Quality Management

Question 1

Quality is defined by the customer. And involves two characteristics which are:

Answer 1

2. Customer satisfaction and loyalty:
   achieved through features (high cost) and freedom from deficiencies
3. Fitness for use

Question 2

Critical components to Quality

Answer 2

1. Customer – anyone who is affected by a service, product or process.
   Customers may be Internal or External (stakeholders)
2. Product – the output of any process: goods, software or services

Question 3

How Features and Freedom from Deficiencies Interrelate and Lead to Higher Profits

Answer 3

More features increase rices and market share which in turn increase income.
Lower deficiencies means improved speed, warranty and reduced waste which in turn reduces cost.

Question 4

Definition of Quality

Answer 4

The International Organization for Standardization (ISO), : The totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs

Question 5

Six Perspectives of Quality (Evans and Lindsay)

Answer 5

1. Transcendent
2. Product
3. Value
4. User
5. Manufacturer
6. Customer

Question 6

Transcendent Perspective

Answer 6

Defined by Walter Shewart in 1931, as the goodness of a product – a view referred to as transcendent, to rise above or beyond ordinary limits.

Can’t be measured. Not useful to managers

Question 7

Product Perspective

Answer 7

Refers to the number of or quantity of product attributes.

Question 8

Value Perspective

Answer 8

Essentially evaluates the relationship of product benefits to price.
Consumers compare the quality of the total package of goods and services that a business offers the – customer benefit package – to include price and competitive offerings. This package includes the physical product and its quality dimensions: pre-sale support, such as field service, ease of ordering, delivery, etc.

– if the quality is perceived as being the same, the lower priced item is likely to be selected. Therefore companies should seek to continually satisfy consumers’ needs at lower prices.

Question 9

User Perspective

Answer 9

Assumes that individuals have different wants and need – a preference or expectation.
This user-based definition of quality means fitness for intended use, or how well the product performs its intended function.
Products need to be assessed to satisfy both physical/environmental constraints and the actual need intended to be satisfied.

Question 10

Manufacturer Perspective

Answer 10

Focuses on the desire for consistency in goods and services – by both consumer and manufacturer
Consistency in quality, packaging and performance – leads to having standards for goods and services – conformance to specifications
Specifications are targets and tolerances determined by designers of goods and services.

Question 11

Customer Perspective

Answer 11

The definitions of quality provided earlier draw heavily on the product and user definitions and is driven by the need to create satisfied customers.
Since the 1980s firms have adapted a very simple definition: meeting or exceeding customer expectations

Question 12

Consumers (end users) types

Answer 12

External Customers (interim users of the product or parts of it, outside the organization); Internal Customers (those who receive goods or services from suppliers within the organization).

Question 13

History of Quality Assurance

Answer 13

Industrial Revolution: rise of inspection and separate quality departments
Early 20th Century: statistical methods at Bell System
Quality control during World War II
Post-war Japan: evolution of quality management
Quality awareness in U.S. manufacturing industry during 1980s: from “Little Q” to “Big Q” - Total Quality Management
Malcolm Baldrige National Quality Award (1987)
Disappointments and criticism
Emergence of quality management in service industries, government, health care, and education
Evolution of Six Sigma
Current and future challenge: maintain commitment to performance excellence

Question 14

Quality Dimensions

Answer 14

Performance – primary operating characteristics
Features – “bells and whistles”
Reliability – probability of operating for specific time and conditions of use
Conformance – degree to which characteristics match standards
Durability - amount of use before deterioration or replacement
Serviceability – speed, courtesy, and competence of repair
Aesthetics – look, feel, sound, taste, smell
Time – how much time must a customer wait?
Timeliness – will a service be performed when promised?
Completeness – Are all items in the order included?
Courtesy – do frontline employees greet each customer cheerfully?
Consistency – are services delivered in the same fashion for every customer, and every time for the same customer?
Accessibility and convenience – is the service easy to obtain?

Question 15

Principles of total Quality

Answer 15

1: Customer Focus – organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.

2: Leadership - leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization’s objectives.

Principle 3: Involvement of People -

Question 16

Customer-Focused Practices

Answer 16

• Identify the most important customer groups and markets
• Understand both near-term and longer-term customer needs and expectations (the “voice of the customer”) and employ systematic processes for listening and learning
• Understand the linkages between the voice of the customer and design, production, and delivery processes, and innovate product offerings
• Create an organizational culture and manage customer relationships
• Develop effective complaint management processes
• Measure customer satisfaction, engagement, and dissatisfaction and use the information for improvement