management in organisations quality. the definition of quality the benefits from higher quality the...
TRANSCRIPT
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"
QualityFocus
BetterProducts
FewerDefects
Benefits from Quality
IncreasedMarket Share
Higher Prices
HigherProductivity
Lower Costs
The Quality Cycle
Operations
Customer
Marketing
Design
PreventionAppraisalInternalFailure
ExternalFailure
Control costs Failure 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.
ResponsivenessDependability
Accuracy
Reliability
Promptness of service
Service failure
AssuranceKnowledge 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
ReliabilityResponsiveness
AssuranceEmpathyTangibles
Dimensions of Service Quality
ReliabilityResponsiveness
AssuranceEmpathyTangibles
ExpectedService
ExpectedService
Perceivedservice
Perceivedservice
PerceivedServiceQuality
ES < PS Quality Surprise
ES = PS Satisfactory
ES > PS UnacceptableQuality
PerceivedServiceQuality
ES < PS Quality Surprise
ES = PS Satisfactory
ES > PS UnacceptableQuality
Word ofMouth
Word ofMouth
PersonalNeeds
PersonalNeeds
PastExperience
PastExperience
Quality DimensionsQuality Dimensions
1 Focuses on customers
2 Sets clear standards
3 Guarantees feedback
4 Promotes an understanding
of the delivery system
5 Builds customer loyalty
A guarantee promotes organisation effectiveness in several ways:
Benefits of Guarantees
T Q M
otalualityanagement
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
Reactive Proactive
Inspection Prevention
AQL ZD
Blame placing Problem solving
Quality cost more Quality cost less
Quality is technical Quality is managerial
Schedule first Quality first
Defects hidden Defects 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