Management in Organisations Quality

The definition of quality The benefits from higher quality The quality cycle The economics of Quality Dimensions of Service Quality Service Guarantee Quality Control Mechanisms Topics to be covered

A Definition : "The totality of features and characteristics of a product or service that bear on its ability to satisfy a given need" or : "Fitness for use"

Quality Focus Better Products Fewer Defects Benefits from Quality Increased Market Share Higher Prices Higher Productivity Lower Costs

The Quality Cycle Operations

PreventionAppraisal Internal Failure External Failure Control costsFailure costs Total Cost of Quality The Economics of Quality

Prevention : Costs associated with design and planning of a Quality programme Appraisal : Costs involved in the direct appraisal of quality both in plant and in field Internal Failure : Occurrence of defective product in plant External Failure : Failure of product or service in field Defining the costs of Quality

Satisfying Customer Requirements (adapted from Garvin 1988 Managing Quality) Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived Quality

+ Reliability Dimensions of Service Quality Five principal dimensions that customers use to judge service quality. These dimensions are listed in order of declining relative importance to customers. + Responsiveness Dependability Accuracy Reliability Promptness of service Service failure

+ Assurance Knowledge and Courtesy Competence Politeness and respect Effective communication Server attitude

+ Empathy + Tangibles Physical facilities Caring Individualised attention Approachability Sense of security Understanding Customer's needs.

Dimensions of Service Quality Reliability Responsiveness Assurance Empathy Tangibles Dimensions of Service Quality Reliability Responsiveness Assurance Empathy Tangibles Expected Service Expected Service Perceived service Perceived service Perceived Service Quality ES < PS Quality Surprise ES = PS Satisfactory ES > PS Unacceptable Quality Perceived Service Quality ES < PS Quality Surprise ES = PS Satisfactory ES > PS Unacceptable Quality Word of Mouth Word of Mouth Personal Needs Personal Needs Past Experience Past Experience Quality Dimensions

1Focuses on customers 2Sets clear standards 3Guarantees feedback 4 Promotes an understanding of the delivery system 5Builds customer loyalty A guarantee promotes organisation effectiveness in several ways: Benefits of Guarantees

TQMTQM otal uality anagement

Quality ‘Gurus’ Feigenbaum Deming Juran Ishikawa Taguchi Crosby

Inspection Quality Control Quality Assurance TQM The development of TQM

Meeting the needs of customers Encompassing all of the organisation Including every person in organisation Examining all costs related to quality Getting things ‘right first time’ Developing systems and procedures Developing continuous improvement Characteristics of TQM

Defects Rework Scrap Lost Items Backlogs Late Deliveries Surplus Items Seven generic ways to to measure quality output

ReactiveProactive InspectionPrevention AQLZD Blame placingProblem solving Quality cost moreQuality cost less Quality is technicalQuality is managerial Schedule firstQuality first Defects hiddenDefects highlighted Changing Quality Assumptions

A quality strategy Top management support A steering group Group based improvement Success is recognised TQM implementation

Avoid hyp No substitute for bad management Not a bolt-on solution Adapt to own circumstances TQM and loss of effectiveness