CBME 1; Operations

Management and TQM

Finals
Quality

Midterms
What is Quality?
 What is Quality?

– Perfection
– Consistency
– Eliminating waste
– Speed of delivery
– Compliance with policies and procedures
– Providing a good usable product
– Doing it right the first time
– Delighting or pleasing customers
– Total customer service and satisfaction
Quality

– “The totality of features and characteristics of a

product or service that bears on its ability to
satisfy given needs” American National Standards
Institute
– “The ability of a product or service to consistently
meet or exceed customer requirements or
expectations”
Different Perspectives of
Quality
– Judgmental perspective
– Product-based perspective
– User-based perspective
– Value-based perspective
– Manufacturing-based perspective
Judgmental
perspective
– Superiority or excellence
– “Goodness of the product”
– “Transcendent”- to rise above or extend notably
beyond ordinary limits
– You just know it when you see it
– It does not provide a means by which quality can be
measured or assessed by as a basis for decision
making
Product-based
perspective
– A function of a specific, measurable
variables
– Differences in quality reflect
differences in quantity of some
product attribute
– Higher increasing amounts of product
characteristics are equivalent to
higher quality
– Often mistakenly assumed to be
related to price
User-based
perspective
– Determined by what customers want
– “Fitness for intended use”
– How well the product performs its intended function
Value-based
perspective
– The relationship of usefulness or
satisfaction to price
– One that is useful as competing
products and is sold at a lower
price
– One that offers greater
usefulness or satisfaction at a
comparable price
Manufacturing-
based perspective

– Desirable outcome of
engineering and
manufacturing practice
– Conformance to
specifications
“How quality is viewed may depend on one’s position in the value
chain”
Dimensions
of
Quality

Finals
Dimensions of Quality; Product

1. Performance:
It involves the various operating characteristics of the product.
2. Features:
These are characteristics that are supplemental to the basic operating
characteristics.
Dimensions of Quality; Product

3. Reliability:
Reliability of a product is the degree of dependability and trustworthiness of the
benefit of the product for a long period of time.
It addresses the probability that the product will work without interruption or
breaking down.
4. Conformance:
It is the degree to which the product conforms to pre- established specifications.
All quality products are expected to precisely meet the set standards. How well a
product corresponds to design specifications.
Dimensions of Quality; Product

5. Durability:
It measures the length of time that a product performs before a replacement
becomes necessary.
6. Serviceability:
Serviceability refers to the promptness, courtesy, proficiency and ease in repair
when the product breaks down and is sent for repairs.
Dimensions of Quality; Product

7. Aesthetics:
Aesthetic aspect of a product is comparatively subjective in nature and refers to its
impact on the human senses such as how it looks, feels, sounds, tastes and so on,
depending upon the type of product.
8. Perceived quality:
An equally important dimension of quality is the perception of the quality of the
product in the mind of the consumer. Indirect evaluation of quality (e.g.,
reputation).
Dimensions of Quality; Services

1. Convenience —the availability and accessibility of the service.

2. Reliability —the ability to perform a service dependably,
consistently, and accurately.
3. Responsiveness— the willingness of service providers to help
customers in unusual situations and to deal with problems.
4. Time —the speed with which service is delivered.
Dimensions of Quality; Services

1. Assurance— the knowledge exhibited by personnel who come into

contact with a customer and their ability to convey trust and
confidence.
2. Courtesy —the way customers are treated by employees who come
into contact with them.
3. Tangibles —the physical appearance of facilities, equipment, personnel,
and communication materials.
4. Consistency —The ability to provide the same level of good quality
repeatedly.
Quality Dimensions : Services

1. Quality of Customer Service- how well the customer is received, how well the
implied requirements are elucidated and how well the customer is treated or
handled.
2. Quality of Service Design- service is designed as per the requirements of the
specific customer.
3. Quality of Delivery- defects should be ZERO to satisfy the customer.
4. Timeliness- delivery on schedule as per requirements of the customer.
5. Regulatory Requirements- legal requirements stipulated by the local and
national government.
Quality Dimensions : Services

– Customers today pay more attention to service issues than to

the physical goods.
– One study found that customers are 5 times more likely to
switch because of perceived service problems than for price
concerns or product quality issues.
– It is estimated that the average company loses as many as
35% of its customers each year and about two-thirds of these
are lost because of poor customer service.
5 Principal Dimensions to
Customer Perception of Quality
1. Reliability- the ability to provide what was promised, dependably and
accurately.
2. Assurance- the knowledge and courtesy of employees and their ability to
convey trust and confidence.
3. Tangibles- the physical facilities and equipment and the appearance of
personnel.
4. Empathy- the degree of caring and individual attention provided to customers
convenience.
5. Responsiveness- the willingness to help customers and provide prompt
service
Group activity: 1 whole sheet of
paper.
1. Identify a company or organization from which you
have received poor-quality products or services,
describe the dimension of quality where they fall
short on and suggest ways in which you might
improve quality.
2. Identify a company or organization from which you
have received high-quality products and describe
the characteristics that make them high-quality.