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Different Perspectives on Quality Overview

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Title: Different Perspectives on Quality Overview


1
Different Perspectives on Quality Overview
  • Recognizing Different Perspectives on Quality
  • What is Quality?
  • Differing Functional Perspectives on Quality
  • The Three Spheres of Quality
  • Other Perspectives on Quality
  • Arriving at a Common Understanding of Quality
    using a Contingency Perspective of Quality

2
Recognizing Different Perspectives on Quality
  • Different Perspectives on Quality
  • Definitions and dimensions of quality depends on
  • Perceptions, Tastes, Situations, Emotions,
    Culture
  • Quality a measure of goodness that is inherent
    to a product or service.
  • External and Internal Customers
  • Employees working for the same firm often view
    quality differently
  • To communicate effectively about quality,
    managers need to recognize that differences in
    perceptions of quality that exist among the
    different activities performed in the Company

3
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.

4
Garvins Definitions of QualitySlide 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.

5
Garvins Definitions of QualitySlide 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.

6
Garvins Product Quality DimensionsSlide 1 of 3
Performance
Features
Durability
Reliability
Serviceability
Conformance
Aesthetics
Perceived Quality
7
Garvins Product Quality DimensionsSlide 2 of 3
  • 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.
  • Conformance
  • Numerical dimensions for a products performance,
    such as capacity, speed, size, durability, color,
    or the like.

8
Garvins Product Quality DimensionsSlide 3 of 3
  • Durability
  • The degree to which a product tolerates stress or
    trauma without failing.
  • Serviceability
  • Ease of repair.
  • Aesthetics
  • Subjective sensory characteristics such as taste,
    feel, sound, look, and smell.
  • Perceived Quality
  • Based on customer opinion. Customers imbue
    products and services with their understanding of
    their goodness.

9
Characteristics of Services
  • Characteristics of Services
  •  
  • Intangibles in their dimensions
  • Simultaneity between production and consumption
  • Difficult/impossible to stock
  • Difficult/impossible to transport
  • Big component of heterogeneity

10
Service Quality DimensionsSlide 1 of 3
Parasuraman, Zeithamel, and Berrys Service
Quality Dimensions
Tangibles
Responsiveness
Service Reliability
Assurance
Empathy
11
Service Quality DimensionsSlide 2 of 3
  • Tangibles visible aspects supporting the service
  • Include the physical appearance of the service
    facility, the equipment, the personnel, and the
    communication material.
  • Service Reliability dependably and accurately
  • Differs from product reliability in that it
    relates to the ability of the service provider to
    perform the promised service dependably and
    accurately.
  • Responsiveness ability to provide solutions (on
    real time or not)
  • The willingness of the service provider to be
    helpful and prompt in providing service.

12
Service Quality DimensionsSlide 3 of 3
  • Assurance trust and confidence
  • The knowledge and courtesy of employees and their
    ability to inspire trust and confidence.
  • Empathy degree of interaction
  • Caring, individual attention paid to customers by
    the service firm.

13
Differing Functional Perspectives on Quality
  • Engineering Perspective
  • Operations Perspective
  • Strategic Management Perspective
  • Marketing Perspective
  • Financial Perspective
  • Human Resources Perspective

14
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.
  • The early beginning of Operation Research was
    based on an Engineering view of the Enterprise
  • Two of the major emphases in engineering
  • Product design
  • Process design
  • Firstly Understood as Detached

15
Engineering Perspective on QualitySlide 2 of 4
  • Product Design Engineering sequential steps from
    conception to implementation
  • 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.

16
Concurrent Engineering Perspective on Quality
  • Requirements
  • Cross functional teams
  • Very high level of communication in the
    enterprise
  • Understand Operational Management as an
    integrated field organic view of the firm
  • Great interface among activities internal
    customers chain
  • Great interface/ communication among supplier and
    users, specially in the case of service

17
Concurrent Engineering Perspective on
QualitySlide 3 of 3
Product Design Life Cycle
Figure 1.1
Idea Generation
Prototype Iterations
Preliminary Design
Prototype Development
Final Definition
Product Design Evaluation
Implemen- tation
18
Operations Perspective on QualitySlide 1 of 6
  • Nature of Operations Perspective
  • The operations management view of quality is
    rooted in the engineering approach. .
  • However, instead of focusing on only the
    technical aspects of these activities, .
  • Operations Management has developed into
  • Organic approach to the Enterprise
  • Integrative field, combining concepts from
    engineering, operations research, organizational
    theory, organizational behavior, and strategic
    management.

19
Operations Perspective on QualitySlide 2 of 6
  • Systems View
  • 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.
  • The concept of ISO 9000
  • System as a cause of quality problems

20
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
21
Operations Perspective on QualitySlide 4 of 6
  • Operations/Marketing Interface
  • The interface has resulted in an increased focus
    on the customer.
  • Externalization of the design process to achieve
    greater interface with customers
  • Nevertheless
  • Firms still tend to be focused heavily on meeting
    production schedules at the expense of good
    quality.

22
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.
  • Sand Cone Model Ferdows and Demeyer linked this
    strategic view of operations management to
    quality management .
  • Quality was identified as the base on which
    lasting improvement in other competitive
    dimensions were established.

23
Operations Perspective on QualitySlide 6 of 6
An Operations Management Competence Model The
Sand Cone Model
Figure 1.4
Cost Efficiency
Speed
Dependability
Quality
24
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.

25
Strategic Management Perspective on QualitySlide
3 of 3
  • Goal of Strategic Quality Planning
  • Aid an organization to achieve sustainable
    competitive advantage.
  • Research shows that quality is still the major
    concern of CEOs.
  • BECAUSE
  • Quality became a major factor in international
    market competitiveness

26
Marketing Perspective on QualitySlide 1 of 3
  • Nature of Marketing Perspective
  • Marketing efforts are often focused on managing
    perceptions of quality.
  • Tools for Influencing Customer Perceptions of
    Quality
  • Price and advertising are the primary tools for
    influencing customer perceptions of quality, but
    are imperfect mechanisms.
  • Relationship Management
  • Directing attention toward satisfying and
    delivering VALUE to the CUSTOMER PERCEPTION

27
Marketing Perspective on Quality A Marketing
System ApproachSlide 2 of 3
A Marketing System
Figure 1.7
Organization
Offering
Payment
Value
Intermediary
Payment
Offering
Offering
Payment
Value
Customer
28
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.

29
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.

30
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
31
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.

32
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
33
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

34
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.

35
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.
  • Quality management flourishes where the workers
    and the Cia. needs are closely aligned

36
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.

37
Contingency Approach to Quality
  • 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.

38
Chapter Summary
  • Recognizing Different Perspectives on Quality
  • What is Quality?
  • Differing Functional Perspectives on Quality
  • The Three Spheres of Quality
  • Other Perspectives on Quality
  • Arriving at a Common Understanding of Quality
    using a Contingency Perspective of Quality
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