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CHAPTER 8 Implementing Quality Concepts After completing this chapter, you should be able to answer the following questions: Why is the emphasis on quality in business unlikely to decline? What is quality and from whose viewpoint should it be evaluated? | CHAPTER Implementing Quality Concepts 8 LEARNING OBJECTIVES Ater completing this chapter you should be able to answer the following questions 0 Why is the emphasis on quality in business unlikely to decline 0 What is quality and from whose viewpoint should it be evaluated 0 What primary characteristics comprise product quality and service quality s Why do companies engage in benchmarking 5 Why is total quality management significant and what conditions are necessary to yield its benefits 0 What types of quality costs exist and how are those costs related 0 How is cost of quality measured 0 Why does a company need both a strategically based management accounting system and a financial accounting system 0 How can quality be instilled as part of an organization s culture INTRODUCING Solectron Corporation Solectron Corporation is the first company in the history of the Malcolm Baldrige National Quality Award program to have won that award twice in 1991 and 1997 . Solectron which was founded in 1977 as a solar energy company has received 200 quality and service awards from its customers. The company now provides customized electronics products services and solutions for original equipment manufacturers such as International Business Machines Hewlett-Packard Co. Motorola Inc. Polaroid Corporation and Cisco Systems Inc. Solectron has more than 31 000 associates in 21 worldwide manufacturing facilities that encompass more than 6 million square feet. During the past seven years the company has averaged a 53 percent compound annual growth rate. Revenues for the fiscal year 1998 were 5.3 billion. When Solectron opened a New Product Introduction center just outside of Tokyo it became the first United States-based electronics manufacturing services company to establish a manufacturing presence in Japan. How does a company reach such quality heights Rich Allen director of quality at Solectron believes the company s quality culture began with founder and former CEO Winston Chen.
