Operations Management Contemporary Concepts and Cases Chapter 8

Fitness for Use
Related to the benefits received by the customer and to customer satisfaction.
Customer Satisfaction
Relative concept that varies from one customer. Each person defines quality in relation to his or her own expectations at a particular point in time.
Quality of Design
Determined before a product is produced. This determination is usually the primary responsibility of a cross-functional product design team, including members from marketing, engineering, operations, and other functions.
Quality of Conformance
Producing a product to meet the specifications. When the product conforms to specifications, operations considers it a quality product regardless of the quality of the design specifications.
Availability
Defines the continuity of service to the customer. A product is this if it is in an operational state and not down for repairs or maintenance.
Reliability
Refers to the length of tie a product can be used before it fails. Formally speaking, this is the probability that a product will function for a specified period of time without failure.
Maintainability
Refers to the restoration of a product or service once it has failed. All customers consider maintenance or repairs a nuisance. Thus, a high degree of this is desired so that a product can be restored to use quickly.
Field Service
The last dimension of quality, represents warranty and repair or replacement of the product after it has been sold. This is also called customer service, sales service, or just service.
Service Quality
Quite different from that of manufacturing quality, This has dimensions of manufacturing, tangible service and psychological service require different measurements.
SERVQUAL
Most popular measure of service quality. Measured by a customer questionnaire based on five perceptual measures of service.
Tangibles
A measure of SERVQUAL, The appearance of the company’s physical facilities, equipment, and personnel. For example, if a restaurant is dirty and not presentable and the employees are disheveled looking, the this quality will be low.
Reliability
A measure of SERVQUAL, the ability of the company to perform the promised service dependably and accurately without errors. For example, if a restaurant takes a reservation for 7:00 pm, and the customer is not seated promptly or the waiters bring the wrong meal, this will be low.
Responsiveness
A measure of SERVQUAL, the willingness of the company to provide service that is prompt and helpful to the customer. In the restaurant, for example, the meal should be provided in a timely fashion and with help when needed to understand the menu.
Assurance
A measure of SERVQUAL, the knowledge and courtesy of the company’s employees and their ability to convey trust and confidence. In the restaurant example, does the server know the menu and is the server courteous in providing the service.
Empathy
A measure of SERVQUAL, the caring, individualized attention the company provides to its customers. Does the server in the restaurant help each customer and show concern for the customers?
Mistake-Proofing
This concept was developed in the 1960s by Shigeo Shingo, who worked for Toyota Motors in Japan. It was called Poka-yoke. The idea of poka-yoke is to design the product and process so that it is impossible to make mistakes or mistakes are easily detected when they do occur.
Quality Trilogy
Planning, Control and Improvement of Quality.
ISO 9000 Standards
One of the major approaches that companies are using to ensure quality today.