Zero Defects
Encyclopedia
"Zero Defects" is Step 7 of "Philip Crosby's 14 Step Quality Improvement Process" http://www.wppl.org/wphistory/PhilipCrosby/grant.htm. Although applicable to any type of enterprise, it has been primarily adopted within industry
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...

 supply chains wherever large volumes of components are being purchased (common items such as nuts and bolts are good examples).

Zero Defects was a quality control program originated by the Denver Division of the Martin Marietta Corporation (now Lockheed Martin) on the Titan Missile program, which carried the Project Gemini astronauts into space in the middle to late 1960s. It was then incorporated into the Orlando Division, which built the mobile Pershing Missile System, deployed in Europe; the Sprint antiballistic missile, never deployed; and a number of air to ground missiles for the Vietnam War.

1. Quality is conformance to requirements

Every product or service has a requirement
Requirement
In engineering, a requirement is a singular documented physical and functional need that a particular product or service must be or perform. It is most commonly used in a formal sense in systems engineering, software engineering, or enterprise engineering...

: a description of what the customer needs. When a particular product meets that requirement, it has achieved quality, provided that the requirement accurately describes what the enterprise and the customer actually need. This technical sense should not be confused with more common usages that indicate weight or goodness or precious materials or some absolute idealized standard. In common parlance, an inexpensive disposable pen is a lower-quality item than a gold-plated fountain pen. In the technical sense of Zero Defects, the inexpensive disposable pen is a quality product if it meets requirements: it writes, does not skip nor clog under normal use, and lasts the time specified.

2. Defect prevention is preferable to quality inspection and correction

The second principle is based on the observation that it is nearly always less troublesome, more certain and less expensive to prevent defects than to discover and correct them.

3. Zero Defects is the quality standard

The third is based on the normative nature of requirements: if a requirement expresses what is genuinely needed, then any unit that does not meet requirements will not satisfy the need and is no good. If units that do not meet requirements actually do satisfy the need, then the requirement should be changed to reflect reality.

4. Quality is measured in monetary terms – the Price of Nonconformance (PONC)

The fourth principle is key to the methodology. Phil Crosby believes that every defect represents a cost, which is often hidden
Opportunity cost
Opportunity cost is the cost of any activity measured in terms of the value of the best alternative that is not chosen . It is the sacrifice related to the second best choice available to someone, or group, who has picked among several mutually exclusive choices. The opportunity cost is also the...

. These costs include inspection time, rework, wasted material and labor, lost revenue and the cost of customer dissatisfaction. When properly identified and accounted for, the magnitude of these costs can be made apparent, which has three advantages. First, it provides a cost-justification for steps to improve quality. The title of the book, "Quality is free," expresses the belief that improvements in quality will return savings more than equal to the costs. Second, it provides a way to measure progress, which is essential to maintaining management commitment and to rewarding employees. Third, by making the goal measurable, actions can be made concrete and decisions can be made on the basis of relative return.

History

While Zero Defects began in the aerospace and defense industry, started at Martin Marietta in the 1960s, thirty years later it was regenerated in the automotive world. During the 1990s, large companies in the automotive industry
Automotive industry
The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue....

 tried to cut costs by reducing their quality inspection processes and demanding that their suppliers dramatically improve the quality of their supplies. This eventually resulted in demands for the "Zero Defects" standard. It is implemented all over the world.

Criticisms

Criticism of "Zero Defects" frequently centers around allegations of extreme cost in meeting the standard. Proponents say that it is an entirely reachable ideal and that claims of extreme cost result from misapplication of the principles. Technical author David Salsburg
David Salsburg
David S. Salsburg gained fame as the author of The Lady Tasting Tea, subtitled How Statistics Revolutionized Science in the Twentieth Century...

 claims that W. Edwards Deming
W. Edwards Deming
William Edwards Deming was an American statistician, professor, author, lecturer and consultant. He is perhaps best known for his work in Japan...

 was critical of this approach and terms it a fad
FAD
In biochemistry, flavin adenine dinucleotide is a redox cofactor involved in several important reactions in metabolism. FAD can exist in two different redox states, which it converts between by accepting or donating electrons. The molecule consists of a riboflavin moiety bound to the phosphate...

.
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