Chapter 8 Flashcards
Culture
The set key of beliefs, values, and norms that members of an organization share.
Beliefs
Assumptions that individuals hold about themselves, their customers, and their organization.
Values
The things organizations hold most dear, strives for, and wants to protects at all costs.
Norms
The unwritten rules of behavior that address such issues as how employees dress and interact.
Functions of organizational culture
Organizational identity, creative commitment, social system stability, and sense-making device.
Leves of organizational culture
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Types of customer satisfaction
- Quality of design: determined before a product is produced, determined by market research, design concept, and specifications
- Quality of conformance: producing a product to meet the specifications (technology, employees, management)
- Availability: continuity of service to the customer (measures by AVAILABILITY = UPTME / UPTIME+DOWNTIME or AVAILABILITY = MTBF / MTF+,TTR)
- Field service: represents warranty and repair or replacement of the product after it has been sold
Reliability
length of time a product can be used before it fails - probability that a product will function for a specified period of time without failure
Maintainability
Restoration of a product or service once it has failed
MTBF
Mean time between failure
MTTR
Mean time to repair
SERVQUAL
Approach to evaluating service quality (assess customer perceptions about 5 dimensions - tangibles, reliability, responsiveness, assurance, and empathy)
Quality
Ability of a product or service to consistently meet or exceed customer expectations
- Satisfaction is different for everyone and depends on how the product or service is consumed now and in the future
Poke-yoke
Mistake proofing
- design product and process so that it is impossible for humans to make mistakes or for mistakes to be easily detected by humans when they occur
Product dimensions of quality
PERFORMANCE - EXPECTATIONS = QUALITY
- Performance: main characteristics of product
- Aesthetics: appearance, feel, smell, & fast
- Conformance: how well product matches design specifics
- Durability: useful like of product
- Serviceability: handling of complaints or repairs
- Perceived quality: indirect evaluation of quality (reputation)
- Reliability: consistency of performance
- Special features: extra characteristics
Service dimensions of quality
PERFORMANCE - EXPECTATIONS = QUALITY
- Tangibles: physical appearance of facilities, equipment, communication materials, people
- Convenience: availability and accessibility of service
- Assurance: knowledge exhibited by personnel and ability to convey trust and confidence
- Reliability: ability to perform service dependably, consistently, and accurately
- Courtesy: way customers are treated by employees who come in contact with them
- Time: speed with which service is rendered
- Responsiveness: willingness of providers to help customers in unusual situations and to deal with problems
- Product dimensions: insert service for product
Determinants of quality
Design, ease of use, conforms to design, and service
Internal failure
Related to defective parts/services before delivery to customers
External failure
Related to delivering substandard products/services to customers
Appraisal
Related to measuring, evaluating, and auditing materials, parts, products, and services, to assess conformance with quality standards
Prevention
Related to reducing potential for quality problems
Cost of quality
includes prevention, appraisal, internal failure, and external failure categories
- Focuses management attention on waste due to excess failures or high control costs
- provides quantitative basis for monitoring progress in reducing quality costs
Control costs
related to activities that remove defects from the production stream (prevention - quality planning, new product review, training, and engineering analysis and appraisals - aimed at eliminating defects after they occur but before products reach the customer incoming materials inspections, process, inspection, final goods inspection, quality laboratories
Failure costs
incurred during th production process (internal - scrap, rework, downgrading, retest, downtime) or after the product is shipped (external - warranty, returned merchandise, complained, allowances)
