Introduction to Quality Systems Angela Praiswater.
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Introduction What is quality? –User based Lies in the eyes of the beholder Customers and Marketing lean towards this approach Higher quality means better performance, nicer features, and other (sometimes costly) improvements –Manufacturing based Conforming to standards and making the product right the first time –Product based Precise and measureable variable What companies come to mind when you think high quality products or service? –Samsung –Toyota –Amazon Why do you consider these companies producers of high quality products or service? –Meets or exceeds the needs of the customer Product functionality, reliability, maintainability, availability –Balance High Quality Cost Efficiency –Customer Service –Reputation
Transcript of Introduction to Quality Systems Angela Praiswater.
Introduction to Quality SystemsAngela Praiswater
In this lecture, we will be giving a brief introduction to quality systems and answer questions such as: what is quality?, what makes a product or service great or poor, how do we measure quality?, and finally why should companies invest in quality? Let’s take a look.
1
Introduction
Higher quality means better performance, nicer features, and other (sometimes costly) improvements
Manufacturing based
Conforming to standards and making the product right the first time
Product based
Precise and measureable variable
What companies come to mind when you think high quality products or service?
Samsung
Toyota
Amazon
Why do you consider these companies producers of high quality products or service?
Meets or exceeds the needs of the customer
Product functionality, reliability, maintainability, availability
Balance
What is quality?
We first have the user based definition: Quality Lies in the eyes of the beholder. Customers and Marketing lean towards this approach, higher quality means better performance, nicer features, and other (sometimes costly) improvements.
Manufacturing based definition would be that quality conforms to standards and making the product right the first time.
Product based definition would be that quality depends on precision and the measureable variables.
What companies come to mind when you think high quality products or service? I always think of Samsung electronics as well as Toyota vehicles. As far as the service industry, Amazon always come to mind.
Why do you consider certain companies to have high quality products or service? Well, they meet or exceed the needs of the customer. Also we consider the product functionality, reliability, maintainability, and availability. There is also a balance of high quality and cost efficiency. We also take into consideration customer service and reputation of the company.
2
3
Reputable Companies
Word of mouth has become the No. 1 driver of sales and competitive advantage
Strong correlation between a company’s reputation and customer’s willingness to recommend it.
People’s willingness to recommend a company is based 60% by their perceptions of the company and 40% by their perceptions of their products.
Large companies are spending billions to manage their public image.
Indicators: trust, esteem, admiration, and good feeling
What could companies focus on to improve their public image?
4
Apple – company focuses on product innovation and customer service
GE – Black belts in customer service
Proactive measures to assist internal customers in streamlining processes, cutting costs, and increasing profit margins – all for free.
Toyota
Customer Loyalty – “The Toyota Way” founds the production system and lean manufacturing techniques, but the philosophy also pushes customer-centric quality as being “pure logic and pure respect”
Google, Southwest Airlines, Hilton Hotels, Papa John’s, DirecTV, Samsung
Worst Companies in Customer Service
AOL (closing accounts), Best Buy (persistence with selling protection plans), Home Depot (last in Business Week for retailers in the U.S.), AT&T (Most complaints from cell providers according to the FCC), Day’s Inn
Apple’s priorities lie in product innovation and customer service.
GE actually has Six Sigma Black belts in their customer service department. Think of a black belt as a “master ninja” in quality. These black belts use proactive measures to assist internal customers in streamlining processes, cutting costs, and increasing profit margins – all for free.
Toyota believes in customer loyalty, through their slogan of “The Toyota Way” which founds the production system and lean manufacturing techniques, but the philosophy also pushes customer-centric quality as being “pure logic and pure respect”
Other companies that aspire to great customer service include: Google, Southwest Airlines, Hilton Hotels, Papa John’s, DirecTV, and Samsung.
Where there is a best, there also is a worst. Let’s take a look at companies that need to work on their customer service.
AOL was listed due to their customer service when customers try closing accounts, Best Buy due to their persistence with selling protection plans, Home Depot was actually listed last in Business Week for retailers in the U.S., AT&T had the most complaints from cell providers according to the FCC, and finally Day’s Inn. These companies have not made their customer experience a priority.
5
Quality
Products/service
Level of Customer Service
Reputation
Drivers of quality, setting standards
Quality must be part of the company philosophy and a top priority in their organizational strategy
How does quality apply to a company?
With products or service the quality of design as well as conformance to that design is of utmost importance. To achieve this we take a look at our process and the way that we plan, control, and improve it. Characteristics are also vital of the product and service, these characteristics include: reliability, maintainability, and availability.
The level of customer service is also a quality factor that needs to be focused on. We need to make sure that our customers have trust, admiration, esteem, and an overall good feeling towards us and our product.
Reputation is important as well. As a company we want to be known as drivers of quality, we set the standards and benchmarks that others try hold to.
Quality must be part of the company philosophy and be ingrained as a top priority in a companies organizational strategy.
6
Lower warranty Costs
When trying to make quality part of our organizational strategy, we need to have top management support. We accomplish this through dollars. By having a quality driven company, there are many advantages to our sales and costs.
The sales gain that we can potentially increase through improved quality standards include: quicker response time, flexible pricing, and a better reputation.
We will also reduce costs by increasing our productivity, lowering rework and scrap costs, and reducing warranty costs.
The cost of poor quality is not to be underestimated. “Anyone who thinks customers aren’t important should try doing without them for 90 days.” –Anonymous. Without our customers we do not have a business, we need to take care of them. In summary, the benefits of good quality pay and are worth the investment, sales will increase and we will reduce cost. Ultimately, we will have a satisfied customer.
7
In this lecture, we will be giving a brief introduction to quality systems and answer questions such as: what is quality?, what makes a product or service great or poor, how do we measure quality?, and finally why should companies invest in quality? Let’s take a look.
1
Introduction
Higher quality means better performance, nicer features, and other (sometimes costly) improvements
Manufacturing based
Conforming to standards and making the product right the first time
Product based
Precise and measureable variable
What companies come to mind when you think high quality products or service?
Samsung
Toyota
Amazon
Why do you consider these companies producers of high quality products or service?
Meets or exceeds the needs of the customer
Product functionality, reliability, maintainability, availability
Balance
What is quality?
We first have the user based definition: Quality Lies in the eyes of the beholder. Customers and Marketing lean towards this approach, higher quality means better performance, nicer features, and other (sometimes costly) improvements.
Manufacturing based definition would be that quality conforms to standards and making the product right the first time.
Product based definition would be that quality depends on precision and the measureable variables.
What companies come to mind when you think high quality products or service? I always think of Samsung electronics as well as Toyota vehicles. As far as the service industry, Amazon always come to mind.
Why do you consider certain companies to have high quality products or service? Well, they meet or exceed the needs of the customer. Also we consider the product functionality, reliability, maintainability, and availability. There is also a balance of high quality and cost efficiency. We also take into consideration customer service and reputation of the company.
2
3
Reputable Companies
Word of mouth has become the No. 1 driver of sales and competitive advantage
Strong correlation between a company’s reputation and customer’s willingness to recommend it.
People’s willingness to recommend a company is based 60% by their perceptions of the company and 40% by their perceptions of their products.
Large companies are spending billions to manage their public image.
Indicators: trust, esteem, admiration, and good feeling
What could companies focus on to improve their public image?
4
Apple – company focuses on product innovation and customer service
GE – Black belts in customer service
Proactive measures to assist internal customers in streamlining processes, cutting costs, and increasing profit margins – all for free.
Toyota
Customer Loyalty – “The Toyota Way” founds the production system and lean manufacturing techniques, but the philosophy also pushes customer-centric quality as being “pure logic and pure respect”
Google, Southwest Airlines, Hilton Hotels, Papa John’s, DirecTV, Samsung
Worst Companies in Customer Service
AOL (closing accounts), Best Buy (persistence with selling protection plans), Home Depot (last in Business Week for retailers in the U.S.), AT&T (Most complaints from cell providers according to the FCC), Day’s Inn
Apple’s priorities lie in product innovation and customer service.
GE actually has Six Sigma Black belts in their customer service department. Think of a black belt as a “master ninja” in quality. These black belts use proactive measures to assist internal customers in streamlining processes, cutting costs, and increasing profit margins – all for free.
Toyota believes in customer loyalty, through their slogan of “The Toyota Way” which founds the production system and lean manufacturing techniques, but the philosophy also pushes customer-centric quality as being “pure logic and pure respect”
Other companies that aspire to great customer service include: Google, Southwest Airlines, Hilton Hotels, Papa John’s, DirecTV, and Samsung.
Where there is a best, there also is a worst. Let’s take a look at companies that need to work on their customer service.
AOL was listed due to their customer service when customers try closing accounts, Best Buy due to their persistence with selling protection plans, Home Depot was actually listed last in Business Week for retailers in the U.S., AT&T had the most complaints from cell providers according to the FCC, and finally Day’s Inn. These companies have not made their customer experience a priority.
5
Quality
Products/service
Level of Customer Service
Reputation
Drivers of quality, setting standards
Quality must be part of the company philosophy and a top priority in their organizational strategy
How does quality apply to a company?
With products or service the quality of design as well as conformance to that design is of utmost importance. To achieve this we take a look at our process and the way that we plan, control, and improve it. Characteristics are also vital of the product and service, these characteristics include: reliability, maintainability, and availability.
The level of customer service is also a quality factor that needs to be focused on. We need to make sure that our customers have trust, admiration, esteem, and an overall good feeling towards us and our product.
Reputation is important as well. As a company we want to be known as drivers of quality, we set the standards and benchmarks that others try hold to.
Quality must be part of the company philosophy and be ingrained as a top priority in a companies organizational strategy.
6
Lower warranty Costs
When trying to make quality part of our organizational strategy, we need to have top management support. We accomplish this through dollars. By having a quality driven company, there are many advantages to our sales and costs.
The sales gain that we can potentially increase through improved quality standards include: quicker response time, flexible pricing, and a better reputation.
We will also reduce costs by increasing our productivity, lowering rework and scrap costs, and reducing warranty costs.
The cost of poor quality is not to be underestimated. “Anyone who thinks customers aren’t important should try doing without them for 90 days.” –Anonymous. Without our customers we do not have a business, we need to take care of them. In summary, the benefits of good quality pay and are worth the investment, sales will increase and we will reduce cost. Ultimately, we will have a satisfied customer.
7
