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

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

Chapter 1

Differing Perspectives on Quality


Chapter OutlinesChapter Outlines

1. What is Quality?

2. Differing Functional Perspectives on Quality

3. The Three Spheres of Quality

4. Other Perspectives on Quality

5. Arriving at a Common Perspective

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Differing Perspectives on QualityChapter 1


““Those who are victorious plan Those who are victorious plan effectively and change decisively. effectively and change decisively. They are like a great river that They are like a great river that maintains its course but adjust its maintains its course but adjust its flow”flow”

Sun TzuSun Tzu

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Differing Perspectives on QualityChapter 1


Recognizing Different Perspectives on QualityRecognizing 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 Chainsupply Chain.

The supply chain encompasses many differing functions and processes from raw materials stage to after sale service.raw materials stage to after sale service.

To execute all these processes we need expertise and qualityexpertise and quality with the requirements of :

flexible cross functional problem solving Employees who can adapt to changing markets.(

Differing Perspectives on QualityChapter 1Introduction


There are several quality dimensions, one of the most respected was compiled by David Garvin of the Harvard Business School.

Differing Perspectives on QualityChapter 11- What is Quality?

2- Product based2- Product based

3- User-based3- User-based 4- Manufacturing based4- Manufacturing based

5-Value based

5-Value based

1- Transcendent1- Transcendent

Definitions areDefinitions are


David Garvin found that most definitions of quality were:

1.1. Transcendent:Transcendent: intuitively understood but impossible to communicate like beauty or love.

2.2. Product basedProduct based: quality is component and attribute of a product.

3.3. User-based:User-based: if the customer is satisfied, the product has good quality.

4.4. Manufacturing based:Manufacturing based: if the product conforms to design specifications, it has a good quality.

5.5. Value basedValue based: if the product is perceived as providing good value, it has good quality.(

Differing Perspectives on QualityChapter 11- What is Quality?


1. 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

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1. What is Quality?Garvin’s Product Quality Dimensions

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PerformanceFeatureReliabilityConformance

Efficiency with which a product achieves its intended purpose


1. 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 specifications



Ability to tolerate stress or trauma without failing




The ease and low cost of repair for a product




Degree to which product attributes are matched to consumer preferences




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



1. What is QualityPZ&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




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


1. 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


Functional Perspectives on quality include:1. Supply Chain Management2. Engineering3. Operations4. Strategic Management5. Marketing6. Financial/Accounting7. Human resources

What is Quality?2. Differing Functional Perspectives on Quality



1. 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)



1. H

2. Engineering

Applying mathematical problem-solving skills

and modeling techniques

Product Design Process Design

Design Life cycle



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.

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1 - 27


1. H

2. Engineering3. Operations Management

4. 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



1. H2. Engineering3. Operations Management4. Operations Management

5. 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

1. H2. Engineering3. Operations Management4. Operations Management5. Strategic Management

6. 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



1. H2. Engineering3. Operations Management4. Operations Management5. Strategic Management6. Marketing

7. 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



Financial

Law of diminishing returns



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. H2. Engineering3. Operations Management4. Operations Management5. Strategic Management6. Marketing7. Financial

8. 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

The Three Spheres of Quality


3. The Three Spheres of QualityQuality Management is broken into:Quality Management is broken into:

1- Analysis phase is broken into its fundamental2- Relation phase involves understanding the relationships between the parts3- Generalization phase involves perceiving how interrelationships apply to larger phenomenon of quality being

studied.

1- Analysis Phase

2- Relation

3- Generalization


3. The Three Spheres of QualityQuality Assurance refers to: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


3. The Three Spheres of QualityQuality Management is the sum of Quality Management is the sum of

1- Quality control

2- Quality assurance


What is Quality?

Other Perspectives on Quality:

Value-Added Perspective on QualityA customer-based perspective that involves the concept of value.A value-added perspective that involves a subjective assessment of efficacy.

Cultural Perspective on QualityInternational marketers have noted differences in tastes and preferences

between cultures and nations. The quality of product is seen differently from one culture to another

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

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