Chapter 1

1. Chapter 1 Differing Perspectives on Quality S. Thomas Foster, Jr. Boise State University Slides Prepared by Bruce R. Barringer University of Central Florida ©2001 Prentice-Hall

2. Chapter OverviewSlide 1 of 2 • Recognizing Different Perspectives on Quality • What is Quality? • Differing Perspectives on Quality • Is Quality Management Its Own Functional Discipline? • The Three Spheres of Quality

3. Chapter OverviewSlide 2 of 2 • Other Perspectives on Quality • Arriving at a Common Understanding of Quality using a Contingency Perspective of Quality

4. The reasons perceptions differ is 1. Backgrounds 2. Tastes and preferences 3. Attitudes and feelings

5. 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.

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

7. Recognizing Different Perspectives on QualitySlide 3 of 3 • As Illustrated in the Proceeding Slide, Perceptions on Quality Can Vary • In order to communicate effectively about quality, managers need to recognize that differences in perceptions of quality exist.

8. Recognizing Different Perspectives on Quality • Page 4 • A Closer look at Quality 1.1 • Which are Better, CDs or LPs? • What is clear is that the meaning of quality varies drastically from person to person. • It is left to each of us to decide. • Which do we like best?

9. Recognizing Different Perspectives on Quality • Perceptions affect every aspect of our world – including the business world. • Managers need to recognize that differences in perceptions of quality exist. • Many managers have strong opinions about what quality is. • These opinions can be variance with the beliefs of the majority of their customers. • This may hurt the competitiveness.

10. Product Quality Dimensions(David Garvin) Slide 1 of 2 1. Transcendent Definition • Quality is something that is intuitively understood but nearly impossible to communicate such as beauty or love. 2. Product-Based Definition • Quality is found in the components and attributes of a product. 3. User-Based Definition • If the customer is satisfied, the product has good quality.

11. Product Quality DimensionsSlide 2 of 2 4. Manufacturing-Based Definition • If the product conforms to design specifications, it has good quality. 5. Value-Based Definition • If the product is perceived as providing good value for the price, it has good quality.

12. Garvin’s Product Quality Dimensions(David Garvin) Slide 1 of 4 ( Table 1.1) 1. Performance 2. Features 5. Durability 3. Reliability 6. Serviceability 4. Conformance 7. Aesthetics 8. Perceived Quality

13. Garvin’s Product Quality Dimensions(David Garvin) Slide 2 of 4 1. Performance • Refers to the efficiency with which a product achieves its intended purpose. 2. Features • Attributes of a product that supplement a product’s basic performance. 3. Reliability • The propensity for a product to perform consistently over its useful design life.

14. Garvin’s Product Quality DimensionsSlide 3 of 4 4. Conformance ( specifications and tolerance) • Numerical dimensions for a product’s performance, such as capacity, speed, size, durability, color, or the like.( easily quantified and difficult for a service to conform) 5. Durability • The degree to which a product tolerates stress or trauma without failing.

15. Garvin’s Product Quality Dimensions 6. Serviceability • Ease of repair easily and cheaply. If service is rapid, courteous, easy to acquire, and competent, then the product have good serviceability. 7. Aesthetics • Subjective sensory characteristics such as taste, feel, sound, look, and smell. We measure quality as the degree to which product attributes are matched to consumer preferences.

16. Garvin’s Product Quality DimensionsSlide 4 of 4 8. Perceived Quality • Quality is as the customer perceives it. Customers imbue products and services with their understanding of their goodness. This is perceived quality.

17. Quality Dimensions • The Garvin list of quality dimensions, although it is the most widely cited and used, is not exhaustive. • Carol King identified dimensions of service quality such as responsiveness, competence, access, courtesy, communication, credibility, security, and understanding.

18. Service Quality • Service quality is even more difficult to define than product quality. • This often results from wide variation created by high customer involvement. • The example is fountain pen and food service.

19. Service Quality Dimensions ( Table 1.2)Slide 1 of 3 ( See Chapter 8 ) Parasuraman, Zeithamel, and Berry’s ( PZB) Service Quality Dimensions 1. Tangibles 6. Availability 2. Service Reliability 7. Professionalism 8. Timeliness 3. Responsiveness 4. Assurance 9. Completeness 5. Empathy 10. Pleasantness

20. Service Quality DimensionsSlide 2 of 3 1. Tangibles • Include the physical appearance of the service facility, the equipment, the personnel, and the communication material. 2. 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.

21. Service Quality DimensionsSlide 3 of 3 3. Responsiveness • The willingness of the service provider to be helpful and prompt in providing service. 4. Assurance • The knowledge and courtesy of employees and their ability to inspire trust and confidence.

22. Service Quality Dimensions 5. Empathy • the customer desires caring, individual attention paid to customers by the service firm.

23. Service Quality Dimensions 6. There are several other dimensions of service quality ( please see above). 7. It should be noted that service design strives to address these different service dimensions simultaneously. 8. It is not sufficient for a service firm to provide only empathy if responsiveness and service reliability are inadequate.

24. 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.

25. Why Does It Matter That Difference Definitions of Quality Exist? • By sharing a common definition of quality, each department within a company can work toward a common goal. • Understanding the multiple dimensions of quality desired by customers can lead to improved product and service design. • HP embarked on a “customer one-on-one” program that emphasized customer interaction with production workers.

26. Differing Functional Perspectives on Quality • One of the important determinants of how we perceive quality is the functional role we fulfill organizationally. • It is difficult to communicate with information systems users and internal managers for several reasons. • User system requirements differ from analyst system requirements.

27. Differing Functional Perspectives on Quality • This difference in the nature of the work performed by users and analyst causes them to see quality issues differently. • Differences between users and analysts are only one instance of different perspectives created by functional differences. • Firm must constantly improve their communication.

28. Differing Functional Perspectives on Quality • Recognizing fundamental differences between difference function view quality is an important first step in understanding and resolving problems associated with mismatches of quality perceptions within organization. • Experience with cross-functional teams has been difficult for many firms because of poor communication skills among team members.

29. Differing Functional Perspectives on Quality • An Engineering Perspective • An Operations Perspective • A Strategic Management Perspective • A Marketing Perspective • A Financial Perspective • The Human Resources Perspective

30. 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 – Operational Research. • R. A. Fisher expanded the field of mathematical statistics to problems related to variation experienced in the production area. • Two of the major emphases in engineering are the areas of product design and process design.

31. Engineering Perspective on Quality • Nature of Engineering Perspective - More and more engineers are being hired into services firms requiring a strong technical component. - Two of the major emphases in engineering are the areas of product design and process design.

32. 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. • The next slide ( Figure 1.1) demonstrates the six steps in the engineering life cycle for the design of products.

33. Engineering Perspective on QualitySlide 3 of 4 Design Life Cycle ( Figure 1.1) Idea Generation Prototype Iterations Preliminary Design Prototype Development Final Definition Product Design & Evaluation Implementation

34. Engineering Perspective on Quality • Product Design Engineering • Concurrent engineering refers to the simultaneous performance of product and process design activities. • Engineers have also applied statistical thinking to the problem of reliability. • Reliability engineers use probability theory to determine the rate of failure a product will experience over its useful life.

35. Engineering Perspective on QualitySlide 4 of 4 • Related Concepts • Life Testing • It is a facet of reliability engineering that concerns itself with determining whether a product will fail under controlled conditions during a specified life. • If a component has a relatively high probability for failure that will affect the overall function of a product, then redundancy is applied so that backup system can take over for the failed primary system.

36. Engineering Perspective on Quality • Related Concepts • Another engineering-related contribution to quality management is the field of Statistical Process Control (SPC). • SPC is concerned with monitoring process capability ( meet specification) and process stability ( only exhibit random or common variation). • The control process as specified by Shewhart is shown in Figure 1.2.

37. Engineering Perspective on Quality • Statistical Method from the Viewpoint of Quality Control by Shewhart (Figure 1.2) 1. Specify Hypothesis 3. Inspect Data for Consistency with Hypothesis 2. Produce Data by Performing an Experiment

38. Engineering Perspective on Quality • In summary, the engineering view of quality is technically oriented, focusing on statistics and technical specification. • Only recently have engineers begun to interact with customers in meaningful ways.

39. Operations Perspective on QualitySlide 1 of 6 • Nature of Operations Perspective • The operations management view of quality is rooted in the engineering approach.

40. Operations Perspective on Quality • Nature of Operations Perspective • 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.

41. Operations Perspective on Quality • Nature of Operations Perspective - Today, operations management has developed into an integrative field, combining concepts from engineering, operations research, organizational theory, organizational behavior, and strategic management.

42. Operations Perspective on QualitySlide 2 of 6 • Systems View • Operations management (OM) utilizes the systems view that underlies modern quality management thinking ( see Figure 1.3). • 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.

43. Operations Perspective on Quality-- The Systems View of Operation ManagementSlide 3 of 6 The Conversion Systems Model of Operation Management ( Figure 1.3) Planning Organizing Inputs Conversion Process Outputs Customer Process Control Controlling Customer Feedback

44. Operations Perspective on Quality-- The Systems View of Operation Management • This systems view focuses on interactions between the various components that combine to produce a product or service. • The systems view also focuses management on the system as the cause of quality problems.

45. 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.

46. Operations Perspective on Quality • Operations/Marketing Interface - This has helped operations manager externalize their views to the customer as well by making the customers part of the design process.

47. 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 model shown in Figure 1.4.

48. Operations Perspective on Quality--Strategic View of Operations Management An Operations Management Competence Model --The Sand Cone Model ( Figure 1.4) Cost Efficiency Speed Dependability Quality

49. Operations Perspective on Quality--Strategic View of Operations Management • This strategic view of OM to quality management identified quality as base on which lasting improvement in other competitive dimensions established. • This strategic view has also led to a better understanding of the relationship between quality and other competitive variables such as profitability, cost leadership, and operational success.

50. Operations Perspective on Quality--Strategic View of Operations Management • One common complaint among critics of operations management is that too much credence is given to fads of the day rather than honestly improving the fundamentals of the business. • OM has elevated quality management as a key area of business study.