Imagine a Pen manufacturing company having lot of orders from their customers to manufacture various types of pens. There can be two scenarios – either the delivery is production centric, or quality centric. Let us see what the difference in both is.
In Production centric delivery system the focus will be more on the numbers produced. The performance will purely be measured based on the volumes produced. The company will be using productivity metrics focusing on increasing production all the time.
In Quality centric delivery system the focus will be more on the number of good pieces produced. This may enforce quality check at each station. The performance will purely be measured based on good pieces produced irrespective of howsoever high is the number of overall pieces produced. The company will be using quality metrics focusing on increasing quality all the time.
We see no competition in first case where the company is production centric. The risk of failure in the market is high since the company is not quality focused and hence rejections and failures at customer site will definitely be higher.
We see a high competition or rather a war between quality and production in second case. Any rejection at customer site is counted as failure of quality. But the overall risk is very low of getting rejections or failures at customer site since all the bad pieces have already been detected and discarded by the quality at their own premises.
The same goes true for software industry also…