Chapter 17
Quality
planning
and control
Source: Archie Miles
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The various definitions of quality
The transcendent approach views quality as synonymous with
innate excellence.
The manufacturing-based approach assumes quality is all about
making or providing error-free products or services.
The user-based approach assumes quality is all about providing
products or services that are fit for their purpose.
The product-based approach views quality as a precise and
measurable set of characteristics.
The value-based approach defines quality in terms of ‘value’.
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Benefits from a quality focus
Better
Products
Quality
Focus
Fewer
Defects
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Quality characteristics of goods and services
Functionality – how well the product or service does the
job for which it was intended
Appearance – the aesthetic appeal, look, feel, sound
and smell of the product or service
Reliability – the consistency of performance of the
product or service over time
Durability – the total useful life of the product or service
Recovery – the ease with which problems with the
product or service can be rectified or resolved
Contact – the nature of the person-to-person contacts
that take place
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Quality
Quality
fitness for purpose
Quality of design
degree to which
design achieves purpose
Reliability
ability to continue
working at accepted
quality level
Quality of conformance
faithfulness with which the
operation agrees with design
Variables
things you can measure
Attributes
things you can assess
and accept or reject
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The Economics of Quality
Total Cost of Quality
Control costs
Failure costs
Internal
Prevention Appraisal
Failure
External
Failure
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Defining the costs of Quality
Prevention : Costs associated with design and
planning of a Quality programme
Appraisal :
Costs involved in the direct appraisal
of quality both in plant and in field
Internal Failure :
Occurrence of defective product
in plant
External Failure :
Failure of product or service in
field
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Dimensions of Service Quality
Five principal dimensions that customers use to judge
service quality. These dimensions are listed in order of
declining relative importance to customers.
 Reliability
 Responsiveness
Dependability
Promptness of service
Accuracy
Service failure
Reliability
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Assurance
Knowledge and Courtesy
Competence
Politeness and respect
Effective communication
Server attitude
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
 Empathy
Caring Individualised attention
Approachability
Sense of security
Understanding Customer's needs.

Tangibles
Physical facilities
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Quality Dimensions
Word of
Mouth
Dimensions of
Service Quality
Reliability
Responsiveness
Assurance
Empathy
Tangibles
Personal
Needs
Expected
Service
Past
Experience
Perceived
Service
Quality
ES < PS Quality
Surprise
Perceived
service
ES = PS Satisfactory
ES > PS Unacceptable
Quality
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
Perceived quality is governed by the gap between customers’
expectations and their perceptions of the product or service
Gap
Gap
Customers’
expectations
for the
Customers’
product or
perceptions
service
of the
product or
service
Customers’
Customers’
expectations perceptions
of the
for the
product or
product or
service
service
Expectations >
perceptions
Expectations =
perceptions
Perceived quality is
poor
“Unacceptable Quality”
Perceived quality is
acceptable
Customers’
expectations
for the
product or
service
Customers’
perceptions
of the
product or
service
Expectations <
perceptions
Perceived quality is
good
“Quality Surprise”
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
A ‘gap’ model of quality
Previous
experience
Word-of-mouth
communications
The customer’s
domain
Customer’s
expectations
concerning a
product or service
Image of product
or service
Gap ?
Customer’s
perceptions
concerning the
product or service
Gap 4
Customer’s own
specification of
quality
Gap 1
Management’s
concept of the
product or service
The actual product
or service
Organization’s
specification of
quality
Gap 3
Gap 2
The operation’s domain
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
The perception–expectation gap
Action required to ensure high
perceived quality
Main organizational
responsibility
Gap 1
Ensure consistency between
internal quality specification and
the expectations of customers
Marketing, operations,
product/service
development
Gap 2
Ensure internal specification meets
its intended concept of design
Marketing, operations,
product/service
development
Gap 3
Ensure actual product or service
conforms to internally specified
quality level
Operations
Gap 4
Ensure that promises made to
customers concerning the product or
service can really be delivered
Marketing
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007
High quality puts costs down and revenue up
Quality
Qualityup
up
Rework
Reworkand
and
scrap
costs
scrap costs
down
down
Image
Imageup
up
Service
Service
costs
costsdown
down
Inventory
Inventory
down
down
Inspection
Inspectionand
and
test
costs
test costs
down
down
Sales
Sales
volume
volumeup
up
Price
Price
competition
competition
down
down
Processing
Processing
time
timedown
down
Complaint
Complaintand
and
warranty
costs
warranty costs
down
down
Scale
Scale
economies
economiesup
up
Capital
Capitalcosts
costs
down
down
Productivity
Productivity
up
up
Operation
Operationcosts
costs
down
down
Revenue
Revenue
up
up
Profits
Profitsup
up
Slack, Chambers and Johnston, Operations Management 5th Edition © Nigel Slack, Stuart Chambers, and Robert Johnston 2007