BMC 302

Assignment no. 1
02/24/2022

Name: Hazel Joy G. Marcelo

1. A product is a tangible and physical items manufactured, stored, and transported by

business organizations and are put on the market for acquisition, attention, or consumpti
on, and can be returned and replaced. On the other hand, a service is an intangible item,
these are transactions that does not involve transfer of physical goods from the seller to t
he buyer and by which arises from the output of one or more individuals and is
consumed at the time of its sale. Services cannot be held nor can be returned. In
addition, the quality of a products is determined by the customers and a service’s quality
is determined by the provider.

2. Dimensions/Characteristics of Product

2.1. Tangible Attributes

The first and foremost important feature of a product is its tangibility. It m
eans that it may be touched, seen and its physical presence felt, like, cycle, boo
k, pencil, table etc.

2.2. Intangible Attributes

Alternatively, the product may be intangible in the form of service, such a
s banking, insurance or repairing services.

2.3. Exchange value

A product must have characteristic of an exchange value. Every product,
whether tangible or intangible, should have an exchange value and should be c
apable of being exchanged between the buyer and seller for a mutually agreed
consideration.

2.4. Utility Benefits

Another important characteristic of a product is that it should have a utility
like a bundle of potential utility or benefits.

2.5. Differential Features

From the marketing point of view, it is important that the product should h
ave differential features. Different types of packaging and branding can help cre
ate the image of product differentiation in the consumer.

2.6. Consumer Satisfaction

 Another characteristic from the marketing viewpoint is that the products s
hould have the ability to deliver value satisfaction to consumers for whom they a
re intended.

2.7. Business Need Satisfaction

A product should have the attribute to satisfy a business need. And the b
asic business need is to earn a profit on the product sold. It must have the attrib
ute of generating profit.

3. Dimensions/Characteristics of Service

3.1. Intangibility:
Services cannot generally be seen, tasted, felt, heard or smelt before bei
ng bought. The potential customer is unable to perceive the service before (and
sometimes during and after) the service delivery.

3.2. Inseparability
It means that services are generated and consumed simultaneously and
can not be separated from their providers, whether they are people or
machines.

3.3. Variability
Variability means that their quality may vary greatly, depending on who
provides them and when, where, and how they are provided.

3.4. Perishability
Services are performances that cannot be stored for later sale or use.

3.5. Heterogeneity
Standard depends upon who and when provided. Difficult to assure
quality.

3.6. Lack of Ownership

Customer has access to but not ownership of activity or facility.

4. Quality Gurus and contributions to Quality Management

 Philip Crosby:
 The Four Absolutes of Quality Management
 14 Steps to Quality Improvement

 Dr. Edwards Deming:

 Deming’s Fourteen Obligations of Top Management
 Dr. Armand Feigenbaum
 Developed Total Quality Control (TQC) philosophy
 Quote: “Quality is everybody’s job, but because it is everybody’s job, it can bec
ome nobody’s job without the proper leadership and organization.”
 Steps to quality:
- Quality leadership
- Modern quality technology
- Organizational commitment

 Dr. Kaoru Ishikawa - He is known as father of Japanese quality control effort.

 Established concept of Company Wide Quality Control (CWQC) – participation
from the top to the bottom of an organization and from the start to the finish of t
he product life cycle
 Started Quality Circles – bottom up approach – members from within the depar
tment and solve problems on a continuous basis
 The fishbone diagram is also called Ishikawa diagram in his honor
 Introduced concept that the next process is your customer

 Dr. Joseph Juran

 Juran’s Quality Trilogy (compared to financial management)
 Key points of Juran’s approach to quality improvement

 Dr. Walter Shewhart - He is referred to as the “Father of Statistical Quality Control”.

 Shewhart’s control charts are widely used to monitor processes. Problems are
framed in terms of special cause (assignable cause) and common cause (chan
ce-cause).
 The Shewhart Cycle – PDCA Problem Solving Process:

 Dr. Genichi Taguchi

 The lack of quality should be measured as function of deviation from the nomin
al value of the quality characteristic. Thus, quality is best achieved by minimizi
ng the deviation from target (minimizing variation).
 Quality should be designed into the product and not inspected into it. The prod
uct should be so designed that it is immune to causes of variation.
 Taguchi recommends a three-stage design process