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Named after a former Secretary of Commerce, this prestigious award is given annually to firms that achieve major quality improvements

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The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs

Is both a relative and absolute concept

Is relevant to both products and services

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Quality has become one of the most important competitive points in business today.

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•Value-added analysis

–The comprehensive evaluation of all work activities, materials flows, and paperwork to determine the value that they add for customers

•Benchmarking

–The process of learning how other firms do things in an exceptionally high-quality manner

•Outsourcing

–Subcontracting services and operations to other forms who can perform them cheaper or better

•Reducing cycle time

–Cycle time

•The time needed by the organization to develop, make, and distribute products or services

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Quality enhancement programs decrease the number of defects, reduce resources dedicated to rework, and reduces the need for inspectors as employees become responsible for quality.

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Improved quality reduces costs from customer returns, warranty, and lawsuits for faulty products, and lost sales to future customers.

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Value-added analysis

The comprehensive evaluation of all work activities, materials flows, and paperwork to determine the value that they add for customers

Benchmarking

The process of learning how other firms do things in an exceptionally high-quality manner

Outsourcing

Subcontracting services and operations to other forms who can perform them cheaper or better

Reducing cycle time

Cycle time

The time needed by the organization to develop, make, and distribute products or services

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ISO 9000:2000

A set of quality standards created by the International Organization for Standardization and revised in 2000

ISO 14000

A set of standards for environmental performance

Statistical Quality Control (SQC)

A set of specific statistical techniques that can be used to monitor quality; includes acceptance sampling and in-process sampling

Six Sigma

Involves making corrections until errors disappear