12-12-2012, 01:15 PM
Defining and Managing Service Quality
Defining and Managing.ppt (Size: 981 KB / Downloads: 28)
Why Quality Matters
The global market is becoming more competitive every day
Companies continually search for new ways to gain an edge over their competitors around the globe
Global competition and deregulation in a number of industries is forcing companies to turn to quality in order to survive
Quality is our best assurance of customer allegiance, our strongest defense against foreign competition, and the only path to sustained growth and earnings (Welch).
Perhaps the most important reason for pursuing quality is that quality pays (Deming).
Research shows a relationship between quality, market share, and return on investment
Relationship between Quality, Market Share, and ROI
Higher quality yields a higher return-on-investment (ROI) for any given market share
Quality also pays in the form of customer retention -- customer defections represent a significant cost to companies
Adopting quality principles strongly correlates to corporate stock and earnings appreciation
Key Forces Influencing Quality in the Future
Quality must deliver bottom-line results
Management systems will increasingly absorb the quality function
Quality will be everyone’s job
The economic case for a broader application of quality will need to be proved
Global demand for products and services will create a global work force
Trust and confidence in business leaders and organizations will decline
What is Quality?
■ "The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs." (Kotler)
■ Quality must provide goods and services that completely satisfy the needs of both internal and external customers. Quality serves as the "bridge" between the producer of goods or services and its customer. (Johnson & Weinstein)
Crosby’s Philosophy of Quality
Crosby defines quality as "conformance to requirements, not as goodness"
Crosby believes that quality is created by a system of prevention, not appraisal (doing it right the fist time or DIRFT), where the performance standard is "zero defects -- meeting specifications 100% of the time”.
Crosby also believes it is necessary to build a quality-driven corporate culture