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Chapter 9.docx

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Global Management Studies
GMS 401
Kirk Bailey

Chapter 9 1. List and briefly explain the dimensions of product and service quality Product Qualitythe dimensions of product quality include: 1. performancemain characteristics or function of the product 2. aestheticsappearance, feel, smell, taste 3. special featuresextra characteristics or secondary functions 4. safetyreduction or elimination of risk of injury or harm 5. reliabilityconsistency of performance 6. durabilitythe useful life of the product or service 7. perceived qualitysubjective evaluation of quality (e.g. reputation, image) 8. service after salewarrantees, maintenance, and handling of complaints Service Qualitythe dimensions of service quality include: 1. tangiblesthe physical appearance of facilities, equipment, personnel, and communication materials 2. conveniencethe availability and accessibility of the service 3. reliabilitythe ability to perform a service dependably, consistently, and accurately 4. responsivenessthe willingness of service providers to help customers in unusual situations and to deal with problems 5. timethe speed with which service is delivered 6. assurancethe knowledge exhibited by personnel who come into contact with a customer and their ability to convey trust and confidence 7. courtesythe way customers are treated by employees who come into contact with them 2. Explain the terms quality of design and quality of conformance Quality of designrefers to the characteristics specified for a product or service For example, many different models of automobiles are on the market today. They differ in size, appearance, roominess, fuel economy, comfort, and materials used. These differences reflect choices made by designers that determine the quality of the car. Design decisions must take into account customer wants, production or service capabilities, safety, costs, and other similar considerations Quality of conformancerefers to the degree to which goods and services conform to the specification of the designers. This is affected by factors such as characteristics of materials; the capability of equipment used; the skills and training, the monitoring process to assess conformance; and the taking of corrective action when necessary. The determination of quality does not stop once the product or service has been sold or delivered 3. What are some possible consequences of poor quality? It is important for management to recognize the different ways that poor quality of companys products or services can affect the organization and to take these into account in developing and maintaining a quality control and assurance program. Some major ways that poor quality affects an organization are: 1. loss of business 2. liability 3. productivity loss 4. costs A devastating consequence to the bottom line is the reaction of the consumer who receives a defective or otherwise unsatisfactory product or service Organizations must pay special attention to their liability due to damages or injuries resulting from either fault design or poor workmanship. Examplea faulty steering wheel on a car could cause the driver to lose control Poor quality can adversely affect productivity during the manufacturing process if parts are defective and have to be reworked; same with poor serviceit must be redone. Poor quality also increases costs incurred by the organization 4. Describe the cost of quality The costs associated with quality can be classified into four categories: 1. internal failure costs a. failure costs are incurred by defective parts or products or by faulty services b. internal failures are those discovered during the production process c. these failures occur for a variety of reasons, including defective material from vendors, incorrect machine settings, fault equipment, incorrect methods, incorrect processing, and faulty or improper material handling procedures d. costs includeproduction time, scrap and rework, investigation costs, possible equipment damage and possible employee injury 2. external failure costs a. external failures are those discovered after delivery to the customer b. External failures are defective products or poor services that go undetected by the producer. c. Resulting costs include warranty work, handling of complaints, replacements, liability/litigation, payments to customers or discounts used to offset the inferior quality, loss of customer goodwill, and opportunity costs related to lost sales 3. appraisal costs a. these costs relate to inspection, testing, and other activities intended to uncover defective products or servicesb. they include cost of inspectors, testing, test equipment, labs, quality audits, and field testing 4. prevention costs a. these costs relate to attempts to prevent defects from occurring b. they include costs such as quality planning and administrative systems, working with vendors, training, quality control procedures, and extra attention in both the design and production phases to decrease the probability of defective workmanship Internal and External failure costs represent costs related to poor quality, whereas appraisal and prevention costs represent investments for achieving good quality. 5. Describe the evolution of quality management (page 305-6) Prior to the industrial revolution, in most cases skilled craftsmen performed all stages of production. Pride of workmanship and reputation provided the motivation to see that a job was done right. Apprenticeships cause this attitude to carry over to new workers; one person or a small group of people were responsible for an entire product. Division of labour accompanied industrial revolution; each worker was then responsible for only a small portion of each product. Pride of workmanship became less meaningful because workers could no longer identify readily with the final product. The responsibility for quality control shifted to the foremen and full-time quality inspectors; inspection was either haphazard of nonexistent Fredrick Taylor
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