Unit 1

1. Unit 1 Definitions, Dimensions and Importance of Quality

2. Unit Objectives: • Discuss the different definitions of quality, • Differentiate the dimensions of product quality and service quality • Discuss the dimensions of SERQUAL • Examine the importance of quality

3. Definition of Quality ? Five Approaches to Defining Quality

4. Five Approaches to Defining Quality: David Garvin (1988), in his book “Managing Quality: The Strategic & Competitive Edge describes 5 major approaches to quality: • The Transcendent Approach • The Product-based Approach • The User-based Approach • The Manufacturing-based Approach & • Value-based Approach

5. The Transcendent Approach • “A condition of excellence implying fine quality as distinct from poor quality….”something you consider to be superb, wonderful, magnificent, marvelous, grand, superlative, outstanding, etc. • “Quality is achieving or reaching for higher standard as against being satisfied with the sloppy or the fraudulent.” • Quality is understood only after exposure to a series of objects that develop its characteristics. • The idea here is that quality can’t be defined, and you recognize it only when you see it.

6. The Weakness ofTranscendent Approach Weakness: • lack of objectivity • the definition does not allow to state definitively that an item is of high quality

7. The Product-based Approach • Identifies specific features or attributes that can be measured to indicate higher quality. • Quality is based on the presence or absence of a particular attribute. • If an attribute is desirable, greater amounts of that attribute would label that product or service as one of higher quality. • Leather upholsteryis considered higher quality thanvinyl

8. The Advantage & Disadvantages of Product-based Approach Advantage: • provides objective measures of quality Disadvantage: • assumes the absence or presence of an attribute implies higher quality.

9. The User-based Approach • The user determines the quality of the goods/services • The product/service that best satisfies the user/costumer is the higher quality product • The ability to satisfy the customers’ requirement, expectations, or wants is the sole criterion by which quality is determined • Equates customers satisfaction with quality • Quality “lies in the eye of the beholder”

10. The Weakness of User-based Approach Weakness: • customer satisfaction may not be achieved for reasons that have nothing to do with the quality of the product • Until the customer says the product is good, it will not be considered good quality

11. The Manufacturing-based Approach • Equivalent to “conformance of a product or service to a set of predetermined requirements or specifications” • Failure to meet these requirement is a deviation and thus a lack of quality. • Engineering specifies the product characteristics • The more it conforms to requirements, the better the quality

12. The Advantages & Disadvantages of Manufacturing-based Approach Advantages of: • providing objectively measurable quality standards & • reducing the costs of quality Disadvantage: • Lacks of concern for the customer’s preference

13. Value-based Approach • Introduces the element of price • “Quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost.” • In this definition an attribute of worth or value is quality • The purchase decision involves trading off the quality against the price • Because many of the attributes of quality are subjective assessments, the approach is not effective in introducing objective criteria

14. Unfortunately, most of these definitions are subjective • Although the manufacturing & product-based approaches are most objective, both fail to account sufficiently for customer’s preferences • The user-based approach relies solely on the customer’s input, but methods for obtaining this input are unreliable & unable to predict changes in preference • should adopt a mix of these approaches

15. Eight Dimensions of Product Quality: Garvin (1988) • Performance • Features • Reliability • Conformance • Durability • Serviceability • Aesthetics • Perceived quality

16. 1. Performance • refers to the primary operating characteristics of the product or service (basic operating characteristics) • They are usually measurable • The primary required performance of the service

17. 2. Features • are additional characteristics that enhance the product or services appeal to the users • “extra” items added to basic features • The expected performance (bells and whistles of the service)

18. 3. Reliability of a product • is the likelihood that a product will not fail within a specific time period • probability product will operate over time • This is a key element for users who need the product to work without fail • The confidence of the service in relationship to time

19. 4. Conformance • is the precision with which the product or service meets the specified standards(meeting pre-established standards) • The traditional American approach to conformance was “quality was considered high if 95% or more of the products were within the tolerance limits • The satisfaction based on requirements that have been set

20. 5. Durability • measures the length of a product’s life • life span before replacement • When the product can be repaired, estimating durability is more complicated

21. 6. Serviceability • Ease of getting repairs, speed & competence of repairs • The ability to service if something goes wrong

22. 7. Aesthetics • is the subjective dimension indicating the kind of response a user has to a product • it represents personal preference • e.g.. --the way a person responds to the look, feel, sound, taste, and smell • The experience itself as it relates to the senses

23. 8. Perceived quality • is the subjective dimension • it is the quality attributed to a goods or service based on indirect measures • subjective perceptions based on brand name, advertising, etc • The reputation of the quality • e.g.. is the saying, “you know a good workman by his tools.”

24. The Standard dimensions of service Quality • Reliability • Responsiveness • Assurance • Empathy • Tangibles

25. 1. Reliability of service • is the ability to perform a service reliably and dependably • it means the customer’s expectations are met consistently

26. 2. Responsiveness • is the willingness to help customers and provide prompt service

27. 3. Assurance • is the ability to communicate to the customer a level of competence & • to provide the service with the necessary courtesy • Knowledge and courtesy of employees and their ability to inspire trust and confidence.

28. 4. Empathy • is the approachability and the ability to communicate with and understand the customer’s needs • Caring individualized attention the firm provides its customers.

29. is the appearance of physical facilities, equipment, personnel, and communication materials 5. Tangibles

30. The Standard Dimensions of Service Quality

31. The Expanded Dimensions of Service Quality • 1. Time & Timeliness - customer waiting time, completed on time • 2. Completeness - customer gets all they asked for • 3. Courtesy - treatment by employees

32. The Expanded Dimensions of Service Quality • 4. Consistency - same level of service for all customers • 5. Accessibility & Convenience - ease of obtaining service • 6. Accuracy - performed right every time • 7. Responsiveness - reactions to unusual situations

33. Quality Dimension 1. Tangibles:Appearance of physical facilities, equipment, personnel, printed and visual materials Samples of questions to ask Are facilities attractive? Are staff dressed appropriately? Are written materials easy to understand? Does technology look modern? SERVICE QUALITY (SERQUAL) According to Zeithaml, Parasuraman & Berry (1990)

34. Quality Dimension 2. Reliability:Ability to perform promised service dependably and accurately Samples of questions to ask If a response is promised in a certain time, does it happen? Are exact specifications of client followed? Are statements or reports free of error? Is service performed right the first time? Is level of service same at all times of day and for all members of staff? SERVICE QUALITY (SERQUAL) According to Zeithaml, Parasuraman & Berry (1990)

35. Quality Dimension 3. Responsiveness:Willingness to help customers to provide prompt service Samples of questions to ask When there is a problem, does organization respond to it quickly? Are staff willing to answer client questions? Are specific times for service accomplishments given to client? Are public situations treated with care and seriousness? SERVICE QUALITY (SERQUAL) According to Zeithaml, Parasuraman & Berry (1990)

36. Quality Dimension 4. Competence:Possession of required skill and knowledge to perform service Samples of questions to ask Can staff provide service without fumbling around? Are materials provided appropriate and up to date? Can staff use the technology quickly and skillfully? Does staff appear to know what they are doing? SERVICE QUALITY (SERQUAL) According to Zeithaml, Parasuraman & Berry (1990)

37. Quality Dimension 5. Courtesy:Politeness, respect, consideration and friendliness of contact personnel Samples of questions to ask Does staff member have a pleasant demeanor? Does staff refrain from acting busy or being rude when clients ask questions? Are those who answer the telephone considerate and polite? Do staff observe consideration of the property and values of clients? SERVICE QUALITY (SERQUAL) According to Zeithaml, Parasuraman & Berry (1990)

38. Quality Dimension 6. Credibility:Trustworthiness, believability, honesty of the service provider Samples of questions to ask Does service organization have a good reputation? Do staff members refrain from pressuring the client? Are responses given accurate and consistent with other reliable sources? Does the organization guarantee its services? SERVICE QUALITY (SERQUAL) According to Zeithaml, Parasuraman & Berry (1990)

39. Quality Dimension 7. Security:Freedom from danger, risk, or doubt Samples of questions to ask Is it safe to enter the premises and to use the equipment? Are documents and other information provided for the client held securely? Are use records of clients safe from unauthorized use? Can client be confident that service provided was done correctly? SERVICE QUALITY (SERQUAL) According to Zeithaml, Parasuraman & Berry (1990)

40. Quality Dimension 8. Access:Approachability and ease of contact. Samples of questions to ask How easy is it to talk to knowledgeable staff member when client has a problem? Is it easy to reach the appropriate staff person in person? by telephone? by email? Are service access points conveniently located? SERVICE QUALITY (SERQUAL) According to Zeithaml, Parasuraman & Berry (1990)

41. Quality Dimension 9. Communication:Listening to customers and acknowledging their comments; Keeping customers informed in a language they can understand. Samples of questions to ask When client contacts service point, will staff person listen to their problem and demonstrate understanding and concern? Can staff explain clearly the various options available to a particular query? Do staff avoid using technical jargon when speaking with clients? Does staff member call if a scheduled appointment will be missed? SERVICE QUALITY (SERQUAL) According to Zeithaml, Parasuraman & Berry (1990)

42. Quality Dimension 11. Understanding the Customer:Making the effort to know customers and their needs. Samples of questions to ask Does someone on staff recognize each regular client and address them by name? Do staff try to determine what client's specific objectives are? Is level of service and cost of service consistent with what client requires and can afford? Are service providers flexible enough to accommodate to client's schedule? SERVICE QUALITY (SERQUAL) According to Zeithaml, Parasuraman & Berry (1990)

43. Quality in different areas of society • Several definitions of quality have been given above. • Also, the definition will vary depending on the domain under consideration. • The table below lists several different areas in our society and indicates some things that might be considered to be related to quality in each.

44. Quality in different areas of society • AreaExamples • Airlines On-time, comfortable, low-cost service • Health Care Correct diagnosis, minimum wait time, lower cost, security • Food Services Good product, fast delivery, good environment • Postal Services Fast delivery, correct delivery, cost containment • Academia Proper preparation for future, on-time knowledge delivery • Consumer Products Properly made, defect-free, cost effective • Insurance Payoff on time, reasonable cost • Military Rapid deployment, decreased wages, no graft • Automotive Defect-free • Communications Clearer, faster, cheaper service

45. Importance of Quality