Question set one

www.uidaho.edu/~metlen/
Read CH1-3 and directed pages below about the quality gurus and their
frameworks, and the quality awards around the world.
Set of questions designed to determine what quality is, what quality management
is, what management of quality is, and why we need to consider them.
Information is presented below and in Question Set Two to inform the
Stakeholder Satisfaction Causal Model you will use to answer the first three
homework assignments.
1. What is the purpose of a firm?
To make the correct product.(maximizing shareholder wealth is a side
benefit to making the correct product, shareholder wealth is one of the
dependent variables )
2. What is a product?
Service and/or good Tangible and/or intangible
3. Differences between service and good
Perishability, Co-production, Standardization vs. customization, degree of
tangibility, consumption patterns, cost structure (direct vs. fixed),
opportunity for error and quality control, degree of autonomy of production
worker
4. What is the correct product? One that satisfies all stakeholders (impossible
due to dynamic nature of satisfaction unless expectations are controlled)
a) Meets wants and needs of customers better than competition and any
other product the firm could make
b) Makes the owners a profit
c) does a and b in such a way that the net sum gain short and long term is
positive to the environment and society/community (encompasses
environmental sustainability (ES) and community services)
d) Meets lower bound of employees wants and needs (living wage and
growth)
e) enables/empowers suppliers
Understanding relationship between 6 variables is important
One that satisfies all stakeholders. It satisfies the customers wants and
needs better than the competition (provides high value: does what the
customer wants at a price the customer is willing to pay) and makes the
company money or is an outcome that helps the company to produce the
correct product and is environmentally sustainable (green, recycle,
produce with low energy, sustains the environment)
5. What is value?
What you get for what you give up.

6. From a strategic perspective, what strategic characteristics will produce the

correct product?
The correct product will be the result of the correct mix of the following
strategic characteristics relative to competition.
Cost
Flexibility (delivery, bells and whistles (diversification/customization),
amount)
Speed (delivery, development, production)
Quality
Trade off theory vs. sandcone theory
As quality is an order qualifier vs. winner and thus, is the bases (sandcone) of
any strategic mix of the above strategies, we are going to concentrate on Quality
(management of quality) and organizational traits that are necessary to achieve
consistently high levels of quality (Quality Management).
7. What is an order qualifier vs. winner
Qualifier means that a given level of the trait/characteristic has to be
achieved before a product is even considered for purchase.
Winner is the product characteristic that drove the purchase
8. What is quality? First off, quality needs a qualifier, as the degree of quality is a
state/measure of the quality characteristic of a product. Relative to something,
expectations, design standards, competitors and own past products,
Presented in the book are several perspectives of quality:
judgmental/transcendent perspective: rise above competitors
(subjective/holistic)
product-based perspective: measurable characteristic of product (0-60)
user-based perspective: fitness for intended use (subjective)
value-based perspective: function of quality level respective to price
(subjective)
manufacturing-base perspective: conformance to specifications
9. Which perspective of quality is correct?
All perspectives are correct, so how to reconcile the perspectives.
Recognize/discover the subjective and decide what level of product
characteristic delivers/represents the subjective level needed.
10. What are the two cost categories of quality and what is the relationship
between the two categories relative to percent conformance to some standard or
expectation (in a service, an expectation can be like the specification of a good
such as 30mm +/- .05mm)
Cost of preventing failure (Cost of prevention): Some say cost of
assessment, but certain types of assessment are part of prevention.
Inspection/control, supply chain management (management of the supply
chain (from raw materials to customer to service repair), training, process

management (design, maintenance, improvement, control), quality

management, cost of detection (the assessment that can be seen as a
third type of cost, different than prevention and holds when talking about
preventing in house failure (versus out of house failure).
Cost of failure: scrap, rework, guaranty program, loss of customers,
service recovery, brand recovery, market share recovery
Static theory vs. dynamic theory Graph
11. What are the main characteristics of quality according to Garvin, and how
would you categorize them relative to Kanos classes of customer requirements
Kano: Product traits/characteristics are either Dis-satisfiersExpected, if not
there low satisfaction; Satisfiers, not expected, but known, and when there
high satisfaction; Exciters/delighters not known or expected, when there, very
high satisfaction. Garvins Dimensions of Quality (198-200) PFRCDSA
First why would we care about what the main product characteristics are we
need to know how customers measure quality in our products (subjective
perception)
Good

Service

Performance (dissatisfier)
Features (satisfiers & exciters)
Reliability (all 3)

0-60

Time to complete transaction

Bells and whistles

Bells and whistles

Mean time to failure

Conformance (all 3)

Meets expected specifications

Durability (all 3)
Serviceability (all 3)
Aesthetics (all 3)

Useful life

Statistical sense (every time the

same)
Task done as expected (including
empathy & responsiveness)
Service stays current

Ease of repair

Service recovery

What makes you feel good about the

good Holistic over all opinion of good

Comfort and security (assurance from

tangibles and intangibles)

Let us first discuss the difference between reliability and durability. One measure of durability is
represented by the duration of product ownership. Reliability, on the other hand, represents
interruptions in usage during that ownership. The ownership of any product or system cannot be
enjoyed if it is continually interrupted and the desired functions lost for even a brief time. This
means reliability takes precedence over durability even though both are desired in most
applications. http://www.multiface.com/RvsDTest.PDF Hans Bajaria
Quality Framework http://www.ifm.eng.cam.ac.uk/dstools/paradigm/qualit.html
Garvin proposes eight critical dimensions or categories of quality (used to be seven, still seven in Lindsay
& Evans) that can serve as a framework for strategic analysis: Performance, features, reliability,
conformance, durability, serviceability, aesthetics, and perceived quality.
1. Performance
Performance refers to a product's primary operating characteristics. For an automobile, performance would
include traits like acceleration, handling, cruising speed, and comfort. Because this dimension of quality
involves measurable attributes, brands can usually be ranked objectively on individual aspects of
performance. Overall performance rankings, however, are more difficult to develop, especially when they
involve benefits that not every customer needs.

2. Features
Features are usually the secondary aspects of performance, the "bells and whistles" of products and
services, those characteristics that supplement their basic functioning. The line separating primary
performance characteristics from secondary features is often difficult to draw. What is crucial is that
features involve objective and measurable attributes; objective individual needs, not prejudices, affect their
translation into quality differences.
3. Reliability
This dimension reflects the probability of a product malfunctioning or failing within a specified time
period. Among the most common measures of reliability are the mean time to first failure, the mean time
between failures, and the failure rate per unit time. Because these measures require a product to be in use
for a specified period, they are more relevant to durable goods than to products or services that are
consumed instantly.
4. Conformance
Conformance is the degree to which a product's design and operating characteristics meet established
standards. The two most common measures of failure in conformance are defect rates in the factory and,
once a product is in the hands of the customer, the incidence of service calls. These measures neglect other
deviations from standard, like misspelled labels or shoddy construction, that do not lead to service or repair.
5. Durability
A measure of product life, durability has both economic and technical dimensions. Technically, durability
can be defined as the amount of use one gets from a product before it deteriorates. Alternatively, it may be
defined as the amount of use one gets from a product before it breaks down and replacement is preferable
to continued repair.
6. Serviceability
Serviceability is the speed, courtesy, competence, and ease of repair. Consumers are concerned not only
about a product breaking down but also about the time before service is restored, the timeliness with which
service appointments are kept, the nature of dealings with service personnel, and the frequency with which
service calls or repairs fail to correct outstanding problems. In those cases where problems are not
immediately resolved and complaints are filed, a company's complaints handling procedures are also likely
to affect customers' ultimate evaluation of product and service quality.
7. Aesthetics
Aesthetics is a subjective dimension of quality. How a product looks, feels, sounds, tastes, or smells is a
matter of personal judgement and a reflection of individual preference. On this dimension of quality it may
be difficult to please everyone.
8. Perceived Quality
Consumers do not always have complete information about a product's or service's attributes; indirect
measures may be their only basis for comparing brands. A product's durability for example can seldom be
observed directly; it must usually be inferred from various tangible and intangible aspects of the product. In
such circumstances, images, advertising, and brand names - inferences about quality rather than the reality
itself - can be critical.

Some product characteristic may create several quality characteristics, the

important thing to know is how that product characteristic is creating satisfaction.
Is some level of reliability an exciter and, thus drives the feeling of aesthetics.
Understand that these perceptions change as a customer gets used to the
product and more advanced products come out.
12. How does a firm achieve the correct level of quality? (never can achieve the
correct level of quality because it is too complicated and is a moving target, but
all you have to do is put on your tennis shoes)
Have perfect Knowledge, Motivation, and Integration (KMI)
Knowledge of what: everything (customer wants and needs (even if they do not
know them), technology, material, time and motion studies, cost figures, demand
forecasts, distribution channels & supply chain capabilities, budget, nature
(including human nature physiological & psychological), abilities, skills,
change agents, key success factors, competitors, substitutions, laws, customs,
rules.)
Motivation of whom: everyone in the supply chain (intrinsic and the
extrinsic motivation called integrated regulation motivation ( a person is positively
motivated because he/she has evaluated and brought into congruence [imposed values] with
ones other values and needs (Ryan and Deci, 2000, p. 73))

Integration of what: all processes within a supply chain (each set of value
chains), and knowledge and motivation
13. How does a firm achieve perfect knowledge, motivation, and integration
TQM or TQ as they like to call it now, and programs such as lean
manufacturing, six sigma.
14. What are TQ, lean (pp 556-560), six sigma (ch3,&ch11): They are
philosophies and tool sets developed to continually improve effectiveness and to
maintain those improvements. On pp. 20 TQ is presented, it is a set of principles,
practices, and techniques. A management system that aims at the continual
increase in customer satisfaction at continually lower real cost. TQ is a total
system approach (not a separate area or program) and an integral part of highlevel strategy; it works horizontally across functions and departments, involves all
employees, top to bottom, and extends backward and forward to include the
supply chain and customer chain (part of the supply chain). TQ stresses learning
and adaptation to continual change as keys to organizational success.
The foundation of TQ is philosophical: the scientific method. TQ includes
systems, methods, and tools. The systems permit change; the philosophy stays
the same. TQ is anchored in values that stress the dignity of the individual and
the power of community action.
Proctor and gamble: The unyielding and continually improving effort by
everyone in an organization to understand, meet, and exceed the expectations of
customers.
Metlen: Every process has a purpose in producing the correct end
product. There are quality goals for the product of all processes involved in
producing the correct end product output, and that quality is monitored for all
processes. Due to the fact that the nature/characteristics of the end product is

continually shifting, the quality goal and method of monitoring each process has
to be continually assessed and changed if it is impeding the goal of correct
product thus, also has to be dynamic.
15. What organizational level processes are involved in producing the correct
end product
Leadership Process: mission, vision, strategy to accomplish
Management process: oversees that strategy is accomplished effectively
R&D process
Marketing process
Finance process
Production process
Logistics process
HR process
Accounting process
Knowledge process (assimilation, storage, dissimulation) IT process
Etc.
16. Thus, at what levels of a firm does quality have to be considered (all levels)?
Organizational/top management level (strategic level): mission and
strategy development to meet customer wants and needs better than the
competition (what product portfolio to have): need to know what is
happening in the environment and the ability of your firm SWOT
process, decision making process, goal congruency process
Process level (functional/departmental) (tactical level): overseeing
execution of the strategy, what support and primary processes needed to
produce the final correct product
Individual/performer/task/job level (operational level): completion of tasks
needed to operationalize strategy
Strategic
Tactical
Personal
Organizational
Process
Operational

Organizational

Process

Operational

Knowledge

Specialize in SWOT know rest

Motivation

To gain K and use K in a

constructive way
Abilities, skills, desire/motivation to
perform & improve Tasks
SWOT information to develop
realistic M V S of correct product

Specialize in Process Mgt

Know rest
Ditto

Specialize in Policy and procedure know

rest
Ditto

Abilities, skills,
desire/motivation to perform &
improve Tasks Integrating k to
create and improve integrated
processes to create correct
products internal and external

Abilities, skills, desire/motivation to

perform & improve production Tasks

Integration

To achieve the correct product (strategic mix of CFSQ and PFRCDSA to meet a
given MM (marketing mix of the Ps), firms have to have exemplary management,

assessment, design, conformance, and control processes, thus, many say a firm
has to have at all three levels:
Quality management/leadership
Quality assessment
Quality design
Quality conformance
Quality control
To achieve the correct KMI to get the correct product (strategic mix of CFSQ and
PFRCDSA) firms have to have exemplary management, assessment, design,
conformance, and control thus, many say a firm has to have:
Quality management: Leadership determines the correct P/P, mission,
vision, strategy to achieve correct product. Resource allocation (goes without
saying that resources are scarce) it is knowing when to lead and when to
manage
Quality assessment (internal and external) internal is the assessment of
processes and products to determine conformance, first step of control. External
is assessment of customers wants and needs and how the environment is
affecting those wants and needs (competitors, general knowledge level of
everything, political, condition of earth)
Quality design (products and processes)
Quality conformance (conform to design which conforms to wants and
needs)
Quality control (enables/determines conformance and improvement) keep
conforming
17. What do you think is meant by each type of quality above?
Quality Management: Leaders concentrate on doing the correct thing,
managers concentrate on doing things correctly (hopefully the correct
things, if you do the wrong thing correctly, it probably only helps your
competition).
Au-toc-ra-cy: government by a single person, unlimited power
Managers focus on

Goals & objectives

Telling how and when
Shorter range
Organization & structure
Autocracy
Restraining
Maintaining
Conforming
Imitating
Administrating
Directing & Controlling
Procedures
Consistency

Leadership focuses on

Mission & Vision

Selling what and why (goal
congruency)
Longer range
People
Democracy
Enabling
Developing
Challenging
Originating
Innovating
Inspiring trust
Policy
Flexibility

Risk-avoidance

Risk-opportunity

Cost driven

Profit driven

Stewardship encompasses both

So, quality management is doing the correct thing correctly all of the time at all
levels to produce the correct product.
Under QM/TQ, when you manage (will have to sometime), leadmake sure that
what you are doing correct is the correct thing to do, understand the dynamics of
the world and be willing to help change the firm to meet those changes or cause
those changes in a positive way.
Organizational
Process
Operational
QM
Leader/manager
Manager/Leader
Manage work
place
relationships,
resources, and
self
Old
Manage
Manage
Obey
QA
SWOT &
What processes
Assess wants and
understand the
need to be
needs of
key success
executed to
customers
factors & change
accomplish
performance of
agents in your
mission
self,
industry &assess
leaders/managers,
effectiveness
subordinates
SWOT
Ditto, & what
Own task, decide
worked before
what customer
wants, customer
assess product
features
QD
Design of SWOT
Design processes Execute
to accomplish
processes such as
mission, w/input
Design product
Qconformance

Do you conform to
the SWOT
process

Are processes
doing what
designed for

Make product that

matches design
which matches
wants and needs

Qcontrol

Assess process to
determine
conformance

Ditto

Are all processes

on this level
performing to
limits of their
design (ditto)

Supply Chain Management (SCM) operates on the principal that all of us are
working together against entropy (all matter and energy to evolve toward a state
of inert uniformity) and that when we have a hostile supply chain (SC), we are
just accelerating that process.