Early, John F.; Dmytrow, Eric D. (1986, ASQC) Consumer Prices & Price Indexes, Washington, DC; Florida Power & Light, Miami, FL
The Consumer Price Index (CPI) program is archetypical of the service sector economy in which the quality of services cannot be defined in traditional engineering terms. The service sector is now 68 percent of the employment in the U.S. economy and accounts for almost all of the job growth in recent years. The future of quality must include adaptation to this service environment. Adaptations are in terms of development of appropriate new empirical methods and generalization of the quality principles. Procedures and process are becoming incrasingly important to quality improvement in services.
The CPI is undergoing a major revision. During this revision, an enhanced approach to quality assurance is being established. Like manufacturing companies, the CPI has traditionally relied on inspection and fix to assure the quality of the index data. The empirical models and team work to solve problems. Quality management emphasizes continuous quality improvement.
The CPI is a major case study in adminstrative applications. Fundamental QC principles are applied to solve problems that are typical of future applications. In this paper we discuss the relevance of the organization structure and function to the quality principles and concepts. Quality management principles are illustrated through examples of our achievements. Teamwork is the backbone of our approach.