1. 9-1 Management of Quality
Management of Quality-
Dimensions and process
.

2. 9-2 Management of Quality
Quality ManagementQuality Management
• What does the term quality mean?
• Quality is the ability of a product or service to
consistently meet or exceed customer
expectations.

3. 9-3 Management of Quality
Evolution of Quality ManagementEvolution of Quality Management
• 1924 - Statistical process control charts
• 1930 - Tables for acceptance sampling
• 1940’s - Statistical sampling techniques
• 1950’s - Quality assurance/TQC
• 1960’s - Zero defects
• 1970’s - Quality assurance in services

4. 9-4 Management of Quality
Quality Assurance vs. Strategic ApproachQuality Assurance vs. Strategic Approach
• Quality Assurance
• Emphasis on finding and correcting defects
before reaching market
• Strategic Approach
• Proactive, focusing on preventing mistakes
from occurring
• Greater emphasis on customer satisfaction

5. 9-5 Management of Quality
Dimensions of QualityDimensions of Quality
• Performance - main characteristics of the
product/service
• Aesthetics - appearance, feel, smell, taste
• Special Features - extra characteristics
• Conformance - how well product/service
conforms to customer’s expectations
• Reliability - consistency of performance

6. 9-6 Management of Quality
Dimensions of Quality (Cont’d)Dimensions of Quality (Cont’d)
• Durability - useful life of the product/service
• Perceived Quality - indirect evaluation of
quality (e.g. reputation)
• Serviceability - service after sale

7. 9-7 Management of Quality
Examples of Quality DimensionsExamples of Quality Dimensions
Dimension
1. Performance
2. Aesthetics
3. Special features
(Product)
Automobile
Everything works, fit &
finish
Ride, handling, grade of
materials used
Interior design, soft touch
Gauge/control placement
Cellular phone, CD
player
(Service)
Auto Repair
All work done, at agreed
price
Friendliness, courtesy,
Competency, quickness
Clean work/waiting area
Location, call when ready
Computer diagnostics

8. 9-8 Management of Quality
Examples of Quality Dimensions (Cont’d)Examples of Quality Dimensions (Cont’d)
Dimension
5. Reliability
6. Durability
7. Perceived
quality
8. Serviceability
(Product)
Automobile
Infrequency of breakdowns
Useful life in miles, resistance
to rust & corrosion
Top-rated car
Handling of complaints and/or
requests for information
(Service)
Auto Repair
Work done correctly,
ready when promised
Work holds up over
time
Award-winning service
department
Handling of complaints

9. 9-9 Management of Quality
Service QualityService Quality
• Tangibles
• Convenience
• Reliability
• Responsiveness
• Time
• Assurance
• Courtesy

10. 9-10 Management of Quality
Examples of Service QualityExamples of Service Quality
Dimension Examples
1. Tangibles Were the facilities clean, personnel neat?
2. Convenience Was the service center conveniently located?
3. Reliability Was the problem fixed?
4. Responsiveness Were customer service personnel willing and able
to answer questions?
5. Time How long did the customer wait?
6. Assurance Did the customer service personnel seem
knowledgeable about the repair?
7. Courtesy Were customer service personnel and the
cashierfriendly and courteous?
Table 9.4

11. 9-11 Management of Quality
Determinants of QualityDeterminants of Quality
Service
Ease of
use
Conforms
to design
Design

12. 9-12 Management of Quality
Determinants of Quality (cont’d)Determinants of Quality (cont’d)
• Quality of design
• Intension of designers to include or exclude
features in a product or service
• Quality of conformance
• The degree to which goods or services
conform to the intent of the designers

13. 9-13 Management of Quality
The Consequences of Poor QualityThe Consequences of Poor Quality
• Loss of business
• Liability
• Productivity
• Costs

14. 9-14 Management of Quality
• Top management
• Design
• Procurement
• Production/operations
• Quality assurance
• Packaging and shipping
• Marketing and sales
• Customer service
Responsibility for QualityResponsibility for Quality

15. 9-15 Management of Quality
• Substandard work
• Defective products
• Substandard service
• Poor designs
• Shoddy workmanship
• Substandard parts and materials
Ethics and QualityEthics and Quality
Having knowledge of this and failing to correct
and report it in a timely manner is unethical.

16. 9-16 Management of Quality
Quality at the SourceQuality at the Source
The philosophy of making each
worker responsible for the
quality of his or her work.

17. 9-17 Management of Quality
• Process Improvement: A systematic
approach to improving a process
• Process mapping
• Analyze the process
• Redesign the process
Process ImprovementProcess Improvement

18. 9-18 Management of Quality
The Process Improvement CycleThe Process Improvement Cycle
Implement the
Improved process
Select a
process
Study/document
Seek ways to
Improve it
Design an
Improved process
Evaluate
Document

19. 9-19 Management of Quality
Process Improvement and ToolsProcess Improvement and Tools
• Process improvement - a systematic
approach to improving a process
• Process mapping
• Analyze the process
• Redesign the process
• Tools
• There are a number of tools that can be used
for problem solving and process improvement
• Tools aid in data collection and interpretation,
and provide the basis for decision making

20. 9-20 Management of Quality
Flow Chart Example:Flow Chart Example:
Self-Serve Gas Before ImprovementSelf-Serve Gas Before Improvement
Drive in check price self serve? to pump
shut off
engine
walk to pay
station
yes
no
check card transmit approved?
turn on
pump
yes
no
back
to car
pump
gas
walk to
booth
wait
employee
totals
charges
check
accuracy
prepare
receipt
sign
copy
copy to
file
copy to
wallet
return to car
on the road
again

21. 9-21 Management of Quality
Flow Chart Example:Flow Chart Example:
Self-Serve Gas After ImprovementSelf-Serve Gas After Improvement
Drive in
check
price
self-serve?
no
yes
go to
pump
shut off
engine insert
card
in pump
check
credit card
wait
approved?
no
yes
wait for
receipt
store in system
copy to
wallet
on the road
again
pump gas