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Table of Contents

Introduction 2 Quality 3 Competitiveness 3 Why Quality Influence Competitiveness 4 Cost of Poor Quality 5 How Poor Quality Affects Competitiveness 5 Causes of Poor Quality 6 Man 6 Material 6 Machine 6 Management 6 Method 6 Environment 6 Case on Quality Failure 7 Quality Guru: Joseph Juran 8 Quality Failure 8 Toyota’s Recalls 8 Toyota’s Response 9 Implementation of Juran’s Teaching in Toyota 9 Quality Improvement 9 Quality Control 10 Methods to Overcome Poor Quality: Purpose and Usefulness 11 PDCA cycle 11 Benchmarking 11 Six Sigma 12 References 13 Appendix 15

Introduction

Customer satisfaction is an important criteria to every successful business. In order to achieve satisfaction, product or service offered must meet or exceed customer’s expectation. Quality of a product or service is the key element for customer satisfaction. However, quality needs a continuous improvement due to the competitiveness among other businesses. Quality guru, Dr. Joseph Juran had introduced 10 Steps to Quality Improvement (refer to Appendix, Diagram 1) to overcome this situation.

Quality

Based on Dr. Joseph Juran in Total Quality Management (2009) he defined quality as “fitness for use in terms of design, conformance, availability, safety, and field use.” In other words, quality consists of product features which met or exceeds the needs of each customer such that it provides product satisfaction. In addition, quality also shows the freedom from deficiencies such as rework, late delivery and design changes. Besides that, Juran also introduced quality improvement and quality control to achieve customer satisfaction through quality.
Competitiveness

Whenever there is a business, there will always be competition unless it is in monopolistic market. Having competitors in any business can convey advantages such as a motivator or a guide for improvement. However, competitors also have the ability to break



References: About.com, 2010. Final Plans for Toyota Recall Announced. [online] Available at: <http://usedcars.about.com/od/avoidingproblems/a/ToyotaRecallAnswers.htm> [Accessed on 29 March 2013] ActaPolyechnicaHungatica, 2006 BBCNews, 2012. Weston-super-Mare Care Home Given Formal Warning by Inspectors. [online] Available at: <http://www.bbc.co.uk/news/uk-england-somerset-19978078> [Accessed on 30 March 2013] BusinessDictionary.com, 2013 BusinessDictionary.com, 2013. Quality Improvement. [online] Available at: <http://www.businessdictionary.com/definition/quality-improvement.html> [Accessed on 29 March 2013] HubPages, 2011 JapanTimeNews, 2010. Crisis-handling Goes Far Beyond Apology Bow. [online] Available at: <http://www.japantimes.co.jp/news/2010/03/16/news/crisis-handling-goes-far-beyond-apology-bow/> [Accessed on 29 March 2013] Kotler, P., Keller, K., 2011 Schiffauerova, A. and Thomson, V., 2006. A Review of Research on Cost of Quality Model and Best Practices. [pdf] Available at: <http://hawbw202.pbworks.com/f/Lit%2BReview_CoQModels-BestPractices.pdf> [Accessed on 29 March 2013] TheMotorReport, 2010 TotalQualityManagement, 2009. Dr. Joseph Juran. [online] Available at: <http://totalqualitymanagement.wordpress.com/2009/06/07/dr-joseph-juran/> [Accessed on 27 March 2013] Toyota, 2013 ToyotaOwners, 2011. Information at Your Service. [online] Available at: <http://www.toyota.com/owners/web/pages/resources/recalls> [Accessed on 30 March 2013] Appendix

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