Chapter 1 Differing Perspectives on Quality

Differing Perspectives on Quality Chapter 1 Chapter Outlines What is Quality? Differing Functional Perspectives on Quality The Three Spheres of Quality Other Perspectives on Quality Arriving at a Common Perspective (

Differing Perspectives on Quality Chapter 1 “Those who are victorious plan effectively and change decisively. They are like a great river that maintains its course but adjust its flow” Sun Tzu ( 1 - 3 3

Differing Perspectives on Quality Chapter 1 Introduction Recognizing Different Perspectives on Quality Quality Management involves flows like river (upstream and downstream). Flows have to operate effectively, effectively and with outstanding quality. The sum of these flows constitute the supply Chain. The supply chain encompasses many differing functions and processes from raw materials stage to after sale service. To execute all these processes we need expertise and quality with the requirements of : flexible cross functional problem solving Employees who can adapt to changing markets.( 1 - 4 4

Differing Perspectives on Quality Chapter 1 1- What is Quality? There are several quality dimensions, one of the most respected was compiled by David Garvin of the Harvard Business School. 1 - 5 5

Differing Perspectives on Quality Chapter 1 1- What is Quality? David Garvin found that most definitions of quality were: Transcendent: intuitively understood but impossible to communicate like beauty or love. Product based: quality is component and attribute of a product. User-based: if the customer is satisfied, the product has good quality. Manufacturing based: if the product conforms to design specifications, it has a good quality. Value based: if the product is perceived as providing good value, it has good quality.( 1 - 6 6

What is Quality? Garvin’s Product Quality Dimensions Using the five definitions of quality, Garvin developed a list of 8 quality dimensions: Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived Quality ©

What is Quality? Garvin’s Product Quality Dimensions ( Performance Feature Reliability Conformance Efficiency with which a product achieves its intended purpose

What is Quality Garvin’s Product Quality Dimensions Performance Features Reliability Conformance Attributes that supplement the product’s basic performance

What is Quality Garvin’s Product Quality Dimensions Performance Features Reliability Conformance Product’s propensity to perform consistently over the product’s useful life.

What is Quality Garvin’s Product Quality Dimensions Performance Features Reliability Conformance Adherence to quantifiable specifications

What is Quality Garvin’s Product Quality Dimensions Ability to tolerate stress or trauma without failing Durability Serviceability Aesthetics Perceived Quality

What is Quality Garvin’s Product Quality Dimensions The ease and low cost of repair for a product Durability Serviceability Aesthetics Perceived Quality

What is Quality Garvin’s Product Quality Dimensions Degree to which product attributes are matched to consumer preferences Durability Serviceability Aesthetics Perceived Quality

What is Quality Garvin’s Product Quality Dimensions Quality as the customer perceives it…image, recognition, word of mouth. Durability Serviceability Aesthetics Perceived Quality

What is Quality PZ&B’s Service Quality Dimensions Service quality is even more difficult to define, because of the variation created by high customer involvment. Parasuraman, Zeithamel, and Berry (PZ&B), three marketing professors from Texas A&M University published a set of service dimensions: Tangibles Service Reliability Responsiveness Assurance Empathy

What is Quality PZ&B’s Service Quality Dimensions Tangibles Service Reliability Responsiveness Assurance Empathy Physical appearance of the facility, equipment, personnel and communications materials

What is Quality PZ&B’s Service Quality Dimensions Tangibles Service Reliability Responsiveness Assurance Empathy The ability of the service provider to perform the promised service dependably and accurately

What is Quality PZ&B’s Service Quality Dimensions Tangibles Service Reliability Responsiveness Assurance Empathy The willingness of the provider to be helpful and prompt in providing service

What is Quality PZ&B’s Service Quality Dimensions Tangibles Service Reliability Responsiveness Assurance Empathy The knowledge and courtesy of the employees and their ability to inspire trust and confidence

What is Quality PZ&B’s Service Quality Dimensions Tangibles Service Reliability Responsiveness Assurance Empathy Caring individualized attention from the service firm

What is Quality? Why does it matter that different definitions of quality exist? Problem with having multiple dimensions Communication. Different department may have different understanding of the quality Strategic plan will not be in alignment

What is Quality? 2. Differing Functional Perspectives on Quality Functional Perspectives on quality include: Supply Chain Management Engineering Operations Strategic Management Marketing Financial/Accounting Human resources

What is Quality? 2. Differing Functional Perspectives on Quality Supply Chain Management There are many important quality related activities that are part of the supply chain management such as: logistics, processes, Human resource management, Information systems, purchasing and even the supplier qualifications. Six Sigma is a procedure for implementing quality improvement to reduce cost and improve product service and design. The steps of the six sigma include: define, measure, analyze, improve and control (DMAIC)

What is Quality? 2. Differing Functional Perspectives on Quality Engineering Applying mathematical problem-solving skills and modeling techniques Product Design Process Design Design Life cycle

What is Quality? 2. Differing Functional Perspectives on Quality Statistical Process Control (SPC) is concerned with monitoring process capability and stability. Shewhart’s Control Process: “a hypothesis is specified that the process meets a given specification, data about the process are gathered, and a hypothesis test is performed to see if the process is stable The engeneering view focuses on statistics and technical specification.

What is Quality? 2. Differing Functional Perspectives on Quality Engineering Operations Management Uses the systems view that underlies modern quality management thinking The product quality is seen as the result of the interactions of different variables such as: machines, labor, procedures, planning and management. Conversion System Model of Operations Management

What is Quality? 2. Differing Functional Perspectives on Quality Engineering 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

What is Quality? 2.Differing Functional Perspectives on Quality Engineering Operations Management Strategic Management 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

What is Quality? 2. Differing Functional Perspectives on Quality Engineering Operations Management Strategic Management Marketing 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

What is Quality? 2. Differing Functional Perspectives on Quality Financial Law of diminishing returns

What is Quality? 2. Differing Functional Perspectives on Quality Financial Law of diminishing returns According to this law, the pursuit of higher quality will result in higher expenditures. To invest beyond the minimum cost level will result in noneconomic decision. 1 - 32 32

What is Quality? 2. Differing Functional Perspectives on Quality Engineering Operations Management Strategic Management Marketing Financial Human Resources Employee empowerment Organizational design Job analysis Quality management flourishes where the workers’ and company’s needs are closely aligned

3. The Three Spheres of Quality

3. The Three Spheres of Quality Quality Management is broken into: 1- Analysis phase is broken into its fundamental 2- Relation phase involves understanding the relationships between the parts 3- Generalization phase involves perceiving how interrelationships apply to larger phenomenon of quality being studied. 1 - 35 35

3. The Three Spheres of Quality Quality Assurance refers to: 1- Guaranteing the quality of a product or service. 2- This view states that quality control is reactive than proactive because they detect problems after occuring 1 - 36 36

3. The Three Spheres of Quality Quality Management is the sum of 1- Quality control 2- Quality assurance 1 - 37 37

What is Quality? Other Perspectives on Quality: ` Value-Added Perspective on Quality A customer-based perspective that involves the concept of value. A value-added perspective that involves a subjective assessment of efficacy. Cultural Perspective on Quality International marketers have noted differences in tastes and preferences between cultures and nations. The quality of product is seen differently from one culture to another

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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