How Do You Define Quality?
The definition of quality often depends on the stakeholders. Stakeholders are, as the name implies, people with some stake or concern in the process.
In manufacturing, the definition of quality can be fairly straightforward. Products should work as intended with a minimum number of faults or failures. Stakeholders might be:
- Management, who wants to see improved production numbers with acceptable quality.
- Union officials, who want the best conditions and highest pay for employees
- Employees, who want consistent work in a safe environment.
- Customers/purchasers, who want value for their money.
In service industries, customer satisfaction is often the primary measure.
John is the manager of a local Sleep-E Motel. He has just received the second quarter report from his national headquarters which shows his cost per room has been rising over the last year. John and his staff are given bonuses based on maintaining or lowering costs. Who/what are the stakeholders he should consider in assessing ways to lower his costs?