Product, Branding and Customer-Service Strategies Pertemuan ke-15

Two views of Quality Traditional view: Productivity and quality are conflicting goals Quality is defined as conformance to specifications or standards Quality is measured by degree of nonconformance Quality is achieved through inspection Some defects are allowed if the product meets minimum quality standards Quality is a separate function and focused on evaluating production Workers are blamed for poor quality Supplier relationships are short term and cost oriented.

Two Views of Quality Total quality management view: Productivity gains are achieved through quality improvements Quality is conformance to correctly defined requirements satisfying user needs Quality is measured by continuous process/product improvement and user satisfaction Quality is determined by product design and is achieved by effective process controls Defects are prevented through process control techniques Quality is part of every function in all phases of the product life cycle Management is responsible for quality Supplier relationships are long term and quality oriented

Product Quality and Cost Relationship Product quality improvement reduces cost and increases competitive advantage. The successful adoption of a customer-driven organizational strategy is essential for improving product quality Improving all processes of the business increases the uniformity of the products produced, reduces rework and mistakes, and reduces waste of manpower, machine time and materials usage.

Quality Improvement Strategy Quality culture: Quality improvement is the responsibility of everyone in the organization. Essential managerial style and leadership characteristics in developing a quality oriented culture include attention to detail, complete planning, problem monitoring, high personal standards, ongoing commitment to quality improvement, responsive and participative management style and trustworthiness.

Managing Existing Products Tracking product performance: Establish product performance objectives Develop a product evaluation system Identify problem products Select strategy for eliminating the problem

Analysis Objectives Criteria and acceptable levels of performance for gauging product performance. Criteria may include financial and non-financial factors Use product life cycle analysis: Determining the length and rate of change of the product life cycle Identifying the current PLC stage and selecting the product strategy that corresponds to that stage Anticipating threats and finding opportunities for altering and extending the PLC.

Conclusions The importance of product quality to competing in global markets requires the development of organizational philosophy and management process for improving quality. Evaluating a company’s existing products helps to establish priorities and guidelines for managing the product portfolio. These methods include the analysis of the product life cycle.