Quality Dimensions
RHAM EL SOKARY
Global Director QHSE and Process Excellence | QHSE LA, TQM, OE, SM, RM and CM expert | Top 50 leaders in Operational Excellence by PEX, 2023
Why had many companies like NOKIA and KODAK couldn't be able to continue in market with the same strength?
To answer this question, we should first discuss quality dimensions as a main responsible for the success or failures of companies. Quality itself means basically the fitness for use “Juran”, or meeting customer requirements and expectations, or doing the right things right, all these meanings are applicable on any process output including physical goods, services, projects, and software programs.
Quality definition is subjective, means everyone and every company can define the meaning of output quality based on many factors that must be considered relatively, such as the department objectives, individuals job description, process interactions, required deliverables, …etc. So, you are the responsible for defining the meaning of quality at your position, but any quality definition must incorporate two main dimensions which are:
1.????Product Features Are the product characteristics and specifications which differs from physical goods to services, for physical goods features are related to the performance, reliability, durability, serviceability, aesthetics, reputation, conformance to standards, ….etc. For service features are related to accuracy, duration, friendless, courtesy, server knowledge and skills, appearance of facility and personnel’s,…etc. We are talking about the product features that meets customer requirements, don’t add features that is basically not required because that will lead to additional cost without payback, unless in certain special cases needed for certain business objectives.
?In this dimension the higher features mean higher quality that leads to higher customer satisfaction, market share, sales income and enables companies to meet competition and secure premium prices. Higher quality costs more and the major effect of this dimension on “sales”
2.????Freedom from deficiencies This dimension concentrates on the physical product to be free of defects and services to be free of errors throughout the whole product life cycle. So higher quality in this dimension means lower error rate, defects, rework, repair, waste, warranty claims, sales returns, process cycle time results in increase productivity. Worth mentioning that the higher quality in this dimension means less customer dissatisfaction “not higher customer satisfaction” because if you received a product that is free of defects you will not be happy, but the reverse will make you unhappy, then having a product free of defects or a service free of errors will never elevate your satisfaction but if there any defect or error you will be unsatisfied. Higher quality costs less and the major effect of this dimension on “cost”
Now “Which dimension worth the attention of companies?”
If companies pay attention to the first dimension “Product Features”, then they will meet competition and secure high market share and premium prices which all leads to higher sales income and, if companies pay attention to the second dimension “Freedom from Deficiencies”, then they will reduce defects, errors, waste warranty claims and cycle time which all lead to lower operational costs.
If companies pay attention to both quality dimensions, then they will increase the sales income and reduce the operational cost which will results in higher profits.
Companies must pay equal attention to both quality dimensions, and companies who decided to ignore one of those dimensions has already failed, for example NOKIA refused Android, KODAK refused digital cameras, Yahoo refused Google all these companies relied only on the second dimension “Freedom from deficiencies” and ignored the first one “Product features”. Also, Toyota had recalled different models for different defects, the second dimension caused them vast monetary and nonmonetary losses. And as a good example Facebook which already took over WhatsApp and Instagram.
Lessons learned is to embrace both dimensions of quality, take risks and keep changing because if you don’t you will be obsoleted with time.
Writer: Rham El Sokary
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References
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?Juran’s Quality Handbook, Fifth Edition, 1998
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?ISO Standards