Marketing dịch vụ - Chapter 2: Quality management

Chapter 2Quality ManagementLecture OutlineWhat Is Quality?Evolution of Quality ManagementQuality ToolsTQM and QMSFocus of Quality Management—CustomersRole of Employees in Quality ImprovementQuality in Service CompaniesSix SigmaCost of QualityEffect of Quality Management on ProductivityQuality AwardsISO 9000Copyright 2011 John Wiley & Sons, Inc.2-2What Is Quality?Oxford American Dictionarya degree or level of excellenceAmerican Society for Qualitytotality of features and characteristics that satisfy needs without deficienciesConsumer’s and producer’s perspectiveCopyright 2011 John Wiley & Sons, Inc.2-3What Is Quality:Customer’s PerspectiveFitness for usehow well product or service does what it is supposed toQuality of designdesigning quality characteristics into a product or serviceA Mercedes and a Ford are equally “fit for use,” but with different design dimensions.Copyright 2011 John Wiley & Sons, Inc.2-4Dimensions of Quality:Manufactured ProductsPerformance basic operating characteristics of a product; how well a car handles or its gas mileageFeatures “extra” items added to basic features, such as a stereo CD or a leather interior in a carReliabilityprobability that a product will operate properly within an expected time frame; that is, a TV will work without repair for about seven yearsCopyright 2011 John Wiley & Sons, Inc.2-5Dimensions of Quality:Manufactured ProductsConformance degree to which a product meets pre–established standardsDurabilityhow long product lasts before replacement; with care, L. L. Bean boots may last a lifetimeServiceabilityease of getting repairs, speed of repairs, courtesy and competence of repair personCopyright 2011 John Wiley & Sons, Inc.2-6Dimensions of Quality:Manufactured ProductsAestheticshow a product looks, feels, sounds, smells, or tastesSafety assurance that customer will not suffer injury or harm from a product; an especially important consideration for automobilesPerceptionssubjective perceptions based on brand name, advertising, etc.Copyright 2011 John Wiley & Sons, Inc.2-7Dimensions of Quality: ServicesTime and timelinesshow long must a customer wait for service, and is it completed on time?is an overnight package delivered overnight?Completeness:is everything customer asked for provided?is a mail order from a catalogue company complete when delivered?Copyright 2011 John Wiley & Sons, Inc.2-8Dimensions of Quality: Service Courtesy:how are customers treated by employees?are catalogue phone operators nice and are their voices pleasant?Consistencyis same level of service provided to each customer each time?is your newspaper delivered on time every morning?Copyright 2011 John Wiley & Sons, Inc.2-9Dimensions of Quality: ServiceAccessibility and conveniencehow easy is it to obtain service?does service representative answer you calls quickly?Accuracyis service performed right every time?is your bank or credit card statement correct every month?Responsivenesshow well does company react to unusual situations?how well is a telephone operator able to respond to a customer’s questions?Copyright 2011 John Wiley & Sons, Inc.2-10What Is Quality:Producer’s PerspectiveQuality of conformancemaking sure product or service is produced according to designif new tires do not conform to specifications, they wobbleif a hotel room is not clean when a guest checks in, hotel is not functioning according to specifications of its designCopyright 2011 John Wiley & Sons, Inc.2-11Meaning of QualityCopyright 2011 John Wiley & Sons, Inc.2-12What Is Quality:A Final PerspectiveCustomer’s and producer’s perspectives depend on each otherProducer’s perspective:production process and COSTCustomer’s perspective:fitness for use and PRICE Customer’s view must dominateCopyright 2011 John Wiley & Sons, Inc.2-13Evolution of Quality Management: Quality GurusWalter ShewhartIn 1920s, developed control chartsIntroduced term “quality assurance” W. Edwards Deming Developed courses during WW II to teach statistical quality-control techniques to engineers and executives of military suppliersAfter war, began teaching statistical quality control to Japanese companiesJoseph M. JuranFollowed Deming to Japan in 1954Focused on strategic quality planning Quality improvement achieved by focusing on projects to solve problems and securing breakthrough solutionsCopyright 2011 John Wiley & Sons, Inc.2-14Evolution of Quality Management: Quality GurusArmand V. FeigenbaumIn 1951, introduced concepts of total quality control and continuous quality improvementPhilip Crosby In 1979, emphasized that costs of poor quality far outweigh cost of preventing poor qualityIn 1984, defined absolutes of quality management—conformance to requirements, prevention, and “zero defects”Kaoru IshikawaPromoted use of quality circlesDeveloped “fishbone” diagram Emphasized importance of internal customerCopyright 2011 John Wiley & Sons, Inc.2-15Deming’s 14 PointsCopyright 2011 John Wiley & Sons, Inc.2-16Create constancy of purposeAdopt philosophy of preventionCease mass inspectionSelect a few suppliers based on qualityConstantly improve system and workersDeming’s 14 PointsInstitute worker trainingInstill leadership among supervisorsEliminate fear among employeesEliminate barriers between departmentsEliminate slogansCopyright 2011 John Wiley & Sons, Inc.2-17Deming’s 14 PointsEliminate numerical quotasEnhance worker prideInstitute vigorous training and education programsDevelop a commitment from top management to implement above 13 pointsCopyright 2011 John Wiley & Sons, Inc.2-18 Deming Wheel: PDCA CycleCopyright 2011 John Wiley & Sons, Inc.2-19Quality ToolsProcess Flow ChartCause-and-Effect DiagramCheck SheetPareto AnalysisHistogramScatter DiagramStatistical Process Control ChartCopyright 2011 John Wiley & Sons, Inc.2-20Flow ChartA diagram of the steps in a processHelps focus on location of problem in a processCopyright 2011 John Wiley & Sons, Inc.2-21Cause-and-Effect Diagram Cause-and-effect diagram (“fishbone” diagram)chart showing different categories of problem causes2-22Copyright 2011 John Wiley & Sons, Inc.Cause-and-Effect MatrixCause-and-effect matrixgrid used to prioritize causes of quality problems2-23Copyright 2011 John Wiley & Sons, Inc.Check Sheets and HistogramsTally number of defects from a list of causesFrequency diagram of data for quality problemCopyright 2011 John Wiley & Sons, Inc.2-24Pareto AnalysisPareto analysismost quality problems result from a few causes2-25Copyright 2011 John Wiley & Sons, Inc.Pareto ChartCopyright 2011 John Wiley & Sons, Inc.2-26Scatter DiagramGraph showing relationship between 2 variables in a processIdentifies pattern that may cause a quality problemCopyright 2011 John Wiley & Sons, Inc.2-27Control ChartA chart with statistical upper and lower limitsIf sample statistics remain between these limits we assume the process is in controlCopyright 2011 John Wiley & Sons, Inc.2-28TQM and QMSTotal Quality Management (TQM)customer-oriented, leadership, strategic planning, employee responsibility, continuous improvement, cooperation, statistical methods, and training and educationQuality Management System (QMS)system to achieve customer satisfaction that complements other company systemsCopyright 2011 John Wiley & Sons, Inc.2-29Focus of Quality Management— CustomersTQM and QMSsserve to achieve customer satisfactionSatisfied customers are less likely to switch to a competitorIt costs 5-6 times more to attract new customers as to keep an existing one94-96% of dissatisfied customers don’t complainSmall increases in customer retention mean large increases in profitsCopyright 2011 John Wiley & Sons, Inc.2-30Quality Management in the Supply ChainCompanies need support of their suppliers to satisfy their customersReduce the number of suppliersPartneringa relationship between a company and its supplier based on mutual quality standardsCopyright 2011 John Wiley & Sons, Inc.2-31Measuring Customer SatisfactionAn important component of any QMSUse customer surveys to hear “Voice of the Customer”American Customer Satisfaction Index (ACSI)Copyright 2011 John Wiley & Sons, Inc.2-32Role of Employees in Quality ImprovementParticipative problem solvingemployees involved in quality-managementevery employee has undergone extensive training to provide quality service to Disney’s guestsKaizeninvolves everyone in process of continuous improvementemployees determining solutions to their own problems2-33Copyright 2011 John Wiley & Sons, Inc.Quality CirclesVoluntary group of workers and supervisors from same area who address quality problemsCopyright 2011 John Wiley & Sons, Inc.2-34PresentationImplementationMonitoringSolutionProblem resultsProblem AnalysisCause and effectData collection and analysisProblem IdentificationList alternativesConsensusBrainstormingTrainingGroup processesData collectionProblem analysisOrganization8-10 membersSame areaSupervisor/moderatorProcess (Quality) Improvement TeamsFocus attention on business processes rather than separate company functionsIncludes members from the interrelated departments which make up a processImportant to understand the process the team is addressingProcess flowcharts are key toolsCopyright 2011 John Wiley & Sons, Inc.2-35Quality in ServicesService defects are not always easy to measure because service output is not usually a tangible itemServices tend to be labor intensiveServices and manufacturing companies have similar inputs but different processes and outputsCopyright 2011 John Wiley & Sons, Inc.2-36Quality Attributes in ServicesPrinciples of TQM apply equally well to services and manufacturingTimeliness is an important dimensionhow quickly a service is providedBenchmark“best” level of quality achievement in one company that other companies seek to achieve2-37Six SigmaA process for developing and delivering virtually perfect products and servicesSix Sigma is a measure of how much a process deviates from perfectionGoal: 3.4 defects per million opportunities (DPMO)Copyright 2011 John Wiley & Sons, Inc.2-38Six Sigma ProcessAlignexecutives create balanced scorecardMobilizeproject teams formed and empowered to actAccelerateblack and green belts execute projectGovernmonitor and review projectsChampionan executive responsible for project successCopyright 2011 John Wiley & Sons, Inc.2-39Breakthrough Strategy: DMAICDefineproblem is definedMeasureprocess measured, data collectedAnalyzedata analysis to find cause of problemImprovedevelop solutions to problemControlensure improvement is continuedCopyright 2011 John Wiley & Sons, Inc.2-40Six Sigma ProcessCopyright 2011 John Wiley & Sons, Inc.2-413.4 DPMO67,000 DPMOcost = 25% of salesDEFINECONTROLIMPROVEANALYZEMEASUREBlack Belts and Green BeltsBlack Beltproject leaderMaster Black Belta teacher and mentor for Black BeltsGreen Beltsproject team members2-42Copyright 2011 John Wiley & Sons, Inc.Six Sigma Tools (1-3)Quality Function Deployment (QFD)capture the “voice of the customer”Cause & Effect Matrixidentify and prioritize causes of a problemFailure Modes and Affects Analysis (FMEA)analyze potential problems before they occurCopyright 2011 John Wiley & Sons, Inc.2-43Six Sigma Tools (4-6)t-Testtest for differences between groupsStatistical Process Control (SPC) Chartmonitor a process over time for variationsDesign of Experiments (DOE)determining relationships between factors affecting inputs and outputs of a processCopyright 2011 John Wiley & Sons, Inc.2-44Design for Six Sigma (DFSS)A systematic approach to designing products and processes that will achieve Six SigmaUses same basic approach as breakthrough strategyEmploys the strategy up front in the design and development phasesA more effective and less expensive way to achieve Six SigmaCopyright 2011 John Wiley & Sons, Inc.2-45Lean Six SigmaIntegrate Six Sigma and “lean systems” (Ch 16)Lean seeks to optimize process flowsLean extends earlier efforts in efficiencyLean process improvement stepsdetermine what creates value for customersidentify “value stream”remove waste in the value streammake process responsive to customer needscontinually repeat attempts to remove wasteCopyright 2011 John Wiley & Sons, Inc.2-46Lean Six SigmaSix Sigma and Lean seek process improvementsIncreased value to customersThey approach the goals in different, complementary waysCopyright 2011 John Wiley & Sons, Inc.2-47ProfitabilityThe typical criterion for selecting Six Sigma projectsOne of the factors distinguishing Six Sigma from TQM“Quality is not only free, it is an honest-to-everything profit maker”Quality improvements reduce costs of poor qualityCopyright 2011 John Wiley & Sons, Inc.2-48Cost Impact of Six SigmaMedtek Company implements Six Sigma to reduce defects from 10% to 0 %. Then spend $120,000 for more change. After Six Original After Changes Sigma CostsSales $1,000,000 1,000,000 1,000,000Variable cost 600,000 540,054 540,054Fixed cost 350,000 350,000 360,000Profit 50,000 109,946 99,946 Doubled 33.3% returnReturn on 120,000 = 100*(49,946-10,000)/120,000 = 33.3%Copyright 2011 John Wiley & Sons, Inc.2-49Cost of Quality Cost of Achieving Good QualityPrevention costscosts incurred during product designAppraisal costscosts of measuring, testing, and analyzing Cost of Poor QualityInternal failure costsinclude scrap, rework, process failure, downtime, and price reductionsExternal failure costsinclude complaints, returns, warranty claims, liability, and lost salesCopyright 2011 John Wiley & Sons, Inc.2-50Prevention CostsQuality planning costscosts of developing and implementing quality management programProduct-design costscosts of designing products with quality characteristicsProcess costscosts expended to make sure productive process conforms to quality specificationsTraining costscosts of developing and putting on quality training programs for employees and managementInformation costscosts of acquiring and maintaining data related to quality, and development and analysis of reports on quality performanceCopyright 2011 John Wiley & Sons, Inc.2-51Appraisal CostsInspection and testingcosts of testing and inspecting materials, parts, and product at various stages and at end of processTest equipment costscosts of maintaining equipment used in testing quality characteristics of productsOperator costscosts of time spent by operators to gather data for testing product quality, to make equipment adjustments to maintain quality, and to stop work to assess qualityCopyright 2011 John Wiley & Sons, Inc.2-52Internal Failure CostsScrap costscosts of poor-quality products that must be discarded, including labor, material, and indirect costsRework costscosts of fixing defective products to conform to quality specificationsProcess failure costscosts of determining why production process is producing poor-quality productsProcess downtime costscosts of shutting down productive process to fix problemPrice-downgrading costscosts of discounting poor-quality products—that is, selling products as “seconds”Copyright 2011 John Wiley & Sons, Inc.2-53External Failure CostsCustomer complaint costscosts of investigating and satisfactorily responding to a customer complaint resulting from a poor-quality productProduct return costscosts of handling and replacing poor-quality products returned by customerWarranty claims costscosts of complying with product warrantiesProduct liability costslitigation costs resulting from product liability and customer injuryLost sales costscosts incurred because customers are dissatisfied with poor-quality products and do not make additional purchasesCopyright 2011 John Wiley & Sons, Inc.2-54Measuring and Reporting Quality CostsIndex numbersratios that measure quality costs against a base valuelabor index ratio of quality cost to labor hourscost index ratio of quality cost to manufacturing costsales index ratio of quality cost to salesproduction index ratio of quality cost to units of final productCopyright 2011 John Wiley & Sons, Inc.2-55Cost of QualityCopyright 2011 John Wiley & Sons, Inc.2-56 Year 2006 2007 2008 2009Quality Costs Prevention 27,000 41,500 74,600 112,300 Appraisal 155,000 122,500 113,400 107,000 Internal failure 386,400 469,200 347,800 219,100 External failure 242,000 196,000 103,500 106,000 Total 810,400 829,200 639,300 544,400 Accounting Measures Sales 4,360,000 4,450,000 5,050,000 5,190,000 Manufacturing costs 1,760,000 1,810,000 1,880,000 1,890,000 Cost of QualityQuality index = total quality costs/base * 1002006 quality cost per sale810,400 * 100 / 4,360,000 = 18.58Copyright 2011 John Wiley & Sons, Inc.2-57 Quality Quality ManufacturingYear Sales Index Cost Index2006 18.58 46.042007 18.63 45.182008 12.66 34.002009 10.49 28.80 Quality–Cost RelationshipCost of qualitydifference between price of nonconformance and conformancecost of doing things wrong20 to 35% of revenuescost of doing things right3 to 4% of revenuesCopyright 2011 John Wiley & Sons, Inc.2-58Effect of Quality Management on ProductivityProductivity = output / inputQuality impact on productivityfewer defects increase output, and quality improvement reduces inputsYielda measure of productivity2-59Measuring Product Yield and Productivity2-60Yield=(total input)(% good units) + (total input)(1-%good units)(% reworked)orY=(I)(%G)+(I)(1-%G)(%R)whereI = initial quantity started in production%G = percentage of good units produced%R = percentage of defective units that are successfully reworkedCopyright 2011 John Wiley & Sons, Inc.Computing Product YieldMotor manufacturerStarts a batch of 100 motors.80 % are good when produced50 % of the defective motors can be reworked2-61Y =(I)(%G)+(I)(1-%G)(%R) = 100(.80) + 100(1-.80)(.50) = 90 motorsIncrease quality to 90% goodY =100(.90) + 100(1-.90)(.50) = 95 motorsCopyright 2011 John Wiley & Sons, Inc.Computing Product Cost per UnitCopyright 2011 John Wiley & Sons, Inc.2-62Product Costwhere:Kd = direct manufacturing cost per unitI = inputKr = rework cost per unitR = reworked unitsY = yield Cost per UnitDirect cost = $30 Rework cost = $1280% good 50% can be reworkedCopyright 2011 John Wiley & Sons, Inc.2-63=$30*100 + $12*1090 motors=$34.67/motorIncrease quality to 90% good=$30*100 + $12*595 motors=$32.21/motorComputing Product Yieldfor Multistage ProcessesCopyright 2011 John Wiley & Sons, Inc.2-64Y = (I)(%g1)(%g2) (%gn)where:I = input of items to the production process that will result in finished productsgi = good-quality, work-in-process products at stage iMultistage Yield Average PercentageStage Good Quality 1 0.93 2 0.95 3 0.97 4 0.92Copyright 2011 John Wiley & Sons, Inc.2-65= 100 * .93 * .95 * .97 * .92 = 78.8 motorsY = (I)(%g1)(%g2) (%gn)Initial Batch Size For 100 MotorsI = Copyright 2011 John Wiley & Sons, Inc.2-66Y (%g1)(%g2) (%gn)100 100 * .93 * .95 * .97 * .92= = 126.88  127 Quality–Productivity RatioQPRproductivity index that includes productivity and quality costsCopyright 2011 John Wiley & Sons, Inc.2-67QPR =(good-quality units)(input) (processing cost) + (reworked units) (rework cost)(100)Quality Productivity RatioCopyright 2011 John Wiley & Sons, Inc.2-68Direct cost = $30 Rework cost = $1280% good 50% can be reworkedInitial batch size = 100QPR =80 + 10100 * $30 + 10 * $12(100) = 2.89QPR =160 + 20200 * $30 + 20 * $12(100) = 2.89 – NO CHANGEBase CaseCase 1: Increase I to 200Quality Productivity Ratio2-69Copyright 2011 John Wiley & Sons, Inc.Case 2: Reduce direct cost to $26 and rework cost to $10 QPR =80 + 10100 * $26 + 10 * $10(100) = 3.33QPR =95 + 2.5100 * $30 + 2.5 * $12(100) = 3.22Case 3: Increase %G to 95%QPR =95 + 2.5100 * $26 + 2.5 * $10(100) = 3.71Case 4: Decrease costs and increase %G Malcolm Baldrige AwardCreated in 1987 to stimulate growth of quality management in United StatesCategoriesLeadershipInformation and analysisStrategic planningHuman resource focusProcess managementBusiness resultsCustomer and market focusCopyright 2011 John Wiley & Sons, Inc.2-70Other Awards for QualityNational individual awardsArmand V. Feigenbaum MedalDeming MedalE. Jack Lancaster MedalEdwards MedalShewhart MedalIshikawa MedalInternational awardsEuropean Quality AwardCanadian Quality AwardAustralian Business Excellence AwardDeming Prize from JapanCopyright 2011 John Wiley & Sons, Inc.2-71ISO 9000Procedures and policies for international quality certificationISO 9000:2008Quality Management Systems—Fundamentals and Vocabularydefines fundamental terms and definitions used in ISO 9000 family ISO 9001:2008Quality Management Systems—Requirementsstandard to assess ability to achieve customer satisfactionCopyright 2011 John Wiley & Sons, Inc.2-72ISO 9000ISO 9004:2008Quality Management Systems—Guidelines for Performance Improvementsguidance to a company for continual improvement of its quality-management systemCopyright 2011 John Wiley & Sons, Inc.2-73ISO 9000 Certification,Implications, and RegistrarsISO 9001:2008—only standard that carries third-party certificationMany overseas companies will not do business with a supplier unless it has ISO 9000 certificationISO 9000 accreditationISO registrars2-74Copyright 2009 John Wiley & Sons, Inc.All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein. Copyright 2011 John Wiley & Sons, Inc.2-75