Unit 1 Definitions, Dimensions and Importance of Quality

Unit 1

Definitions, Dimensions and Importance of Quality

Unit Objectives:

1. Discuss the different definitions of quality,

2. Differentiate the dimensions of product quality and service quality

3. Discuss the dimensions of SERQUAL

4. Examine the importance of quality

Definition of Quality ?Definition of Quality ?Definition of Quality ?Definition of Quality ?

Five Approaches to Five Approaches to Defining QualityDefining Quality

Five Approaches to Defining Five Approaches to Defining Quality:Quality:Five Approaches to Defining Five Approaches to Defining Quality:Quality:

David Garvin (1988), in his book “Managing Quality: The Strategic & Competitive Edge describes 5 major approaches to quality:

1. The Transcendent Approach2. The Product-based Approach3. The User-based Approach4. The Manufacturing-based Approach &5. Value-based Approach

The Transcendent ApproachThe Transcendent ApproachThe Transcendent ApproachThe Transcendent Approach

“A condition of excellence implying fine quality as distinct from poor quality….”something you consider to be superb, wonderful, magnificent, marvelous, grand, superlative, outstanding, etc.

“Quality is achieving or reaching for higher standard as against being satisfied with the sloppy or the fraudulent.”

Quality is understood only after exposure to a series of objects that develop its characteristics.

The idea here is that quality can’t be defined, and you recognize it only when you see it.

The Weakness ofThe Weakness of Transcendent ApproachTranscendent ApproachThe Weakness ofThe Weakness of Transcendent ApproachTranscendent Approach

Weakness: lack of objectivity

the definition does not allow to state definitively that an item is of high quality

The Product-based ApproachThe Product-based ApproachThe Product-based ApproachThe Product-based Approach

Identifies specific features or attributes that can be measured to indicate higher quality.

Quality is based on the presence or absence of a particular attribute.

If an attribute is desirable, greater amounts of that attribute would label that product or service as one of higher quality.

Leather upholstery is considered higher quality than vinyl

The Advantage & Disadvantages of The Advantage & Disadvantages of Product-based ApproachProduct-based ApproachThe Advantage & Disadvantages of The Advantage & Disadvantages of Product-based ApproachProduct-based Approach

Advantage: provides objective measures of quality

Disadvantage: assumes the absence or presence of an attribute

implies higher quality.

The User-based ApproachThe User-based ApproachThe User-based ApproachThe User-based Approach

The user determines the quality of the goods/services

The product/service that best satisfies the user/costumer is the higher quality product

The ability to satisfy the customers’ requirement, expectations, or wants is the sole criterion by which quality is determined

Equates customers satisfaction with quality Quality “lies in the eye of the beholder”

The Weakness of User-based ApproachThe Weakness of User-based ApproachThe Weakness of User-based ApproachThe Weakness of User-based Approach

Weakness: customer satisfaction may not be achieved for

reasons that have nothing to do with the quality of the product

Until the customer says the product is good, it will not be considered good quality

The Manufacturing-based ApproachThe Manufacturing-based ApproachThe Manufacturing-based ApproachThe Manufacturing-based Approach

Equivalent to “conformance of a product or service to a set of predetermined requirements or specifications”

Failure to meet these requirement is a deviation and thus a lack of quality.

Engineering specifies the product characteristics The more it conforms to requirements, the better

the quality

The Advantages & Disadvantages of The Advantages & Disadvantages of Manufacturing-based ApproachManufacturing-based ApproachThe Advantages & Disadvantages of The Advantages & Disadvantages of Manufacturing-based ApproachManufacturing-based Approach

Advantages of: providing objectively measurable quality

standards &

reducing the costs of quality

Disadvantage: Lacks of concern for the customer’s preference

Value-based ApproachValue-based ApproachValue-based ApproachValue-based Approach

Introduces the element of price “Quality is the degree of excellence at an

acceptable price and the control of variability at an acceptable cost.”

In this definition an attribute of worth or value is quality

The purchase decision involves trading off the quality against the price

Because many of the attributes of quality are subjective assessments, the approach is not effective in introducing objective criteria

Unfortunately, most of these definitions are subjectiveUnfortunately, most of these definitions are subjective

Although the manufacturing & product-based approaches are most objective, both fail to account sufficiently for customer’s preferences

The user-based approach relies solely on the customer’s input, but methods for obtaining this input are unreliable & unable to predict changes in preference

should adopt a mix of these approaches

Eight Dimensions of Product Quality: Garvin (1988) Eight Dimensions of Product Quality: Garvin (1988)

1. Performance

2. Features

3. Reliability

4. Conformance

5. Durability

6. Serviceability

7. Aesthetics

8. Perceived quality

1. Performance1. Performance

refers to the primary operating characteristics of the product or service (basic operating characteristics)

They are usually measurable The primary required performance of the

service

2. Features2. Features

are additional characteristics that enhance the product or services appeal to the users

“extra” items added to basic features - the expected performance (bells and whistles of the service)

3. Reliability of a product3. Reliability of a product

is the likelihood that a product will not fail within a specific time period

probability product will operate over time This is a key element for users who need the

product to work without fail The confidence of the service in relationship

to time

4. Conformance4. Conformance

is the precision with which the product or service meets the specified standards(meeting pre-established standards)

The traditional American approach to conformance was “quality was considered high if 95% or more of the products were within the tolerance limits

The satisfaction based on requirements that have been set

5. Durability5. Durability

measures the length of a product’s life

life span before replacement

When the product can be repaired, estimating durability is more complicated

6. Serviceability

Ease of getting repairs, speed & competence of repairs

The ability to service if something goes wrong

7. Aesthetics7. Aesthetics

is the subjective dimension indicating the kind of response a user has to a product

it represents personal preference e.g.. --the way a person responds to the

look, feel, sound, taste, and smell The experience itself as it relates to the

senses

8. Perceived quality8. Perceived quality

is the subjective dimension it is the quality attributed to a goods or

service based on indirect measures subjective perceptions based on brand

name, advertising, etc The reputation of the quality e.g.. is the saying, “you know a good

workman by his tools.”

The Standard dimensions of service QualityThe Standard dimensions of service Quality

ReliabilityResponsivenessAssuranceEmpathyTangibles

1. Reliability of service1. Reliability of service

is the ability to perform a service reliably and dependably

it means the customer’s expectations are met consistently

2. Responsiveness2. Responsiveness

is the willingness to help customers and provide prompt service

3. Assurance3. Assurance

is the ability to communicate to the customer a level of competence &

to provide the service with the necessary courtesy

Knowledge and courtesy of employees and their ability to inspire trust and confidence.

4. Empathy4. Empathy

is the approachability and the ability to communicate with and understand the customer’s needs

Caring individualized attention the firm provides its customers.

5. Tangibles5. Tangibles

is the appearance of physical facilities, equipment, personnel, and communication materials

The Standard Dimensions of Service Quality

Dimensions Description

Tangibles(the appearance of physical facilities, equipment, personal and communication materials)

Reliability(the ability to perform the promised service dependably and accurately)

Responsiveness(the willingness to help customers and to provide prompt service)

Assurance(the knowledge and courtesy of employees and their ability to convey trust and confidence)

Empathy(the provisions of caring individualised attention to customers

-has up-to-date equipment-physical facilities are visually appealing-employees are neat in appearance-material are visually appealing

-when promise to do something, it does so-shows sincere interest in solving problems-perform the service right the first time-provides service at the time it promises-keep accurate records

-tell the customer when the service will be performed-give prompt service-always willing to help-never too busy to respond to customer request

-employee can be trusted-customer feel safe in transactions with employees-consistently courteous-has knowledge to answers customers questions

-gives individual attention-has operating hours convenient to the customer-employees give personal attention-has best interest in heart-employees understand customer specific needs

The Expanded Dimensions of Service Quality

1. Time & Timeliness - customer waiting time, completed on time

2. Completeness - customer gets all they asked for

3. Courtesy - treatment by employees

The Expanded Dimensions of Service Quality

4. Consistency - same level of service for all customers

5. Accessibility & Convenience - ease of obtaining service

6. Accuracy - performed right every time 7. Responsiveness - reactions to unusual

situations

SERVICE QUALITY (SERQUAL) According to Zeithaml, Parasuraman & Berry (1990)

Quality Dimension

1. Tangibles:Appearance of physical facilities, equipment, personnel, printed and visual materials

Samples of questions to ask

Are facilities attractive? Are staff dressed

appropriately? Are written materials

easy to understand? Does technology look

modern?


Quality Dimension2. Reliability:

Ability to perform promised service dependably and accurately

Samples of questions to ask If a response is promised

in a certain time, does it happen?

Are exact specifications of client followed?

Are statements or reports free of error?

Is service performed right the first time?

Is level of service same at all times of day and for all members of staff?


Quality Dimension

3. Responsiveness:Willingness to help customers to provide prompt service

Samples of questions to ask When there is a problem,

does organization respond to it quickly?

Are staff willing to answer client questions?

Are specific times for service accomplishments given to client?

Are public situations treated with care and seriousness?


Quality Dimension

4. Competence:Possession of required skill and knowledge to perform service

Samples of questions to ask Can staff provide service

without fumbling around? Are materials provided

appropriate and up to date? Can staff use the technology

quickly and skillfully? Does staff appear to know

what they are doing?


Quality Dimension5. Courtesy:

Politeness, respect, consideration and friendliness of contact personnel

Samples of questions to ask Does staff member have a

pleasant demeanor? Does staff refrain from

acting busy or being rude when clients ask questions?

Are those who answer the telephone considerate and polite?

Do staff observe consideration of the property and values of clients?


Quality Dimension

6. Credibility:Trustworthiness, believability, honesty of the service provider

Samples of questions to ask Does service organization

have a good reputation? Do staff members refrain

from pressuring the client? Are responses given

accurate and consistent with other reliable sources?

Does the organization guarantee its services?


Quality Dimension7. Security:

Freedom from danger, risk, or doubt

Samples of questions to ask Is it safe to enter the

premises and to use the equipment?

Are documents and other information provided for the client held securely?

Are use records of clients safe from unauthorized use?

Can client be confident that service provided was done correctly?


Quality Dimension8. Access:

Approachability and ease of contact.

Samples of questions to ask How easy is it to talk to

knowledgeable staff member when client has a problem?

Is it easy to reach the appropriate staff person

– in person? – by telephone? – by email?

Are service access points conveniently located?


Quality Dimension9. Communication:

Listening to customers and acknowledging their comments; Keeping customers informed in a language they can understand.

Samples of questions to ask When client contacts service

point, will staff person listen to their problem and demonstrate understanding and concern?

Can staff explain clearly the various options available to a particular query?

Do staff avoid using technical jargon when speaking with clients?

Does staff member call if a scheduled appointment will be missed?


Quality Dimension11. Understanding the

Customer:Making the effort to know customers and their needs.

Samples of questions to ask Does someone on staff

recognize each regular client and address them by name?

Do staff try to determine what client's specific objectives are?

Is level of service and cost of service consistent with what client requires and can afford?

Are service providers flexible enough to accommodate to client's schedule?

Quality in different areas of society

Several definitions of quality have been given above.

Also, the definition will vary depending on the domain under consideration.

The table below lists several different areas in our society and indicates some things that might be considered to be related to quality in each.

Quality in different areas of society

Area Examples Airlines On-time, comfortable, low-cost service Health Care Correct diagnosis, minimum wait time, lower

cost, security Food Services Good product, fast delivery, good

environment Postal Services Fast delivery, correct delivery, cost

containment Academia Proper preparation for future, on-time

knowledge delivery Consumer Products Properly made, defect-free, cost effective Insurance Payoff on time, reasonable cost Military Rapid deployment, decreased wages, no graft Automotive Defect-free Communications Clearer, faster, cheaper service

Importance of Quality

Improvequality

Costs decrease becauseof less rework, fewermistakes, fewer delays,snags, better use ofmachine time & materials

Productivityimproves

Capture themarket with better quality and lower price

Stay inbusiness

Provide jobsand more jobs

Documents

Unit 1 Definitions, Dimensions and Importance of Quality