Introduction to Quality Systems Angela Praiswater

Introduction What is quality? –User based Lies in the eyes of the beholder Customers and Marketing lean towards this approach Higher quality means better performance, nicer features, and other (sometimes costly) improvements –Manufacturing based Conforming to standards and making the product right the first time –Product based Precise and measureable variable What companies come to mind when you think high quality products or service? –Samsung –Toyota –Amazon Why do you consider these companies producers of high quality products or service? –Meets or exceeds the needs of the customer Product functionality, reliability, maintainability, availability –Balance High Quality Cost Efficiency –Customer Service –Reputation

Best & Worst in Quality Products / Service

Reputable Companies Word of mouth has become the No. 1 driver of sales and competitive advantage Strong correlation between a company’s reputation and customer’s willingness to recommend it. –People’s willingness to recommend a company is based 60% by their perceptions of the company and 40% by their perceptions of their products. Large companies are spending billions to manage their public image. Indicators: trust, esteem, admiration, and good feeling Top Reputable Companies according to Forbes What could companies focus on to improve their public image?

Customer Service Best Companies for customer service –Apple – company focuses on product innovation and customer service –GE – Black belts in customer service Proactive measures to assist internal customers in streamlining processes, cutting costs, and increasing profit margins – all for free. –Toyota Customer Loyalty – “The Toyota Way” founds the production system and lean manufacturing techniques, but the philosophy also pushes customer-centric quality as being “pure logic and pure respect” –Google, Southwest Airlines, Hilton Hotels, Papa John’s, DirecTV, Samsung Worst Companies in Customer Service –AOL (closing accounts), Best Buy (persistence with selling protection plans), Home Depot (last in Business Week for retailers in the U.S.), AT&T (Most complaints from cell providers according to the FCC), Day’s Inn

Quality How does quality apply to a company? –Products/service Quality of design & conformance Process – planning, control, improvement Characteristics: reliability, maintainability, and availability –Level of Customer Service Trust, admiration, esteem, good feeling –Reputation Drivers of quality, setting standards –Quality must be part of the company philosophy and a top priority in their organizational strategy

Ways quality improves profitability Sales Gains –Improved response –Flexible pricing –Improved reputation Reduced Costs –Increased productivity –Lower rework and scrap costs –Lower warranty Costs