Quality Management Lecture 1.

1. Quality Management Lecture 1. Quality of Products and services

2. Quality of products

3. Concept of quality 1 • Totality of features and characteristics of a product or service that bears upon its ability to satisfy spoken or latent needs. • Spoken need • Latent need (basic or innocative) • These needs can be • Objective (determined in contracts, or in standards) – easy to measure • Subjective (usefulness) – it belongs to the custemer

4. Concept of quality 2 • Nowadays it has a strategic definition, because it not just mean the quality of a product, but it : „It is a basic business strategy, which means that products and services should totally meet both internal and external customers stated and latent needs. • Quality is defined as meeting customers requirements

5. 5 Approaches to Defining Quality – Garvin 1 • The Transcendent Approach: a quality cannot be defined precisely, we learn to recognize it only through experience • Innate excellence • Pictures of Picasso:

6. 5 Approaches to Defining Quality - Garvin 2 • The Product-based Approach: quality is precise and measurable variable, products can be ranked – quality products have more attributes (computer with more memory)

7. 5 Approaches to Defining Quality - Garvin 3 • The Manufacturing-based Approach: products or services meet stated requirements, • Manufacturing and engineering practise - Quality is measured by the manufacturer’s ability to target the requirements consistently with little variability

8. 5 Approaches to Defining Quality - Garvin 4 • The User-based Approach: quality of a product is determined by the consumer. There is widely varying individual preferences;

9. 5 Approaches to Defining Quality - Garvin 5 • The Value-based Approach: quality is defined in costs and prices. How much is the benefit of the good or servce outweigh the cost? • Did the costumer get his or her money’s worth?

10. 8 Dimensions of product quality - Garvin • Performance – refers to a products’ primary operating characteristics • Features – „bells and whistles” added to a products • Reliability – probability that the product will not fail in a specific period of time (MTPF – mean time between failure) • Conformance – the degree to which a product or service meets its specifications • Durability – a measure of the product life • Serviceability – this is the speed, the competence and easy of repair • Aesthetics – how the product looks, feels, sounds, tastes and smells. This is clearly a matter of personal judgment • Perceived quality – images, advertising, and brand names can be critical to give information about the product quality

11. KANO-model • Attractive quality • One-Dimensional quality • Must-Be quality • Indifferent quality • Reverse quality

12. KANO-model

13. SERVice QUALity (SERVQUAL model)

14. HIPI principles • Heterogenity (variability in the quality of service because services are provided by people, and people perform inconsistently) • Intangibility (there is no specimen ) • Perishability (vary in demand can occure, difficulty in supply) • Inseparability (good service can’t be separated from bad service)

15. 10 quality dimensions of services • Reliability - service is performed on a high level of standards again and again, with high accuracy • Responsiveness - the willingness of employees to provide the service and how fast the service is provided • Competence - possession of required skills, and knowledge • Access - approachability and ease of contact • Courtesy -comprises politeness, respect, friendliness • Communication - informing the customers in an understandable way and listening to them • Credibility - trustworthiness and honesty • Security - physical and financial safety • Understanding the customer - steps to know customer better • Tangibles - all physical products that are involved in service delivery

16. The basic of SERVice QUALity - RATER model • Reliability - service provider perform the promised service dependably and accurately. • Assurance – Involves knowledge and courtesy of employees and their ability to inspire trust and confidence • Tangibles – equipment, the personnel and communication materials. • Empathy – Which is caring, individualized or customized attention the organization provides its customers • Responsiveness – willingness to be helpful and prompt in providing service (waiting time ) It is an efficient model in helping an organization shape up their efforts in bridging the gap between perceived and expected service.

17. GAP model • customers’ requirements are affected by: • needs • Earlier experience • Word of mouth • Service provider’s communication • Expected service  perceived service quality

18. GAP MODEL Influenced by many factors EXPECTED SERVICE GAP 5 Customer PERCIEVED SERVICE GAP 4 Service provider Service delivery External communications to the customer GAP 3 Translation of perceptions into service quality specifications GAP 1 GAP 2 Management perceptions of the customers expectations

19. GAP model • GAP 1 (Knowledge Gap) – the difference between guest’s expectation and management perceptions of those expectations, i. e. not knowing what consumer expect • GAP 2 (Standards Gap) – difference between managements perceptions of guest’s expectations and service quality specifications , i.e. improper service quality standards • GAP 3 (Delivery Gap) – difference between service quality specifications and service actually delivered, i.e. the service performance gap • GAP 4 (Communication Gap) – difference between service delivery and the communications to the guests about service delivery, i.e. whether promises match delivery? • GAP 5 (Overall Gap) – the difference between guests expectation and perceived service.

21. Thank You for Attention