Quality Progress - March 2018 - 16

Personal stories from quality professionals

A Quality
Education
Applying quality tools to class assignments
by Phyllis Cresswell

"'If you put lipstick on a pig, it's still a pig.' This statement pretty
much sums up the financial meltdown of 2007." So began the opening
argument of my managerial accounting assignment for my graduate
study program.
After 30 years of working as a
manufacturing and quality professional, I decided to finally seek
recognition and formal credentials
as a master in the fundamentals of
business administration.
One of the most enlightening
things about returning to formal
education was realizing how some
course topics tie directly with the
quality fundamentals I learned as
a professional-even if they didn't
intend to.
In the assignment mentioned
earlier, for example, I alluded to
how important it was to drill down
to the root cause to ascertain what
occurred at the core of the mortgage
market securitization failure. It was
obvious, I argued, that predatory lending practices at the mortgage origination point were most likely the culprit. The onslaught of non-qualifying
mortgages from the mid-1990s through the mid-2000s was the catalyst
that ignited the Great Recession of 2007.
During my studies, I also was pleasantly surprised to learn that there
are financial quality control professionals who use various quality tools
to track or predict occupancy fraud, undisclosed liabilities, overvalued assets and other red flags that may contribute to bad loans.1

16 QP

March 2018 ❘ qualityprogress.com

Audits-which now are conducted regularly in
the industry-also ensure that complacency or
lack of attention does not contribute to unscrupulous behavior. 2
Most significantly, I learned the importance
of Philip Crosby's quip about doing things right
the first time. For lenders to reduce variation
and decrease the probability of bad loans, it
was imperative that they follow standard work
practices, such as performing the required
pre-closing process steps to eliminate risk. 3
These efforts to reduce risk don't outweigh the
benefits of profitability-they enhance them.4

Take the time-and
spend the money

Sometimes, lessons are learned the hard way-
particularly when projects fall short of their
goals, such as when mortgage originations
are rushed through without ensuring that zero
defects are achieved. This often is overlooked
as a matter of expediency, but failure to consider potential risks can be costly down the
road. It is prudent to remember the costs of
quality.
More is gained from spending time and
money up front on preventive quality measures
versus unfathomably high internal or external
failure costs down the road. As we know from
the wake of the Great Recession, it cost the
American economy dearly.
For me, doing things right the first time in
conjunction with working on the right things
is how I approach most things in life. No one is
perfect, but we should
strive everyday to be
better, hit our targets,
and be timely and
concise as often as
possible.
REFERENCES
1. A.D. Fulmer, "What a
Difference a Decade
Makes. Or Not," Mortgage
Banking, Vol. 76, No. 5,
2016, pp. 96-99.
2. Ibid.
3. Ibid.
4. Ibid.

Phyllis Cresswell is a
quality and continuous
improvement leader
at Owens Corning Inc.
in Toledo, OH, and is
an associate member
of ASQ.


http://www.qualityprogress.com

Table of Contents for the Digital Edition of Quality Progress - March 2018

Seen and Heard
Expert Answers
Progress Report
Mr. Pareto Head
Career Coach
My Quality Story
In the Right Direction
A Different Kind of BBQ
Gaining Ground
Impeding Progress
Innovation Imperative
Statistics Spotlight
Standard Issues
Marketplace
Footnotes
Back to Basics
Quality Progress - March 2018 - INTRO
Quality Progress - March 2018 - cover1
Quality Progress - March 2018 - cover2
Quality Progress - March 2018 - 1
Quality Progress - March 2018 - 2
Quality Progress - March 2018 - 3
Quality Progress - March 2018 - 4
Quality Progress - March 2018 - 5
Quality Progress - March 2018 - Seen and Heard
Quality Progress - March 2018 - 7
Quality Progress - March 2018 - Expert Answers
Quality Progress - March 2018 - 9
Quality Progress - March 2018 - Progress Report
Quality Progress - March 2018 - 11
Quality Progress - March 2018 - 12
Quality Progress - March 2018 - Mr. Pareto Head
Quality Progress - March 2018 - Career Coach
Quality Progress - March 2018 - 15
Quality Progress - March 2018 - My Quality Story
Quality Progress - March 2018 - 17
Quality Progress - March 2018 - In the Right Direction
Quality Progress - March 2018 - 19
Quality Progress - March 2018 - 20
Quality Progress - March 2018 - 21
Quality Progress - March 2018 - 22
Quality Progress - March 2018 - 23
Quality Progress - March 2018 - A Different Kind of BBQ
Quality Progress - March 2018 - 25
Quality Progress - March 2018 - 26
Quality Progress - March 2018 - 27
Quality Progress - March 2018 - 28
Quality Progress - March 2018 - 29
Quality Progress - March 2018 - 30
Quality Progress - March 2018 - 31
Quality Progress - March 2018 - Gaining Ground
Quality Progress - March 2018 - 33
Quality Progress - March 2018 - 34
Quality Progress - March 2018 - 35
Quality Progress - March 2018 - 36
Quality Progress - March 2018 - Impeding Progress
Quality Progress - March 2018 - 38
Quality Progress - March 2018 - 39
Quality Progress - March 2018 - 40
Quality Progress - March 2018 - 41
Quality Progress - March 2018 - 42
Quality Progress - March 2018 - 43
Quality Progress - March 2018 - Innovation Imperative
Quality Progress - March 2018 - 45
Quality Progress - March 2018 - 46
Quality Progress - March 2018 - 47
Quality Progress - March 2018 - Statistics Spotlight
Quality Progress - March 2018 - 49
Quality Progress - March 2018 - 50
Quality Progress - March 2018 - 51
Quality Progress - March 2018 - 52
Quality Progress - March 2018 - 53
Quality Progress - March 2018 - Standard Issues
Quality Progress - March 2018 - 55
Quality Progress - March 2018 - 56
Quality Progress - March 2018 - 57
Quality Progress - March 2018 - Marketplace
Quality Progress - March 2018 - 59
Quality Progress - March 2018 - Footnotes
Quality Progress - March 2018 - 61
Quality Progress - March 2018 - 62
Quality Progress - March 2018 - 63
Quality Progress - March 2018 - Back to Basics
Quality Progress - March 2018 - cover3
Quality Progress - March 2018 - cover4
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