1. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Chapter 17 Quality planning and control Source: Archie Miles

2. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 The various definitions of quality The transcendent approach views quality as synonymous with innate excellence. The manufacturing-based approach assumes quality is all about making or providing error-free products or services. The user-based approach assumes quality is all about providing products or services that are fit for their purpose. The product-based approach views quality as a precise and measurable set of characteristics. The value-based approach defines quality in terms of ‘value’.

3. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Quality Focus Better Products Fewer Defects Benefits from a quality focus

4. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Quality characteristics of goods and services Functionality – how well the product or service does the job for which it was intended Appearance – the aesthetic appeal, look, feel, sound and smell of the product or service Reliability – the consistency of performance of the product or service over time Durability – the total useful life of the product or service Recovery – the ease with which problems with the product or service can be rectified or resolved Contact – the nature of the person-to-person contacts that take place

5. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Variables things you can measure Attributes things you can assess and accept or reject Quality fitness for purpose Reliability ability to continue working at accepted quality level Quality Quality of design degree to which design achieves purpose Quality of conformance faithfulness with which the operation agrees with design

6. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 PreventionAppraisal Internal Failure External Failure Control costsFailure costs Total Cost of Quality The Economics of Quality

7. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Prevention : Costs associated with design and planning of a Quality programme Appraisal : Costs involved in the direct appraisal of quality both in plant and in field Internal Failure : Occurrence of defective product in plant External Failure : Failure of product or service in field Defining the costs of Quality

8. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007  Reliability Dimensions of Service Quality Five principal dimensions that customers use to judge service quality. These dimensions are listed in order of declining relative importance to customers.  Responsiveness Dependability Accuracy Reliability Promptness of service Service failure

9. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007  Assurance Knowledge and Courtesy Competence Politeness and respect Effective communication Server attitude

10. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007  Empathy  Tangibles Physical facilities Caring Individualised attention Approachability Sense of security Understanding Customer's needs.

11. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Dimensions of Service Quality Reliability Responsiveness Assurance Empathy Tangibles Dimensions of Service Quality Reliability Responsiveness Assurance Empathy Tangibles Expected Service Expected Service Perceived service Perceived service Perceived Service Quality ES < PS Quality Surprise ES = PS Satisfactory ES > PS Unacceptable Quality Perceived Service Quality ES < PS Quality Surprise ES = PS Satisfactory ES > PS Unacceptable Quality Word of Mouth Word of Mouth Personal Needs Personal Needs Past Experience Past Experience Quality Dimensions

12. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 Customers’ expectations for the product or service Customers’ perceptions of the product or service Gap Perceived quality is poor Perceived quality is good Expectations > perceptions Expectations = perceptions Expectations < perceptions Perceived quality is governed by the gap between customers’ expectations and their perceptions of the product or service Gap Perceived quality is acceptable Customers’ expectations for the product or service Customers’ perceptions of the product or service Customers’ expectations for the product or service Customers’ perceptions of the product or service “Quality Surprise” “Unacceptable Quality”

13. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 The operation’s domain Management’s concept of the product or service The customer’s domain Previous experience Word-of-mouth communications Image of product or service Customer’s own specification of quality Organization’s specification of quality The actual product or service Customer’s expectations concerning a product or service Customer’s perceptions concerning the product or service Gap 1 Gap 2 Gap 3 Gap 4 A ‘gap’ model of quality Gap ?

14. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 The perception–expectation gap Action required to ensure high perceived quality Main organizational responsibility Gap 1 Gap 2 Gap 3Operations Gap 4 Marketing Ensure consistency between internal quality specification and the expectations of customers Ensure internal specification meets its intended concept of design Ensure actual product or service conforms to internally specified quality level Ensure that promises made to customers concerning the product or service can really be delivered Marketing, operations, product/service development

15. Slack, Chambers and Johnston, Operations Management 5 th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007 High quality puts costs down and revenue up