What's in a Car - Quality Score?

Course: Introduction to Operations Management (OPM 300)

Assignment Title: What's in a Car-Quality Score?

Assignment #: Module Four

INTRODUCTION

Let's face it, when you are in the market for a new car you try to do your homework on the make and model you like. You look at the consumer report magazines and the J.D. Power Report. But have you ever asked yourself what does all that information mean? Do you think it may be biased? Who does the J.D. Power Report really serve? So we'll look at "What's in a Car-Quality Score" to get to the heart of this matter.

How is it Measured

The initial-quality survey measures how cars perform in the first 90 days of ownership. [1] The cars are picked at random from different makes and models lots, and on the basis of information that was yielded by the sample, a decision is made regarding the disposition of the lot. [2] This method is called Acceptance Sampling. Usually 250 responses per model or more are used to ensure the data is objective.

Various Dimensions of Quality

There are 8 dimensions of product quality according to David Gavin. They are performance, features, reliability, conformance, durability, serviceability, aesthetics, and perceived quality. This applies to any product but differs from the dimensions of quality for the service arena. [3] By using these criteria's auto manufacturers can focus on identifying root causes of reoccurring problems & correcting them. Allowing customers to determine what's important. [4]

Identify and Discuss the Dimensions

In the article some of the dimensions were discussed but not many. Wind noise, loud brakes and excessive fuel consumption (primarily an issue on fuel-thirsty SUVs and pickups) were mentioned. [5] Those would refer to performance and features. Dead batteries, worn out starters and alternators and malfunctioning brakes were not discussed in great detail, but they are definitely part of serviceability and durability.

Rankings for You and Auto Manufacturers

Automakers want your business. They will attempt to do whatever it takes to get your business. They use JD Powers report to identify and improve their products. They know that people will look at the Psychological Criteria [6] when buying a vehicle. This is a way of defining quality that focuses on judgmental evaluations of what constitutes product excellence. The ability to link JD Powers name to a product equals profit. If you make the list consumers will view your product as excellent. This is extremely misleading at first glance. J.D. Power doesn't release many details of the durability study, beyond the broad rankings on its Web site. [7] So if you are looking for long term knowledge about the vehicle before you purchase it you are out of luck.

JD Power Report

What can customer get out of JD Power's Report is basically nothing. You get an initially report that is watered down. The fact is that most cars don't have significant problems in the first 90 days of ownership says a lot about the report. Consumers are interested in how long a car will last and the JD Power Report can