Introduction to Quality Systems
Angela Praiswater
Introduction
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What is quality?
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User based
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Manufacturing based
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Conforming to standards and making the product right the first time
Product based
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Lies in the eyes of the beholder
Customers and Marketing lean towards this approach
Higher quality means better performance, nicer features, and other (sometimes costly) improvements
Precise and measureable variable
What companies come to mind when you think high quality products or service?
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Samsung
Toyota
Amazon
Why do you consider these companies producers of high quality products or service?
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Meets or exceeds the needs of the customer
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Balance
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Product functionality, reliability, maintainability, availability
High Quality
Cost Efficiency
Customer Service
Reputation
Best & Worst in Quality Products /
Service
http://money.cnn.com/magazines/fortune/mostadmired/2011/best_worst/best8.html
http://www.forbes.com/sites/jacquelynsmith/2012/06/07/the-worlds-most-reputable-companies/
Reputable Companies
• Word of mouth has become the No. 1 driver of sales
and competitive advantage
• Strong correlation between a company’s reputation
and customer’s willingness to recommend it.
– People’s willingness to recommend a company is based 60%
by their perceptions of the company and 40% by their
perceptions of their products.
• Large companies are spending billions to manage their
public image.
• Indicators: trust, esteem, admiration, and good feeling
• Top Reputable Companies according to Forbes
• What could companies focus on to improve their public
image?
http://www.comparebusinessproducts.com/fyi/10-best-and-10-worst-companies-customer-service
Customer Service
• Best Companies for customer service
– Apple – company focuses on product innovation and customer service
– GE – Black belts in customer service
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Proactive measures to assist internal customers in streamlining processes, cutting
costs, and increasing profit margins – all for free.
– Toyota
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Customer Loyalty – “The Toyota Way” founds the production system and lean
manufacturing techniques, but the philosophy also pushes customer-centric quality as
being “pure logic and pure respect”
– Google, Southwest Airlines, Hilton Hotels, Papa John’s, DirecTV, Samsung
• Worst Companies in Customer Service
– AOL (closing accounts), Best Buy (persistence with selling protection
plans), Home Depot (last in Business Week for retailers in the U.S.), AT&T
(Most complaints from cell providers according to the FCC), Day’s Inn
Quality
• How does quality apply to a company?
– Products/service
• Quality of design & conformance
• Process – planning, control, improvement
• Characteristics: reliability, maintainability, and availability
– Level of Customer Service
• Trust, admiration, esteem, good feeling
– Reputation
• Drivers of quality, setting standards
– Quality must be part of the company philosophy
and a top priority in their organizational strategy
Ways quality improves profitability
• Sales Gains
– Improved response
– Flexible pricing
– Improved reputation
• Reduced Costs
– Increased productivity
– Lower rework and scrap costs
– Lower warranty Costs