Quality

• Quality


  Consistent conformance of customer’s expectations
• Importance of quality to operations

  • Higher quality leads to lower cost and higher revenue, overall increasing profits
• To fulfill customer expectations

  Close perceived quality
• Perceived quality


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

  Expectations -> Service Delivery -> Perceptions -> Satisfaction
• If expectations > perception

  Perceived Quality is low
• If expectations = perception


  Perceived quality is acceptable
• If expectations < perception

  Perceived quality is good
• Service Delivery System: Gap Analysis

  1. Gap 1 - Perception Gap

  2. Gap 2 - Service Design Gap

  3. Gap 3 - Resource Management Gap

  4. Gap 4 - Delivery Performance Gap

  5. Gap 5 - Service Development Gap

  6. Gap 6 - Service Marketing Concept Gap
• Quality characteristics of goods and services


  • Functionality
  • Appearance
  • Reliability
  • Durability
  • Recovery
  • Contact
• Managing the cost of quality in operations

  Identifying and minimizing the costs associated with ensuring product or service quality
• Costs of quality

  • Prevention costs
  • Appraisal costs
  • Internal failure costs
  • External failure costs
• Prevention costs


  Costs incurred to prevent defects or errors from occurring in the first place
• Appraisal costs


  Costs associated with evaluating and monitoring product or service quality
• Internal failure costs

  Costs incurred as a result of defects or errors detected before the product or service reaches the customer
• External failure costs


  Costs resulting from defects or errors that are discovered by the customer
• Increasing the effort spent on preventing errors occurring in the first place brings a more than equivalent reduction in other cost categories