Differing Perspectives on Quality

CIT 352 Professor, Bob Orr

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Recognizing Different Perspectives on Quality



Perceptions differ for many reasons:

 

Backgrounds differ Tastes and preferences differ (i.e. Humor, which is subjective) Attitudes and feelings differ

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Recognizing Different Perspectives on Quality



For now we will view quality, as a measure of goodness that is inherent to a product or service (p.3).
Exercise: Which are better, CDs or LPs?

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

What is Quality?

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Product Quality Dimensions



David Garvin of Harvard Business School compiled the following quality dimensions based on existing definitions of quality:
    

Transcendent Product-based User-based Manufacturing-based Value-based

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Garvins Eight Product Quality Dimensions that Help Define Quality

1. Performance the efficiency with which a

product achieves its intended purpose

2. Features attributes of a product that

supplement the products basic performance

3. Reliability the propensity for a product to

perform consistently over its useful design life

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Garvins Eight Product Quality Dimensions

4. Conformance relates to the degree with which a product conforms to specifications including statistical tolerances

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Garvins Eight Product Quality Dimensions

5. Durability the degree to which a product tolerates stress or trauma without failing 6. Serviceability the ease of repair for a product 7. Aesthetics subjective sensory characteristics such as taste, feel, sound, look, and smell 8. Perceived Quality based on customer opinion
Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Service Quality Dimensions



Parasuraman, Zeithamel, and Berry, three marketing professors from Texas A&M Univ., published the following set of service quality dimensions:
    

Tangibles Service Reliability Responsiveness Assurance Empathy

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Service Quality Dimensions Definitions

 Tangibles include the physical

appearance of the service facility, the equipment, the personnel, and the communication materials  Service Reliability the ability of the service provider to perform the promised service dependently and accurately  Responsiveness the willingness of the service provider to be helpful and prompt in providing service
Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Service Quality Dimensions Definitions

 Assurance the knowledge and courtesy of

employees and their ability to inspire trust and confidence  Empathy caring individualized attention from the service firm to the customer

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Service Quality Dimensions



Other dimensions of service quality include:

    

availability professionalism timeliness Completeness pleasantness.

Class Exercise: Add these to your Info System quality specifications

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Differing Functional Perspectives on Quality



Differing Functions Produce Different Perspectives because:

  

Basic nature of the jobs are different Training is different System requirements are different

Recognizing the different views on quality from the different functions helps solve problems, resulting from those different views
Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Engineering Perspective
       

Concerned with the technical aspects of product and process design Operations research Product design engineering Concurrent engineering Applied statistical thinking to reliability Life Testing Redundancy Statistical Process Control (SPC)
Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Statistical Process Control (SPC)

 Monitors process capability and stability


A capable process consistently produces products that meet specifications A stable process only exhibits random or common variation

See Demings Theory of Variation

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Operations Perspective
Concentrates on the management activities associated with product and process design  First functional field of management to adopt quality  Combines concepts from engineering, operations research, organizational theory, organizational behavior, and strategic management to address quality problems


Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Operations Perspective
 Uses the system view  Operations-marketing interface  Migration toward a more strategic view of OM

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Operations Perspective
Planning Inputs Conversion Process Organizing Outputs Customer

Process Control Controlling

Customer Feedback

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Strategic Management Perspective



Concerned with aiding an organization to achieving a sustainable competitive advantage to achieve long-term goals

Strategy  Mission  Core values  Organizational culture


Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Strategic Management Perspective

 Strategy process  Alignment  Quality-cost combination  Plan-do-check-act

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Marketing Perspective


Relationship management has shifted marketing to the consumer towards satisfying the customer and delivering value to the customer. Quality is as the customer views it Marketers have learned that high prices do not translate to better quality
Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

 

Marketing Perspective
Difficult for firms to agree on who the customer is  Focus on service at the time of transaction and after-sales support  Customer service surveys are important tools


Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Financial Perspective
Interested in the risks of investments and the potential rewards from those investments  Improved quality reduces waste and can lead to reduced cost and improved profitability  Translation for quality concerns can be done through identifying and measuring the costs of quality  Law of diminishing marginal returns

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

The Deming Value Chain

Improve Quality
Cost Decrease (less rework, fewer mistakes, fewer delays, snags, better use of machine time and materials)

Productivity Improves

Capture the Market Stay in Business Provide Jobs and More Jobs

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Economic Quality Level model

Cost

Total Quality Costs = Sum of Losses and Costs

Minimum Cost Losses Due to Poor Quality Costs of Improving Quality Quality

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Human Resource Perspective



   

Concerned with enabling the workforce to use its full potential to meet the companys objectives Participation of employees is essential to implement quality Employee empowerment Organizational design HR balances the needs of employees and the organization
Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Job Analysis
      

Major function of HR Involves collecting data used to settle pay levels Selection Vertical deployment of quality management Horizontal deployment 360-degree evaluation Total quality human resource management (TQHRM)
Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Is Quality Management Its Own Functional Discipline?



Yes and No


Yes the demand for quality specialists persists No the ultimate goal is to distribute the quality management function throughout the firm

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

The Three Spheres of Quality



The three spheres:

  

Quality Control Quality Assurance Quality Management

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Quality Control Sphere



Quality Control: based on the scientific method which includes three phases:


Analysis phase process broken down into its pieces Relation phase understanding the relationships between the parts Generalization phase perceiving how interrelationships apply to quality as a whole

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Quality Control Activities

 Monitor process capability and stability  Measure process performance  Reduce process variability  Optimize process to nominal measures  Perform acceptance sampling  Develop and maintain control charts

Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Quality Assurance Phase



Quality Assurance activities associated with guaranteeing the quality of a service or product
    

Failure mode and effects analysis Concurrent engineering Experimental design Process improvement Reliability/durability product testing
Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Quality Management Phase



Quality Management supports the idea that quality is the responsibility of all management, not just quality managers
     

Plan for quality improvement Create a quality organization culture Provide leadership and support Provide training and retraining Build quality into the organization Provide employee recognition
Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.

Using a Contingency Perspective of Quality to Arrive at a Common Understanding

 Contingency theory presupposes that

there is no theory or method that can be applied to every situation in operating a business  Different companies pursue different paths to achieve customer service  Using the contingency theory definitions and dimensions of quality within an organization and among different organizations will vary
Copyright 2004 by Robert H. Orr and the Trustees of Indiana University.