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BHM-403
QUALITY MANAGEMENT
9/11/2013Bishnu Prasad Neupane (bikalpa45@gmail.com)
What is quality?
 Quality is the totality of features and characteristics of a
product or service that bear on its ability to satisfy stated or
implied needs. Quality meant different things to different
people.
 Quality is the perception of excellence viewed by customers
to satisfy their needs.
 Quality is the sense of appreciation that it is better than
others.
 Quality, simplistically, means that a product should meet
its specification.
 Quality is ‘getting what you pay for?’
 A product or service free of deficiencies.
9/11/2013Bishnu Neupane
Contd..
 Quality provides a product or service at a price the
customer can pay.
 Quality is the fitness for use.
 If the goods and services meet the given specification and customer’s
needs and expectation, they are considered of good quality, otherwise
of poor quality.
 Customers who purchase a product or service based on quality have
greater loyalty than those who purchase based on price.
9/11/2013Bishnu Neupane
Elements or Dimensions of Quality
Dimension of quality for manufacturing products:
1. Performance: The basic operating characteristics of a
product.
2. Features: Extra item added to the basic features.
3. Reliability: The probability that a product will operate
properly within an expected time frame.
4. Conformance: The degree to which a product meets pre-
established standards.
5. Durability: How long the product lasts its life span before
replacement.
9/11/2013Bishnu Neupane
Contd..
6. Serviceability: The ease of getting repairs, speed of
repairs and courtesy and competence of repair person.
7. Aesthetics: How a product looks, feels, sounds, smells or
tastes.
8. Safety: Assurance that the customer will not suffer injury
or harm from a product.
9/11/2013Bishnu Neupane
Contd..
Dimension of quality for Services:
1. Time and Timeliness: How long must a customer wait for
service and is it completed on time?
2. Completeness: Is everything the customers asked for
provided?
3. Courtesy: How are customers treated by employees?
4. Consistency: Is the same level of service provided to each
customer each time?
5. Accessibility and Convenience: How easy is to obtain
service?
6. Accuracy: is the service performed right every time?
7. Responsiveness: How well does the company react to
unusual situation?
9/11/2013Bishnu Neupane
Factors affecting Quality
 Policy
 Information
 Engineering and design
 Materials
 Equipment
 People
9/11/2013Bishnu Neupane
Importance of Quality
9/11/2013Bishnu Neupane
 Customer Satisfaction
 Improving productivity
 Reducing cost of production
 Image building
 Helps to increase the market share
 Beating competition
Quality Management
9/11/2013Bishnu Neupane
 A quality management is a system used to improve the
overall qualitative aspects of goods and services. In other
words, quality management is a technique used to
communicate employees what is required to produce the
desired quality of products and services and to influence
employee actions to complete tasks according to the
quality specifications.
 Management activities and functions involved in
determination of quality policy and its implementation
through means such as quality planning and quality
assurance (including quality control).
Principles of Quality Management
9/11/2013Bishnu Neupane
1. Customer focus
2. Leadership
3. Involvement of people
4. Process approach
5. System approach to management
6. Continual improvement
7. Factual approach to decision making
8. Mutually beneficial supplier relationships
Contd..
9/11/2013Bishnu Neupane
 Customer focus
Organizations depend on their customers and therefore
should understand current and future customer
needs, meet customer requirements and strive to exceed
customer expectations.
 Leadership
Leaders of an organization establish unity of purpose and
direction of it. They should go for creation and
maintenance of such an internal environment, in which
people can become fully involved in achieving the
organization's quality objective.
Contd..
9/11/2013Bishnu Neupane
 Involvement of people
People at all levels of an organization are the essence of it.
Their complete involvement enables their abilities to be
used for the benefit of the organization.
 Process approach
The desired result can be achieved when activities and
related resources are managed in an organization as
process.
Contd..
9/11/2013Bishnu Neupane
 System approach to management
An organization's effectiveness and efficiency in achieving
its quality objectives are contributed by
identifying, understanding and managing all interrelated
processes as a system.
 Continual improvement
One of the permanent quality objectives of an organization
should be the continual improvement of its overall
performance.
Contd..
9/11/2013Bishnu Neupane
 Factual approach to decision making
Effective decisions are always based on the data analysis
and information.
 Mutually beneficial supplier relationships
Since an organization and its suppliers are
interdependent, therefore a mutually beneficial
relationship between them increases the ability of both to
add value.
Functions of Quality Management
9/11/2013Bishnu Neupane
Testing
Monitoring
Auditing
Reporting
Chapter end discussion
9/11/2013Bishnu Neupane
 Current Quality Issues in Nepalese hotel industry??
-problems and possible solution???
 SERVQUAL??
-understanding the meaning and usages?

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Quality management

  • 2. What is quality?  Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. Quality meant different things to different people.  Quality is the perception of excellence viewed by customers to satisfy their needs.  Quality is the sense of appreciation that it is better than others.  Quality, simplistically, means that a product should meet its specification.  Quality is ‘getting what you pay for?’  A product or service free of deficiencies. 9/11/2013Bishnu Neupane
  • 3. Contd..  Quality provides a product or service at a price the customer can pay.  Quality is the fitness for use.  If the goods and services meet the given specification and customer’s needs and expectation, they are considered of good quality, otherwise of poor quality.  Customers who purchase a product or service based on quality have greater loyalty than those who purchase based on price. 9/11/2013Bishnu Neupane
  • 4. Elements or Dimensions of Quality Dimension of quality for manufacturing products: 1. Performance: The basic operating characteristics of a product. 2. Features: Extra item added to the basic features. 3. Reliability: The probability that a product will operate properly within an expected time frame. 4. Conformance: The degree to which a product meets pre- established standards. 5. Durability: How long the product lasts its life span before replacement. 9/11/2013Bishnu Neupane
  • 5. Contd.. 6. Serviceability: The ease of getting repairs, speed of repairs and courtesy and competence of repair person. 7. Aesthetics: How a product looks, feels, sounds, smells or tastes. 8. Safety: Assurance that the customer will not suffer injury or harm from a product. 9/11/2013Bishnu Neupane
  • 6. Contd.. Dimension of quality for Services: 1. Time and Timeliness: How long must a customer wait for service and is it completed on time? 2. Completeness: Is everything the customers asked for provided? 3. Courtesy: How are customers treated by employees? 4. Consistency: Is the same level of service provided to each customer each time? 5. Accessibility and Convenience: How easy is to obtain service? 6. Accuracy: is the service performed right every time? 7. Responsiveness: How well does the company react to unusual situation? 9/11/2013Bishnu Neupane
  • 7. Factors affecting Quality  Policy  Information  Engineering and design  Materials  Equipment  People 9/11/2013Bishnu Neupane
  • 8. Importance of Quality 9/11/2013Bishnu Neupane  Customer Satisfaction  Improving productivity  Reducing cost of production  Image building  Helps to increase the market share  Beating competition
  • 9. Quality Management 9/11/2013Bishnu Neupane  A quality management is a system used to improve the overall qualitative aspects of goods and services. In other words, quality management is a technique used to communicate employees what is required to produce the desired quality of products and services and to influence employee actions to complete tasks according to the quality specifications.  Management activities and functions involved in determination of quality policy and its implementation through means such as quality planning and quality assurance (including quality control).
  • 10. Principles of Quality Management 9/11/2013Bishnu Neupane 1. Customer focus 2. Leadership 3. Involvement of people 4. Process approach 5. System approach to management 6. Continual improvement 7. Factual approach to decision making 8. Mutually beneficial supplier relationships
  • 11. Contd.. 9/11/2013Bishnu Neupane  Customer focus Organizations depend on their customers and therefore should understand current and future customer needs, meet customer requirements and strive to exceed customer expectations.  Leadership Leaders of an organization establish unity of purpose and direction of it. They should go for creation and maintenance of such an internal environment, in which people can become fully involved in achieving the organization's quality objective.
  • 12. Contd.. 9/11/2013Bishnu Neupane  Involvement of people People at all levels of an organization are the essence of it. Their complete involvement enables their abilities to be used for the benefit of the organization.  Process approach The desired result can be achieved when activities and related resources are managed in an organization as process.
  • 13. Contd.. 9/11/2013Bishnu Neupane  System approach to management An organization's effectiveness and efficiency in achieving its quality objectives are contributed by identifying, understanding and managing all interrelated processes as a system.  Continual improvement One of the permanent quality objectives of an organization should be the continual improvement of its overall performance.
  • 14. Contd.. 9/11/2013Bishnu Neupane  Factual approach to decision making Effective decisions are always based on the data analysis and information.  Mutually beneficial supplier relationships Since an organization and its suppliers are interdependent, therefore a mutually beneficial relationship between them increases the ability of both to add value.
  • 15. Functions of Quality Management 9/11/2013Bishnu Neupane Testing Monitoring Auditing Reporting
  • 16. Chapter end discussion 9/11/2013Bishnu Neupane  Current Quality Issues in Nepalese hotel industry?? -problems and possible solution???  SERVQUAL?? -understanding the meaning and usages?