LESSON 1 - Introduction to Quality PDF

THC QSM-Quality Service Management 1st Semester, 2024-2025 Lesson 1- Introduction to Quality Maria Fe S. Roque,MM LESSON 1 - INTRODUCTION TO QUALITY AND SERVICE QUALITY Quality means that the products mee...

THC QSM-Quality Service Management 1st Semester, 2024-2025 Lesson 1- Introduction to Quality Maria Fe S. Roque,MM LESSON 1 - INTRODUCTION TO QUALITY AND SERVICE QUALITY Quality means that the products meet and exceed all requirements, standards and specifications. 1. “Fitness for use”. 2. To do a right thing at first time. 3. To do a right thing at the right time. 4. Find and know what customer wants. 5. Features that meet customer needs ang give customer satisfaction. 6. Freedom from deficiencies or defects. 7. Conformance to standards. 8. Value or worthiness for money, etc. DEFINING QUALITY FROM VARIOUS PERSPECTIVES 1) Employees' perspective Employees define quality as their perception of the overall value they get from working in an organization. This includes the following aspects: Knowing clearly what is expected of them Feeling proud of the work (job satisfaction) Ability to earn more money than elsewhere. Ability to improve processes and ability to make changes (empowerment) 2) Organization's perspective Organizations define quality as the level of customer satisfaction, leading to higher profits and market share. They also consider the following aspects when defining quality: Long term profits Being market leader Meeting specifications Better client satisfaction Cost-effectiveness Reliability 3) Customer's perspective The customer defines quality as the extent to which they get what they want from the organization. Customers consider the following aspects: Getting a good product or service Low maintenance Free from deficiencies Aesthetics "wow" effect Safety 4) Supplier's Perspective Suppliers define quality as the degree of conformity between the delivered goods and the required specifications. They consider the following aspects: Technical compliance and acceptance by the buyer Re-orders Reduced variation Doing it right the first time 1 THC QSM-Quality Service Management 1st Semester, 2024-2025 Lesson 1- Introduction to Quality Maria Fe S. Roque,MM Timely delivery 5) Society's perspective Society defines quality as the extent of social benefits derived from the organization. It considers the following aspects: Less waste Durable products Employment opportunities Low pollution Social responsibility Environmental sustainability DEFINITION OF QUALITY BY “QUALITY GURUS” Philip Crosby Quality is conformance to requirements. W. Edwards Deming Quality is predictable degree of uniformity and dependability, at low cost and suited to the market. Dr. Joseph Juran Quality is fitness for use/purpose. RJ Mortiboys Quality is synonymous with customer needs and expectations. Mike Robinson Quality is meeting the requirements of the customer-now and in the future. Armand Feigenbaum Quality is the total composite product and service characteristics of Engineering, Marketing, Manufacturing, and Maintenance through which the product and service in use will meet the expectations of the customers Definition of Quality in Hospitality Industry Quality in the hospitality industry is defined as “the consistent delivery of products and guest services according to expected standards”. Increasingly, guests are willing to pay more when they visit hospitality properties offering service that meets or exceeds their service expectations. By creating value for the guest, the hospitality business can manage successfully to retain its guests. Managers must recognize the importance of client retention, since the attraction of a new customer is regarded to be more expensive and time consuming. Dimensions of Quality for Service Products There are eight dimensions of quality that was defined by David Garvin, who passed away in 2017 at the age of 64. David Garvin was a Professor of Business Administration at Harvard Business school and his publications on quality were based on his research on U.S. manufacturers. 1. Performance Performance has to do with the expected operating characteristics of a product or service. Does a service or product do what it’s supposed to do? The primary operating characteristics involve measurable elements, which makes it easier to objectively measure the performance. 2 THC QSM-Quality Service Management 1st Semester, 2024-2025 Lesson 1- Introduction to Quality Maria Fe S. Roque,MM 2. Features What the dimension ‘performance’ doesn’t focus on are the features, the characteristics that decide how appealing a product or service is to the consumer. Such features are the extras of a product or service and complement its basic functioning. This means that the ones designing a product or service should be familiar with the end-users and should be updated on developments in consumer preferences. 3. Reliability The focus of the dimension reliability is more on how long a product will perform consistently according to the specifications of that product. This is important to customers who need the product to work without any errors and contributes to a brand or company’s image. The dimension reliability shows the probability of the product having signs of error within a specific time of period. For measuring reliability you should measure the time to the first failure, how much time there is between failures, and the failure rate per a specific time of period. 4. Conformance This dimension is closely related to the dimensions performance and features. The dimension of conformance is about to what extent the product or service conforms to the specifications. Does it function and have all the features as specified? Every product and service has some sort of specifications that comes with it. 5. Durability Out of the eight dimensions of quality, the dimension durability is about how long a product will last or perform and under what conditions it will perform. Estimating the length of a product’s life becomes complicated when it’s possible to repair the product. For such products, the durability will be counted until it is no longer economically beneficial to use it. This is when the repairs and the costs of repairing increase. 6. Serviceability Serviceability reflects on if the product is relatively easy to maintain and repair. This becomes important for consumers who are more focused on the total cost of ownership as criteria for selecting a product. Serviceability reflects on how easy it is for the consumer to obtain repair service, how responsive the service personnel is, and how reliable the service is. It also focuses on the speed with which a product can be repaired and also the competence and behavior of the personnel. 7. Aesthetics The aesthetics dimension is all about the way a product looks and contributes to the company’s identity or a brand. Aesthetics is not only about how a product looks but also about how it feels, tastes, smells or sounds. 8.Perceived Quality The perception of something is not always reality. Meaning that a product or service can have high scores on each of the seven dimensions of quality, but still receive a bad rating from customers as a result of negative perceptions from customers or the public. Customers sometimes lack information about a service or product and for comparing brands will rely on indirect reviews. 3 THC QSM-Quality Service Management 1st Semester, 2024-2025 Lesson 1- Introduction to Quality Maria Fe S. Roque,MM Defining and Understanding Service Quality Service quality is a key determinant of an organization's reputation and profitability. Companies that want to improve their reputation and generate more profits must constantly measure and improve the quality of their services. So, what is service quality? Service quality measures a company's service delivery against customer expectations. This service quality definition confirms that customers have certain expectations and standards of how the company should deliver services to fulfill their needs. Firms with high service quality match or exceed customer expectations. Service quality is measured by considering five key dimensions. These dimensions are: 1. Reliability Reliability denotes the firm's consistency in providing services to satisfy the needs of its customers. Elements considered under this dimension include: The customer interaction process Mode of service execution Problem-solving strategies Price stability 2. Assurance The knowledge and courtesy of employees and their ability to inspire trust and confidence – creating trust and confidence will gain the customers’ loyalty The excellent reputation and high levels of trust based on previous experiences with the company. 3. Tangibles Tangibility is a service quality dimension that measures how the organization presents the quality of its services to customers. Service tangibles include factors such as: The employees' attire and conduct Effectiveness of the customer service department Nature of marketing materials Appearance of the company's building Cleanliness of the facilities 4. Empathy Caring, individual attention paid to customers by the service firm to meet each customer’s demands properly. Employees’ high emphasis on customer requests to achieve higher satisfaction 5. Responsiveness The willingness of the service provider to be helpful, be prompt in providing services, and to respond to customers’ requests, problems or complaints The speed of helping customer online or by telephone. 4 THC QSM-Quality Service Management 1st Semester, 2024-2025 Lesson 1- Introduction to Quality Maria Fe S. Roque,MM SERVICE PRODUCT: GOOD AND SERVICES In the world of economics, there are two fundamental concepts that form the basis of any transaction: goods and services. While both goods and services are essential components of our daily lives, they differ in several aspects. Understanding these differences is crucial for individuals and businesses alike. In this article, we will delve into the disparities between goods and services, highlighting their unique characteristics and outlining their advantages and disadvantages. Points Goods Services Definition Tangible, physical products Intangible, non-physical activities Nature Can be seen, touched, and Perishable and consumed at the time of stored production Production Manufactured or produced Generated or performed Ownership Can be owned and transferred Cannot be owned or transferred Evaluation Tangible attributes (quality, Intangible attributes (customer experience, quantity) expertise) Distribution Physical distribution through Delivery through personnel or digital channels platforms Customization Limited customization High degree of customization possibilities Time Produced before consumption Produced and consumed simultaneously Examples Cars, furniture, clothing Education, healthcare, transportation services Value Dependent on physical features Dependent on expertise, convenience, and and scarcity customer demand THE QUALITY GURUS W. EDWARDS DEMING One of the pioneers of quality management known for his work in Japan after World War II, where he helped Japanese companies improve their quality and productivity. best known for his "14 Points for Management," which outlines the key principles of quality management, and his emphasis on the importance of statistical process control and continuous improvement. JOSEPH M. JURAN He is considered one of the pioneers of the modern quality management movement known for his development of the "Juran Trilogy," which consists of three critical components of quality management: quality planning, quality control, and quality improvement. He is also credited with introducing the Pareto principle in the quality field, which states that 80% of the effects come from 20% of the causes. author of several books on quality management, which continue to be used as reference works in the field, including Juran's Quality Handbook. 5 THC QSM-Quality Service Management 1st Semester, 2024-2025 Lesson 1- Introduction to Quality Maria Fe S. Roque,MM PHILIP B. CROSBY known for emphasizing the importance of prevention over inspection in quality management. He introduced the concept of "zero defects," which aims to eliminate defects and errors in a process or product. known for his Four Absolutes of Quality: 1- The definition of quality is conformance to requirements. 2- The system of quality is prevention. 3- The performance standard is zero defects. 4- The measurement of quality is the price of non-conformance. introduced the idea of "quality is free," which is the notion that the cost of preventing defects is always lower than the cost of dealing with defects after they occur. KAORU ISHIKAWA a Japanese quality management expert known for developing the cause and effect diagram, also known as the "Ishikawa diagram" or "fishbone diagram." This tool is used to identify the root causes of a problem and is a critical tool in root cause analysis. known for emphasizing the importance of involving all employees in the quality management process. introduced the concept of "total quality control," involving all employees in the quality control process and using data and statistical analysis to drive continuous improvement. SHIGEO SHINGO a Japanese industrial engineer and business consultant. known for his contributions to lean manufacturing, including developing the "Toyota Production System." emphasized the importance of eliminating waste and increasing efficiency in the production process. credited with introducing the concept of "poka-yoke," which prevents defects in a product or process by designing it so that mistakes are difficult or impossible to make. developed the Single Minute Exchange of Die (SMED) concept. ARMAND V. FEIGENBAUM Feigenbaum is known for developing the concept of total quality control, which focuses on integrating all aspects of an organization's operations to achieve quality. introduced the idea of the "cost of quality" as a way to measure the impact of poor quality on an organization. WALTER SHEWHART credited with developing the concept of "statistical process control," which involves using statistical methods to monitor and control manufacturing processes to produce goods of consistent quality. introduced the idea of "control charts," which are graphical tools used to monitor process performance over time and identify when a process is out of control. His ideas have been widely adopted by industries worldwide and have played a significant role in developing modern quality control techniques. 6 THC QSM-Quality Service Management 1st Semester, 2024-2025 Lesson 1- Introduction to Quality Maria Fe S. Roque,MM TAIICHI OHNO a Japanese industrial engineer and businessman known for contributing to the Toyota Production System (TPS) development. considered the father of the TPS, a manufacturing methodology focusing on maximizing efficiency and minimizing waste. He is credited with developing the "just-in-time" production method, which involves producing only the amount of goods needed at a given time, and the "kanban" system. This visual signalling system helps coordinate the flow of materials within a factory. Ohno's ideas have been widely adopted by companies worldwide and have helped to transform the way goods are produced. GENICHI TAGUCHI a Japanese engineer and quality control expert known for his contributions to the statistics and quality control field. He developed the concept of "loss function," which measures the deviation of a product from its target specification. He also introduced the idea of using "robust design" to create products insensitive to variations in manufacturing processes. Taguchi's methods are widely used worldwide to improve the quality of products and reduce manufacturing costs. LESSON 1 ACTIVITY Dine at any restaurant and observe the quality of service that the establishment delivers. Compare it with that of nearby carinderia and identify the similarities and the differences. Provide a list that could be done to provide better services. Submission Date: Thursday August 22,2024 7