Why Adopting A New Strategy
May Help Reduce Your
PRICE TAG
by Joe Roy
In his book Quality Is Free , originally published in 1979 , Philip Crosby claims that not only is quality free but also that it is a source of profit ! If Crosby is right , then it must hold that in the absence of quality , the cost of non-conformance soars and drains profits . In the 4 th quarter of 2016 alone , Samsung recalled 1.7M Galaxy Note 7 smartphones and 2.8M washing machines ; Cuisinart recalled over 8mm blades in its food processor ; and IKEA reached a $ 50M settlement over deadly furniture accidents . Crosby has it right - Quality is free and it ’ s the seamless transfer of a ‘ conforming product ’ between a customer and a supplier .
Quality is commonly defined as ‘ conformance to specifications ’ and is measured in terms of cost of noncompliance , as well as auditing and inspection costs for both products and services . But Quality is far more than conforming to specifications - even the use of the word specification implies a manufacturing focus on Quality . To accept Crosby ’ s claim that Quality is free , organizations must accept the fact that Quality is a Mindset driven by organizational culture ! And changing an organization ’ s culture is not only difficult , it ’ s expensive . Have you ever tried to place a price tag on TRUST ? Doing the “ right things right 100 percent of the time ” requires a commitment to continuous improvement in all processes , systems , and practices within a company ; the adoption of internal and external customer-supplier agreements ; and an acknowledgement that people don ’ t fail ; rather , it ’ s the systems , procedures and machinery that fail !
Adopting a Total Quality philosophy within an organization requires leadership and commitment . The late Father Theodore Hesburgh , former President of the University of Notre Dame , once stated that “ the very essence of leadership is you have to have a vision . It ’ s got to be a vision you articulate clearly and forcefully on every occasion . You cannot blow an uncertain trumpet .” Unfortunately , there are some within every organization that don ’ t see a reason to adopt a business changing philosophy . After all , the business has been successful year after year . Total Quality is a philosophy around which the business operates from the way customers and employees are treated to the way phones are answered ; from business planning and supplier relations , to training and development ; from accepting responsibility empowering others .
If adopting a Total Quality philosophy seems right for your business , ask yourself whether or not you trust your coworkers to make the right decisions regarding the work they perform . More importantly , understand that your co-workers will be skeptical about your commitment to any Total Quality effort . Without TRUST ( includes everyone ), the change effort is unsustainable and will fail .
I ’ ve witnessed the results of adopting a Total Quality strategy , of trusting the ability of people to do their jobs , and I ’ ve seen the impact of training and empowerment on production throughput and flexibility , inventory , waste , staffing , workman ’ s compensation , internal and external customer-supplier partnerships , and first pass quality acceptance rates . I ’ ve watched employees take pride in their work , enjoy the freedom to try their ideas regardless of success or failure , and to use their skills to help others . By focusing on quality throughout the plant , total manufacturing costs decreased by millions of dollars .
If you ’ re ready to accept the Quality challenge , ready to transform business operations that recognize the “ value ” of each person to the organization , here is a basic roadmap :
a . Insure Total Quality has a business focus by establishing internal and external customer-supplier relationships with the customer defining the quality expectations . Everyone must understand the role that they play in delivering an exceptional quality experience for their customer .
| 34 | EVOLVE BUSINESS AND PROFESSIONAL MAGAZINE