Different Perspectives on Quality Overview

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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

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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

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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.

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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.

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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.

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Garvins Product Quality DimensionsSlide 1 of 3
Performance
Features
Durability
Reliability
Serviceability
Conformance
Aesthetics
Perceived Quality
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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.

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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.

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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

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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 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.

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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.

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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.
• 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

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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.

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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

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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
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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. .
• 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.

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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

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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
• 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.

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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.
• 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.

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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
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

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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.
• 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

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

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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.

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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.

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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