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49
cesses in other industries. In fact, fewer than one percent of products
produced by Japanese manufacturing firms are discarded as defective.
The American average is four percent.
(3) The Japanese experience has proven that management strate-
gies can contribute to improving quality and productivity. Hewlett-
Packard reports that their decision to reduce product failure rates by
tenfold during the 1980s was the key starting point in their effort to in-
crease productivity and lower costs. The Hewlett-Packard management
discovered that productivity increased when their employees had the
latest information and when they were able to participate in production
decisions.
(4) David Garvin, a professor at the Harvard Business School,
has identified eight dimensions of quality.
(5) Performance. The quietness of a car's ride; the resistance of
cosmetics to smudging; the clarity of the picture, sound and color for a
TV set; low energy consumption of appliances; the sound from a stereo
system.
(6) Features. The colors, patterns and fabrics that are available
in furniture, towels, sheets, drapes, etc.; the different cycles and options
available on washers, dryers, microwaves, refrigerators, etc.; the ad-
justments available on a stereo to improve the sound or on a camera to
allow for different types of shots, lenses and tripods.
(7) Reliability. Dependability of a product or service to perform
properly over time. How often does the photocopy machine need repairs
and what does it cost? Automobile reliability is one of the most desired
attributes for anyone purchasing his or her own car.
(8) Conformance. How the product meets desired standards and
tolerances such as size, consistency of color, etc. Does the product
reach its customers on time? This is particularly important for busi-
nesses whose products are used in the assembly of other larger prod-
ucts. Automobile suppliers who provide parts for automobiles rolling
off an assembly line must meet certain standards, quality and tolerances
to sell their parts to the manufacturers.
(9) Durability. How long a product will last under various condi-
tions. Light bulbs and batteries are sold and advertised on their longev-
ity. How many hours will the light burn? In some cases companies will
provide a lifetime guarantee.
50
(10) Serviceability. The ease of repair or maintenance of a prod-
uct. Many firms now have toll free "hot lines" for consumers to use if
they have questions or need repairs. These hotlines are designed to re-
duce dissatisfaction and maintain good customer relations. "Downtime"
for a copier or computer must be minimized. Can the company guaran-
tee service in six hours? Farmers cannot afford downtime during har-
vest season. Can the manufacturer guarantee delivery of any part in 24
or 48 hours?
(11) Aesthetics. How a product looks, feels, sounds, tastes and
smells. The design of the product is important, Consider the Timex
"lronman" watch designed for athletes competing in the triathlon. It has
a "macho" look with oversized buttons and large logos that are attrac-
tive to more than just the triathlon athlete. The Ironman is one of the
hottest selling watches around. Timex is now coming out with a Victory
watch for sailors and anyone else who wishes to fantasize about sailing.
Is fantasy part of aesthetics?
(12) Perceived Quality. The reputation of the product, its name
and label. Japanese products now have a general aura of high quality.
Yet how many of the products are fully made and assembled in Japan?
Could some of the component parts come from South Korea, Taiwan or
Singapore? The Japanese product could actually be made in America,
such as Honda in Ohio and Mitsubishi televisions in California. Is the
quality as high for an American-made Honda as a Japanese-made
Honda? J.D. Power & Associates, who conducts market research on
customer satisfaction with automobiles, has reported a difference in
perceived quality between Japanese-made Hondas and American-made
Hondas.
(13) Trade-offs exist among these eight dimensions of quality. In
addition, companies can seldom pursue all eight quality dimensions at
the same time. Management has to make decisions based on a strategy
for marketing its product in a competitive environment.
IV. In groups of four, discuss the following questions and share
your answers with the whole class.
1. Think about the last major purchase you or a member of your
family made. How much were you influenced by the "Attributes of
Quality" described above? Which attributes were most important?
cesses in other industries. In fact, fewer than one percent of products (10) Serviceability. The ease of repair or maintenance of a prod- produced by Japanese manufacturing firms are discarded as defective. uct. Many firms now have toll free "hot lines" for consumers to use if The American average is four percent. they have questions or need repairs. These hotlines are designed to re- (3) The Japanese experience has proven that management strate- duce dissatisfaction and maintain good customer relations. "Downtime" gies can contribute to improving quality and productivity. Hewlett- for a copier or computer must be minimized. Can the company guaran- Packard reports that their decision to reduce product failure rates by tee service in six hours? Farmers cannot afford downtime during har- tenfold during the 1980s was the key starting point in their effort to in- vest season. Can the manufacturer guarantee delivery of any part in 24 crease productivity and lower costs. The Hewlett-Packard management or 48 hours? discovered that productivity increased when their employees had the (11) Aesthetics. How a product looks, feels, sounds, tastes and latest information and when they were able to participate in production smells. The design of the product is important, Consider the Timex decisions. "lronman" watch designed for athletes competing in the triathlon. It has (4) David Garvin, a professor at the Harvard Business School, a "macho" look with oversized buttons and large logos that are attrac- has identified eight dimensions of quality. tive to more than just the triathlon athlete. The Ironman is one of the (5) Performance. The quietness of a car's ride; the resistance of hottest selling watches around. Timex is now coming out with a Victory cosmetics to smudging; the clarity of the picture, sound and color for a watch for sailors and anyone else who wishes to fantasize about sailing. TV set; low energy consumption of appliances; the sound from a stereo Is fantasy part of aesthetics? system. (12) Perceived Quality. The reputation of the product, its name (6) Features. The colors, patterns and fabrics that are available and label. Japanese products now have a general aura of high quality. in furniture, towels, sheets, drapes, etc.; the different cycles and options Yet how many of the products are fully made and assembled in Japan? available on washers, dryers, microwaves, refrigerators, etc.; the ad- Could some of the component parts come from South Korea, Taiwan or justments available on a stereo to improve the sound or on a camera to Singapore? The Japanese product could actually be made in America, allow for different types of shots, lenses and tripods. such as Honda in Ohio and Mitsubishi televisions in California. Is the (7) Reliability. Dependability of a product or service to perform quality as high for an American-made Honda as a Japanese-made properly over time. How often does the photocopy machine need repairs Honda? J.D. Power & Associates, who conducts market research on and what does it cost? Automobile reliability is one of the most desired customer satisfaction with automobiles, has reported a difference in attributes for anyone purchasing his or her own car. perceived quality between Japanese-made Hondas and American-made (8) Conformance. How the product meets desired standards and Hondas. tolerances such as size, consistency of color, etc. Does the product (13) Trade-offs exist among these eight dimensions of quality. In reach its customers on time? This is particularly important for busi- addition, companies can seldom pursue all eight quality dimensions at nesses whose products are used in the assembly of other larger prod- the same time. Management has to make decisions based on a strategy ucts. Automobile suppliers who provide parts for automobiles rolling for marketing its product in a competitive environment. off an assembly line must meet certain standards, quality and tolerances to sell their parts to the manufacturers. IV. In groups of four, discuss the following questions and share (9) Durability. How long a product will last under various condi- your answers with the whole class. tions. Light bulbs and batteries are sold and advertised on their longev- 1. Think about the last major purchase you or a member of your ity. How many hours will the light burn? In some cases companies will family made. How much were you influenced by the "Attributes of provide a lifetime guarantee. Quality" described above? Which attributes were most important? 49 50
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