Session II Introduction to Quality

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    QUALITY

    Pay Quality Attention

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    Q-U-A-L-I-T-Y

    Q - Quest for excellenceU - Understanding customer needsA - Action to achieve customer satisfaction

    L - Leadership determination to be a leaderI - Involvement of all peopleT - Team spirit to work for common goalsY - Yardstick to measure progress

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    CUSTOMER AND QUALITY:

    MAHATMA GANDHI

    A Customer is the most important visitor on our

    premises.

    He is not dependent on us. We are dependent on

    him.

    He is not interruption in our work. He is the

    purpose of it.

    We are not doing a favor by serving him. He isdoing favor by giving us an opportunity to do so.

    Quality is not expensive. Its priceless.

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    Quality: Defined

    Is a products or services ability to satisfythe needs and expectations of the customer

    Quality is fitness for use

    Joseph Juran

    Quality is conformance to requirements

    - Philip Crosby

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    Quality: Defined

    Degree to which a set of inherent characteristics of aproduct or service fulfills the requirements.

    - ISO 9001

    Uniformity around a target value.

    - Genichi Taguchi

    Quality in a product or service is not what the supplier

    puts in. It is what the customer gets out and is willingto pay for.

    - Peter Drucker

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    FIRST TIME IS THE RIGHT TIME

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    BENEFITS OF QUALITY

    .

    Quality makes customer happy

    Quality is no longer an order winner, it is merely an order qualifier.

    Corporate Image

    Motivated Employees Satisfied Customers

    Goodwill / Reputation

    Brand Loyalty

    Reduction in overall costs

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    CHANGING VIEWS OF QUALITY

    Quality is the responsibility of

    workers and direct labour

    employees working on theproduct

    Defects should be hidden from

    the customers and management

    Identification of quality

    problems lead to blame, faulty

    justification and excuses

    Quality is everyones

    responsibility, including

    management, workers, theindirect labour force and the

    overhead staff

    Defects should be highlighted

    and brought to the surface for

    corrective action.

    Identification of quality

    problems lead to improvement in

    quality

    PAST PRESENT

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    CHANGING VIEWS OF QUALITY

    Defects are caused mainly by the

    people

    Increased quality will increase

    project costs

    Quality is internally focussed

    Quality will not occur without

    close supervision of people Quality is inspected at the end of

    the production cycle

    Defects are caused by processes

    Improved quality reduces overall

    project costs.

    Quality is customer focused

    People want to produce quality

    products Quality is built in to the product

    right from the initial phase.

    PAST PRESENT

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    DMENSONS OF QUALTY- GARWIN

    Performance:

    Will the product/service do the intended job?

    Reliability:

    How often does the product/service fail?Durability:

    How long does the product/service last?

    Serviceability:

    How easy to repair the product / to solve theproblems in service?

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    DMENSONS OF QUALTY

    Aesthetics:

    What does the product/service look/smell/sound/feel like?

    Features:

    What does the product do/ service give?Perceived Quality:

    What is the reputation of the company or its

    products/services?

    Safety Is the product/service safe for the Customer for final use?

    Conformance to Standards:

    Is the product/service made exactly as the designer/standard

    intended?

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    QUALITY IN DIFFERENT AREAS

    OF SOCIETY

    Area

    Examples

    Airlines On-time, comfortable, low-cost service

    Health CareCorrect diagnosis, minimum wait time, lower

    cost, security

    Food Services

    Good product, fast delivery, good environment

    Postal Services fast delivery, correct delivery, cost containment

    AcademiaProper preparation for future, on-time

    knowledge delivery

    Consumer Products

    Properly made, defect-free, cost effective

    Insurance Payoff on time, reasonable cost

    Military Rapid deployment, decreased wages

    Automotive Defect-free

    Communications

    Clearer, faster, cheaper service

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    COST OF POOR QUALITY

    Lost Sales Expediting

    Higher Risk By User

    Requirement of Buffer Inventory in the Manufacturing

    Administration Cost

    Customer scorecard impact

    Morale Loss

    Returns and Allowances

    Unpredictability of Stocks

    Loss of Goodwill, Brand Image and Reputation

    Time Value of Money

    Scheduling Conflict

    No. of Set up required on shop floor

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    FEATURES OF SERVICES

    Intangibility

    Perishability

    Inseparability

    Heterogeneity

    Service Qualityisconsistently meeting or

    exceeding customer expectations (external focus)and service delivery system performance criteria(internal focus) during all service encounters.

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    MAJOR ASPECTS OF

    SERVICE QUALITY

    1. Time & Timeliness

    Customer waiting time, completed on time

    2. Completeness

    Customer gets all they asked for

    3. Courtesy

    Treatment by employees

    4. Consistency

    Same level of service for all customers

    5. Accessibility & Convenience Ease of obtaining service

    6. Accuracy

    Performed right every time

    7. Responsiveness

    Reactions to unusual situations

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    DIMENSION OF SERVICE QUALITY

    Dimension Examples

    8. Tangibles Were the facilities clean, personnel neat?

    9. Convenience Was the service center conveniently located?

    10. Reliability Was the problem fixed?

    11. Assurance Did the customer service personnel seem

    knowledgeable about the repair?

    12. Empathy How easily the company is approachable?

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    PRINCIPLES OF SERVICE QUALITY

    Attracting new customers is costlier than retaining

    existing customer

    Customer Service costs moneyLufthansa

    Understanding your customer need

    Process and service design is important

    Customer service must be consistent

    Employees are also customer

    Open all communication channel

    Every customer contact is a chance to excel

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    Thank You