9-1 Management of Quality

Management of Quality-Dimensions and process

.

9-2 Management of Quality

Quality ManagementQuality Management

What does the term quality mean?

Quality is the ability of a product or service to consistently meet or exceed customer expectations.

9-3 Management of Quality

Evolution of Quality ManagementEvolution of Quality Management

1924 - Statistical process control charts 1930 - Tables for acceptance sampling 1940’s - Statistical sampling techniques 1950’s - Quality assurance/TQC 1960’s - Zero defects 1970’s - Quality assurance in services

9-4 Management of Quality

Quality Assurance vs. Strategic ApproachQuality Assurance vs. Strategic Approach

Quality Assurance Emphasis on finding and correcting defects

before reaching market Strategic Approach

Proactive, focusing on preventing mistakes from occurring

Greater emphasis on customer satisfaction

9-5 Management of Quality

Dimensions of QualityDimensions of Quality

Performance - main characteristics of the product/service

Aesthetics - appearance, feel, smell, taste Special Features - extra characteristics Conformance - how well product/service

conforms to customer’s expectations Reliability - consistency of performance

9-6 Management of Quality

Dimensions of Quality (Cont’d)Dimensions of Quality (Cont’d)

Durability - useful life of the product/service

Perceived Quality - indirect evaluation of quality (e.g. reputation)

Serviceability - service after sale

9-7 Management of Quality

Examples of Quality DimensionsExamples of Quality Dimensions

Dimension

1. Performance 2. Aesthetics 3. Special features

(Product) Automobile

Everything works, fit & finish Ride, handling, grade of materials used Interior design, soft touch Gauge/control placement Cellular phone, CD player

(Service) Auto Repair

All work done, at agreed price Friendliness, courtesy, Competency, quickness Clean work/waiting area Location, call when ready Computer diagnostics

9-8 Management of Quality

Examples of Quality Dimensions (Cont’d)Examples of Quality Dimensions (Cont’d)

Dimension

5. Reliability 6. Durability 7. Perceived quality 8. Serviceability

(Product) Automobile

Infrequency of breakdowns Useful life in miles, resistance to rust & corrosion Top-rated car Handling of complaints and/or requests for information

(Service) Auto Repair

Work done correctly, ready when promised Work holds up over time Award-winning service department Handling of complaints

9-9 Management of Quality

Service QualityService Quality

Tangibles Convenience Reliability Responsiveness Time Assurance Courtesy

9-10 Management of Quality

Examples of Service QualityExamples of Service Quality

Dimension Examples1. Tangibles Were the facilities clean, personnel neat?

2. Convenience Was the service center conveniently located?

3. Reliability Was the problem fixed?

4. Responsiveness Were customer service personnel willing and able to answer questions?

5. Time How long did the customer wait?

6. Assurance Did the customer service personnel seem knowledgeable about the repair?

7. Courtesy Were customer service personnel and the cashierfriendly and courteous?

Table 9.4

9-11 Management of Quality

Determinants of QualityDeterminants of Quality

Service

Ease ofuse

Conforms to design

Design

9-12 Management of Quality

Determinants of Quality (cont’d)Determinants of Quality (cont’d)

Quality of design Intension of designers to include or exclude

features in a product or service Quality of conformance

The degree to which goods or services conform to the intent of the designers

9-13 Management of Quality

The Consequences of Poor QualityThe Consequences of Poor Quality

Loss of business Liability Productivity Costs

9-14 Management of Quality

Top management Design Procurement Production/operations Quality assurance Packaging and shipping Marketing and sales Customer service

Responsibility for QualityResponsibility for Quality

9-15 Management of Quality

Substandard work Defective products Substandard service Poor designs Shoddy workmanship Substandard parts and materials

Ethics and QualityEthics and Quality

Having knowledge of this and failing to correctand report it in a timely manner is unethical.

9-16 Management of Quality

Quality at the SourceQuality at the Source

The philosophy of making each worker responsible for the quality of his or her work.

9-17 Management of Quality

Process Improvement: A systematic approach to improving a process

Process mapping Analyze the process Redesign the process

Process ImprovementProcess Improvement

9-18 Management of Quality

The Process Improvement CycleThe Process Improvement Cycle

Implement theImproved process

Select aprocess

Study/document

Seek ways toImprove it

Design anImproved process

Evaluate

Document

9-19 Management of Quality

Process Improvement and ToolsProcess Improvement and Tools

Process improvement - a systematic approach to improving a process Process mapping Analyze the process Redesign the process

Tools There are a number of tools that can be used for problem solving and process

improvement Tools aid in data collection and interpretation, and provide the basis for decision

making

9-20 Management of Quality

Flow Chart Example: Flow Chart Example: Self-Serve Gas Before ImprovementSelf-Serve Gas Before Improvement

Drive in check price self serve? to pumpshut offengine

walk to paystation

yes

no

check card transmit approved?turn onpump

yesno

backto car

pumpgas

walk tobooth

wait

employeetotalscharges

checkaccuracy

preparereceipt

signcopy

copy tofile

copy towallet

return to car

on the roadagain

9-21 Management of QualityFlow Chart Example:Flow Chart Example:

Self-Serve Gas After ImprovementSelf-Serve Gas After Improvement

Drive incheckprice self-serve?

no

yes

go topump

shut offengine insert

cardin pump

checkcredit card

wait

approved?

no

yes

wait forreceipt

store in system

copy towallet

on the roadagainpump gas