Competitive Quality Strategies

165 Pages·2012·3.399 MB·English

by  Pierre Maillard(auth.)

Competitive Quality Strategies
FOCUS SERIES IN AUTOMATION & CONTROL
Series Editor Bernard Dubuisson
Competitive Quality
Strategies
Pierre Maillard
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Contents
PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
CHAPTER1.GENERALPRINCIPLESOFCOMPETITIVEQUALITY . . . . . . . . 1
1.1.Whatmeaningshouldweattachtotheterm“quality”?. . . . . . . . . . 1
1.2.Theroleofqualityinacompany’scompetitiveness. . . . . . . . . . . . 7
1.3.Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.4.Summaryofthebasicideasandconceptsdeveloped
inthischapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
CHAPTER2.THEDEFINITIONOFACOMPETITIVEQUALITYTACTIC . . . . . 17
2.1.Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.2.Acompany’ssocio-economicexchangemotor. . . . . . . . . . . . . . . 19
2.3.Theconceptofacompetitivequalitytactic . . . . . . . . . . . . . . . . . 22
2.4.Themajorstageswhendevisingacompetitivequalitytactic . . . . . . 24
2.4.1.CollectionofinputdatafortheprocessofcreationofaCQT. . . . 24
2.4.2.Modelingofthearrangementoftheintendedstakeholders . . . . . 25
2.4.3.Identificationofthestakeholders’perceptions
ofcompetitivequality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
2.4.4.Possiblegainsresultingfromthecreationofnew
perceptionsofcompetitivequality. . . . . . . . . . . . . . . . . . . . . . . . 28
2.4.5.Identificationofthecharacteristicsofthestakeholders’
“qualitycomburant”. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
vi CompetitiveQualityStrategies
2.4.6.Evolutionofofferingstotriggerperceptions
ofcompetitivequality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.4.7.Themeanstobemobilizedandtheconstraintstobetaken
intoaccounttoproducequalitycarburants. . . . . . . . . . . . . . . . . . . 34
2.4.8.TheCQTsneedingtobeelaboratedininterrelations
withcertainsuppliersinordertoobtainresources
thatthecompanydoesnothave . . . . . . . . . . . . . . . . . . . . . . . . . 36
2.5.Themajorstagesinthedrawingupofacompetitivequality
tacticinadomainofstrategicactivities. . . . . . . . . . . . . . . . . . . . . . 39
2.5.1.Collectionoftheinputdatafortheprocessofelaboration
oftheCQT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
2.5.2.Theotherstagesoftheprocess. . . . . . . . . . . . . . . . . . . . . . 39
2.6.Anatypicalexampleofacompetitivequalitytactic. . . . . . . . . . . . 41
2.7.Anotherexample. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
2.8.Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
2.9.Summaryofthebasicideasandconceptsdeveloped
inthischapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
CHAPTER3.DEPLOYMENTOFACOMPETITIVEQUALITYTACTIC . . . . . . . 51
3.1.Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
3.2.Thetechnicalfunctionsofacompetitivetotalqualityprocess. . . . . . 52
3.3.TheinputdatafordeploymentofaDSA’sCQT. . . . . . . . . . . . . . 55
3.4.Thedistributionofroles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
3.5.Theimpactofacompetitivequalitytacticonqualitymarketing . . . . 57
3.6.Theimpactofacompetitivequalitytacticonthecompetitive
qualitycarburant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
3.7.Theimpactofacompetitivequalitytacticonthequalification
ofthesystemofproductionofqualitycarburant. . . . . . . . . . . . . . . . . 65
3.8.Theimpactofacompetitivequalitytacticonthemonitoring
ofperceivedquality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
3.9.Theimpactofacompetitivequalitytacticontheassurance
ofthecompany’sgains. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
3.10.Theimpactofacompetitivequalitytacticonimproving
theefficiencyofacompetitivetotalqualityprocess . . . . . . . . . . . . . . 70
3.11.Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
3.12.Summaryofthebasicideasandconceptsdeveloped
inthischapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
CHAPTER4.THECONDITIONSFORSUCCESS
OFACOMPETITIVEQUALITYTACTIC . . . . . . . . . . . . . . . . . . . . . . . . 85
4.1.Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Contents vii
4.2.Raisingthelevelofthesystemofproductionofacompetitive
qualitytactic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
4.3.Enhancingthevalueoftheprojecttobringthesystem
forproductionofcompetitivequalitytacticuptoscratch . . . . . . . . . . . 90
4.4.Themainmarkersofaqualityculture . . . . . . . . . . . . . . . . . . . . 90
4.5.TheamplifierofaCQT’sprofitability. . . . . . . . . . . . . . . . . . . . 96
4.6.Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
4.7.Summaryofthebasicideasandconceptsdeveloped
inthischapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
CHAPTER5.SELLINGACOMPETITIVEQUALITYTACTIC . . . . . . . . . . . . 101
5.1.Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
5.2.InputdataforaCQCA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
5.3.Themajorstepsinthedesignofacompetitivequalitycarburant
amplifier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
5.4.Themajorstepsinregulatingtheproductionofacompetitive
qualitycarburantamplifier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
5.5.Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
5.6.Summaryofthebasicideasandconceptsdeveloped
inthischapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
CHAPTER6.MANAGEMENTOFACOMPETITIVEQUALITYTACTIC . . . . . . 117
6.1.Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
6.2.Elaboratingacompetitivequalitytactic . . . . . . . . . . . . . . . . . . . 120
6.2.1.FinalizingtheprocessofelaborationofaCQT . . . . . . . . . . . . 120
6.2.2.Imaginingthescenariofortheprocess . . . . . . . . . . . . . . . . . 120
6.2.3.Designingtheprocessorthatwillcarryouttheprocess . . . . . . . 121
6.2.4.Qualifyingtheprocessor. . . . . . . . . . . . . . . . . . . . . . . . . . 124
6.2.5.Guidingtheoperationoftheprocessor. . . . . . . . . . . . . . . . . 124
6.2.6.Monitoringthemaintenanceoftheprocessor’scapability. . . . . . 124
6.2.7.Enhancingthevalueoftheprocessor’spotentialtoperform . . . . 124
6.2.8.Evaluatingtheprocessor’sperformances. . . . . . . . . . . . . . . . 125
6.2.9.ConstantlyimprovingthewayinwhichtheCQT
iselaborated. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
6.3.Deploymentofacompetitivequalitytactic. . . . . . . . . . . . . . . . . 125
6.3.1.Finalizingtheprocesses . . . . . . . . . . . . . . . . . . . . . . . . . . 126
6.3.2.Imaginingthescenariosfortheprocesses . . . . . . . . . . . . . . . 126
6.3.3.Designingtheprocessorthatwillperformtheprocesses. . . . . . . 129
6.3.4.QualifyingtheprocessorinchargeofdeployingtheCQT. . . . . . 132
6.3.5.Guidingtheprocessor’sfunctionandensuring
itsperformancesaremaintained. . . . . . . . . . . . . . . . . . . . . . . . . 132
6.3.6.Enhancingthevalueoftheprocessor’spotentialtoperform . . . . 132
viii CompetitiveQualityStrategies
6.3.7.Ensuringtheconformityoftheprocessor’sactivities
withitsobjectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
6.3.8.ConstantlyimprovingthewayinwhichaCQTisdeployed. . . . . 133
6.4.Runningtheprocessofdesignortransformations
ofthecompetitivequalitycarburantamplifiers . . . . . . . . . . . . . . . . . 134
6.4.1.Finalizingtheprocess . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
6.4.2.Imaginingthescenariofortheprocess . . . . . . . . . . . . . . . . . 135
6.4.3.Designingtheprocessorthatwilldesigntheamplifier. . . . . . . . 137
6.4.4.Qualifyingtheprocessorinchargeofdesigning
ortransformingtheamplifier. . . . . . . . . . . . . . . . . . . . . . . . . . . 140
6.4.5.Activatingtheprocessorandensuringitsperformances
remainhigh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
6.4.6.Enhancingthevalueoftheprocessor’spotentialtoperform . . . . 140
6.4.7.Evaluatingtheprocessor’sperformances. . . . . . . . . . . . . . . . 141
6.4.8.Constantlyimprovingthewayinwhichanamplifier
isdesignedortransformed . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
6.5.Applicationofacompetitivequalitytactic . . . . . . . . . . . . . . . . . 141
6.5.1.Finalizingtheprocesses . . . . . . . . . . . . . . . . . . . . . . . . . . 142
6.5.2.Imaginingthescenariooftheprocessesofapplication
ofacompetitivequalitytactic . . . . . . . . . . . . . . . . . . . . . . . . . . 142
6.5.3.Designingtheprocessorwhichwillapplyacompetitive
qualitytactic. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
6.5.4.Qualifyingtheprocessorinchargeofapplying
thecompetitivequalitytactic. . . . . . . . . . . . . . . . . . . . . . . . . . . 147
6.5.5.Activatingtheprocessorandensuringitsperformances
remainhigh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
6.5.6.Enhancingthevalueoftheprocessor’sactivities . . . . . . . . . . . 148
6.5.7.Evaluatingtheprocessor’sperformances. . . . . . . . . . . . . . . . 148
6.5.8.Constantlyimprovingthewayinwhichtheapplication
ofaCQTishandled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
6.6.Capitalizationonfeedback. . . . . . . . . . . . . . . . . . . . . . . . . . . 149
6.7.Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
6.8.Summaryofthebasicideasandconceptsdeveloped
inthischapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
GENERALCONCLUSION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
INDEX. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
Preface
All the concepts and models of principles of actions presented herein, dealing
withcompetitivequality,aretheauthor’sownbrainchild.
Theyresultfromover20yearsofobservationsofthewayinwhichcompaniesof
all sizes and in all sectors attempt to use specific mechanisms of quality production
inexchangeswiththeirstakeholders,togiverisetolong-lastingcompetitivefactors.
As Director General of the Institut de Recherche et de Développement de la
Qualité (French Institute for R&D into Quality), I have headed numerous “intra”-
and “inter”-company projects, both in France and elsewhere, aimed at using the
technical-economic assets of companies and their quality-management capacity to
developandgrowinacompetitiveenvironment.
Using the original models set out in my previous book, entitled Les pratiques
performantes du TQM– le T-scar management (Effective TQM Practices: T-scar
Management), I have been able to draw up practical guides which are general
enough for any company to be able to better understand and strengthen (often
implicit) approaches to create new competitive edges, based on their employees’
cultureofquality.
I have also given precise definitions for each of the concepts used, in order to
free readers from the commonly-recurring inaccuracies relating to the meaning of
thetermsusedinthedomainofqualitymanagement.
Finally,sothatthisbookisconciseandfunctional,Ihavedeemeditappropriate
not to weigh it down with extensive descriptions and explanations of tools that are
fairlycommonlyusedinthefieldofqualitymanagement.Ireferthereadertoclassic
works which discuss these tools in precise and minute detail, and to the numerous
computer-basedsupportswhichfacilitatetheiruse.
PierreMAILLARD
November2012
Introduction
Qualityisalwaysameansofvalue-creationinanyeconomicexchange.
Each party tries to obtain the best possible quality of that which
theyreceive,whilstproducingtheperceivedqualityofthatwhichthey
provide.
When competitive pressure in a given market increases, companies are obliged
to strengthen their competitiveness, or to move into new markets where the
competitivepressureislessintense.Asquicklyaspossible,theywillmakeadisplay
of their future competitive factors to stave off the progressive assaults of their
competitors. No matter what happens, they will begin to wonder about the use of
qualityasacompetitivefactor.
The principle of such use is, of course, widely accepted. However, the true
questionis:
“How are we to use quality in the most efficient way, when we
have chosen a policy which entails dealing with current or future
competitivepressure,tobuoyupourcompetitiveness?”
Companies need to be able to transform, quickly and constantly. They are
increasingly less certain of making a profit on their investments, because the
capacity of a competitive factor to penetrate a given market is increasingly short-
lived. The situation is more favorable when this factor, or asset, is supported by a
reputationinthatmarketwhichthecompanyhasbeenabletobuildup.
Sometimes, a company’s immediate socio-economic environment can hold
resources that can be used to enhance competitiveness (a metaphorical goldmine of
competitiveness). Such is the case, for instance, when the company is based in a
countrywhichhashistoricaldepositsofnaturalresource.Ingeneral,thesesourcesof
competitiveness are long-lasting, because they are based on very long-standing
policies. The company can “mine” or “prospect” in that environment to acquire
xii CompetitiveQualityStrategies
significant competitiveness in terms of export. “Low cost” countries are particular
examples of such a situation. However, this is also the case in certain countries
which, historically, have progressively built up an international reputation that is in
step with certain fundamental market needs. Germany is often cited as an example.
Francealsohasthiskindofcompetitiveadvantageincertainsectorsofactivity.
The company can also benefit from the competitive dynamic of a group of
companieswhich,together,presentaspreadofofferings.Thisscenarioisbetterthan
competition and competitiveness in terms of catering for overall needs, to which a
great deal ofvalueisattachedinthe markets.TheItalianmodel ofregionalclusters
ofindustries(industrialdistricts)isagoodexampleofthissituation.
However, contrary to what is often thought, a technological innovation which
does not feed an existing reputation, or which does not represent a major
breakthrough in terms of catering for a long-standingand as-yet-unsatisfied need in
a particular market, has little chance of providing a competitive edge in today’s
world.
Thecurrentcrisesarecausingadropinpurchasingpower,leadingconsumersin
ever-wider sectors of the market to prioritize price over proper satisfaction of their
needs,oroverassurancethataproductwillperformasadvertised,orindeedoveran
investmentthatisgenuinelyworthwhileinthemedium-term.
Inaddition,inpopulationswithstrongpurchasingpower,thesecrisesgiveriseto
twoattitudeswhichcanbesetapart:
–thequestforluxuryproducts,tosatisfyaneedforsocialrecognition;
– the search for products with a long lifespan, to limit the cadence of their
renewal, for fear of a situation where the value of capital rapidly decreases, which
would considerably reduce these people’s purchasing power (precautionary
purchases).
The slump in purchasing power naturally leads many companies to focus on
reinforcing their competitiveness by reducing their cost prices. The low cost of
manpowerindevelopingcountriesthusoffersasignificantcompetitiveedge.
The use of “lean manufacturing” methods is also amongst the measures
commonlytaken.
These companies are reticent to invest in other forms of quality tactics, because
they increase cost prices and therefore increase the risk of an insufficient return on
the investment. The absence of these other types of competitive edges is then often
hidden behind advertising discourse that the consumers hardly believe, but which