C hapter 17

Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007

Chapter 17

Quality planning and control

Source: Archie Miles


The various definitions of quality

The transcendent approach views quality as synonymous with innate excellence.

The manufacturing-based approach assumes quality is all about making or providing error-free products or services.

The user-based approach assumes quality is all about providing products or services that are fit for their purpose.

The product-based approach views quality as a precise and measurable set of characteristics.

The value-based approach defines quality in terms of ‘value’.


QualityFocus

BetterProducts

FewerDefects

Benefits from a quality focus


Quality characteristics of goods and services

Functionality – how well the product or service does the job for which it was intended

Appearance – the aesthetic appeal, look, feel, sound and smell of the product or service

Reliability – the consistency of performance of the product or service over time

Durability – the total useful life of the product or service

Recovery – the ease with which problems with the product or service can be rectified or resolved

Contact – the nature of the person-to-person contacts that take place


Variablesthings you can measure

Attributesthings you can assess and accept or reject

Qualityfitness for purpose

Reliabilityability to continue

working at acceptedquality level

Quality

Quality of designdegree to which

design achieves purpose

Quality of conformancefaithfulness with which the

operation agrees with design


Prevention AppraisalInternalFailure

ExternalFailure

Control costs Failure costs

Total Cost of Quality

The Economics of Quality


Prevention : Costs associated with design and planning of a Quality programme

Appraisal : Costs involved in the direct appraisal of quality both in plant and in field

Internal Failure : Occurrence of defective product in plant

External Failure : Failure of product or service in field

Defining the costs of Quality


Reliability

Dimensions of Service Quality

Five principal dimensions that customers use to judge service quality. These dimensions are listed in order of declining relative importance to customers.

Responsiveness

Dependability

Accuracy

Reliability

Promptness of service

Service failure


Assurance

Knowledge and Courtesy

Competence

Politeness and respect

Effective communication

Server attitude


Empathy

Tangibles Physical facilities

Caring Individualised attention

Approachability

Sense of security

Understanding Customer's needs.



ReliabilityResponsiveness

AssuranceEmpathyTangibles


ReliabilityResponsiveness

AssuranceEmpathyTangibles

ExpectedService

ExpectedService

Perceivedservice

Perceivedservice

PerceivedServiceQuality

ES < PS Quality Surprise

ES = PS Satisfactory

ES > PS UnacceptableQuality

PerceivedServiceQuality

ES < PS Quality Surprise

ES = PS Satisfactory

ES > PS UnacceptableQuality

Word ofMouth

Word ofMouth

PersonalNeeds

PersonalNeeds

PastExperience

PastExperience

Quality DimensionsQuality Dimensions


Customers’ expectations

for the product or

service

Customers’ perceptions

of the product or

service

Gap

Perceived quality is poor

Perceived quality is good

Expectations > perceptions

Expectations = perceptions

Expectations < perceptions

Perceived quality is governed by the gap between customers’ expectations and their perceptions of the product or service

Gap

Perceived quality is acceptable


for the product or

service


of the product or

service


for the product or

service


of the product or

service

“Quality Surprise”“Unacceptable Quality”


The operation’s domain

Management’s concept of the

product or service

The customer’s domain

Previousexperience

Word-of-mouth communications

Image of product or service

Customer’s own specification of

quality

Organization’s specification of

quality

The actual product or service

Customer’s expectations concerning a

product or service

Customer’s perceptions

concerning the product or service

Gap 1

Gap 2Gap 3

Gap 4

A ‘gap’ model of quality

Gap ?


The perception–expectation gap

Action required to ensure high perceived quality

Main organizational responsibility

Gap 1

Gap 2

Gap 3 Operations

Gap 4 Marketing

Ensure consistency betweeninternal quality specification andthe expectations of customers

Ensure internal specification meets its intended concept of design

Ensure actual product or service conforms to internally specified quality level

Ensure that promises made to customers concerning the product or service can really be delivered

Marketing, operations, product/service development

Marketing, operations, product/service development


High quality puts costs down and revenue up

Quality upQuality up

Profits upProfits up

Processing time down

Processing time downProcessing time down

Processing time down

Inventory down

Inventory down

Inventory down

Inventory down

Capital costsdown

Capital costsdown

Capital costsdown

Capital costsdownComplaint and

warranty costs down

Complaint and warranty costs

down


down


down

Rework and scrap costs

down


down


down


down

Inspection and test costs

down


down


down


down

Productivity up

Productivity up

Productivity up

Productivity up

Service costs downService

costs downService

costs downService

costs down

Image upImage upImage upImage up

Scale economies up

Scale economies up

Scale economies up

Scale economies up

Price competition

down

Price competition

down

Sales volume up

Sales volume up

Price competition

down

Price competition

down

Sales volume up

Sales volume up

Revenue up

Revenue up

Revenue up

Revenue up

Operation costsdown

Operation costsdown

Operation costsdown

Operation costsdown

Documents

C hapter 17