Lean Production And Quality Management PDF

LEAN PRODUCTION AND QUALITY MANAGEMENT MODULE 1: CONTENT 8  THE IMPORTANCE OF QUALITY An important aspect of operations management is making sure that the goods and services produced are of a suitable quality. A quality product is one that meets the specifications that a f...

LEAN PRODUCTION AND QUALITY MANAGEMENT MODULE 1: CONTENT 8  THE IMPORTANCE OF QUALITY An important aspect of operations management is making sure that the goods and services produced are of a suitable quality. A quality product is one that meets the specifications that a firm has set out and, in turn, meets the customers’ needs.  THE IMPORTANCE OF QUALITY As famous management writer Peter Drucker says, ‘Quality in a product or service is not what the supplier puts in. It is what the customer gets out and is willing to pay for. A product is not quality because it is hard to make and costs a lot of money, as manufacturers typically believe. This is incompetence. Customers pay only for what is of use to them and gives them value. Nothing else constitutes quality.’  THE IMPORTANCE OF QUALITY Generally speaking, ‘quality’ measures the degree to which a product meets or exceeds the desire of the customer.  THE IMPORTANCE OF QUALITY What is and what is not quality therefore depends on the customers’ views. To achieve quality, mangers must therefore set targets based on customer needs and then make sure that the targets are being achieved.  QUALITY TARGETS The nature of the quality targets set will depend on the type of business.  QUALITY TARGETS Example : A hotel might set targets involving: 1. Customer satisfaction levels 2. Accurate billing 3. Speed of response, such as in reception and the restaurant  WHY DOES QUALITY MATTER? Poor quality leads to mistakes that have to be put right or fixed. Goods may have to be thrown away. Items may be returned and have to be replaced. In a worst-case situation you may even be sued for failing to deliver the products promised. You may lose customer goodwill and loyalty. The effects of poor quality are therefore expensive.  DIMENSIONS OF QUALITY This concept was developed by David A Garvin, a professor at Harvard Business School, in the late 1980s. He proposed that there were eight distinctive dimensions of quality.  DIMENSIONS OF QUALITY Performance – This dimension deals with the primary operating characteristics of the product. It is what the product was created for. Performance is assessed by using measurable attributes so that each brand can be ranked objectively.  DIMENSIONS OF QUALITY Features – This dimension includes the secondary aspects of the product’s performance. The features are the characteristics of the product that are used to supplement its basic functioning or performance.  DIMENSIONS OF QUALITY Reliability – A product’s reliability is judged against the possibility of it malfunctioning or breaking down within a specified period of time. The three most common measures of reliability are the average time of the first failure; the average time between failures; and the failure rate per unit produced.  DIMENSIONS OF QUALITY Reliability – It is important to note that this measure would only be plausible for consumer durable goods which will be used over time, as opposed to services which are consumed instantly.  DIMENSIONS OF QUALITY Conformance – This measures the extent to which the product’s design and operating characteristics adhere to the established standards. Conformance is usually measured against the defect rates in the factory and frequency of service calls after the product is sold.  DIMENSIONS OF QUALITY Durability – Durability is a measure of the expected lifespan of the product. It measures the product’s life in terms of economic and technical dimensions. Technical durability refers to the amount of use the consumer gets from the product before it deteriorates.  DIMENSIONS OF QUALITY Serviceability – This measures the speed, courtesy, capability and ease of repair of the product. Most consumers are aware that the product will break down at some time but a greater concern would be whether or not it can be repaired and the length of time it will take.  DIMENSIONS OF QUALITY Serviceability also includes the quality of the service personnel, the manner in which service appointments are kept and whether or not servicing corrects the problem.  DIMENSIONS OF QUALITY Aesthetics – This dimension is subjective in nature and relates to how the products looks, feels, sounds, tastes or smells. Unlike the other measurable dimensions, aesthetics is based on the judgements and preferences of the individual consumer.  DIMENSIONS OF QUALITY Perceived quality – This is perception of the consumer at the initial contact with the product – that is, what comes to mind the first time the product is seen. At this stage the consumer usually has insufficient information about the product’s attributes and so quality may be inferred from its various tangible or intangible aspects.