WHAT IS QUALITY

1. 1 WHAT IS QUALITY? Quality is simply meeting customer requirements. Fitness for purpose or use- Juran. The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs�. Quality should be aimed at the needs of the consumer, present and future�- Deming. The total composite product and service characteristics of marketing, engineering, manufacture and maintenance through which the product and service in use will meet the expectation by the customer�- Feigenbaum. Conformance to requirements- Crosby.

2. 2 GARVIN�S FIVE APPROACHES TO DEFINING QUALITY 1. The Transcendent Approach 2. The Product-based Approach 3. The User-based Approach 4. The Manufacturing-based Approach 5. Value-based Approach

3. 3 1. The Transcendent Approach Definition: �A condition of excellence implying fine quality as distinct from poor quality�. Quality is achieving or reaching for the highest standard as against being satisfied with the sloppy or the fraudulent.� There is lack of objectivity which creates a problem for the worker in a business environment who is striving for quality. Why? Because: When a factory worker produces an item, this definition does not allow that person to state definitively that the item is of high quality.

4. 4 2. The Product-based Approach Definition: Identifies specific features or attributes that can be measured to indicate higher quality. This approach provides objective measures of quality. Its disadvantage is that it assumes that the absence or presence of an attribute implies higher quality.

5. 5 3. The User-based Approach Definition: The user determines the quality of the goods. The product or service that best satisfies the user is the higher quality product. �Fitness for use�, Juran. Learning how the user plans to use the product and making the product to fit that need. This approach equates customer satisfaction with quality. Customer satisfaction reflects the attitudes of the consumer. Until the customer says the product is good, it will not be considered good quality.

6. 6 4. The Manufacturing-based Approach Definition:Conformance to requirements- Crosby. Engineering specifies the product characteristics, and the more closely manufacturing can conform to those requirements, the better the quality of the product. Advantage: Providing objectively measurable quality standards and of reducing the costs of quality. Disadvantage: Lack of concern for the customer�s preferences. Implicit Assumption: Meeting the target specifications of a product or service.

7. 7 5. Value-based Approach Definition: Quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost. This approach assumes that consumers� purcahse decisions are based on a model similar to one proposed by well-known marketing consultant, Gale (Exhibit 2.1).

8. 8 Exhibit 2.1: Gale�s Model of the Purchase Decision

9. 9 GARVIN�S Eight Dimensions of Quality Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality

10. 10 1. Performance: refers to the primary operating characteristics of the product or service; they are usually measurable. 2. Features: are additional characteristics that enhance the product/services appeal to the user. 3. Reliability of a product: is the likelihood that a product will not fail within a specific time period. This is a key element for users who need the product to work without fail.

11. 11 4. Conformance: is the precision with which the product or service meets the specified standards. 5. Durability: measures the length of a product�s life.When the product can be repaired, estimating durability is more complicated. The item will be used until it is no longer economical to operate it. This happens when the repair rate and the associated costs increase significantly.

12. 12 6. Serviceability: is the speed with which the product can be put into service when it breaks down, as well as the competence and the behavior of the serviceperson. 7. Aesthetics: is the subjective dimension indicating the kind of response a user has to a product. It represents the individual�s personal preference. 8. Perceived Quality: is also a subjective dimension: it is the quality attributes to a good or service based on indirect measures.

13. 13 FIVE PRINCIPAL DIMENSIONS FOR SERVICE INDUSTRY Reliability Responsiveness Assurance Empathy Tangibles

14. 14 1. Reliability of service: is the ability to perform a service reliably and dependably; it means the customer�s expectations are met consistently. Garvin would define this dimension as �conformance�. 2. Responsiveness: is the willingness to help customers and provide prompt service.Usually it can be measured by the speed with which the repairs were completed.

15. 15 3. Assurance: is the ability to communicate to the customer a level of competence and to provide the service with the necessary courtesy. Communicating a level of competence often fits Garvin�s perceived value dimension. 4. Empathy: is the approachability and the ability to communiacet with and understand the customer�s needs 5. Tangibles: is the appearance of the physical facilities, equipment, personnel, and communication materials.

16. 16 TOTAL QUALITY MANAGEMENT TQM is a comprehensive approach to improving competitiveness, effectiveness and flexibility through planning, organising and understanding each activity, and involving each individual at each level. It is useful in all types of organisation. TQM ensures that management adopts a strategic overview of quality and focuses on prevention, not detection, of problems. It often requires a mindset change to break down existing barriers. Managements that doubt the applicability of TQM should ask questions about the operation�s costs, errors, wastes, standards, systems, training and job instructions.

17. 17 COMMITMENT AND POLICY TQM starts at the top, where serious obsessional commitment to quality and leadership must be demonstrated. Middle management also has a key role to play in communicating the message. Every Chief Executive must accept the responsibility for commitment to a quality policy that deals with the organisation for quality, the customer needs, the ability of the organisation, supplied materials and services, education and training, and review of the management systems for never-ending improvement.

18. 18 TQM continued TQM is a relatively ne management philosophy that integrates strategy, management practice and organisational outcomes to create a quality organisation that continuously improves and sustains performance. TQM provides the overall concept that fosters continuous improvement in an organisation. The TQM philosophy stresses a systematic, integrated, consistent, orgnisation-wide perspective involving everyone and everything.

19. 19 TQM continued TQM focuses primarily on total satisfaction for both the internal and external customers, within a management environment that seeks continuous improvement of all systems and processes. TQM is the totally integrated effort for gaining competitive advantage by continuously improving every facet of an organisation�s activities.

20. 20 If we look at the meaning of each word, TQM can be defined as: TOTAL - Everyone associated with the company is involved in continuous improvement (including its customers and suppliers if feasible); QUALITY - Customers� expressed and implied requirements are met fully; MANAGEMENT - Executives are fully committed.