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DEFINING QUALITY

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

PRINCIPAL QUALITY DIMENSIONS


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Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality

PRINCIPAL QUALITY DIMENSIONS

Performance: a products primary operating characteristics. Example: A cars acceleration, braking distance, steering and handling

PRINCIPAL QUALITY DIMENSIONS

Features: the bells and whistles of a product. A car may have power options, a tape or CD deck, antilock brakes, and reclining seats

PRINCIPAL QUALITY DIMENSIONS

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

PRINCIPAL QUALITY DIMENSIONS

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.

PRINCIPAL QUALITY DIMENSIONS

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

PRINCIPAL QUALITY DIMENSIONS

Serviceability: speed, courtesy, competence of repair work. auto owner -access to spare parts.

PRINCIPAL QUALITY DIMENSIONS

Aesthetics: how a product looks, feels, sounds, tastes, or smells. cars color, instrument panel design and feel of road make aesthetically pleasing

PRINCIPAL QUALITY DIMENSIONS

Perceived Quality:
Subjective assessment of quality resulting from image, advertising, or brand names. car, - shaped by magazine reviewsmanufacturers brochures

MANUFACTURING BASED CRITERIA


Quality = Conformance to specifications Quality is about manufacturing a product that people can depend on every time they reach for it Achieved at Coca-Cola through rigorous quality & packaging standards

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:

Performs its intended purpose Meets consumers needs

VALUE-BASED CRITERIA

Quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost.

UNCOVERING THE REAL OPPORTUNITIES OF QUALITY

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

WHAT GOOD CAN QUALITY DO

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

Quality Evolution in Japan


Determining the customers needs before the customer becomes aware of them Fitness to Cost To build a product that meets the needs of customer. Fitness to Standards To build a product that meets the specifications set by the designer. Fitness to Latent Requirements

Fitness to Use

Obtain high quality & low cost by effective designing of both the product & processes.

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