1. Dimensions Of Product Quality (Garvin) 1. Core Performance basic operating characteristics 2. Features “extra” items added to basic features 3. Reliability probability product will operate, even in strenuous conditions 4. Convenience Amount of effort required to use the product

2. 5. Durability life span before replacement 6. Serviceability ease of getting repairs, speed & competence of repairs 7. Aesthetics look, feel, sound, smell or taste 8. Safety freedom from injury or harm 9. Personal image subjective perceptions based on brand name, advertising, design labels, etc

3. e Additional Dimensions of Service Quality 1. Time & Timeliness customer waiting time, completed on time 2. Accessibility & Convenience ease of obtaining service 3. Face-to-Face interaction treatment by employees 4. Accuracy performed right every time

4. The Meaning of Quality Quality of ConformanceQuality of Design Producer’s PerspectiveConsumer’s Perspective Fitness for Consumer Use ProductionMarketing Conformance to specifications Cost Performance quality Product’s bundle of attributes & specifications Price

5. Quality Of Conformance Ensuring product or service produced according to design Depends on design of production process performance of machinery materials training

6. Two Ways Quality Improves Profitability Improved Quality Increased Profits  Lower rework and scrap costs  Lower warranty & product liability costs Reduced Costs via  Improved response  Flexible pricing  Improved reputation Sales Gains via

7. Cost Of Quality Cost of achieving good quality Prevention Appraisal Cost of poor quality Internal failure costs External failure costs

8. Quality And Productivity Productivity = output / input Fewer defects increase output Quality improvement reduces inputs

9. Measuring Yield & Productivity where Y = yield I = number units started in production % G = percentage good units % R = percentage of defective units reworked Y = (I)(%G) + (I)(1-%G)(%R)

10. Product Yield Example Start 100 motors per day 80% are good 50% of poor quality units can be reworked Y = (I)(%G) + (I)(1-%G)(%R) Y = 100 (0.80) + 100 (1- 0.80) (0.50) = 90 motors

11. Product Cost

12. Product Cost Example Direct mfg cost = $30, Rework cost = $12 100 motors started, 20% defective 50% of defective motors can be reworked

13. Total Quality Management 1. Customer defined quality and satisfaction 2. Top management leadership 3. Quality as a strategic issue 4. All employees responsible for quality 5. Continuous improvement 6. Shared problem solving/ Cross-discipline system approach 7. Statistical quality control: measurement of results 8. Mutually beneficial supplier relations

14. Options to Improve Quality of Conformance Consumer Education: product labeling, instructions, online resources Follow-up Service: Recalls, extended warranties, replacements Inspection of Work and Product Preventative Procedures

15. Inspection  Involves examining items to see if an item is good or defective  Detect a defective product  Does not correct deficiencies in process or product  It is expensive  Issues  When to inspect  Where in process to inspect

16. Inspection Tools System or process problems: Statistical process control techniques Material or lot problems: Acceptance sampling techniques

17. Control Chart 8 6 4 3 5 7 9 10 2468 121416 Sample number Mg of salt UCL = 9.85 LCL = 2.99 c = 6.17

18. Preventative Procedures Improve Quality of Design: Design product/process for robustness, poka-yoke, Taguchi Statistics Implement Six Sigma Involve Employees: Training, empowering, soliciting input Form strategic supplier partnerships Remove safety nets: carrying JIT inventory and requiring minimal lead times