1.1 Quality


Introduction
In today's globalize economy; competition is becoming ever more intense. Many companies are trying very
hard not only to satisfy their customer's needs but where possible exceed them.
This can only be achieved through cost reduction, improvement in product performance, increased customer
satisfaction and a constant effort towards world class organizations.
In order for companies to survive and grow in the future, it is essential that they deliver high quality goods and
services.
Those that can deliver quality are the ones that will prosper in the next century Companies actually compete
on three major issues; Quality, Price and Delivery.
If the choice is to compete in the market place on the basis of product or service price, then the level of
competition is clearly defined; the low-cost provider wins.
However, companies choosing the low cost approach may find themselves losing premium business to
competitors while retaining the low-margin business in the long term.
In fact, they are also vulnerable to any competitor who can offer value at a lower price.
This is why many companies have become aware of the need to make quality is the competitive marketing
strategy in a global market.

1.1 Quality


Large companies for instance, have started t implement total quality initiative in their products and services.
The increasing acceptance of Total Quality Management (TQM) as a philosophy of management and a way of
company life has taken place for almost three decades.

What is quality?
The definition of quality depends on the role of the people defining it.
Most consumers have a difficult time defining quality, but they know it when they see it.
For example, although you probably have an opinion as to which manufacturer of athletic shoes provides the
highest quality; it would probably be difficult for you to define your quality standard in precise terms.
Also, your friends may have different opinions regarding which athletic shoes are of highest quality.
The difficulty in defining quality exists regardless of product, and this is true for both manufacturing and
service organizations.
Think about how difficult it may be to define quality for products such as airline services, child day-care
facilities, college classes, or even OM textbooks.

1.1 Quality


Further complicating the issue is that the meaning of quality has changed over time.
Today, there is no single universal definition of quality. Some people view quality as "performance to
standards."
Others view it as "meeting the customer's needs" or "satisfying the customer." Let's look at some of
the more common definitions of quality.
According to the American Society for Quality, "quality" can be defined in the following ways:
Based on customer's perceptions of a product/service's design and how well the design matches
the original specifications.
The ability of a product/service to satisfy stated or implied needs.
Achieved by conforming to established requirements within an organization.
"Fitness for use" - Joseph Juran.
"Conformance to requirements" - Philip Crosby.
Based on various factors: reliability, durability, performance, usefulness, aesthetics, price, etc. - Various.

1.1 Quality


"Meets customer requirements" - Various.
"Consistently meets or exceeds customer expectations" - William Stevenson.