AKIM STATE UNIVERSITY COLLEGE (ASUC)

( Affiliated to KNUST)
DEPARTMENT OF ACCOUNTING, BANKING AND FINANCE
FIRST SEMESTER 2019/2020 ACADEMIC YEAR

OPERATIONS MANAGEMENT
(MGT 301)
MANAGING QUALITY (PRODUCT AND SERVICE)
Lecture Six
Samuel Kofi Asiamah, CA
[email protected]
Presentation Outline

 Students Learning Outcomes

 Defining quality
 Importance of Quality
 Quality Dimension for product and service
 Determinant of Quality
 Factors affecting Quality
 Total Quality Management (TQM)

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Students Learning Outcomes
 On completion of this lecture, students should be able to
 understand the meaning of quality
 Identify and understand the importance of quality
 Identify and understand the various quality dimension for
product and services.
 understand the determinants of quality
 Identify and understand the various factors affecting quality
 understand the meaning and application of TQM

MGT 301 Lecture Six

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 Defining Quality
 The totality of features and characteristics of a product or
service that bears on its ability to satisfy stated or implied
needs.
 Quality is a measure of how closely a good or
product/service conforms to specified standard.
 Quality standards may be any one or a combination of
attributes and variables of the product being manufactured in
relation to cost.
 There are different views of what is quality to the customers
and manufactures.
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Importance of Quality

 Managing quality supports differentiation, low cost, and

response strategies.
 Quality helps firms increase sales and reduce costs.
 Building a quality organization is a demanding task.
 Quality also have implication n a firm’s reputation.
 Quality reduces product liability (risk)

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Quality Dimensions for Product

 Performance- basic characteristics of the product.

 Aesthetics-appearance, feel, smell & taste
 Special features -extra characteristics
 Conformance - design specifications
 Durability- perform over time
 Perceived quality- brand name, advertising
 Serviceability- handling of complaints

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Quality Dimensions for Service

 Convenience- availability and accessibility of the services.

 Reliability- consistently and accurately
 Responsiveness- to help customers
 Time –speed with which service is delivered
 Courtesy- the way customers are treated
 Tangibles- special appearance of facility, equipment &
personnel

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Determinants for Quality

 The degree to which a product or service successfully

satisfies its intended purpose has four primary determinants
or factors.
 Quality of Design
 Quality of Conformance
 Consumer Education
 Service after delivery.

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Determinants for Quality

 The degree to which a product or service successfully

satisfies its intended purpose has four primary determinants
or factors.
 Quality of Design
 Quality of Conformance
 Consumer Education
 Service after delivery.

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 Fundamental Factors Affecting Quality

 The nine fundamental factors (9 M’s), which are affecting the quality
of products and services are:
 Markets
 Money
 Management
 Men
 Motivation
 Materials Machines/mechanization,
 Modern information methods & Mounting product requirements
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Total Quality Management (TQM)

 TQM refers to the quest for quality in an organization and it

encompasses entire organization, from supplier to customer.
 Customer Satisfaction- meeting and exceeding customer
expectations
 Employee involving- teamwork, incentives, awards, individual
development
 Continuous improvement- never needing push to improve
upon current quality level.

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Seven Concepts of TQM

 Continuous improvement- Involves all operations and work

centers including suppliers and customers.

 Six Sigma- A program designed to reduce defects, lower costs,

and improve customer satisfaction.

 Employee empowerment- Getting employees involved in

product and process improvements.

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Seven Concepts of TQM
 Benchmarking- Selecting best practices to use as a standard for
performance based on competitors approach.
 Just-in-time (JIT)- management strategy that aligns raw-material
orders from suppliers directly with production schedules.
 Taguchi concepts- the Taguchi method of quality control focuses
on design and development to create efficient, reliable products.
 Knowledge of TQM tools- Pareto Principle, Scatter Plots, Control
Charts, Flow Charts, Cause and Effect, Fishbone or Ishikawa
Diagram, Histogram or Bar Graph, Check Lists and Check Sheets

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END OF LECTURE

MGT 301 Lecture Six