Evolution of Quality Concepts

Reading PaperResearch Report

Research Qs: 1. Whether TQM results in improving the

financial performance of companies that are committed to implement TQM?

2. What are the causal factors (events) that lead to TQM effectiveness or ineffectiveness?

Research MethodsData Collection: Interviewing and sourcing public financial data of 108 firms with similar industry, calendar time, projected performance, market size, debt to equity ratio and market risk exposure profiles. 3 additional firms of similar profiles and that did not practice TQM were also selected as control/comparison benchmarks.

Data Analysis: Comparing the financial performance of the 108 firms against the 3 control ones. The 108 firms included those adopting TQM and who are already seasoned TQM practitioners.Evaluation methods were lacking in clarity for identifying and evaluating the causal event drivers of TQM effectiveness and ineffectiveness

Research Findings

TQMeffectiveness

Corporate Performance

Improves

Early TQM Adopters

Achieves high

Experience TQM

practitioners

Achieves higher

Accounting Variables#1

Daily Stock Returns

measuresQuality Causal

Events#2

Unable to define & prove impacts on TQM effectiveness

Manufacturing TQM

practitionersNote:#1 Accounting variables include net income, operating income & sales per employee #2 Events were not clearly defined. One example was winning a quality award , achieving ISO 9000

accreditation

Research WeaknessesResearch Qs:

1. Whether TQM results in improving the financial performance of companies that are committed to implement TQM?

2. What are the causal factors (events) that lead to TQM effectiveness or ineffectiveness?

Evaluation Insights

Q: What’s new today that came from this reading’s research gap?

Reading was

published in 1998

Likely contributing to

All it concludes that:1. TQM results can lead to high financial performance2. The more TQX experienced and manufacturing sector are better in TQM and

hence enjoy higher performance than those just adopting TQM

These findings do not constitute new knowledge in 2015.

Although the paper cannot conclude about causal quality enablers of quality effectiveness, it gave some possible clues:

• Process focus• Systematic improvement capacity• Company wide emphasis• Customer focus• Management by facts• Employee involvement & development• Cross functional management involvement• Supplier performance & relationship • TQM for competitive advantage

Relevance of Lecture Slides to Paper

Shows how TQM improvements result in higher (financial) performance

8 principles of Quality1. People work in a system. Managers

must work on the system to improve it2. All systems exhibit variability and this

must be controlled3. The majority of problems are because

systems are poorly designed. Few problems are the result of worker error

4. The answer to problems is designing quality into the process

5. The relevant definition of quality is that of the customer

6. All members of an organization should contribute to improvement

7. Improvement must be planned and continuous

8. Better quality pays

Clues to identifying Quality Causal Drivers, orQuality enablers

Theory of Quality Management

• Core Assumptions:importance of qualityimportance of peopleimportance of systemsimportance of senior management

• Core Practices:process redesigncontrol of variabilitymanagement by factslearning and continuous

improvement

More clues to identifying Quality Causal Drivers, orQuality enablers

Other Quality Enabling Models

• Constancy of purpose• Continual improvement• Cooperation between functions

Juran’s Quality Trilogy

• Quality Planning • Quality Control• Quality Improvement

Other Quality Enabling Models

Crosby’s 4 Absolutes

1. Define quality2. Establish a quality system3. Specify performance standards4. Measure quality outcomes

Other Quality Enabling Models

Masaaki ImaiKaizen – Continuous Improvement• Improve everything in the business continually

• Everyone takes responsibility for their process

• Kaizen Methods: Just-In-Time Quality Circles Total Quality Control

Ishikawa

• Quality tools• Internal customer• Quality Circles

Kanban Suggestion Schemes Zero Defects

Evaluation Conclusion

Q: What’s new today that came from this reading’s research gap?

Have identified the quality enablers and even their assurance models

Have identified how financial performance can

be achieved via TQM

Group WorkMap out one of your university’s services you’ve encountered

Service Elements

Media

User engagement

Provider Interaction

Location

Underlying processes

Become aware of service

Join/access service

Use service

Exit from service

Repeat use of service

User

For each service process, identify:1. Devices & media used2. User interaction activities3. Provider interaction

activities4. Where the service process

takes place.

Service processes = service experiences

Service Elements Process 1 Process 2 Process 3 …………

Media

User engagement

Provider Interaction

Location

Each service process = service experience

How to use?

Service Elements Awareness of Service

Join Service Use Service Repeat use of service

Exit Service

Media & Devices

(3)

User engagement

(1)

Provider Interaction

(2)

Location (4)

A service is always underpinned by a number of processes for each process identified:1. Identify the engaged user’s emotions and actions

(engagement processes)2. Identify each interacting provider’s emotions and actions

(interactive processes)3. Identify the devices and media eg hardware, software,

equipment, vehicles, etc used to support (1) and (2) 4. Identify where the process takes place

Assignment 2

Groups of 3-4 Students must be formed now and have agree• Definition of problem area• Identified solution idea for prototyping

What you need to do progressively and document results:

1. Research and identify the customer need

2. Identify the solutions that meet that need (including yours)

3. Develop and test a prototype of your proposed product/service solution