Laatuseniorit tuotelaatu part one


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Laatuseniorit tuotelaatu part one

  1. 1. 1 Competitive products and delighted customers Part one March 2, 2014 Juhani Anttila International Academy for Quality (IAQ) Helsinki, Finland , These pages are licensed under the Creative Commons 3.0 License (Mention the origin)
  2. 2. 2 xxxx/20.6.2012/jan Main parts and themes of the presentation: Part one 1. Extended product concept 2. Product characteristics and quality 3. Needs and expectations and customer satisfaction Part two 1. Striving for customer satisfaction 2. Technological challenges 3. Product and corporate brands Aiming at competitive products and delighted customers in the time of recession
  3. 3. 3 Understanding the concept “product” Product: ”result of a process”  Normally many processes are involved in producing a product, and processes may be in different organizations.  A product includes always service, and may also include goods. Service (= product) ”result of processes performed at the interface between the supplier and the customer”  Service is the essential part of all products, or factually all products are composite products consisting of goods and services.  There is no justification to use a phraseology ”products and services” or ”products or services” that factually means “goods and services”.  Value of goods may only be achieved through using the goods. Hence, also goods may be seen as service providers. Services dominate in all products. The value of a product is co-created by both the supplier and the customer. 4023/12.2.2014/jan (Ref.: ISO 9000)
  4. 4. 4 Service is result of processes, Examples • Tourist service – Memorable experience • Restaurant service – Well-nourished, fullness • Entertainment service – Emotional response • Design service – Product specifications, prototype • Training /education service – Skills, competence • Financial service – Loan • Health care service – Health, well-being • Telecom service – Completed phone call • Transport service – Material, people transported • Maintenance service – Equipment repaired • Lawyer service – Trial supported • Consulting service – Development supported 0817/13.2.2013/jan
  5. 5. 5 A product consists of goods and services 2321/15.2.2013/jan Goods value to customer Service value to customer Pure goods Pure service 100% 100%0% 0% Product = Result of processes = Goods + Services Value provided for the customer is based on both goods and services. The role of service is dominant, and especially today increasing. The goods value may be achieved only by using the goods. Hence, also goods may be seen as a type of service provider.
  6. 6. 6 1628/3.2.2013/jan Three elements of a composite product producing value to the customer The product is composed of three elements that create value to the customer (“Value adding channels”): - G: Goods service: Value from using the goods element - H: Human service: Value from human services - A: Automatic service: Value from automatic or mechanical services H A G P v u w The composite product and its elements co-create added-value P to the user with his/her process(es): P = uH + vA + wG u, v, and w are contributory portions of different product elements to the value Tendency Each point within the triangle represents a particular product.
  7. 7. 7 4278/3.2.2014/jan Historical development in product value creation Product elements: - G: Goods service: Value from using the goods element - H: Human service: Value from human services - A: Automatic / mechanical service: Value from automatic or mechanical services H A G ?
  8. 8. 8 A product of a software business connection, A case example 3980/5.1.2013/jan Business connections and products in the case: (1) SW developing company => Service developing company - software engineering service (2) Service developing company => Net service provider - software integrating service (3) Net service provider => A company using the net service - software e-Business service G H A Value positioning the products: 1 2 3 SW developer Service developer Net service provider Net service user (1) (2) (3)
  9. 9. 9 Processes and product in a business connection 2499/15.2.2014/jan Supplier (Product producer) Customer (Product recipient) Supplier’s business processes and structures Customer’s business processes and structures Business interface (business interactions and co-value creation) Product (Goods + Service) Organizations in business connection: Partner Organization = person or group of people that has its own functions with responsibilities, authorities and relationships to achieve its objectives Process is activity and product its result. Structures support the processes. Use and perception of product reveal value and satisfaction.
  10. 10. 10 What is the product, and what are the processes involved? (1) 4024/12.2.2013/jan Essential questions: 1. What is the product, incl. a) The service, and b) The goods? 2. How the customer value is being created, through a) The value creating processes, and b) The structures supporting the processes?
  11. 11. 11 What is the product, and what are the processes involved? (2) 4279/12.2.2014/jan Essential questions: 1. What is the product, incl. a) The service, and b) The goods? 2. How the customer value is being created, through a) The value creating processes, and b) The structures supporting the processes?
  12. 12. 12 4280/20.1.2014/jan Obtaining a service through the cycle of service processes Start: Service enquiry End: Service obtained Customer (process) <=> Service provider (process)
  13. 13. 13 A Win-Win human interaction in customer connection of business processes 4281/10.3.2014/jan Rational, non-rational (emotional), and irrational human-to-human interactions with customers are essential for creating mutually net value.
  14. 14. 14 4282/27.3.2014/jan Customer-responsiveness Satisfaction Demanding Receptive Irritated Indecisive Immediate action AppreciationAcceptance Assurance clarification
  15. 15. 15 A customer-centered organization Research Development Production Maintenance and support Marketing 4283/14.1.2014/jan Market place And customers ManagementBusiness support Sales The customer-centeredness is implemented trough business processes, products and customer interactivities Delivery From customer focus or orientation to customer-centeredness.
  16. 16. 16 1180/28.10.2008/jan A system approach for product concept - a product as a system Sub- system Components A “core” system Service Software Hardware Inter- mediator (interface) • Hardware • Software • Services Environment system, stakeholders: - People, organizations - Technical systems - Nature, structures
  17. 17. 17 All products contain strongly knowledge & information 4284/15.1.2014/jan Knowledge / information is the major element in all products (both in goods and services) as well as in the business units and business processes. Knowledge / information can never exist only as such but it has always some kind of carrier: - Fact: phenomenon, activity, process - Data: measurement or data acquisition device - Information (explicit knowledge): information file or data base, report, procedure document, publication, book - Tacit (implicit) knowledge: person, expert, consultant, expert network or system - Wisdom: community, mankind
  18. 18. 18 0502/25.1.2014/jan Life cycle phases of a product Specification phase Development phase Manufacturing phase Operation phase Disposal phase Product development and configuration management should cover the whole life cycle of the product. Customer-relationships ?
  19. 19. 19 Life cycle management of products Development system Ver. 1 Ver. 2 Generic product type Termination management Instantiation of product individuals # 1 # 2a # 2b # 3 # n 3598/27.12.2008/jan
  20. 20. 20 0375/3.2.2013/jan Quantitative sufficiency Dependability Environmental compatibility Reliability performance Maintainability performance Maintenance support performance Ergo- nomics Serve- ability(*) Security Esthetic Ethics Effective- ness & Efficiency Economy (*) accessibility + retainability Ecology Social per- formance General systematic grouping of inherent characteristics of any product (7E+3S) The product performance characteristics may be designed systematically and objectively by the product developer but they are always perceived comprehensively and subjectively by the product user. All product characteristics are interlinked with each others
  21. 21. 21 0017/30.1.2014/jan quality (of a product) - degree to which a set of inherent characteristics (of the product) fulfils requirements grade (of requirements) - category or rank given to the different requirements for the products having the same functional use customer satisfaction - customer's perception of the degree to which the customer's requirements have been fulfilled Note: - requirement (generated by an interested party): need or expectation that is stated, generally implied or obligatory - interested party: person or group having an interest in the performance or success of an organization (a product) (Ref.: ISO 9000) Quality  Grade (of a product) and satisfaction
  22. 22. 22 Performance: the capabilities of an item with its inherent features when observed under particular conditions • Quality: degree to which the set of inherent characteristics of the item fulfills the requirements. Requirements are from interested parties (especially of the customers). Requirements consist of needs or expectations that are stated, generally implied, or obligatory. Quality is based on the item user’s/owner’s subjective perception. • Grade: Grade implies the chosen category or rank of performance relevant to the needs relevant to the requirements. The grade is closely linked with the realization costs. • Service level: certain specified performance level of the item. Service level agreement (SLA) may be a part of contractual agreement. • Excellence: performance that excels certain challenging references, e.g. being among the best in the market place. In addition to quality related concepts, we also have a need for concepts of non-quality, particularly in the context of product quality: • Defect – non-fulfillment of the needs and expectations (ref. quality) • Nonconformity – non-fulfillment of the stated requirement specifications (ref. grade and service level) Conceptualizing performance (in a business context) 4010/2.1.2013/jan
  23. 23. 23 Safety / Security 2197/25.1.2014/jan The Maslow hierarchy of needs - human individuals (and organizations) Survival Growth needs Belonging / Social Esteem / Ego Self- actualization Basic needs
  24. 24. 24 Market / quality strategies (“value disciplines”) and the technology life cycle of a product 1. The early market 2. The chasm 6. End of the life Product leadership & Customer intimacy Product leadership & Operational excellence Operational excellence & Customer intimacy Excellent product performance only 3. The bowling alley 4. The tornado 5. The main stream market The quality approach should be adapted to the appropriate market strategies. 1969/2.1.2014/jan (Ref.: G. Moore)