Implementation 399 Role of Top Management: Leadership 406 Implementation Variation Among Organizations 408 Implementation Approaches to be Avoided 410
An Implementation Approach that Works 411 Getting on with it 415 What to do in the Absence of Commitment from the Top 415 Implementation Strategies: ISO 9000 and Baldrige 416 Summary 418 Key Terms and Concepts 418 Factual Review Questions 419 Critical Thinking Activities 419 Discussion Assignment 22.1 419 Endnotes 420
intended for use in universities, colleges, community colleges, corporate environments, and any other settings in which people want to learn to be effective agents of quality man- agement. Students enrolled in technology, engineering, and management programs will find this book both valuable and easy to use. Practitioners in corporate settings will find it a valuable guide in understanding and implementing quality management.
The direct, straightforward presentation of material focuses on making the theories and principles of quality management practical and useful in a real-world setting. Up-to-date research has been integrated throughout in a down-to-earth manner.
organization of this Book The text consists of 22 chapters, organized in two parts. Part 1 explains the philosophy and concepts of quality manage- ment. Part 2 covers the tools and techniques of quality man- agement. A standard format is used throughout the book. Each chapter begins with a list of objectives and provides a comprehensive summary. Key terms and concepts, fac- tual review questions, a critical thinking activity, discus- sion assignments, and endnotes are found at the end. The endnotes provide readers with comprehensive lists of addi- tional reading and research material that can be pursued at the discretion of the student and/or the instructor. The other materials encourage review, stimulate additional thought, promote discussion, and facilitate additional research.
Using this Book for one CoUrse or two Some professors use this book for one course and some use it for two courses. Those who use the book for one course cov- er all or most of the chapters and make decisions concerning any chapters that are not covered on the basis of local con- siderations. Those who use the book for two courses typically cover Chapters 1–14 in the first course and Chapters 15–22 in the second course. Although this approach to dividing the content is not balanced in terms of the number of chap- ters, it is balanced in terms of the time required to cover the material. Feedback from most professors indicates that the degree of difficulty of the content of Chapters 15–22 requires them to spend more time on these chapters than is required to cover any of the first 14 chapters. Consequently, in terms of time requirements, dividing the book at Chapter 14 results in two courses of equal length. Feedback from the classroom has been positive concerning both of these approaches.
BaCkgroUnd At one time in history, Great Britain was the world’s leader in commerce and industry. Eventually, the United States emerged as a major friendly competitor. Then, following World War II, the United States took over as the undisputed world leader of commerce and industry. During these post- war years, while the United States was enjoying unparalleled prosperity, Japan and Germany were rebuilding from the ashes of the war. With a great deal of help from the United States, Japan was able to rebound and during the 1970s be- gan to challenge the United States in such key manufacturing sectors as automobiles, computers, and consumer electron- ics. By 1980, Japan had emerged as a world-class competi- tor and a global leader in selected areas of commerce and industry. German industry had also reemerged by this time. By 2000, Korea, China, and the Pacific Rim nations had also emerged as global competitors.
As a result, the United States found itself losing market share in economic sectors it had dominated (and taken for granted) for decades. At first, industrialists in the United States turned their backs on the lesson their counterparts in other industrialized nations had learned. This lesson was that the key to competing in the international marketplace was to simultaneously improve quality and productivity on a continual basis. However, as more and more market share slipped away, the message started to sink in for the United States. This belated awareness gave rise to a quality move- ment that began to take hold. Its progress was slow at first. However, an approach to doing business known as quality management has caught on and is now widely practiced as a way to achieve organizational excellence. Organizational excellence is a combination of peak performance, superior quality, and continual improvement.
This book advocates an approach to doing business that focuses all the resources of an organization on the continual and simultaneous improvement of quality and productivity. The purpose of this approach is to continually improve the organization’s performance and, in turn, competitiveness.
why was this Book written and for whom? This book was written in response to the need for a prac- tical teaching resource that encompasses all of the various elements of quality management, including Lean, Six Sigma, and Lean Six Sigma, and pulls them together in a coherent format that allows the reader to understand both the big picture and the specific details of quality management. It is
■■ The overall explanation of total quality was updated to reflect current thought in the field and a section was add- ed explaining how quality and competitiveness relate to overall job satisfaction and financial benefits.
■■ A section on managing quality in the supply chain was added. ■■ Information on the new ISO 9000:2015 was added. ■■ Sections on Lean, Lean Six Sigma, QFD, SPC, JIT, and
benchmarking were expanded and updated.
download instructor resources from the instructor resource center To access supplementary materials online, instructors need to request an instructor access code. Go to www. pearsonhighered.com/irc to register for an instructor ac- cess code. Within 48 hours of registering, you will receive a confirming e-mail including an instructor access code. Once you have received your code, locate your text in the online catalog and click on the Instructor Resources but- ton on the left side of the catalog product page. Select a supplement, and a login page will appear. Once you have logged in, you can access instructor material for all Pear- son textbooks. If you have any difficulties accessing the Web site or downloading a supplement, please contact Customer Service at http://247pearsoned.custhelp.com/.
aCknowledgments The authors would like to thank the following reviewers for the helpful insights:
Otha Hawkins Alamance Community College
David Hunphrey, Jr. Bladen Community College
Andrew Jackson East Carolina University
Paul Warner Clackamas Community College
how this Book differs from others Most books in the market deal with one of the several elements of quality management, such as teamwork, just-in-time man- ufacturing, scientific measurement (SPC or quality tools), continual improvement, and employee involvement. Many of the books available were developed with the advanced- level practitioner in mind rather than the beginner. Few of the books in the market were formatted for use in a class- room setting. This book was written to provide both compre- hensive and in-depth coverage of quality management. All the elements of quality management are covered, including several that receive little or no attention in other quality man- agement books (e.g., peak performance, continual improve- ment, superior value, partnering, manufacturing networks, quality culture, and how to implement total quality). These subjects are covered in sufficient depth to allow a beginner to learn everything necessary to understand and implement total quality without having to look to any other source of information.
new in the eighth edition The eighth edition contains major improvements that reflect the ongoing evolution of quality management, as well as rec- ommendations from reviewers and users of the text. These improvements include the following:
■■ Provided an explanation in the preface, explaining how the book can be used for one comprehensive course on quality management or to cover two courses that go into even more detail.
■■ Enhanced the entire artwork package so that figures are more meaningful from a teaching and learning per- spective.
■■ Critical-thinking activities were updated as appropriate. ■■ The entire text has been made compatible with electronic
formats for use in e-books and other data-formats.
Stanley B. Davis was a manufacturing executive with Harris Corporation until his retirement in 1992. He was the found- ing managing director of The Quality Institute and is a well- known expert in the areas of total quality management and its implementation, statistical process control, just-in-time manufacturing, Six Sigma, benchmarking, quality manage- ment systems, and environmental management systems. He currently serves as professor of quality at the institute and heads his own consulting firm, Stan Davis Consulting, which is dedicated to assisting private industry and public organizations throughout North America achieve world- class performance and competitiveness.
David L. Goetsch is the vice president emeritus and professor at Northwest Florida State College. Prior to entering higher education full time, Dr. Goetsch had a career in the private sector that included positions in quality management, safety management, and project management with engineering, manufacturing, and construction firms. He currently serves on the Board of Directors of Fort Walton Machining Compa- ny, Inc. Dr. Goetsch is the founder of The Quality Institute, a partnership of Northwest Florida State College and the Oka- loosa Economic Development Council, and the Leadership Institute of Northwest Florida State College. Dr. Goetsch has been selected as Professor of the Year at Northwest Florida State College and the Emerald Coast Campus of the Univer- sity of West Florida (five times). He was selected as Florida’s Outstanding Technical Instructor of the Year and his pro- gram at Northwest Florida State College was selected as the recipient of the U.S. Secretary of Education’s Outstanding Technical Program in the United States for Region 10.
aBoUt the aUthors
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P a r t
PhilOsOPhy and COnCePts
Chapter 1 The Total Quality Approach to Quality Management: Achieving Organizational Excellence 2
Chapter 2 Quality and Global Competitiveness 18
Chapter 3 Strategic Management: Planning and Execution for Competitive Advantage 33
Chapter 4 Quality Management, Ethics, and Corporate Social Responsibility 49
Chapter 5 Partnering and Strategic Alliances 64
Chapter 6 Quality Culture: Changing Hearts, Minds, and Attitudes 77
Chapter 7 Customer Satisfaction, Retention, and Loyalty 91
Chapter 8 Employee Empowerment 107
Chapter 9 Leadership and Change 118
Chapter 10 Team Building and Teamwork 140
Chapter 11 Effective Communication 157
Chapter 12 Education and Training 175
Chapter 13 Overcoming Politics, Negativity, and Conflict in the Workplace 197
Chapter 14 ISO 9000 and Total Quality: The Relationship 220
the tOtal Quality aPPrOaCh tO Quality ManageMent: aChieving OrganizatiOnal exCellenCe
C h a P t e r
O n e
After completing this chapter, you should be able to:
■■ Define the term quality. ■■ Compare and contrast quality and total quality. ■■ Summarize the two views of quality. ■■ Describe the key elements of total quality. ■■ Identify the pioneers of total quality. ■■ Explain the keys to success with total quality. ■■ Analyze the future of quality management in the twenty-first century. ■■ Explain how to become certified in quality management.
What is Quality? To understand total quality, we must first understand qual- ity. Customers that are businesses will define quality very clearly using specifications, standards, and other measures. This makes the point that quality can be defined and mea- sured. Although few consumers could define quality if asked, all know it when they see it. This makes the critical point that quality is in the eye of the beholder. With the total quality approach, customers ultimately define quality.
People deal with the issue of quality continually in their daily lives. We concern ourselves with quality when we are shopping groceries, eating in a restaurant, and making a major purchase, such as an automobile, a home, a television, or a personal computer. Perceived quality is a major fac- tor by which people make distinctions in the marketplace. Whether we articulate them openly or keep them in the back of our minds, we all apply a number of criteria when mak- ing a purchase. The extent to which a purchase meets these criteria determines its quality in our eyes.
One way to understand quality as a consumer-driven concept is to consider the example of eating at a restaurant. How will you judge the quality of the restaurant? Most peo- ple apply such criteria as the following: <
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