Quality Individuals have different wants and

needs, hence different expectations of a

 Quality can be confusing concept, partly product. This led to a user-based
because people view quality definition of quality -fitness for
subjectively and relation to differing extended use, or how well the product
criteria base on individual roles in performs its intended functions.
production marketing value chain
5. Manufacturing
Quality Defines Consumers and Organization want
consistency in goods and services.
1. Perfection Quality defines in conformance to
specifications. Specification are targets
2. Consistency
and tolerance determined by designed
3. Eliminating waste 6. Customer
Quality defines as the totality of
4. Speed of Delivery
features and characteristics of a
5. Compliance with policies and procedures product or services that bears on its
ability to satisfy given needs.
6. Providing a good, usable product

7. Doing it right the first time

8. Delighting or pleasing customers Integrating Quality

9. Total customer service and satisfaction
Perspectives in the Value
Chain.
 The quality perspectives at different
Six Different Perspectives of points in the value chain are important
QUALITY to ultimately create and deliver goods
and services The customers is the
1. Transcendent driving force for the production of
The view is referred to as the transcendent goods and services, and customers
(transcend, “to rise above or extend generally view quality from either the
notably beyond ordinary limits”), or transcendent or the product
judgmental, definition of quality. perspective.
2. Product
The definition of quality is that it is related History of Quality
to quantity of some product attribute, such Management
as the thread count of the shirt or bed
sheet, or the number of different features  The Age of Craftmanship
in an automobile or cellphone.
- All the workers have the same
3. Value
responsibilities.
A fifth approach to defining quality is based
 The Early Twentieth Century
on value; that is, the relationship of
- Frederic Taylor
product benefits to price.
- Scientific Management
4. User
- Division of work
  Post-World War II integrate many traditional quality
- Shortage of manpower improvements which are validated and
- Statistical Quality Control tested over the years.
 The U.S. “Quality Revolution”
- Quality conscious Globalization of Quality
- US gov’t became involve in quality Presentation
product check.
 Rapid Growth of Quality in Business  due to high competition around the
- A product became popular because world. The global marketplace,
of its quality. domestic and even international
 From Product Quality to Total Quality organization realized that, in order to
Management. survive in the competition, they need to
- Customer feedback for innovation defend on high quality. - Many
to patronize the product, again and countries have mounted efforts to
again.S increased quality awareness, including
conferences, seminars, radio show,
Early Management Failures school essay contest, pamphlet
distribution, publications & etc.
Presentation
• Poor Strategies Current and Future
• Flawed Organizational approaches  The challenge today is to ensure the
managers continue to focus on quality
• Flawed Management System management performance excellence
through their organization. A former
Performance Excellence Xerox president David Kearns observed,
Presentation Quality is a race without a finish line.

• Role of leadership • Strategic plans

In 2011, The American Society for
• How data and information's use in decision Quality identified eight key forces that
making will influence the future of Quality
Presentation
• Improved environmental conditions 1. Global Responsibility
• From the perspective , the product focused 2. Consumer Awareness
notion of quality evolved into a new concept 3. Globalization
called Performance excellence- define as an 4. Increasing rate of change
integrated approach to organizational 5. Workforce of the Future
management 6. Aging Population
7. Twenty First Century Quality
Emergence of Six Sigma 8. Innovation
Presentation
QUALITY IN
 New approached of quality
improvement during 1990’s -customer MANUFACTURING
focused, result oriented approach - Presentation
Manufacturing System to individual customers. In
-Marketing and Sales manufacturing, the goal is
-Product Design and Engineering uniformity.
-Purchasing and Receiving
-Production Planning and Scheduling
-Manufacturing and Assembly 3. The output of many service systems
-Tool Engineering is intangible, whereas
-Industrial Engineering and Process manufacturing produces tangible,
Design visible products.
-Finish Goods Inspections and Testing
-Packaging, Shipping, and Warehousing 4. Services are produced and
consumed simultaneously, whereas
manufactured goods are produced
QUALITY IN SERVICE prior to consumption. In addition,
many services must be performed
ORGANIZATION at the convenience of the customer.
-Non-Manufacturing organization such
as Hotels, Restaurants, Financial and
Legal Services and Transportation. 5. Customers often are involved in the
-Today more than 80 percent of the service process and are present
nonfarm in US are working in Service while being performed, whereas
Industry manufacturing is performed away
-In Service Industry were probably 10 from the customer
years behind manufacturing in
implementing quality approach. 6. Services are generally labor
-High Turn Over rate due to it pays less intensive, whereas manufacturing is
compared to manufacturing jobs. more capital intensive. The quality
-Delivers Intangible products of human interaction is a vital factor
for services that involved human
Contrast with contact.
Manufacturing
1. Customer needs and performance
7. Many service organizations must
standards are often difficult to
handle large numbers of customer
identify and measure, primarily
interactions.
because the customers define what
they are, and each customer is
different. Components of Service
Quality
2. The production of services typically
requires a higher degree of - Many service organizations such as
customization does manufacturing. airlines, banks and hotels have well
Doctors, lawyers, insurance developed quality systems. (These
salespeople, and food service systems begin with a commitment to a
employees must tailor their services customer.)
 - “The proof is in the pudding”
- Service quality can be view from - Various research studies have shown
manufacturing analogy, for instance, that quality-focused companies
technical standards. achieved better employee participation
and relations, improved product and
- However, managing this intangible service quality, higher productivity,
quality or service is more difficult due to greater customer satisfaction, increased
its fact that it will always defends on market share, and improved
employee performance. profitability.

- The two most important driver in Quality and Personal

service quality are people and
technology. Values
-Today, organizations are asking
employees to take more responsibility
Quality in Business for acting as the point of contact
Support Functions between the organization and the
In addition to manufacturing and customer, to be team player and to
service activities, other business provide better customer service.
support activities are necessary for -Quality begins with individual attitudes
achieving quality. Some of these and behavior.
activities are discussed here.
-Employees who embrace quality as a
1. Finance and Accounting personal value often go beyond what
2. Legal Services they asked or normally expected to do
3. Quality Assurance in order to reach a difficult goal or
provide extraordinary service to a
customer.
Quality and Competitive
Advantage - Quality must begin at a personal level
(means YOU) and practiced in all
- Traditionally, quality has focused on activities of daily life.
defect and error reduction, and product
control as means to reduce costs.
However, more progressive
organization have realized that high
quality is itself an important source of
competitive advantage.
- Competitive advantage- denotes a
firm ability to achieve market
superiority

Quality and Business

Result