2. ◦ There are many different definitions and
dimensions of quality.
◦ Different View of Quality that can Exist
in the Same Firm
◦ A product engineer might associate
quality with product design
◦ A marketing executive might associate
quality with quick design time
◦ An accountant might associate quality
with low product cost
3. 1. Transcendent Definition
◦ Quality is something that is intuitively
understood but nearly impossible to
communicate such as beauty or love.
2. Product-Based Definition
◦ Quality is found in the components and
attributes of a product.
3. User-Based Definition
◦ If the customer is satisfied, the product
has good quality.
4. 4. Manufacturing-Based Definition
◦ If the product conforms to design
specifications, it has good quality.
5. Value-Based Definition
◦ If the product is perceived as
providing good value for the price,
it has good quality.
6. 1. Performance
◦ Refers to the efficiency with which a
product achieves its intended purpose.
2. Features
◦ Attributes of a product that supplement a
product’s basic performance.
3. Reliability
◦ The propensity for a product to perform
consistently over its useful design life.
7. 4. Conformance ( specifications and
tolerance)
◦ Numerical dimensions for a product’s
performance, such as capacity, speed,
size, durability, color, or the like.( easily
quantified and difficult for a service to
conform)
5. Durability
◦ The degree to which a product tolerates
stress or trauma without failing.
8. 6. Serviceability
◦ Ease of repair easily and cheaply. If service is rapid,
courteous, easy to acquire, and competent, then the
product have good serviceability.
7. Aesthetics
◦ Subjective sensory characteristics such as taste, feel,
sound, look, and smell. We measure quality as the degree
to which product attributes are matched to consumer
preferences.
9. 8. Perceived Quality
◦ Quality is as the customer perceives it.
Customers imbue products and services
with their understanding of their
goodness. This is perceived quality.
10. Service quality is even more
difficult to define than product
quality.
This often results from wide
variation created by high
customer involvement.
The example is fountain pen and
food service.
12. 1. Tangibles
◦ Include the physical appearance of the
service facility, the equipment, the
personnel, and the communication
material.
2. Service Reliability
◦ Differs from product reliability in that it
relates to the ability of the service
provider to perform the promised
service dependably and accurately.
13. 3. Responsiveness
◦ The willingness of the service provider
to be helpful and prompt in providing
service.
4. Assurance
◦ The knowledge and courtesy of
employees and their ability to inspire
trust and confidence.
14. 3. Responsiveness
◦ The willingness of the service provider
to be helpful and prompt in providing
service.
4. Assurance
◦ The knowledge and courtesy of
employees and their ability to inspire
trust and confidence.
15. 5. Empathy
◦ the customer desires caring,
individual attention paid to customers
by the service firm.
16. 6. There are several other dimensions of
service quality
7. It should be noted that service design
strives to address these different service
dimensions simultaneously.
8. It is not sufficient for a service firm to
provide only empathy if responsiveness
and service reliability are inadequate.
17. The “cost of quality” isn’t the price of creating
a quality product or service. It’s the cost of
NOT creating a quality product or service.
18. Every time work is redone, the cost of quality
increases. Obvious examples include:
The reworking of a manufactured item.
The retesting of an assembly.
The rebuilding of a tool.
The correction of a bank statement.
19. The cost of quality is generally classified into
four categories:
1.External Failure Cost
2. Internal Failure Cost
3. Inspection (appraisal) Cost
4. Prevention Cost
20. Cost associated with defects found after the
customer receives the product or service.
Example: Processing customer complaints,
customer returns, warranty claims.
21. Cost associated with defects found before the
customer receives the product or service.
Example: Scrap, rework, re-inspection,
material review, material downgrades.
22. Cost incurred to determine the degree of
conformance to quality requirements
(measuring, evaluating or auditing).
Example: Inspection, testing, process or
service audits.
23. Cost incurred to prevent poor quality.
Example: New product review, quality
planning, supplier surveys, process reviews,
quality improvement teams, education and
training.
