Quality Basics:

An Introduction to Quality

Chapter 1
Quality Basics

n Personal Definitions of Quality

n How do you define quality?

n I know it when I see it

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Quality Basics

n Quality Definitions:
n American Society for Quality (ASQ)
n Quality: a subjective term for which each person has his
or her own definition. In technical usage, quality can
have two meanings: (1) the characteristics of a product or
service that bear on its ability to satisfy stated or implied
needs and (2) a product or service free of deficiencies.

3
Quality Basics
n Quality Definitions
n Dr. W. Edwards Deming
n Quality: non faulty systems. (error free systems)
n Dr. Joseph Juran
n Quality: Fitness for use.
n Philip Crosby
n Quality: conformance to requirements.
(Quality of conformance) refers to the manufacture of the product or
the provision of the service that meets the specific requirements set
by the consumer.

4
Quality Basics

Quality is a customer determination which is

based on the customer’s actual experience
with the product or service, measured against
his or her requirements—stated or unstated,
conscious or merely sensed, technically
operational or entirely subjective—always
representing a moving target in a
competitive market.
n Dr. Armand Feigenbaum (1920 - 2014)

5
 Quality Basics
Quality is a customer determination which is based on the customer’s
actual experience with the product or service, measured against his or her
requirements—stated or unstated, conscious or merely sensed,
technically operational or entirely subjective—always representing a
moving target in a competitive market.
Several key words stand out in this definition:
n Customer determination: Only a customer can decide if and how well a product or
service meets his or her needs, requirements, and expectations.
n Actual experience: The customer will judge the quality of a product or service not
only at the time of purchase but throughout usage of the product or service.
n Requirements: Necessary aspects of a product or service called for or demanded by
the customer may be stated or unstated, conscious or merely sensed.
n Technically operational: Aspects of a product or service may be clearly identified in
words by the consumer.
n Entirely subjective: Aspects of a product or service may only be conjured in a
consumer’s personal feelings.
n Moving target: customer expectations will not remain the same from purchase to
purchase or encounter to encounter. This is true whether the product is tangible (cell phones,
automobiles, computers) or intangible (airplane schedules, hospital care, repair service)
6
Quality as Ingredients for Success

n Quality as Part of the Corporate Culture

n Companies seeking to remain competitive in today’s global
markets must integrate quality into all aspects of their
organization.
n Successful companies focus on customers and their needs,
requirements, and expectations.
n The voice of the customer serves as a significant source of
information for making improvements to a company’s products
and services.

7
Quality as Ingredients for Success
n Processes and Process Improvement
n A process takes inputs and performs value-added activities
on those inputs to create an output.
n Processes are made up of interrelated activities that interact
with each other. If you think about it, any work being done
is a process.

8
Quality as Ingredients for Success
n Variation:
n Variation is present in any natural process, no two products or
occurrences are exactly alike.
n In manufacturing, variation is often identified as the difference between the
specified target dimension and the actual part dimension.
n In service industries, variation may be the difference between the type of
service received and the type of service expected.
n Example: If you are carpooling with an individual who is sometimes late,
sometimes early, and sometimes on time, it is difficult to plan when you should be
ready to leave. If, however, the person is always five minutes late, you may not like
it, but you can plan around it. The first person exhibits a lot of variation; you never
know when to expect him or her. The second person, although late, has very little
variation in his or her process; hence you know that if you need to leave at exactly 5
p.m., you had better tell that person to be ready at 4:55 p.m.. The best situation
would be to be on time every time. It is this best situation at which companies are
aiming when they seek to eliminate or reduce the variation present in a process.

9
Basics of Quality
n Specifications:
n Product and service designers translate customer needs, requirements, and
expectations into tangible requirements called specifications.
n Specifications state product or service characteristics in terms of a
desired target value or dimension.
n In service industries, specifications may take the form of descriptions of the
types of services that are expected to be performed. (Table 1.1)

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Basics of Quality
Specifications:
• In manufacturing, specifications may be given as nominal
target dimensions. (Table 1.2)

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Basics of Quality
n Tolerance Limits:
n Tolerance limits show the permissible changes in the dimension of a
quality characteristic.
n Parts manufactured between the tolerance, or specification, limits are considered
acceptable. Designers should seek input from the customer, from engineering and
manufacturing professionals, and from any others who can assist in determining the
appropriate specifications and tolerances for a given item.
n To manufacture products within specifications, the processes producing the parts
need to be stable and predictable. A process is considered to be under control when
the variability (variation) from one part to another or from one service to another is
stable and predictable.

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13
Basics of Quality
n Productivity:
n Quality and Productivity may seem the same or very similar. Actually, there
is a difference between the two. To be productive, one must work efficiently
and operate in a manner that best utilizes the available resources.
n Productivity’s principal focus is on doing something more efficiently.
Quality, on the other hand, focuses on being effective. Being effective
means achieving the intended results or goals while meeting the customer’s
requirements.
n So quality concentrates not only on doing things right (being productive),
but also on doing the right things right (being effective).
n Example: In manufacturing terms, if a company can produce 10,000 table lamps in
13 hours instead of in 23 hours, this is a dramatic increase in productivity.
However, if customers are not purchasing these table lamps because they are ugly,
then the company is not effective, and the increased productivity is meaningless. To
remain competitive, companies must focus on effectively meeting the reasonable
needs and expectations of their customers.

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3/1/23

Production

• It is a process of creating or enhancing utility by

transforming a set of inputs such as men, machinery,
material & money (4Ms) into a specific set of output
such as finished goods or services

• It is a process by which goods & services are created.

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Productivity

• It may be defined as the ratio between output & input.

• Output means the amount or numbers of items produces

& inputs are the various resources employed such as men
machinery, material & money.

• It is the measure of the quantity of output per unit of

input.

Productivity = Amount of Output /

Amount of Input Productivity
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Example of productivity

n Ali was the chief financial officer of a car

manufacturing company. In June, his
employees totaled 5,000 hours of work and
manufactured 300 cars. What was his
company's productivity ratio for the month
of June?

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3/1/23

Example of productivity

n Laila is comparing the productivity ratios

today of 4 of her waitstaff. Amine served 24
tables during his 6 hour shift. Hicham
worked a double shift consisting of 12 hours
and served 52 tables. Mohamed only worked
4 hours and served 23 tables. Fatima worked
for an hour because she got sick and she
served 5 tables. What is the solved
productivity ratio of the most successful
waiter?
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3/1/23

Bank Problem
n Long Beach Bank employs three loan officers, each working eight hours per
day. Each officer processes an average of five loans per day.
n The bank’s payroll cost for the officers is $820 per day, and there is a daily
overhead expense of $500.
n a. Compute the labor productivity.
n b. Compute the multifactor productivity, using loans per dollar cost as the
measure.

n The bank is considering the purchase of new computer software for the loan
operation. The software will enable each loan officer to process eight loans
per day, although the overhead expense will increase to $550.
n c. Compute the new labor productivity.
n d. Compute the new multifactor productivity.
n e. Calculate the rate of improvement for the labor productivity and
multifactor productivity
n f. Should the bank proceed with the purchase of the new software? Explain.

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Solution

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Productivity Problem
n Collins Little Company has a staff of 4, each working
8 hours per day (for a payroll cost of $ 640/ day) and
overhead expenses of $ 400 / day.
n Collins processes and closes on 8 titles each day.
n The company recently purchased a computerized
title search system that will allow the processing of
14 titles per day. Although the staff, their works
hours, and pay will be same, the overhead expenses
are now $ 800 per day.
n What is the productivity per hour for the old and new
system?

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3/1/23

Solution

n Labor productivity with the old system:

= 8 titles per day/ 32 labor hours = 0.25 titles per hour

n Labor productivity with the new system:

=14 titles per day/ 32 labor hours = 0.44 title per labor hours

n Multifactor productivity with the old system:

=8 titles per day /(640 + 400)
= 0.0077 titles per dollars

n Multifactor productivity with the new system:

=14 titles per day /(640 + 800)
= 0.0097 titles per dollars

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The Evolution of Quality

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The Evolution of Quality
n Inspection refers to those activities designed to detect or
find non-conformances existing in already completed
products or services.
n With the advent of advanced technology like vision systems, laser
measurement, and electronic gaging, it is common to see automated
inspection as an integral part of the manufacturing process.
n Inspection involves the measuring, examining, testing, or gauging of one or
more characteristics of a product or service. Inspection results are compared
with established standards to determine whether the product or service
conforms.
n Inspection occurring only after the part or assembly has been completed can
be costly. During its manufacture, an automobile might go through as many
as 30,000 quality checks on its many and diverse components. Imagine the
cost of rework if these checks had all happened as the car rolled off the
assembly line. If a large number of defective products have been produced
and the problem has gone unnoticed, then scrap or rework costs will be high.

26
The Evolution of Quality
n Quality Control refers to the use of specifications and
inspection of completed parts, subassemblies, and
products to design, produce, review, sustain, and improve
the quality of a product or service.
n Quality control goes beyond inspection by:
1. Establishing standards for the product or service, based on customer needs,
requirements, and expectations.
2. Ensuring conformance to these standards. Poor quality is evaluated to
determine why the parts or services provided are incorrect.
3. Taking action if there is a lack of conformance to the standards. These
actions may include sorting the product to find the defectives. In service
industries, actions may involve interacting with the customer and correcting the
situation.
4. Implementing plans to prevent future nonconformance. These plans may
include design or manufacturing changes; in a service industry they may include
procedural changes.
n These four activities work together to improve the production of a product or
provision of a service.

27
Inspection vs. Quality Control
n Quality control Aim of quality control is to produce better quality; QC
determines the causes of variations; QC determines what, when & how
much to inspect.
n Starts before and along with production.
n Ensures that bad things will not happen.
n Responsibility of everybody.

n Inspection: is a tool to achieve this; Inspection determines acceptability

comparing with limits of variability; Inspection actually conducts
examination of goods for quality characteristics.
n Starts after production.
n Separates the good from the bad.
n Responsibility of the inspection department.

n Remember that inspection is part of QC.

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The Evolution of Quality
n Statistical Quality Control is the use of statistical methods for
production monitoring and parts inspection became known as
statistical quality control (SQC).
n Statistical data are collected, analyzed, and interpreted to solve
problems.
n The primary concern of individuals involved in quality is the
monitoring and control of variation in the product being
produced or service being provided.

29
 The Evolution of Quality
Statistical Process Control prevents defects by applying statistical methods
to control the processes making of products or providing services.
n SPC checks the production process for flaws that may lead to low-quality products
while SQC uses a specific number of samples to determine the acceptability of a
product.
n Statistical process control emphasizes the prevention of defects. Prevention refers to
those activities designed to prevent defects, defectives, and nonconformance in products
and services
n The most significant difference between prevention and inspection is that with
prevention, the process—rather than solely the product—is monitored, controlled, and
adjusted to ensure correct performance.
n SPC goal is to identify changes that affect the quality of the product and adjust the
process accordingly. To do this, information gained about the process is fed back to
those involved in the process. This information is then used to prevent defects from
occurring.
n The emphasis shifts away from inspecting quality into a completed product or service
toward making process improvements to design and manufacture quality into the
product or service. The responsibility for quality moves from the inspectors to the
design and manufacturing departments.
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The Evolution of Quality
n Total Quality Management is a management approach that
places emphasis on continuous process and system
improvement as a means of achieving customer satisfaction
to ensure long-term company success.

n TQM relies on the active participation and utilization of the strengths and
expertise of all employees of a company to continuously improve the
processes, products, and services their company provides as well as the
culture they work in.
n Most important, TQM encourages a long-term, never-ending commitment to
the improvement of the process, not a temporary program to be begun at one
point in time and ended at another.

31
The Evolution of Quality
n Continuous Improvement (CI) philosophy focuses on improving
processes in order to enable companies to give customers what they
want the first time, every time.
n Continuous improvement efforts are characterized by their emphasis on determining
the best method of operation for a process or system. The key words to note are
continuous and process.
n Continuous improvement represents an ongoing, continuous commitment to
improvement. Because the quest for continuous improvement has no end, only new
directions in which to head, continuous improvement is a process, not a program.

32
 The Evolution of Quality
n Innovative Organizations are flexible and adaptable
organizations that achieve operational excellence by
partnering with stakeholders and developing
innovative strategies that meet market goals.

n Innovation begins with robust design of products, processes, and systems.

n Success depends on achieving operational excellence by partnering with
stakeholders and designing and developing innovative strategies that meet
market needs.
n These organizations not only practice continuous improvement, they are
responsive to emerging needs in the marketplace, offering new products and
services before the customer become aware of the need.
n Example: Apple products are excellent examples of the type of customer-
focused products an innovation-driven organization provides.

33
 Quality Standards
n ISO 9000 was created to facilitate doing business in a variety of countries, a
series of quality standards was developed by the International Standardization
Organization (ISO). Applicable to nearly all organizations, the standards provide a
baseline against which an organization’s quality system can be judged.
n ISO 9000 is defined as a set of international standards on quality management and quality
assurance developed to help companies effectively document the quality system elements
needed to maintain an efficient quality system. They are not specific to any one industry and
can be applied to organizations of any size.
n ISO 9000 can help a company satisfy its customers, meet regulatory requirements, and achieve
continual improvement. It should be considered to be a first step or the base level of a quality
system.
n ISO 9000 standards topics include: customer-focused organization, management
responsibility, quality policies and objectives, corrective and preventive actions,
resource management, product realization, measurement analysis and improvement,
document control, and continuous improvement.
n AS9100. Aviation, Space and Defense: The standard provides suppliers
with requirements for creating and maintaining a comprehensive quality system for
providing safe and reliable products to the ASD industry.
n TS16949 replaced by IATF16949 International Automotive Task Force
n TL9000 standard for Telecommunications companies
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ISO/TS 16949 Automotive Quality Management
n ISO/TS 16949 is the globally recognized quality management standard for
the automotive industry. It brings together standards from across Europe and
the US and provides a framework for achieving best practice with regards to
the design and manufacture of products for the automotive supply chain.

n The standard has been developed by the International Automotive Task

Force (IATF) and brings together common processes from across the
industry sector. IATF comprises of nine member vehicle manufacturers -
Ford, GM, Chrysler, BMW, VW, Daimler, Renault, PSA Peugeot Citroen
and Fiat - along with national automotive trade organizations from USA,
UK, France, Germany and Italy.

n ISO/TS 16949 is based on the internationally recognized quality

management system standard, ISO 9001, and promotes continual business
improvement by emphasizing defect prevention and reducing variation and
waste in the supply chain.
35
 What are the benefits of ISO/TS16949 ?
Benefits of TS16949
n Trade internationally and expand your business
n Improve processes to reduce waste and prevent defects
n Demonstrate compliance to win new business and
investment prospects

n https://www.bsigroup.com/en-IL/Automotive-Quality-ISOTS-16949-
/#:~:text=ISO%2FTS%2016949%20is%20the,standard%20for%20the%20automotive%20industry.&text=The%20standard%20h
as%20been%20developed,from%20across%20the%20industry%20sector.

36
ISO made simple
n There is an often repeated phrase in the ISO community that the standard
simply requires organizations to “say what we do, and do what we
say”. Though very simplified, this statement is at the heart of the ISO
quality standard.

n The ISO quality standard requires organizations to document their quality

system, including having a manual and documented procedures.
n Documentation is what you say you do. Records must be kept, and periodic
audits performed, to prove that you are “doing what you say”.

n The ISO quality standard is a kind of worldwide recognized calling card. It

tells other companies that you are a professional, quality-driven organization
that should be taken seriously. Even if you are a very small company,
having the ISO certificate can give you a serious advantage over your
competitors.

37
 Quality Standards
n Standards can be specific to an industry or to a particular
country
n Many suppliers were asked by the car manufacturers (OEMs=Original Equipment
Manufacturers) to build and certify their quality management system according to
the rules and regulations of their own country organizations, such as:
n VDA (Germany)
n AIAG (North America)
n AVSQ (Italy)
n FIEV (France)
n SMMT (UK)
n But due to this regulation a supplier needed to provide two different certificates
for Daimler and Chrysler (VDA 6.1 for Germany and QS 9000 America), even
though the supplier delivered only to a single company. These complexities
accelerated the need for harmonization.

38
Difference Between OEM and Aftermarket Parts

n OEM stands for Original Equipment Manufacturer, which

means the parts are made by the same company that makes the
vehicle.
n Aftermarket parts are produced by a different parts company
and are often designed to be compatible with as many makes
and/or models as possible.
n Due to these design differences, aftermarket parts won’t always
provide the same superior fit of OEM parts.

39
OEM vs. Aftermarket Parts
n Aftermarket parts may cost less initially, but the cons of using aftermarket
parts far outway any initial savings. With genuine OEM parts, drivers are
getting the following:
n Quality: One of the reasons aftermarket parts can be cheaper is they aren’t
always made of the same high-quality materials as OEM parts. These
inferior materials can lead aftermarket parts to fail and negate any initial
savings that a driver may have experienced.
n Performance: OEM parts have been designed specifically for your make
and model. This allows them to deliver the optimal fit and performance so
that your vehicle runs at its best.
n Selection: With so many aftermarket parts flooding the market, there can be
a huge and often confusing selection available if you are trying to shop by
yourself. A visit to a Dealer’s parts department will ensure that you are
getting exactly what you need for your car repair or maintenance needs.
n Parts Warranty: Any genuine auto part is covered by a 1-2 year warranty.
n Vehicle Warranty: If you are driving a new car that is still under warranty,
the use of aftermarket parts on your vehicle may void your warranty
coverage.
40
 Quality Methodologies
n Six Sigma concept was developed at Motorola Corporation as a
strategy to deal with product defects and system failures.
n To increase system reliability and reduce failure rates, organizations
following the Six Sigma methodology utilize a rigorous process
improvement methodology: Define-Measure-Analyze-Improve-Control
(DMAIC).
n This procedure encourages managing by fact with data and measurement
tools, techniques, and systems.
n Agile is a quality management approach that is utilized in
software development. This method assists teams in
responding to the unpredictability of constructing software.
It uses incremental, iterative work sequences that are
commonly known as sprints.

41
Lean Six Sigma
• The term lean was popularized by the book The Machine
That Changed the World. Lean production focuses on driving
waste out of the production cycle.

• Lean practitioners are interested in doing more work with fewer

resources. They seek ways to accomplish more in less time,
space, equipment, people, and resources.

• Lean practitioners have not lost their focus on quality. They see
that quality is more easily maintained when waste is removed
from the process.

• Lean production systems rely on worker involvement, just-in-

time production, and autonomation in order to maintain a
customer focus.
• https://www.sixsigmadaily.com/lean-six-sigma-aviation/ lean 6 sigma in aviation
• https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-
insights/does-your-airline-still-cross-seat-belts-a-ten-point-lean-checklist-for-leaders
42
Autonomation resolves two main points. First, it reduces
human interference, and secondly, it prevents processes from
making errors. This also known as "Jidoka" which highlights the
causes of problems because work stops immediately when a
problem first occurs. This leads to improvements in the
processes that build in quality by eliminating the root causes of
defects.
Automation is the process where the work is still being watched
by an operator, where errors may still be apparent, and
detection and correction take a longer period.
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 Autonomation
With ‘Automation’, machines made the manufacturing process
more efficient and faster than before.
However, there was a big problem. When a string was cut or some
abnormality occurred, machines used to keep working and tended
to produce a lot of defects.

Then, Toyota invented the first machine in history with a device

that detected those abnormalities and stopped itself automatically.

It’s a wonderful concept and system, isn’t it?

Unfortunately, however, we cannot implement this Autonomation
in all companies, even in manufacturing operations. If a high-
defect-rate operation used this system, their line would stop too
often and be counterproductive. First, they have to decrease their
defect rate by standardizing their operations.
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Seven forms of waste
Lean workers recognize the seven forms of waste:

1. Producing defective parts.

2. Producing more parts than needed.
3. Excessive inventories.
4. Unnecessary activities.
5. Unnecessary movement of people.
6. Unnecessary transportation or handling of materials.
7. People waiting.

https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/does-your-airline-
still-cross-seat-belts-a-ten-point-lean-checklist-for-leaders

45
 What Is Quality?
• Oxford American Dictionary
• a degree or level of excellence
• American Society for Quality
• totality of features and characteristics that
satisfy needs without deficiencies

• Quality from a Consumer’s Perspective

and Producer’s perspective

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 What Is Quality:
Consumer’s Perspective
• Fitness for use
• how well product or service does what it is supposed to do.
• ‘Five years in Iraq demonstrated that the vehicle was not fit for use.’
• Fitness for purpose, or utility, means that service needs to fulfill
customer needs. Fitness for use, or warranty, means that product or
service is available when a user needs it.
• Example: A Mercedes convertible and a Jeep Wrangler are equally “fit
for use,” but their fitness for purpose maybe different.

• Quality of design
• designing quality characteristics into a product or service
• Example: A Mercedes and a Dacia are equally “fit for use,” but with
different design quality and dimensions.

47
 What Is Quality:
Producer’s Perspective

• Quality of conformance
• Making sure product or service is produced
according to design
• if new tires do not conform to specifications, they
wobble
• if a hotel room is not clean when a guest checks
in, hotel is not functioning according to
specifications of its design

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Meaning of Quality

49
 Dimensions of Quality:
Manufactured Products
• Performance:
• basic operating characteristics of a product;
• Example: Top speed of a car or its gas mileage

• Features:
• “Extra” items added to basic features
• Example: Bluetooth or a leather interior in a car

• Reliability:
• probability that a product will operate properly within
an expected time frame;
• Example: TV will work without repair for about seven
years

50
 Dimensions of Quality:
Manufactured Products
• Conformance:
• Degree to which a product meets pre–established
designs or standards (responds to customers needs and
requirements)

• Durability:
• How long product lasts before replacement; with
care. (North Face backpack may last a lifetime, it actually has
lifetime warranty)

• Serviceability:
• Ease of getting repairs, speed of repairs, courtesy
and competence of repair person

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 Dimensions of Quality:
Manufactured Products
• Aesthetics:
• How a product looks, feels, sounds, smells, or tastes

• Safety:
• Assurance that customer will not suffer injury or harm
from a product; an especially important consideration
for automobiles

• Perceptions:
• Subjective perceptions based on brand name,
advertising, etc.

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 Dimensions of Quality: Services

• Time and timeliness:

• how long must a customer wait for service, and is
it completed on time?
• is an overnight package delivered overnight?
• Timeliness: Do things happen when they suppose
to happen.
• Completeness:
• is everything a customer asked for provided?
• is a mail order from a catalogue company
complete when delivered?

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 Dimensions of Quality: Services

• Courtesy:
• How are customers treated by employees?
• Are catalogue phone operators nice and are their
voices pleasant?

• Consistency:
• Is same level of service provided to each customer
each time?
• Is your newspaper delivered on time every morning?

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 Dimensions of Quality: Services
• Accessibility and convenience:
• how easy is it to obtain service?
• does service representative answer you calls quickly?

• Accuracy:
• is service performed right every time?
• is your bank or credit card statement correct every month?

• Responsiveness:
• how well does company react to unusual situations?
• how well is a telephone operator able to respond to a
customer’s questions?

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 What Is Quality:
A Final Perspective
• Customer’s and producer’s perspectives
depend on each other
• Producer’s perspective:
• Production process and COST

• Customer’s perspective:
• Fitness for use and PRICE

• Customer’s view must dominate

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