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 INTRODUCTION ON GRVIN’S
PRODUCT QUALITY
About the Author :
• A professor of business administration at Harvard Business
School.
• Researcher in general management and strategic change.
• An author of 10 books, articles and case studies.
• He was an economist for the Federal Trade Commission and
the Sloan Commission on Government and Higher Education.
He has served on the board of overseers of the Malcolm
Baldrige National Quality Award, the Manufacturing Studies
Board of the National Research Council, and the board of
directors of Emerson Hospital.
 GARVIN’S “PRODUCT QUALITY”
 Important competitive issue.
 Academic literature on quality has not reviewed
extensively.
 Philosophy, economics, marketing, and operation
management have considered the subject on their
own vantage points.
 There are few key important facts to be consider in
his study, they are:
1. Five approaches to define quality
2. Eight dimensions of quality.
3. The strategic importance of quality.
4. Correlates of quality.
 FIVE APPROACHES TO DEFINE
QUALITY
1.Transcendent Approach
 This means quality is achieved through experience
2.Product based Approach
 This is reflected by differences in product and its
ingredients or attributes.
3.User based Approach
 Based on personal views and idiosyncrasies. Durability is
the key factor.
4.Manufacturing based Approach
 This approach is focused on cost reduction, And concerned
with manufacturing and engineering.
5.Value based Approach
 This approach is based on cost and prices. Better
performance at lower cost is recognized as a quality
product.
 DIMENSIONS OF QUALIT Y

The Basic Elements of a product quality

1. Performance
2. Features
3. Reliability
4. Conformance
5. Durability
6. Serviceability
7. Aesthetics
8. Perceived Quality
PERFORMANCE

•Refers to the primary operating characteristics

EX : Car -Acceleration , Braking, Handling

•The degree of the performance varies according

to the performance class

bugatti veyron Toyota Prius

0-60 mph – 2.7sec Acceleration 0-60 mph – 9sec

FEATURES

•Additional characteristics that enhance the

appeal.

•Secondary aspects of performance.

•Ex – Cruise control, Leather seats, Smart

parking
RELIABILITY

•The likelihood that the product will not fail

within a specific time period

•The common measure of reliability is the

failure rate per unit time
CONFORMANCE
•To what extent the product design and the
operating characteristics meet the pre-
established standards.

• What is “tolerance stack-up” ?

•service businesses, measures of

conformance normally focus on accuracy
and frequent mistakes.
DURABILITY

The length of a product’s life.

But

Product can be repaired, estimating durability is

more complicated.

Durability can be defined as:

The amount of use one gets from a product before it

breaks down
Reliability and Durability are closely linked.
SERVICEABILITY

Serviceability means the consumer's ease of

obtaining repair service

This includes:

• Responsiveness of service
personnel
•Willingness of repair personnel
•Reliability of service
•Speed
AESTHETICS

•Aesthetics refers to how the product looks, feels,

sounds, tastes or smells.

•This is a matter of personal judgement

PERCEIVED QUALITY

•Reputation is the primary stuff of

perceived quality

•The perceived quality may be base on

images, advertising and brand names.

•Perception is not always reality.

•Defers from person to person.

 CORRELATES OF QUALITY
Quality and Price
 The relationship between Quality and price runs in both
ways.
 It varies due to customer perceptions , information
available , brand name etc.
Quality and Advertising
 Two main types of goods : Search goods and Experienced
goods
 Experienced High quality products needs more advertising
than low quality products.
 Shows a positive relationship in many aspects.
 CORRELATES OF QUALITY

Quality and Market Share

 This depends on how quality is defined
 When quality is defined by premium prices - Negative
relationship.
 When quality is defined by fitness for purpose -Positive
relationship.
 QUALIT Y AND PROFITABILIT Y
• To improve quality, the performance, features and other
dimensions should be improved in order to gain large market
shares and higher profits.
• To minimize defects and failures which tends to lower reworks
and inspection costs, results in quality improvements and
increased profits.
• High improved quality brings in a high return on investment
(ROI) on any market share and tends to lower costs and
increase profits.
• High quality brings high reputation for the product, which a
premium price can be charged and this increases profits.
• High quality achieves economies of scale due to cost savings,
which results to increase in profits.
 QUALITY AND COST

In the theoretical perspective, it is assumed that quality

and cost are positively related.
Another point which says that quality and cost is inversely
related, that when quality is improved, it reduces costs
such as reworks, scrap and warrants.
Quality costs are the cost of manufacturing and it should
only incurred one time if the product is made to its highest
quality at the first time and does not result in reworks.
Investing in new machinery and technology will reduce
costs and improve quality and experience economies of
scale.
Summary
Thank You !