Recognizing Different Perspectives on Quality Slide 1 of 3

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INTRODUCTION
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Recognizing Different Perspectives on
QualitySlide 1 of 3

• Different Perspectives on Quality
• There are many different definitions and
  dimensions of quality.
• For the present, you should view quality as a
  measure of goodness that is inherent to a product
  or service.
• Employees working for the same firm often view
  quality differently as illustrated in the next
  slide.

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Recognizing Different Perspectives on
QualitySlide 2 of 3
Different View of Quality that can Exist in the
Same Firm
Engineering
Marketing
Accounting
A product engineer might associate quality with
product design
A marketing executive might associate quality
with quick design time
An accountant might associate quality with low
product cost
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Recognizing Different Perspectives on
QualitySlide 3 of 3

• As Illustrated in the Preceeding Slide,
  Perceptions on Quality Can Vary
• In order to communicate effectively about
  quality, managers need to recognize that
  differences in perceptions of quality exist.

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DEFINITION OF QUALITY

• It is difficult to define quality. Everything we
  do has some quality elements in it. An example,
  choosing the clothes we wear, colour, features,
  comfort, affordability, suitability, the design
  is associated to some quality aspect. We know it
  when we see it, feel it, touch it, wear it and
  buy it. How do we define quality, is where we
  associate it with our criterion or perception of
  quality that we have set in our mind or heart. As
  long as it suits or fall on or between the
  criterion or perception we set, met all or part
  of it, we grade it as a product that met our
  quality expectation.

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DEFINITION OF QUALITY

• Various definition can be found. Among them
• Conformance to requirements. (Crosby)
• Fitness for use or satisfies customers needs. (
  J.M. Juran)
• A predictable degree of uniformity and
  dependability at low cost and suited to the
  market. ( W. Edwards Deming)
• The totality features and characteristics of a
  product or service that bear upon its ability to
  satisfy stated or implied needs. (ISO 8402)
• Totality of features and characteristics of a
  product or service that bears on its ability to
  satisfy given needs. (ANSI ASQ)

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What Is Quality?

• Garvins Definitions of Quality
• David Garvin of the Harvard Business School found
  that most definitions of quality were either
  transcendent, product-based, user-based,
  manufacturing-based, or value-based.
• Garvins Dimensions of Product Quality
• Using the five definitions of quality, Garvin
  developed a list of eight quality dimensions.
• Service Quality Dimensions
• Parasuraman, Zeithamel, and Berry of Texas AM
  University published a widely recognized set of
  service quality dimensions.

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Garvins Definitions of Quality?Slide 1 of 2

• Transcendent Definition
• Quality is something that is intuitively
  understood but nearly impossible to communicate
  such as beauty or love.
• Product-Based Definition
• Quality is found in the components and attributes
  of a product.
• User-Based Definition
• If the customer is satisfied, the product has
  good quality.

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Garvins Definitions of Quality?Slide 2 of 2

• Manufacturing Based Definition
• If the product conforms to design specifications,
  it has good quality.
• Value-Based Definition
• If the product is perceived as providing good
  value for the price, it has good quality.

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Garvins Product Quality DimensionsSlide 1 of 4
Performance
Features
Durability
Reliability
Serviceability
Conformance
Aesthetics
Perceived Quality
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Garvins Product Quality DimensionsSlide 2 of 4

• Performance
• Refers to the efficiency with which a product
  achieves its intended purpose.
• Features
• Attributes of a product that supplement a
  products basic performance.
• Reliability
• The propensity for a product to perform
  consistently over its useful design life.

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Garvins Product Quality DimensionsSlide 3 of 4

• Conformance
• Numerical dimensions for a products performance,
  such as capacity, speed, size, durability, color,
  or the like.
• Durability
• The degree to which a product tolerates stress or
  trauma without failing.
• Serviceability
• Ease of repair.

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Garvins Product Quality DimensionsSlide 4 of 4

• Aesthetics
• Subjective sensory characteristics such as taste,
  feel, sound, look, and smell.
• Perceived Quality
• Quality is as the customer perceives it.
  Customers imbue products and services with their
  understanding of their goodness. This is
  perceived quality.

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Service Quality DimensionsSlide 1 of 3
Parasuraman, Zeithamel, and Berrys Service
Quality Dimensions
Tangibles
Responsiveness
Service Reliability
Assurance
Empathy
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Service Quality DimensionsSlide 2 of 3

• Tangibles
• Include the physical appearance of the service
  facility, the equipment, the personnel, and the
  communication material.
• Service Reliability
• Differs from product reliability in that it
  relates to the ability of the service provider to
  perform the promised service dependably and
  accurately.

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Service Quality DimensionsSlide 3 of 3

• Responsiveness
• The willingness of the service provider to be
  helpful and prompt in providing service.
• Assurance
• The knowledge and courtesy of employees and their
  ability to inspire trust and confidence.
• Empathy
• Caring, individual attention paid to customers by
  the service firm.

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Why Does It Matter That Difference Definitions
of Quality Exist?
Understanding that definitions and dimensions of
quality exist allows measures to be taken to
provide a better basis for communication and
planning in a firm.
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Differing Functional Perspectives on Quality

• Engineering Perspective
• Operations Perspective
• Strategic Management Perspective
• Marketing Perspective
• Financial Perspective
• Human Resources Perspective

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Engineering Perspective on QualitySlide 1 of 4

• Nature of Engineering Perspective
• Engineers are interested in applying mathematical
  problem solving skills and models to the problems
  of business and industry.
• Two of the major emphases in engineering
• Product design
• Process design

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Engineering Perspective on QualitySlide 2 of 4

• Product Design Engineering
• Involves all of those activities associated with
  developing a product from concept development to
  final design and implementation.
• Product design life cycle
• Key to quality as quality is assured at the
  design stage.
• Concurrent engineering
• The simultaneous performance of product and
  process design activities.
• Has resulted in improved quality and faster speed
  to market for new products.

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Engineering Perspective on QualitySlide 3 of 4
Product Design Life Cycle
Figure 1.1
Idea Generation
Prototype Iterations
Preliminary Design
Prototype Development
Final Definition
Product Design Evaluation
Implemen- tation
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Engineering Perspective on QualitySlide 4 of 4

• Related Concepts
• Life Testing
• Is a facet of reliability engineering that
  concerns itself with determining whether a
  product will fail under controlled conditions
  during a specified life.
• Redundancy
• Is applied so that a back up system can take over
  for the failed primary system.
• Statistical Process Control
• Is concerned with monitoring process capability
  and process stability.

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Operations Perspective on QualitySlide 1 of 6

• Nature of Operations Perspective
• The operations management view of quality is
  rooted in the engineering approach.
• Like engineers, operations managers are very
  concerned about product and process design.
• However, rather than focusing on only the
  technical aspects of these activities, operations
  concentrates of the management of these
  activities.
• Operations management has developed into an
  integrative field, combining concepts from
  engineering, operations research, organizational
  theory, organizational behavior, and strategic
  management.

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Operations Perspective on QualitySlide 2 of 6

• Systems View
• Operations management utilizes the systems view
  that underlies modern quality management
  thinking.
• The systems view involves the understanding that
  product quality is the result of the interactions
  of several variables such as machines, labor,
  procedures, planning, and management.

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Operations Perspective on QualitySlide 3 of 6
The Systems View of Operation Management
Figure 1.3
Planning
Organizing
Inputs
Conversion Process
Outputs
Customers
Feedback
Controlling
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Operations Perspective on QualitySlide 4 of 6

• Operations/Marketing Interface
• In recent years, a major advance in operations
  management has been the improved understanding of
  the operations/marketing interface.
• The interface has resulted in an increased focus
  on the customer.
• This externalized view is important as operations
  managers in firms still tend to be focused
  heavily on meeting production schedules,
  sometimes at the expense of good quality.

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Operations Perspective on QualitySlide 5 of 6

• Strategic View of Operations Management
• Among the recent advances in operations
  management has been a migration towards a more
  strategic view.
• Ferdows and Demeyer linked this strategic view of
  operations management to quality management by
  proposing the Sand Cone Model in which quality
  was identified as the base on which lasting
  improvement in other competitive dimensions were
  established.

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Operations Perspective on QualitySlide 6 of 6
An Operations Management Competence Model The
Sand Cone Model
Figure 1.4
Cost Efficiency
Speed
Dependability
Quality
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Strategic Management Perspective on
QualitySlide 1 of 3

• Nature of the Strategic Management Perspective
• Strategy refers to the planning processes used by
  an organization to achieve a set of long term
  goals.
• The planned course of action must be cohesive and
  coherent in terms of goals, policies, plans, and
  sequencing to achieve quality improvement.
• Initially, quality-related strategic planning was
  treated as if it were a separate exercise from
  firm-level strategic planning.
• However, quality management, to become pervasive
  in a firm, needed to be included in all of the
  firms business practices, including strategic
  planning.

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Strategic Management Perspective on
QualitySlide 2 of 3
A Generic Strategic Planning Process
Figure 1.5
Firm Mission and Goals
Internal Analysis
External Analysis
Strategic Options
Business Level Strategy
Corporate Level Strategy
Operational Subplans
Org. Reward Systems
Organizational Design
Conflict Politics and Change
Strategic Alignment Between Structure and Goals
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Strategic Management Perspective on
QualitySlide 3 of 3

• Goal of Strategic Quality Planning
• The ultimate goal of strategic quality planning
  is to aid an organization to achieve sustainable
  competitive advantage.
• Research shows that quality is still the major
  concern of CEOs.

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Marketing Perspective on QualitySlide 1 of 3

• Nature of Marketing Perspective
• Marketing efforts are often focused on managing
  perceptions of quality.
• Relationship Management
• Directing attention toward satisfying and
  delivering value to the customer.
• Tools for Influencing Customer Perceptions of
  Quality
• Price and advertising are the primary tools for
  influencing customer perceptions of quality, but
  are imperfect mechanisms.

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Marketing Perspective on QualitySlide 2 of 3
A Marketing System
Figure 1.7
Organization
Offering
Payment
Intermediary
Payment
Offering
Offering
Payment
Customer
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Marketing Perspective on QualitySlide 3 of 3

• Focus on Service
• Another important contribution of the marketing
  perspective has been the focus on service.
• Customer service surveys are important tools for
  assessing the multiple dimensions of quality.

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Financial Perspective on QualitySlide 1 of 4

• Nature of the Financial Perspective
• One of the most commonly asked questions about
  quality management is will it pay us financial
  benefits?
• The financial perspective relies more on
  quantified, measurable, results-oriented
  thinking.
• W. Edwards Deming made the first theoretical
  attempt to link quality improvements to financial
  results through the Deming Value Chain.

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Financial Perspective on QualitySlide 2 of 4
The Deming Value Chain
Figure 1.8
Improve Quality
Productivity Improves
Cost decrease because of less rework, fewer
mistakes, fewer delays, snags better use
of machine-time and materials
Capture the Market
Provide Jobs and More Jobs
Stay in Business
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Financial Perspective on QualitySlide 3 of 4

• Law of Diminishing Marginal Returns
• According to this law, there is a point at which
  investments in quality improvement will become
  uneconomical.
• According to the quadratic economic quality level
  model, higher levels of quality will result in
  higher expenditures.
• This view is at odds with the ethic of continual
  improvement.

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Financial Perspective on QualitySlide 4 of 4
Basic Economic Quality Level Model
Figure 1.9
Cost
Total Quality Costs Sum of Losses and Gains
Costs of Improving Quality
MinimumCost
Losses due to poor quality
Optimum Quality Level
Quality
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Human Resources Perspective on QualitySlide 1
of 3

• Nature of Human Resources Perspective
• Understanding the human resources perspective on
  quality is essential as it is impossible to
  implement quality without the commitment and
  action of employees.
• Related Concepts
• Employee Empowerment
• Organizational Design
• Job Analysis
• 360-degree evaluation
• Total Quality Human Resources Management

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Human Resource Perspective on QualitySlide 2 of
3

• Employee Empowerment
• Empowering employees involves moving decision
  making to the lowest level in the organization.
• Organizational Design
• Human resources managers are involved in many
  aspects of organizational design, such as the
  design of reward systems, pay systems,
  organizational structure, compensation, training
  mechanisms, and employee grievance arbitration.
• Job Analysis
• Involves collecting detailed information about a
  particular job.

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Human Resource Perspective on QualitySlide 3 of
3

• 360-Degree Evaluation
• A performance measurement system in which an
  employees peers, supervisors, and subordinates
  are involved in evaluating the workers
  performance.
• Total Quality Human Resources Management (TQHRM)
• TQHRM involves many of the concepts of quality
  management to provide a more supportive and
  empowered environment.

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WHY QUALITY?

• Nakane(1986) introduce cumulative
  model.(Nakane-Hall Model) which stresses that
  quality is the base of all improvement.

Speed/Flexibility
Cost/Efficiency
Dependability
Quality
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The Three Spheres of QualitySlide 1 of 4
Figure 1.10
Quality Management
Quality Assurance
Quality Control
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The Three Spheres of QualitySlide 2 of 4

• Quality Control
• Includes phases of analysis, relation, and
  generalization.
• Activities relating to quality control include
• Monitoring process capability and stability
• Measuring process performance
• Reducing process variability
• Optimizing processes to nominal measures
• Performing acceptance sampling
• Developing and maintaining control charts

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The Three Spheres of QualitySlide 3 of 4

• Quality Assurance
• Refers to activities associated with guaranteeing
  the quality of a product or service.
• Quality assurance activities include tasks such
  as
• Failure mode and effects analysis
• Concurrent engineering
• Experimental design
• Process improvements
• Design team formation and management
• Off-line experimentation
• Reliability/durability product testing

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The Three Spheres of QualitySlide 4 of 4

• Quality Management
• The management processes that overarch and tie
  together the control and assurance activities.
• Quality management activities
• Planning for quality improvement.
• Creating a quality organizational culture.
• Providing leadership and support.
• Providing training and retraining.
• Designing an organizational system that
  reinforces quality ideals.
• Providing employee recognition.
• Facilitating organizational communication.

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Other Perspectives on QualitySlide 1 of 2

• The Value-Added Perspective on Quality
• A customer-based perspective on quality that is
  utilized by services, manufacturing, and public
  sector organizations.
• Involves a subjective assessment of the efficacy
  of every step of the process for the customer.

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Other Perspectives on QualitySlide 2 of 2

• Cultural Perspectives on Quality
• International marketers have long noted that
  there are differences in tastes and preferences
  between cultures and nations.
• It is not so obvious that approaches to quality
  improvement may differ according to culture.

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Contingency Approach to Quality

• Contingency Theory
• Contingency theory presupposes that there is no
  theory or method for operating a business that
  can be applied in all situations.
• As a result, a coherent quality strategy will
  need to address key environmental variables.
• Contingency Approach
• Definitions and dimensions of quality applied
  within an organization will, and should vary.
• Dimensions of quality will depend on the
  environment in which a company operates.
• Provides flexibility to managers in pursuing
  quality.

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Total Quality Management

• TQM can be define as "continuous improvement
  activities involving everyone in the organisation
  - managers and workers - in a totally integrated
  effort toward improving performance at every
  level. This is directed towards satisfying
  cross-functional goals such as quality, cost,
  schedule, mission, needs, suitability and etc.
• TQM ultimately focused on increased customer/user
  satisfaction.

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Total Quality Management

• There are many ways to achieve customer
  satisfaction. Among them are
• Strategically Based
• Decision making and problem solving using
  scientific approach
• Focusing on Internal and External Customer
• Training and Education
• Employee Improvement and Empowerment
• Commitment
• Teamworking
• Continuous Improvement (Kaizen)
• All these lead to improvement in at least one of
  the quality dimensions.

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Total Quality Management

• There are many approaches to Total Quality but
  the most basic elements are focusing on
• Customer
• Strategic Planning and Leadership
• Continuously Improving and Learning
• Employees Empowerment and Team-working

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Benefits of Total Quality Management

• According to Deming' Chain Reaction, by
  emphasising on quality, organisation can
  benefited in terms of

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References

• Garvin, D.A. Managing Quality The Strategic and
  Competitive Edge. New York Free Press, 1988
• Garvin, D.A." What Does 'Product Quality' Really
  Mean?" Sloan Management Review, Vol. 26, No.1,
  1984, pp.25-43, and Greg Bounds, Lyle Yorks, Mel
  Adams, Gipsie Ranney, Total Quality Management,
  Towards the Emerging Paradigm, 1994, McGraw
  Hill. p.p 41-51
• Ross Johnson and William O.Winchell, Production
  and Quality (Milwaukee, WI American Society for
  Quality, 1989), p.2.
• Nakane, J. Manufacturing Futures Survey in
  Japan, A Comparative Survey 1983-1986. Tokyo
  Systems Science Institute, Weseda University, May
  1986
• David L. Goetsch and Stanley B. Davis,
  Introduction to Total Quality, Quality Management
  for Production, Processing and Services, Second
  Edition, 1997, Prentice Hall. p.p 4
• W. Edward Deming, Out of Crisis, Cambridge,
  Mass. MIT Center for Advanced Engineering Study,
  1986 and James R. Evans and James W. Dean. Jr,
  Total Quality, Management, Organization and
  Strategy, Second Edition, 2000, South-Western
  Thomson Learning, p 45