Quality Management and Service Accuracy Quiz

Service Quality Dimensions

• Accuracy: Measures if services are performed correctly every time, like ensuring bank statements are accurate monthly.
• Responsiveness: Evaluates how quickly and effectively a company addresses unusual situations or customer inquiries.

Historical Perspective on Quality

• Quality evolution is gradual; earlier practices still influence current quality assurance practices.
• Examples of craftsmanship and quality assurance practices remain relevant today.

W. Edwards Deming and Quality Management

• Deming, a major figure in quality management, introduced 14 principles focusing on management philosophy rather than just technicalities.
• He played a significant role in teaching statistical quality control to military suppliers during WWII and later to Japanese companies, earning the title "father of quality control."
• The Deming Award is given annually in Japan to honor his contributions.

Deming’s 14 Points for Quality Management

• Advocate for continuous improvement in production processes to ensure alignment with specifications and reduce variability.
• Foster an environment where employees can voice concerns without fear.
• Promote interdepartmental collaboration to enhance teamwork.
• Discard slogans that push unrealistic targets without guidance on achieving them.
• Remove quotas that prioritize quantity over quality.
• Improve supervision and production methods to enhance worker pride and capability.
• Implement comprehensive training and education in quality improvement across all organizational levels.
• Secure management's commitment to uphold the previous points as foundational for Total Quality Management (TQM).

Deming Wheel (Plan-Do-Check-Act)

• Plan: Identify issues within a process and set goals for quality improvements.
• Do: Execute the plan on a trial basis, documenting results and measuring improvements.
• Check/Study: Analyze the effectiveness of the implementation strategies as a comprehensive review rather than a simple check.

Quality and Cost Implications

• Quality costs include training, inspection, returns, warranty claims, and liability, with some being hard to quantify, such as lost sales and downtime.
• Management prefers quality cost reporting that is clear and easy to interpret, often using index numbers that compare various quality costs.

Effects of Cost Allocation on Quality

• Increased prevention and appraisal costs lead to decreased internal and external failure costs, which are associated with poor quality.
• Focus on quality prevention during product development can significantly lower appraisal costs.

Productivity Metrics

• Labor productivity saw a 75% increase, demonstrating the effectiveness of quality improvements.
• Multifactor productivity increased by 25.9%, indicating enhanced operational efficiency.

Productivity Performance Strategies

• Efficient: Output increases with minimal to no input increase.
• Expanding: Both output and input increase, with output growing faster.
• Breakthroughs: Output rises while input falls.
• Downsizing: Consistent output is maintained despite reduced input.
• Retrench: Both output and input drop, but input decreases more rapidly.

Yield Computation

• Yield is calculated as the sum of good outputs from total inputs, considering reworked units.
• An increase in good product percentage enhances overall yield through improved quality processes.

Manufacturing Cost Calculation

• Product cost is determined by totaling direct manufacturing costs and rework costs and dividing by yield, ensuring an accurate assessment of efficiency.

Quality Productivity Ratio (QPR)

• QPR combines quality yield measures and productivity by considering input, processing costs, and the costs of defective units.

Ethical Considerations

• Knowledge of quality issues, such as substandard work or materials, must be addressed promptly, or it becomes unethical conduct.

Test your knowledge on key concepts of quality management, including accuracy and responsiveness in service delivery. Evaluate how well organizations meet customer expectations and handle inquiries. This quiz covers important principles and practices in ensuring quality service.