Quality is the ability of a product or service to meet and exceed customer expectations. It is the result of the efficiency of the entire production process formed of people, material, and machinery. Customer requirements determine the quality scope. Quality is a
competitive advantage; poor quality often results in bad business. The U.S. business organizations in the 1970s focused more on cost and
productivity. That approach led to Japanese businesses capturing a major share of the U.S. market. It was not until the late 1970s and the beginning of the 1980s that the quality factor drastically shifted and became a strategic approach, created by Harvard professor David Garvin. This approach focuses on preventing mistakes and puts a great emphasis on customer satisfaction.
Quality basis David A. Garvin lists
eight dimensions of quality: •
Performance is a product's primary operating characteristics. For example, for a
vehicle audio system, those characteristics include sound quality,
surround sound, and
Wi-Fi connectivity. •
Conformance refers to the degree to which a certain product meets the customer's expectations. •
Special features or
extras are additional features of a product or service. An example of extras could be free meals on an
airplane or Internet access for a
TV. •
Aesthetics refer to a product's looks, sound, feel, smell, or taste. Aesthetics are subjective; thus, achieving total
customer satisfaction is impossible. For example, not all customers like the smell of a certain perfume. •
Durability refers to how long the product lasts before it has to be replaced. Better raw materials and manufacturing processes can improve durability. For home appliances and automobiles, durability is a primary characteristic of quality. •
Reliability refers to the time until a product breaks down and has to be repaired, but not replaced. This feature is very important for products that have expensive maintenance. •
Serviceability is defined by speed, courtesy, competence and ease of repair." •
Perceived quality, which may be affected by the high price or the good aesthetics of a product.
Product components The quality of a product depends almost entirely on the quality of its raw material. Suppliers and manufacturers must work together to eliminate defects and achieve higher quality.
Small and medium-sized enterprises (SMEs) should discuss with their suppliers how quality improvements can affect the overall performance of the
supply chain.
Quality assurance can reduce
testing, scrapping, reworks, and production costs.
Consequences of poor quality •
Business loss: Poor quality results in unsatisfied customers and business loss, especially where customers can easily switch to a competitor. •
Reduced productivity: Poor-quality products must often be reworked or scrapped entirely, which diminishes usable output. •
Higher operating costs: Harrington argued that poor quality affects costs. Counterintuitively, higher costs are attached to offering lower-quality products and services. A reduction of cost and scheduling problems is achievable by avoiding the production of poor quality goods and services. == Costs ==