Page 24 - DMGT524_TOTAL_QUALITY_MANAGEMENT

Unit 2: Gurus of Quality Management

products/services. The second is about identifying and eliminating all chances of error to Notes
occur. Appraisal and inspections are expensive and unreliable methods of attaining quality.
Organizations have to adopt prevention as the way of life as Crosby notes, “The error that
does not exist cannot be missed. “ The secret to prevention is: observing the process,
identifying possibilities for error, and eliminating the causes of problem. His observation
concerning service and manufacturing organizations is: “The only difference between the
two is that the waste in service companies goes out in baskets and in manufacturing
companies in barrels.”
3. Quality performance standard is zero defects: “This is conformance to requirements and
should be the personal performance standard of everyone in the organization, and will
come from a change in attitudes” according to Crosby. Crosby believes errors are a
function of the importance the organization and individual place on specific things. People
will perform the standard they are given if they truly understand it. And that the standard
must be zero defect.
4. Quality measurement is the price of non-conformance: According to Crosby manufacturing
companies spend 25 percent of sales doing things wrong and service companies spend
about 40 percent of their operating costs on the same wasteful actions. Crosby explains
that cost of quality consists of two areas of performances: Price of non-conformance and
price of conformance. The price of non-conformance is all the expenses involved doing
things wrong. The price of conformance is what is spent to make things come out right
Tracking this data serves to act as a way to determine where promising improvement
opportunities lie and a way to track the improvement.
Similarly to the arguments raised by Deming and Juran, Crosby thinks that companies’
performance is reflected by their management attitudes to quality. To achieve great
improvements, management has to believe in the following points:
The conviction by senior managers that they have had enough of quality being a problem
and wanting to turn it into an asset.
The commitment that they will understand and implement the four absolutes of quality
management.

The conversion to that way of thinking from the conventional wisdom that caused the
problem in the first place.
Crosby points out that it takes a long time to transfer from conviction to conversion but that as
soon as the transfer process begins it is a positive sign that improvement starts to take place.

2.4.2 Crosby’s Six C’s

A Key to the improvement process is education beginning with management and flowing down
to all employees. Crosby summarizes the education process in the six C’s as follows:

1. Comprehension: Understanding what is necessary and the abandonment of the conventional
way of thinking.
2. Commitment: Expression of dedication first by management and everyone else soon after.

3. Competence: Implementation of the improvement process in a methodical way.
4. Correction: Elimination of possibilities for error by identifying current problems and
tracking them back to their basic cause.

5. Communication: Complete understanding and support of all people in the process
including suppliers and customers.

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