Professional Documents
Culture Documents
Perfection Consistency Eliminating waste Speed of delivery Compliance with policies & procedures Providing good, usable products Doing it right the first time Delighting or pleasing customers Total customer service & satisfaction
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Performance: a products primary operating characteristics. Example: A cars acceleration, braking distance, steering and handling
Features: the bells and whistles of a product. A car may have power options, a tape or CD deck, antilock brakes, and reclining seats
Reliability: the probability of a products surviving over a specified period of time under stated conditions of use. A cars ability to start on cold days and frequency of failures are reliability factors
Conformance: the degree to which physical and performance characteristics of a product match pre-established standards. cars fit/finish, freedom from noises can reflect this.
Durability: the amount of use one gets from a product before it physically deteriorates or until replacement is preferable. For car - corrosion resistance & long wear of upholstery fabric
Serviceability: speed, courtesy, competence of repair work. auto owner -access to spare parts.
Aesthetics: how a product looks, feels, sounds, tastes, or smells. cars color, instrument panel design and feel of road make aesthetically pleasing
Perceived Quality:
Subjective assessment of quality resulting from image, advertising, or brand names. car, - shaped by magazine reviewsmanufacturers brochures
JUDGEMENTAL CRITERIA
Quality = superiority or excellence Goodness of a product You just know it when you see it little practical value to managers No means through which quality can be measured for decision making
PRODUCT-BASED CRITERIA
Quality is a function of a specific, measurable variable Higher amount of product characteristics = higher quality Quality is mistakenly related to price Higher the price, higher the quality (Not necessarily true)
USER-BASED CRITERIA
Quality is determined by what customer wants Quality = Fitness for intended use How well the product:
VALUE-BASED CRITERIA
Quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost.
Value can be defined as, what the customer gets per what it costs the customer But customer gets more than a physical product. He or she gets: A sense of confidence in a supplier, & A sense of assurance that the supplier will be there when needed
VALUE-BASED CRITERIA
Gales Model of the Purchase Decision Product Quality Value Price Service
VALUE-BASED CRITERIA
Offering greater satisfaction at comparable price Procter & Gamble brought in VALUE PRICING Consumer brand loyalty More consistent sales Improvement of product characteristics Internal efficiencies
Provides competitive advantage Reduces costs Lesser returns, rework & scrap Increases productivity & profits Generates satisfied customers No Quality, no sales. No sales, no profit. No profits, no jobs.
COMPETITIVE ADVANTAGE
Denotes firms ability to achieve market superiority Driven by customer needs & wants Provides value to customers that competitors do not have Makes significant contribution to business success Allows a firm to use its resources effectively
COMPETITIVE ADVANTAGE
Durability & dependability difficult for others to copy Provides basis for further improvement Provides direction & motivation to the organization
Fitness to Use
Obtain high quality & low cost by effective designing of both the product & processes.