Dimensions Of Product Quality (Garvin) 1. Core Performance basic operating characteristics 2. Features “extra” items added to basic features 3. Reliability probability product will operate, even in strenuous conditions 4. Convenience Amount of effort required to use the product

5. Durability life span before replacement 6. Serviceability ease of getting repairs, speed & competence of repairs 7. Aesthetics look, feel, sound, smell or taste 8. Safety freedom from injury or harm 9. Personal image subjective perceptions based on brand name, advertising, design labels, etc

e Additional Dimensions of Service Quality 1. Time & Timeliness customer waiting time, completed on time 2. Accessibility & Convenience ease of obtaining service 3. Face-to-Face interaction treatment by employees 4. Accuracy performed right every time

The Meaning of Quality Quality of ConformanceQuality of Design Producer’s PerspectiveConsumer’s Perspective Fitness for Consumer Use ProductionMarketing Conformance to specifications Cost Performance quality Product’s bundle of attributes & specifications Price

Two Ways Quality Improves Profitability Improved Quality Increased Profits  Lower rework and scrap costs  Lower warranty & product liability costs Reduced Costs via  Improved response  Flexible pricing  Improved reputation Sales Gains via

Cost Of Quality Control Costs (cost of achieving good quality) Prevention Appraisal Failure Costs (cost of poor quality) Internal failure costs External failure costs

Japanese vs US Quality Costs (1980s)

Quality And Productivity Productivity = output / input Fewer defects increase output Quality improvement reduces inputs

Quality Philosophies Joseph Juran Focus on actions and mind-set of managers; believed an organization’s culture is the root cause of quality problems W. Edwards Deming Developed statistical process control techniques Six Sigma Focus on reducing defects to achieve stable and predictable process results through statistical approaches and problem-solving Total Quality Management Management philosophy that advocates participation of every member in organization is part of effort to improve quality

Total Quality Management 1. Customer defined quality and satisfaction 2. Top management leadership 3. Quality as a strategic issue 4. All employees responsible for quality 5. Continuous improvement 6. Shared problem solving/ Cross-discipline system approach 7. Statistical quality control: measurement of results 8. Mutually beneficial supplier relations

Options to Improve Quality of Conformance Consumer Education: product labeling, instructions, online resources Follow-up Service: Recalls, extended warranties, replacements Inspection of Work and Product Preventative Procedures

Improve Quality of Design: Design product/process for robustness, poka-yoke, Taguchi Statistics Implement Six Sigma Involve Employees: Training, empowering, soliciting input Form strategic supplier partnerships Remove safety nets: carrying JIT inventory and requiring minimal lead times