Product, Branding and CustomerService Strategies
Pertemuan ke-15
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Two views of Quality
• Traditional view:
– Productivity and quality are conflicting goals
– Quality is defined as conformance to specifications or
standards
– Quality is measured by degree of nonconformance
– Quality is achieved through inspection
– Some defects are allowed if the product meets
minimum quality standards
– Quality is a separate function and focused on
evaluating production
– Workers are blamed for poor quality
– Supplier relationships are short term and cost
oriented.
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Two Views of Quality
• Total quality management view:
– Productivity gains are achieved through quality improvements
– Quality is conformance to correctly defined requirements
satisfying user needs
– Quality is measured by continuous process/product improvement
and user satisfaction
– Quality is determined by product design and is achieved by
effective process controls
– Defects are prevented through process control techniques
– Quality is part of every function in all phases of the product life
cycle
– Management is responsible for quality
– Supplier relationships are long term and quality oriented
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Product Quality and Cost
Relationship
• Product quality improvement reduces cost and
increases competitive advantage.
• The successful adoption of a customer-driven
organizational strategy is essential for improving
product quality
• Improving all processes of the business
increases the uniformity of the products
produced, reduces rework and mistakes, and
reduces waste of manpower, machine time and
materials usage.
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Quality Improvement Strategy
• Quality culture:
– Quality improvement is the responsibility of
everyone in the organization.
– Essential managerial style and leadership
characteristics in developing a quality oriented
culture include attention to detail, complete
planning, problem monitoring, high personal
standards, ongoing commitment to quality
improvement, responsive and participative
management style and trustworthiness.
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Managing Existing Products
• Tracking product performance:
– Establish product performance objectives
– Develop a product evaluation system
– Identify problem products
– Select strategy for eliminating the problem
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Analysis Objectives
• Criteria and acceptable levels of performance for
gauging product performance.
• Criteria may include financial and non-financial
factors
• Use product life cycle analysis:
– Determining the length and rate of change of the
product life cycle
– Identifying the current PLC stage and selecting the
product strategy that corresponds to that stage
– Anticipating threats and finding opportunities for
altering and extending the PLC.
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Conclusions
• The importance of product quality to competing
in global markets requires the development of
organizational philosophy and management
process for improving quality.
• Evaluating a company’s existing products helps
to establish priorities and guidelines for
managing the product portfolio. These methods
include the analysis of the product life cycle.
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