4 Dimensions of Quality

4 Dimensions of Quality

1. Quality of design
This is determined before the product/service is produced through market research, design concept and specifications. Market research assesses the customer’s needs. a design concept is developed to meet those needs. The design specifications is developed to identify what the customer is going to get out of the product/service.

Costco's quality of design:

1.high quality items
3. brand name products in bulk
4. great value for money
5. fresh foods/produce
6. reputation of high customer satisfaction



2. Quality of Conformance
This is the means of producing a product to meet the specifications.when a product conforms to specifications,operations considers it a quality product regardless of the quality of the design specifications.

Costco has high quality of conformance as they meet to a high degree, the design specifications. Their ‘smart packaging’ and purchasing items in large volumes translates into competitive prices creating value for customers. There are many product/service categories including fresh foods, pharmacy, and jewelry.All Costco locations have a high quality of conformance and it keeps the name brand strong.



3.The "bilities" Availability, Reliability and Maintainability

Availability- whether the product/service is available for operation and not down for repairs or maintenance. This defines the continuity of service to the customer.

Costco stores are open M-F 11:00am - 8:30pm, Sat. 9:30am - 6:00pm Sun. 10:00am - 6:00pm Closed: Easter Sunday, Christmas Day, New Years Day
During the time they are closed restocking of inventory and general maintenance is done.
However, Costco is always open for business online at http://www.costco.com/ which is down only for routine website maintenance.

Reliability- length of time a product/service can be used before it fails.
Maintainability – how long it takes for the product to be repaired.



For Costco , this would be the time it takes before a customer returns products (e.g. electronics) for refunds because the product fails in performance. Costco had a $30.3 million charge to its sales-return reserve, the result of an internal study prompted by rampant returns on high-ticket consumer electronics.The company changed their return policy for all electronics purchases. Under the new policy, all electronics purchases as of 2007 can be returned “no questions asked” for up to 3 months after purchase, and up to 6 months for defective merchandise. Here is an example of a repair process. A customer calls the customer call center for a problem regarding a television. The Costco call center documents the problem and attempts to solve the problem over the phone. If it is determined that a repair is needed, then the Costco call center looks up the service call availability by the customer’s zip code on the NSA (National Service Alliance) website and then schedules the service call through the NSA website. The Costco call center tracks the status of the repair every step of the way and stays in contact with the customer. This can take a few days to a few weeks before a repair is done, depending on how big the job is.



4. Field Service
This refers to the after sale service, warranties, repair and replacement service that the company offers.

Costco encourages worry free shopping by backing everything it sells with its ‘no questions asked’ return policy, where a full refund is guaranteed to the customer if he/she is dissatisfied with the product at any time. For the sale of electronics, Costco has in place for US Costco members its Costco Concierge Services where members who purchased televisions, computers, camcorders and iPod/MP3 players can receive free technical support. Costco also extends the manufacturer’s warranty on televisions and computers to 2 years from the date of purchase. Costco even offers in-home television set up but members would have to make an additional payment for this service ($89.99).
Guaranteeing purchases made at Costco in this way shows that customer satisfaction is a priority.

Quality Systems in Place at Costco

1) To guarantee the quality of Kirkland brand supplements that Costco sells, they use USP (United States Pharmacopeia) verification. USP verification means that the ingredients are consistent in quality from batch to batch and that they meet their claims for strength, purity and quality- what’s on the label is what is in the bottle.USP is an official public standards–setting authority for all prescription and over–the–counter medicines and other health care products manufactured or sold in the United States. USP also sets widely recognized standards for food ingredients and dietary supplements.


2) For Kirkland Bath Tissue Costco controls quality through extensive testing of the tissue on strength, softness and appearance. This testing is continuous.


3)Implementing fresh food maintenance procedures which include the way that food is packaged.

Recommendations

1) Costco can enhance its quality management by conducting customer surveys and publicly encourage suggestions about ways that they can improve.
(b) Research and invest in food packaging techniques that can extend the shelf life of their fresh food.