chapter 1 differing perspectives on qualitykisi.deu.edu.tr/banu.atrek/prd 4111 product and...

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall. 1 - 1

Chapter 1

Differing Perspectives on Quality

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.

Customer Feedback and Word-of-Mouth

The average business only hears from 4% of its customers who are dissatisfied with its products or services. Of the 96% who do not bother to complain, 25% of them have serious problems.

The 4% complainers are more likely to stay with the supplier than are the 96% non-complainers.

About 60% of the complainers would stay as customers if their problem was resolved and 95% would stay if the problem was resolved quickly.

A dissatisfied customer will tell between 10 and 20 other people about their problem.

A customer who has had a problem resolved by a company will tell about 5 people about the situation.


What does the word “quality” mean to you?

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Differing Perspectives on QualityChapter 1

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Quality in different areas of societyArea ExamplesAirlines On-time, comfortable, low-cost service

Health Care Correct diagnosis, minimum wait time, lower cost, security

Food Services Good product, fast delivery, good environmentPostal Services fast delivery, correct delivery, cost containment

Academia Proper preparation for future, on-time knowledge delivery

Consumer Products Properly made, defect-free, cost effectiveInsurance Payoff on time, reasonable costMilitary Rapid deployment, decreased wages, no graftAutomotive Defect-freeCommunications Clearer, faster, cheaper service


An Approach to Viewing Quality.

The transcendent approach views quality as something that is intuitively understood but nearly impossible to communicate, such as beauty or love.e.g. Rolls Royce, Rolex, The Hilton.

The manufacturing-based approach assumes quality is all about making or providing error-free products or services e.g. Audi’s ‘vorsprung durch technik’.

The user-based approach assumes quality is all about providing products or services that are fit for their purpose e.g. it does what it says on the tin!

The product-based Quality is found in the components and attributes of a product. This approach views quality as a precise and measurable set of characteristics

The value-based approach defines quality in terms of value’ quality vs. price


What is Quality?Garvin’s Product Quality Dimensions

Performance Features Reliability Conformance

Durability Serviceability Aesthetics Perceived Quality

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What is Quality?Garvin’s Product Quality Dimensions

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PerformanceFeatureReliabilityConformance

Efficiency with which a product achieves its intended purposehow well the product or service does the job for which it was intended.


What is QualityGarvin’s Product Quality Dimensions

PerformanceFeaturesReliabilityConformance

Attributes that supplement the product’s basic performance




Product’s propensity to perform consistently over the product’s useful life.




Adherence to quantifiable specificationscertain numeric dimensions for the product’s performancecapacity, speed, size, durability..



Ability to tolerate stress or trauma without failing the total useful life of the product or service




The ease and low cost of repair for a product




Degree to which product attributes are matched to consumer preferencessensory characteristics such as taste, feel, sound, look, and smell




Quality as the customer perceives it…image, recognition, word of mouth.



What is QualityPZ&B’s Service Quality Dimensions

Tangibles Service Reliability Responsiveness Assurance Empathy




Physical appearance of the facility, equipment, personnel and communications materials




The ability of the service provider to perform the promised service dependably and accurately




The willingness of the provider to be helpful and prompt in providing service




The knowledge and courtesy of the employees and their ability to inspire trust and confidence




Caring individualized attention from the service firm


What is Quality?

Why does it matter that different definitions of quality exist?


Functional Perspectives on quality include: Supply Chain Management Engineering Operations Strategic Management Marketing Financial/Accounting Human resources

What is Quality?Differing Functional Perspectives on Quality



Supply Chain Management

Upstream activities Core processes Downstream activities



Engineering

Applying mathematical problem-solving skills and modeling techniques

Product Design Process Design

Design Life cycle



OperationsManagement

Uses the systems view that underlies modern quality management thinking

Conversion System Model of Operations Management



Strategic Management

Firms establish a planned course of action to achieve quality objectives

Course of action must be cohesive and coherent in terms of goals, policies, plans, and sequencing to achieve quality improvement

Aids an organization to achieve a sustainable competitive advantage

Generic strategic Planning Process



Marketing Focuses on perceived

quality of goods and services

The primary marketing tools for influencing customers perception of quality are price and advertising

The customer is the focus of marketing-related quality improvement

Marketing System



Financial

Relies more on quantified, measurable, results-oriented thinking

Identify and measure costs of quality by conducting trade-off and break-even analysis

The pursuit of quality does not safeguard a company against bad management

Deming Value Chain



Human Resources

Employee empowerment Organizational design Job analysis

Quality management flourishes where the workers’ and company’s needs are closely aligned


What is Quality?What is Quality?

The Three Spheres of Quality


What is Quality? Other Perspectives on Quality:

Value-Added Perspective on Quality Cultural Perspective on Quality

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What is Quality?Chapter 1 Review

There are different perspectives on quality There is disagreement on the definition of quality Functional perspectives on quality vary greatly Quality control, quality assurance and quality

management focus on different aspects of quality Quality improvement requires a complex mix of

system design, organizational design, rewards design, and process design

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