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PART TWO - METHODS FOR IMPROVEMENT > CHAPTER TEN - INTEGRATING METHODS FOR THE ...

CHAPTER TEN
INTEGRATING METHODS FOR THE IMPROVEMENT OF VALUE
In the previous chapters, we discussed methods to make changes that result in improvement. In this chapter, we integrate those methods to assist practitioners in developing an effective and balanced approach to improvement. This approach can guide efforts to produce products and services that customers want and are willing to pay for. Whether the organization is a restaurant, a hospital, a manufacturing company, or a bank, customers are constantly judging products and services by their quality and their price.
Because of the importance of quality and price to success in business, we begin this chapter by exploring these terms.
Quality is the measure of how well a product or service matches a need. Quality is defined very broadly in this book, to include such dimensions as product features, timeliness, personal interface, reliability, durability, and consistency. Price is what the customer has to pay for a product or service (usually in money). This concept of price includes the price tag as well as the “cost to use” the product or service. For example, if a product must be repaired or adjusted in some way before it is used, the price includes the purchase price as well as the cost to repair or adjust. The “cost to purchase” (including time, shipping charges, travel expenses, and so on) might also be considered part of the price component. So there is a total cost of ownership:

  

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