Dimensions Of Product Quality (Garvin) 1. Performance basic operating characteristics 2. Features “extra” items added to basic features 3. Reliability probability product will operate over time 4. Conformance meeting pre-established standards

5. Durability 6. Serviceability 7. Aesthetics 8. Safety 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. Other perceptions subjective perceptions based on brand name, advertising, etc

Service Quality 1. Time & Timeliness 2. Completeness 3. Courtesy customer waiting time, completed on time 2. Completeness customer gets all they asked for 3. Courtesy treatment by employees e

5. Accessibility & Convenience 4. Consistency same level of service for all customers 5. Accessibility & Convenience ease of obtaining service 6. Accuracy performed right every time 7. Responsiveness reactions to unusual situations

Producer’s Perspective Consumer’s Perspective The Meaning of Quality Producer’s Perspective Consumer’s Perspective Quality of Conformance Quality of Design Production Marketing Conformance to specifications Cost Quality characteristics Price Fitness for Consumer Use

Quality Of Conformance Ensuring product or service produced according to design Depends on design of production process performance of machinery materials training

Cost Of Quality Cost of achieving good quality Cost of poor quality Prevention Appraisal Cost of poor quality Internal failure costs External failure costs Cost of achieving good quality Prevention quality planning, product design process, training information Appraisal inspection & testing test equipment operator Cost of poor quality Internal failure costs scrap, rework process failure & downtime downgrading products External failure costs customer complaints returns, warranty product liability, lost sales 18

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

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

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

Inspection Involves examining items to see if an item is good or defective Detect a defective product Does not correct deficiencies in process or product It is expensive Issues When to inspect Where in process to inspect

Inspection Tools System or process problems: Statistical process control techniques Material or lot problems: Acceptance sampling techniques

Control Chart Mg of salt Sample number 8 6 4 3 5 7 9 10 2 12 14 16 UCL = 9.85 LCL = 2.99 c = 6.17

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

Six Sigma Two meanings Statistical definition of a process that is 99.9997% capable, 3.4 defects per million opportunities (DPMO) A program designed to reduce defects, lower costs, and improve customer satisfaction

Six Sigma Define critical outputs and identify gaps for improvement Measure the work and collect process data Analyze the data Improve the process Control the new process to make sure new performance is maintained DMAIC Approach