Evolution of Quality Concepts

Reading Paper Research 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 Methods Data 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 TQM effectiveness TQM effectiveness Corporate Performance Improves Early TQM Adopters Achieves high Experience TQM practitioners Achieves higher Accounting Variables #1 Daily Stock Returns measures Quality Causal Events #2 Unable to define & prove impacts on TQM effectiveness Manufacturing TQM practitioners Note: #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 Weaknesses 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?

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 performance 2.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 Quality 1.People work in a system. Managers must work on the system to improve it 2.All systems exhibit variability and this must be controlled 3.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, or Quality enablers

Theory of Quality Management Core Assumptions: importance of quality importance of people importance of systems importance of senior management Core Practices: process redesign control of variability management by facts learning and continuous improvement More More clues to identifying Quality Causal Drivers, or Quality 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 quality 2.Establish a quality system 3.Specify performance standards 4.Measure quality outcomes

Other Quality Enabling Models Masaaki Imai Kaizen – 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 Work Map 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 used 2.User interaction activities 3.Provider interaction activities 4.Where the service process takes place. Service processes = service experiences Service ElementsProcess 1Process 2Process 3………… Media User engagement Provider Interaction Location Each service process = service experience

How to use? Service ElementsAwareness of Service Join ServiceUse ServiceRepeat 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 s 2.Identify the solutions that meet that need (including yours) 3.Develop and test a prototype of your proposed product/service solution