1. An organization's reputation for superior quality can give it a competitive advantage in the marketplace. Superior quality can also reduce the risk of liability claims, reduce costs, and increase productivity.

2. Quality is defined as the ability of a product or service to consistently meet or exceed the expectations of the customer. Operational definitions of quality generally refer to one or more dimensions of quality. These include performance, special features, conformance to expectations, reliability, durability, service after delivery, aesthetics, safety, and perceived quality.

3. The determinants of quality are design, conformance to design, ease of use, and service after delivery.

4. The consequences of poor quality relate to image/reputation, liability, productivity, and costs. Costs can be categorized as failure costs, appraisal costs, and prevention costs.

5. Quality can be improved by R & D efforts, by efforts of improvement teams, and by suggestions from employees and customers. See p. 400 in your textbook for responsibilities for quality.

6. Modern quality management stresses prevention of mistakes rather than finding and correcting mistakes after they occur. This has placed increased emphasis on both product design and process design. Quality gurus such as Deming, Juran, Crosby, and Ishikawa have greatly influenced current thinking and practice of quality management.

7. Quality awards, such as the Malcolm Baldrige Award and the Deming Prize have generated interest in quality improvement, and helped to focus attention on the importance of quality. They have also helped to educate business people on quality management.

8. Companies that do business internationally often benefit from ISO certification.