Module

for
Operations Management and TQM
Part 2 (Chapter 2)

Strategic Dimensions of Quality

OBJECTIVES
After reading this chapter the student should be able to
 Identity the eight dimension of product quality
 Name the five dimensions of service quality
 Differentiate the dimensions of product and service quality,

Quality is multidimensional Product and service quality are comprised of a number of

dimensions which determine how customer requirements are achieved Therefore it is essential that
companies consider the entire dimension that may be important to their customers Evaluating all
dimensions of a product or service helps to determine how well the service is given against meeting the
customer Requirements.

DIMENSIONS OF PRODUCT QUALITY

At a strategic level there are eight dimensions of product quality management that can be used
to evaluate quality characteristics, David Garvin of the Harvard Business School developed a system of
thinking about quality of products. Some of the dimensions are mutually reinforcing whereas others are
not which means improvement in one may be at the cost of others. Understanding the trade-offs
preferred by customers among these dimensions can help build a competitive advantage.

Performance (Will the product do the intended job?)

Performance consists of the primary operating characteristics of a product. For an automobile,

performance would include traits like acceleration, handling Cruising speed, and comfort: for a television
set, performance means sound and picture clarity, and the ability to receive distant stations.

This dimension of quality involves quantifiable attributes, so brands can typically be ranked
objectively on individual aspects of performance. Overall performance rankings, however, are harder to
develop, particularly when they entail benefits that not all consumers require.

Performance is regularly a basis of disagreement between customers and suppliers,

predominantly when deliverables are not sufficiently described within specifications. The performance
of a product frequently controls the profitability or status of the end-user. As such, many contracts or
specifications take in damages associated to poor performance. The issue of whether performance
differences are quality differences may be based on circumstantial preferences. However, preferences
are based on functional requirements, not taste. Some performance standards are founded on personal
preferences, but the preferences are so universal that they have the force of an objective standard.
Features (What does the product do?)

Features are added characteristics that boost the attraction of the product or service to the
user. They are all the qualities and characteristics of a product like its size, shape, materials, and its
functionalities and capabilities. Some examples of features include free drinks on a plane permanent
press cycles on a washing machine, and automatic tuners on a color television set.

Features are often a secondary aspect of performance Features are the bells and whistles" of
products and services, those characteristics that add values to their basic functioning. The line
separating primary performance characteristics from secondary features is often not easy to illustrate.

Features of a products that are mentioned most are the qualities that make the product saleable
or that make it stand out from its competitors such as it is longer-lasting or more durable, it is cheaper
to operate, it is made of higher quality materials or it is better built, it has a special function that its
competitors do not, and so forth.

Reliability (How often does the product fail?)

Reliability is the likelihood that a product will not fail inside a particular time period. This is a key
element for users who need the product to work with no failures. This dimension reflects the likelihood
of a product malfunctioning or failing within a specified time period.

Reliability normally becomes more significant to consumers as downtime and maintenance become
more expensive. Farmers, for instance, are especially sensitive to downtime during the short harvest
season. Reliable equipment can mean the difference between a good year and spoiled crops. However
consumers on other markets are more familiar than ever to product reliability too. Computers and
copying machines certainly compare on reliability.

Reliability may be directly connected to performance. A reliability deficiency will eventually lead
to impaired or lost performance, compromised safety and we need for restorative actions like diagnosis,
repair, spare replenishment and maintenance. High reliability products will operate longer, allowing
resources to he focused on improving performance.

Reliability addresses the probability of a product or service. Among the most common measures
of reliability are the mean time between failures, and the failure rate per unit time. Since these
measures necessitate a product to be in use for a specified period, they are more relevant to durable
goods than to products and services that are consumed instantly.

Mean time between failures (MTBF) is literally the average time elapsed from one failure to the next.
Usually people think of it as the average time that something works until it fails and needs to be
repaired (again). For instance, the MTBF for a particular type of automatic nozzle on gas pumps might be
18 months. This means that on the average, a failure will occur every 18 months. The MTBF is beneficial
in creating preventive maintenance policies.

Mean Time between Failures = (Total up time) / (number of breakdowns)

Failure rate is the frequency with which a component' fails, expressed in failures per unit of
time. It is often denoted by the Greek letter A (lambda). The failure rate of a system usually depends on
line with the rate varying over the life cycle of the system. For example, an automobile's failure rate in
its fifth year of service may be many times greater than its failure rate during its first year of service. One
does not expect to replace an exhaust pipe, overhaul the brakes, or have major transmission problems
in a new vehicle. Failure rates are important factors in the insurance finance, commerce and regulatory
industries and fundamental to the design of safe systems in a wide variety of applications.

Failure rate = Number of failures/number of units tested X total length of time

Conformance (Is the product made exactly as the designer intended?)

Conformance depicts to what extent a product's design and operating characteristics meet
established standards. This dimension owes the most to the traditional approaches to quality pioneered
by experts like Juran.

All products and services involve specifications of some sort. When products are developed,
these specifications are set and a target is set, for instance the materials used or the dimension of the
product. Not only the target but also the tolerance (the range of permitted deviation from the target) is
defined. One problem with this approach is that there is little interest in whether the specifications have
been met exactly as long as the tolerance limits are met.

On the one hand, this can lead to the so-called "tolerance stack-up". When two or more parts
are to be fit together, the size of their tolerances often determine how well they will match. Should one
part fall at a lower limit of its specification and a matching part at its upper limit, a tight fit is unlikely.
The link is likely to wear.

This problem can be addressed by taking a different approach to measuring quality. Instead of
measuring a simple conformance to specifications, the degree to which parts or products diverge from
the ideal target is measured. Using this approach process 1 (See Figure 4) is better even though some
items-fall beyond specification limits. The traditional approach would have favored process 2 because it
produces more items within the specification limit. It was demonstrated that the problem of "tolerance
stack-up is worse when the dimensions of parts are more distant from the target than when they cluster
around it, even if some parts tall outside the tolerance. This approach requires a fresh look at the
common process quality factor of "defect rate" to take into account the fact that two parts may each
pass the "tolerance test" separately but be unusable when the attempt is made to join them together.

In service businesses, measures of conformance normally focus on accuracy and timeliness and
include counts of processing errors, unanticipated delays and other frequent mistakes.

Durability (How long does the product last?)

Durability is a measure of how much use a person gets from a product before it breaks down to
such a point that replacement makes more sense than continual repair.

It measures the length of a product's life. When the product can be repaired, mating durability is
more complicated. The item will be used until it is no anger economical to operate it. This happens when
the repair rate and the associated costs increase significantly. Technically, durability can be defined as
the amount of use one gets from a product before it deteriorates. After so many hours of use, the
filament of a light bulb burns up and the bulb must be replaced. Repair is impossible. In other cases,
consumers must weigh the expected cost, in both pesos and personal inconvenience, of future repairs
against the investment and operating expenses of a newer, more reliable model.

This approach to durability has two important implications. First, it suggests that durability and
reliability are closely linked. A product that often fails is likely to be scrapped earlier than one that is
more reliable. Repair costs will be correspondingly higher and the purchase of a competitive brand will
look that y much more desirable. Second, this approach implies that durability figures should be
interpreted with care. An increase in product life may not be the result of technical improvements or the
use of longer-lived materials. Rather, the underlying economic environment simply may have changed.

Durability testing allows the assessment of a products response to the physical and climatic
hazards that may occur throughout the operational life of the product. This testing provides recognition
of compliance, analysis and resolution of damage issues, and assurance of reliability and durability.
There three types of durability testing which are:

1. Vibration testing - In vibration testing, the vibration environment to which products will be exposed
to in real use is reproduced. Products are tested in this environment to judge their durability or check
for improvements. There are two types of vibration testing,

a. Vibration Experiment - Vibration testing that is used to test a sample or representative model
of volume production. It is used to improve the product design.

b. Vibration Stress Screening - All production products are tested to eliminate faulty units and
approved good units. It may be compulsory in certain industries.

Example: Vibration Testing in a CAR

Vibration is inseparable from a car's motion There is a lot of infuence from vibration in long term
driving and off-road driving Observation for durability and influence of vibration is an important
process to obtain the reliability of products.

All of the possible environments that a car will experience in its lifetime are reproduced during
vibration testing.

Investigations occur for vibration damping and motion characteristics of the tire, car frame and
car body, Investigation also occurs into the influence of vibration on car electronics, such as
radios and stereos. Also, simulation testing of vehicle seats and safety devices is performed.

2. Shock tests. Shock testing replicates events to determine if structures can withstand sudden applied
forces. Shocks are characterized by their short duration and sudden occurrence.

3. Climatic testing - Materials can deteriorate over time, ageing prematurely due to either high or low
temperature extremes, while humid conditions may lead to condensation which can be damaging to
biological items, industrial products, materials, and electronic devices and components. A climatic test
makes use of an environmental test chamber which artificially replicates the conditions under which
machinery materials, devices or components might be exposed. It is also used to accelerate the effects
of exposure to the environment, sometimes at conditions not actually expected.
Serviceability (How easy is it to repair the product?)

Serviceability involves the consumer's ease of obtaining repair service like access to service centers
and/or ease of self-service; the responsiveness of service personnel like the ease of getting an
appointment and willingness of repair personnel to listen to the customer, and the reliability of service
like whether the service is performed right the first time. Competence and ease of repair is the speed
with which the product can be put into service when it breaks down, as well the competence and the
behavior of the service personnel.

Consumers are concerned not simply about a product breaking down but also about the time
before service is brought back, the timeliness with which service appointment are reserved, the nature
of transactions with service personnel, and the frequency with which service calls or repairs fall short to
correct outstanding problems. In those cases where problems are not right away resolved and
complaints are filed, a company's complaint handling procedures are also possible to affect customer's
final assessment of product and service quality.

Some variables of serviceability reflect differing personal standards of acceptable service. Others
can be measured quite objectively. Customers may continue to be displeased even after completion of
repairs. How these complaints are managed is essential to a company's reputation for quality and
service. Ultimately, profitability is likely to be affected as well. Companies vary extensively in their
techniques to complaint handling and in the value they attach to this element of serviceability. Some do
their best to resolve complaints, others use legal tricks, the silent treatment and similar strategies to
refuse displeased customers. For instance lately, General Electric, Procter & Gamble and other
companies have sought to prevent consumer discontent by installing toll-free telephone hot lines to
their customer relations departments.

Important attributes for serviceability dimension in a car include service warranty, parts
warranty, parts availability, number of reasonable distance to dealer service centers, distance to service
parts center-dealer, distance to service parts center individual length of wait for service appointment,
schedule of preventive maintenance, employees listen to customers, information regarding repairs,
courteous service centers, repaired correctly first time, service time relative to other dealers, warranty
claims handled without argument, average repair cost/ vear, extended warranty, underestimation of
service cost and provision of loan.

Aesthetics (What does the product look like?)

Aesthetics means how a product looks, feels, sounds, tastes, or smells. It is obviously an issue of
personal judgment and an indication of individual preferences. Though, there emerge to be some
patterns in consumers rankings of products with taste as the starting point. High quality was most often
associated with "rich and full flavor, tastes natural, tastes fresh, good aroma, and looks appetizing".
Aesthetics also refers to the "outside" feel of the product. The aesthetics dimension differs from
subjective criteria pertaining to "performance" in that aesthetic choices are not nearly universal. Not all
people prefer "rich and full flavor or even agree on what that means. Companies therefore have to
search for a niche. On this dimension of quality, it is impossible to please everyone.

The aesthetic properties of a product add to a company's or brand's identity Faults or defects in
a product that weaken its aesthetic properties, even those that do not lessen or change other
dimensions of quality, are often causing for negative response
Perceived Quality (What is the reputation of the company or its product?)

Perceived quality is the individuals' subjective appraisal of products or service's attributes,

indirect measures may be their only basis for comparing brands, Consumers do not always have
comprehensive information about a product's or service's attributes. A product's durability, for instance
can rarely be observed openly and is usually must be inferred from various tangible and intangible
aspects of the product. In such situation, images, advertising, and brand names can be vital. Perception
is not always reality. Sometimes customers perceived products and services as they see them in
advertising.

Reputation is the primary stuff of perceived quality. Its power comes from an implicit
comparison that the quality of products today is analogous to the quality of products of yesterday, or
the quality of goods in a new product line is similar to the quality of a company's established products.

DIMENSIONS OF SERVICE QUALITY

Service is normally described as an experience felt by the consumer. In a restaurant for instance,
the way the customer is treated is considered as a service. Services are frequently intangible in nature.
The quality of service is evaluated by how well the customer is contented with the service Service
quality is about comparing performance with the customer expectations. Service quality also leads to
customer contentment and interrelated. The key to preserve customers is to be aware of their needs
and fulfill those needs. Making customers purchase the services continually needs focus on dimensions
of service quality. There are five dimensions of service quality and specified below:

Tangibles
The tangible dimension of quality is associated to the environment in which the service is
rendered to the customers. This is the equivalent of physical characteristics of quality of goods. Since
services are tangible, customers draw from their perception of service quality by comparing the tangible
associated with these services provided. It consists of the appearance of the physical characteristics of
facilities, equipments, consumable goods and personnel used in or related with the service rendered.

In a Starbucks restaurant for instance, it may be seating arrangement, interior decoration,

ambiance and lighting arrangement. However here also the quality is assessed not by some standardized
specifications in terms of physical characteristic,, but by the impact these physical characteristics have
on customer assessment of the service quality

Reliability
Reliability is the ability to perform the promised service dependably and accurately to
customers on specific service. It is all about what is promised about delivery, service provision, problem
resolutions and pricing and what is delivered. Like, Cebu Pacific airline in the Philippines has proved to
be most successful low cost carrier in the world with fun-filled air travel.

Customers would like to carry out business with companies that keep their promises, chiefly
their promises about the service outcomes and core service attributes. Alle companies need to be
conscious of customer anticipation of reliability. Firms that do not grant the core service that customers
thin they are buying displeased their customers in the most direct way. Say for instance in a hotel where
the basic quality of room decor, food, and facilities must be provided.
Responsiveness
Responsiveness is the willingness to help customers and provide prompt service. This dimension
emphasizes attentiveness and promptness in dealing with customer's requests questions complaints and
problems Responsiveness is communicated to customers by span of time they have to hang around for
help answers to questions or attention to problems Responsiveness also captures the impression of
flexibility and ability to tailor the service to customer needs.

The willingness to help the customer promptly in case of special and unforeseen requirements is
another way of showing responsiveness. Helping a customer for instance who falls sick when staying in
the hotel is a good example of responsiveness.

Assurance
Assurance is defined as employees knowledge of courtesy and the ability of the firm and its
employees to inspire trust and confidence. This dimension of service quality is connected to the
competence of the service employee. The employees must be competent to gain the trust of customers

This dimension is likely to be predominantly significant for the services that the customers
perceives as involving high rising and/or about which they feel uncertain about the ability to evaluate.
Trust and confidence may be embedded in the person who relates the customer to the company, like
the marketing department. Thus, employees are aware of the value to create trust and confidence from
the customers to gain competitive advantage and for customers' loyalty.

For instance the customer dining in a restaurant may not be able to openly assess the level of
cleanliness maintained by the restaurants. Here it is not only imperative to really provide germ-free food
but also to stir confidence that the food is clean. The assurance is about giving the customer peace of
mind that everything will be taken care of as necessary, rather than just actually taking care when the
need happens. For example a doctor with Master degree may inspire more assurance than a doctor with
just an MD degree, although the basic treatment provided by them may be of same quality.

Empathy
Empathy refers to caring attitude that an organization provides toward customer. This
dimension of service quality calls for individual attention to customer, so as to make them feel
exceptional and to show to the customer that the company does best to satisfy his needs. Empathy is an
additional plus that the trust and confidence of the customers and at the same time increase the loyalty.
In this competitive world, the customer's requirements are rising day after day and it is the companies
duties to their maximum to meet the demands of customers, else customers who do not receive
individual attention will search elsewhere.

This is being able to understand the needs of the customer as an individual and meet the special
requirements of the customer. This is more about customizing the service and the general service
provider behavior for each customer, rather than providing a uniform high quality treatment to all.
Many companies try to create this sense of empathy by employing tactics like addressing each customer
by name. However, true empathy means understanding the special characteristics and needs of
individual customer, and modifying service to them accordingly.

Considering the above dimensions of service quality, comparisons are made between actual
service performance and expectations of customers. The difference between customers' expectations
and actual delivery (perception) at the time of service performance is known as service quality gap.
Organization conducts survey and exploratory research to study the various service gaps, so as to
understand why the gap arises and how it can be reduced.