In order to maintain and enhance the Company standards of quality Caterpillar uses highly accredited labs, the importance is given to the operational procedures and quality to maintain a competitive edge from the rest of the market in the industry. This pursuit of quality has been an integral part of Caterpillar and would remain to be so in coming years. In future, the shift of the quality management is likely to shift from only operations and could include People, Profitable Growth, and Performance Product & Process. The company is developing its metrics to achieve desired strategic goals for the year 2020. The metrics used in 2010 strategic goals of Caterpillar included metric of People, which incorporated extremely involved employees and accomplishing world-class security. Metrics of Performance Product & Process emphasize on giving the best quality products and procedures. Lastly, the metric of Profitable Growth is which mainly includes revenue of $50 billion and earnings per share to be in the top half of the S&P 500 companies. Caterpillar continuously works on its 6 Sigma project along with its emphases on ergonomic development. The application of concepts of Six Sigma as TQM approach enables Caterpillar to achieve highest quality in its operations and products, thus gaining desired results and keeping the company sustained even in the harsh market conditions.
Similarly, in Production stage, Caterpillar Production System (CPS) is used to implement a shared enterprise-wide order-to-delivery procedure to progress quality, security and velocity which helps to enhance capacity and thus progress cost administration. Six Sigma is introductory to CPS and refining order-to-delivery procedures. Quality Management processes are part of CPS and emphasis on providing defect-free products and services to consumers.
In stage of Product Support, the Continuous Improvement Process (CPI) is an international procedure for solving product complications. Entrenched with the basics of Six Sigma DMAIC—Define, Measure, Analyze, Improve and Control—approach, CPI delivers a controlled method to recognizing original reason and guaranteeing perpetual remedial action. Thus, Caterpillar is able to build customers’ or dealers’ trust by rapidly solving and acknowledging the issues with their product, and thus maintain quality standards (Gillett, Fink and Bevington, 2010).