PROJECT ON:

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INDEX
MEANING OF QUALITY:
Quality is the totality of features and characteristics of a product or service
that bear on its ability to satisfy stated or implied needs.
Quality is the degree to which the customer expectations (implicit and
explicit) have been met.
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Sr. No. Contents Page No.
1 Meaning of Quality 5
2 hy is Quality !mportant" #
$ Quality in %roduct 12
& Quality in 'ervice 1&
5 Quality in (elationship 1)
) *ase 'tudy 1+
# *onclusion 1,
+ -ibliography 2.
The dictionary definition of quality reads:
1. /ny of the features that ma0e something what it is1 characteristic
element1 attribute
2. -asic nature1 character1 0ind
$. The degree of excellence which a thing possesses
&. Excellence; superiority
5. 2ow (are position3 capacity3 or role
). 2ow (are high social position
#. 2ow *hiefly 4ial people of high social position
hen people refer to 5uality or as0 why is 5uality important3 most often they
are referring to the third and fourth definitions3 which all relate to excellence.
Most often3 when people use the term "quality," they are spea0ing of an item
6be it a piece of furniture3 a product3 a term paper3 or time6 that is of higher
value3 or that has a higher degree of excellence.
FOUR MAJOR APPROCES TO QUALITY:
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7he academic literature on 5uality has not been reviewed extensively. 7he
problem is one of coverage8 scholars in four disciplines 9 philosophy3
economics3 mar0eting3 and operations management 9 have considered the
sub:ect3 but each group has viewed it from a different vantage point.
%hilosophy has focused on definitional issues1
;conomics3 on profit maximization and market equilibrium1
Mar0eting3 on the determinants of buying bea!ior and !"sto#er sat$s%a!t$on1
and
<perations management3 on engineering pra"ti"es and manufa"turing
"ontrol.
7he result has been a host of competing perspe"ti!es3 each based on a different
analytical framewor0 and each employing its own terminology.
#t te same time$ te "ommon fa"tor stands out% tat is: Customer
&atisfa"tion'
&Y IS QUALITY SO IMPORTANT'
!n every situation3 the fundamental answer to why is 5uality important is that
people are measured by what they do and what they create in the world. 7hus3
producing or doing something that is (ig quality( can improve your
standing or the standing of your company and give you a greater "an"e of
su""ess in whatever your endeavor is.
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QUALITY IS IMPORTANT FROM TE POINT OF (IE& OF TE
FOLLO&ING:
1. THE E!E"#$ %&'E"#T%(E
). THE E*+!+&%* %&'E"#T%(E
,. THE $E#$ %&'E"#T%(E
-. THE &#".ET%! / 01"(%(#$ %&'E"#T%(E
TE GENERAL IMPERATI(E:
)ard *ork: Quality is important because it
provo0es and encourages hard wor0.
4epending on what your interest is = superiority3 or inferiority" !f it is
the former then 0now that it ta0es hard wor0 and ade5uate use of
resources li0e8 time3 personnel3 raw materials3 assets etc to achieve high
5uality.
En"ourage goal setting: / person or company that wishes to achieve
high 5uality will be given to moment of goal setting3 because attaining
such goals is indeed a lofty one.
)ig profits: Man instinctively responds to good 5uality product3 a
company that is reputed to consistently produce good 5uality products is
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bound to have a bigger share of the mar0et share3 and this means high
patronage and profits.
+eneral *ell being: 7o ensure general well been one must ensure that
him>her invest in good attitude3 and ethics in relationship3 ta0e care of
your body by stic0ing to hygiene3 treat people as you would li0e to be
treated3 believe in ?od3 see0 peace with others3 wor0 diligently at your
:ob3 avoid bad friends3 get educated3 and so on. -y doing these3 one is
building and ensuring general well being = / life of high 5uality.
TE ECONOMIC IMPERATI(E:
7he basic model behind most businesses is to create products or ser2ices and
sell them to customers for a profit. 7hese products or services must live up to a
certain quality standard expected by customers.
!f the 5uality level is not met3 there are consequences to face for the 3usiness.
Poor ,uality results in Re*ork at additional "ost--'
7herefore3 quality is important to a 3usiness from the economic point of 2iew.
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The a3o2e graph illustrates the consequential cost of errors or changes made
at 2arious stages of a 3usiness.
TE LEGAL
IMPERATI(E:
!n the @.'. and many other countries3 a companyAs products or services legally
must perform the way it is supposed to perform. !n other words3 the things you
sell must wor0 properly.
7his law is called the 1niform *ommercial *ode 41**5.
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!f your products or services do not wor0 properly or meet the expectations you
define3 then you can be sued by your customers.
Moreover3 there are various laws that legislate against goods of unsatisfactory
5uality3 ma0e negligence in designing3 manufacturing or installation a criminal
offence.
,uality failures "an "ripple "ompanies and e!en make tem bankrupt'
TE MAR)ETING * SUR(I(AL IMPERATI(E:
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.at influen"es "ustomer pur"ases/
hen products are new to the mar0et3 suppliers can get away with low
5uality.
hen new suppliers enter the mar0et3 price becomes the deciding factor.
<nce
prices have leveled out3 features become the discriminating factor.
<nce the features are common3 consumers pay attention to ,0#12T3
and reliability.
QUALITY IN PRODUCTS:
%roduct 5uality is rapidly becoming an important competitive issue.
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7he collection of features and characteristics of a product that contribute to its
ability to meet given re5uirements. ;arly wor0 in controlling product 5uality
was on creating standards for producing acceptable products. -y the mid6
1,5.s3 mature methods had evolved for controlling 5uality3 including
statistical quality control and statistical process control 3 utiliBing se5uential
sampling techni5ues for trac0ing the mean and variance in process
performance.
4uring the 1678s, these methods and techni5ues were extended to the ser2ice
industry. 4uring 1,).=1,+.3 there was a ma:or shift in world mar0ets3 with the
position of the 1nited 0tates declining while 9apan and Europe experienced
substantial growth in international mar0ets. *onsumers became more
conscious of the cost and quality of products and services. Cirms began to
focus on total production systems for achieving 5uality at minimum cost. 7his
trend has continued3 and today the goals of 5uality control are largely driven
by consumer concerns and preferences.
There are three 2iews for descri3ing the o2erall quality of a product.
Cirst is the view of the manufacturer3 who is primarily concerned with the
design3 engineering3 and manufacturing processes involved in fabricating the
product. Quality is measured by the degree of conformance to predetermined
specifications and standards3 and deviations from these standards can lead to
poor 5uality and low reliability. ;fforts for 5uality improvement are aimed at
eliminating defects (components and subsystems that are out of conformance)3
the need for scrap and rewor03 and hence overall reductions in production
costs.
'econd is the view of the consumer or user. 7o consumers3 a high65uality
product is one that well satisfies their preferences and expectations. 7his
consideration can include a number of characteristics3 some of which
contribute little or nothing to the functionality of the product but are
significant in providing customer satisfaction.
/ third view relating to 5uality is to consider the product itself as a system and
to incorporate those characteristics that pertain directly to the operation and
functionality of the product. 7his approach should include overlap of the
manufacturer and customer views.
9#'#!:0 01**E00 &#!T"# %! TE"&0 +; <1#$%T= '"+>1*T0:
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# "orre"t approa" to*ards building quality produ"ts is not only benefi"ial
to te "ompany in terms of profits$ but also to*ards te o!erall "ustomer
satisfa"tion and "ompany reputation-
QUALITY IN SER(ICE:
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/ company in the sector of providing "ustomer ser!i"es is igly dependent
on the quality of ser!i"e experien"es it provides to its customers.
0ome dimensions of ser2ice quality are:
Reliability: %erform promised service dependably and accurately.
;xample 8 /nswer mail at same time each day.
Responsi!eness: illingness to help customers promptly.
;xample 8 /void 0eeping customers waiting for no apparent reason.
#ssuran"e: /bility to convey trust and confidence.
;xample 8 -eing polite and showing respect for customer.
Empaty: /bility to be approachable.
;xample 8 -eing a good listener.
Tangibles: %hysical facilities and facilitating goods.
;xample 8 *leanliness.
!f a customer has a good experience3 they are li0ely to come bac0 and spend
money with your business again the next time they are in need of your
services.
# "ustomer must feel like te ser!i"e e bougt from your "ompany *as
*ort te pri"e-
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T)E 4E1O. C)#RT E5P1#2N& T)E 6#R2O0& PER&PECT26E& O7
T)E ,0#12T3 2N &ER62CE #N8 2T& O0TCO9E:
QUALITY IN RELATIONSIP:
2t is "lear from te belo* illustration tat te quality of a relationsip "an
be determined by analyzing te dimensions and te zone tat you fall in-
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(elationships re5uire wor03 dedication and patience.
?ood 5uality relationships :ust donDt happen = they happen because both
people are willing to commit time and energy to it.
/lthough building and maintaining a mutually gratifying relationship does
re5uire effort3 the ideas and concepts are simple ones. !n fact3 the following
three ideas provide a proven roadmap for relationship success8
1. .eep the relationship a priority
). $earn to em3race differences
,. ;ocus on the positi2es in your partner
Many relationship experts say in order to build a strong and healthy
relationship you need to have open and honest conversation3 need to spend
ade5uate time together as well as apart3 and you need to trust one another.
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Maintaining good 5uality relationships is imperative in almost all fields of life3
be it friends3 family3 clients3 customers3 etc.
A++ re+at$ons,$-s ta0e different amounts of time and effort3 which you will
decide3 depending on how important they are to your futureE
CASE STUDY:
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%n order to understand the impact of product and ser2ice quality on 3usiness,
we studied a few local shops that sell domestic products and two computer
repair and ser2ice pro2iders, and concluded with the following data:
7he average business only hears from :; of their customers who are
dissatisfied with their products or services. <f the <=; who do not
bother to complain3 >?; of them have serious problems.
7he :; complainers are more li0ely to stay with the supplier than are
the <=; non6complainers.
/bout =@; of te "omplainers would stay as customers if their problem
was resol!ed and <?; *ould stay if te problem *as resol!ed qui"kly.
/ dissatisfied "ustomer *ill tell bet*een A@ and >@ other people about
their problem.
/ "ustomer *o as ad a problem resol!ed by a company will tell
about ? people about their situation.
CONCLUSION
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/ companyAs reputation relies heavily on the quality of its produ"ts or
ser!i"es. 7his is relevant to both customer reviews and company mar0eting.
7or example, igBend "loting designers or expensi!e "ar "ompanies often
set the bar high through their mar0eting efforts3 which typically promise
perfe"tion3 as well as the expensive price tags on their products. !f those
expectations are met by the customers who buy their products3 the company
maintains its reputation. *ustomers who receive a lo*erBquality produ"t than
expected will "omplain to friends, family and "oB*orkers about how the
product or service did not live up to expectations3 which will ultimately lo*er
your "onsumer reputation3 especially if the ma:ority of your customers have
negati!e experiences.
7o retain "ustomers for repeat business3 a company must sell products that
live up to the "ustomerCs expe"tations. !f a customer has a good experien"e3
they are li0ely to come bac0 and spend money with your business again the
next time they are in need of your products or services. / customer must feel
li0e the product or service he bought from your company was worth the price.
!f some customers feel that tey paid too mu" for te quality or produ"t
received3 you will likely not get any repeat business from them in the future.
7he things you sell to consumers must also be safe3 and not :ust for legal
reasons. !f you are in the food industry and you sell rotten food to a customer3
it can lead to ealt issues for that person. 'imilarly3 if you sell an ele"troni"s
device that has not passed safety inspe"tions3 it can lead to safety issues for
the consumer3 li0e an ele"tri"al fire or so"k. Malfunctioning or unsafe
products are a treat in almost e!ery industry3 and could lead to dangerous
situations for your customers.
/s far as quality of relationsips is concerned3 *reation is built on the
foundation of ig quality3 therefore it is important to follow the trend and
create a life that is filled with ex"ellen"e$ and satisfa"tion full of good 5uality
relationships.
.I.LOGRAPY:
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1. ?oogle !mages
2. hat 4oes F%roduct QualityG (eally Mean" ./ Da0$1 A. Gar0$n3 <ctober 153 1,+&.
$. http://en.wikipedia.org/wiki/Quait!"#$u%ine%%&
&. http8>>www.truthaboutlove.com>"hopHwee0lyrom
5. %pt on 'ervice 5uality by Iames CitBsimmons.
). Quality Management and 7raining Jimited by ?eoff Korley.
#. Quality systems by 4r. 4aryle 2iedermayer3 !.'.%3 *ollege of 2orth /tlantic3 Qatar.
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