Quality Management Lecture 1.

Quality of Products and services

Quality of products

Concept of quality 1 Totality of features and characteristics of a

product or service that bears upon its ability to satisfy spoken or latent needs. Spoken need Latent need (basic or innocative)

These needs can be Objective (determined in contracts, or in standards) –

easy to measure Subjective (usefulness) – it belongs to the custemer

Concept of quality 2

Nowadays it has a strategic definition, because it not just mean the quality of a product, but it : „It is a basic business strategy, which means that products and services should totally meet both internal and external customers stated and latent needs.

Quality is defined as meeting customers requirements

5 Approaches to Defining Quality – Garvin 1 The Transcendent Approach: a quality cannot be defined

precisely, we learn to recognize it only through experience Innate excellence Pictures of Picasso:

5 Approaches to Defining Quality - Garvin 2 The Product-based Approach: quality is precise and

measurable variable, products can be ranked – quality products have more attributes (computer with more memory)

5 Approaches to Defining Quality - Garvin 3 The Manufacturing-based Approach : products or services meet

stated requirements, Manufacturing and engineering practise - Quality is measured by

the manufacturer’s ability to target the requirements consistently with little variability

5 Approaches to Defining Quality - Garvin 4 The User-based Approach : quality of a

product is determined by the consumer. There is widely varying individual preferences;

5 Approaches to Defining Quality - Garvin 5 The Value-based

Approach : quality is defined in costs and prices. How much is the benefit of the good or servce outweigh the cost?

Did the costumer get his or her money’s worth?

8 Dimensions of product quality - Garvin Performance – refers to a products’ primary operating

characteristics Features – „bells and whistles” added to a products Reliability – probability that the product will not fail in a specific

period of time (MTPF – mean time between failure) Conformance – the degree to which a product or service meets

its specifications Durability – a measure of the product life Serviceability – this is the speed, the competence and easy of

repair Aesthetics – how the product looks, feels, sounds, tastes and

smells. This is clearly a matter of personal judgment Perceived quality – images, advertising, and brand names can

be critical to give information about the product quality

KANO-model

Attractive quality One-Dimensional quality Must-Be quality Indifferent quality Reverse quality

KANO-model

SERVice QUALity (SERVQUAL model)

HIPI principles

Heterogenity (variability in the quality of service because services are provided by people, and people perform inconsistently)

Intangibility (there is no specimen ) Perishability (vary in demand can occure,

difficulty in supply) Inseparability (good service can’t be

separated from bad service)

10 quality dimensions of services

Reliability - service is performed on a high level of standards again and again, with high accuracy

Responsiveness - the willingness of employees to provide the service and how fast the service is provided

Competence - possession of required skills, and knowledge Access - approachability and ease of contact Courtesy -comprises politeness, respect, friendliness Communication - informing the customers in an understandable way

and listening to them Credibility - trustworthiness and honesty Security - physical and financial safety Understanding the customer - steps to know customer better Tangibles - all physical products that are involved in service delivery

The basic of SERVice QUALity - RATER model Reliability - service provider perform the promised service

dependably and accurately. Assurance – Involves knowledge and courtesy of employees

and their ability to inspire trust and confidence Tangibles – equipment, the personnel and communication

materials. Empathy – Which is caring, individualized or customized

attention the organization provides its customers Responsiveness – willingness to be helpful and prompt in

providing service (waiting time )

It is an efficient model in helping an organization shape up their efforts in bridging the gap between perceived and expected service.

GAP model

customers’ requirements are affected by: needs Earlier experience Word of mouth Service provider’s communication

Expected service perceived service quality

EXPECTED SERVICE

PERCIEVED SERVICE

GAP 5

Service delivery

External communications to the customer

Translation of perceptions into service quality specifications

Management perceptions of the customers expectations

GAP 3

GAP 2

GAP 4

GAP 1

Customer

Service provider

Influenced by many factors

GAP MODEL

GAP model GAP 1 (Knowledge Gap) – the difference between guest’s

expectation and management perceptions of those expectations, i. e. not knowing what consumer expect

GAP 2 (Standards Gap) – difference between managements perceptions of guest’s expectations and service quality specifications , i.e. improper service quality standards

GAP 3 (Delivery Gap) – difference between service quality specifications and service actually delivered, i.e. the service performance gap

GAP 4 (Communication Gap) – difference between service delivery and the communications to the guests about service delivery, i.e. whether promises match delivery?

GAP 5 (Overall Gap) – the difference between guests expectation and perceived service.

Dimension Question

Tangibles 1-4

Reliability 5-9

Responsiveness 10-13

Assurance 14-17

Empathy 18-22

Thank You for Attention