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TQM in Asia was previously reviewed in Quality Management in Asia (August to September 2000) and in TQM: Total Quality Management (December 1999). This week's review provides articles published in two other quality management journals and updates previous reviews.
Continuous improvement and employee participation in SMEs The active participation of all personnel is the basis for continuous improvement in companies. This paper describes the main features of systems for channelling such participation, used in a series of companies in the automotive parts industry in the Northwest of Spain. These characteristics were obtained from research carried out in mid-1997 and based on personal interviews. Likewise, the great spread of this kind of practice found in this supply industry, mainly made up of SMEs, supports the idea that it is not only applicable in large companies. However, it should not be forgotten that the automotive sector has one of the longest traditions in continuous improvement and employee involvement activities.
Keywords: Employee involvement, Quality circles, Suggestion systems, Teams, Automotive parts
industry
Marginalisation of quality: is there a case to answer? This paper makes the point that since the early 1990s there have been signs (e.g. the move from quality and total quality management (TQM) to excellence, and process control to process management) that quality and TQM are perceived by some commentators to be out-of-date and fallen by the wayside. The paper outlines these signs and points out that they can lead to a marginalisation of quality. However, through major trends such as business to business e-commerce and six sigma there are clear indications that old style quality is coming back into the business arena because of the savings it can bring. These trends and their implications are examined in the paper.
Keywords: Quality, TQM, Management styles
The year 2000 problem of ISO 9000: will the quality standards survive
the proposed year 2000 revision? The ISO 9000 standards were first published in 1987. A first, more limited revision was completed in 1994. There is now a more thorough revision underway. A first draft of the suggested new standard has been published in July 1998 and a second draft, expected to be very close to the final version, in February 1999. The changes proposed in these drafts are described and discussed. Summing up, the standard is changing from a technical-practical tool to a management tool. Four problems with this development are discussed: the sum of demands on management; the comparative strength of the ISO 9000 standard concept; the changed role of the certifying bodies that this change implies; and the implied paradigm of management. The consequences of this may be that the standard turns into a legitimacy seeking management concept alongside other popular "three-letter acronyms" and thereby adds to the growing amount of hypocrisy in management. This is the year 2000 problem for the ISO 9000 standards.
Keywords: ISO 9000, Quality, Standards
TQM as a management system consisting of values, techniques and
tools The interest in total quality management (TQM) has increased rapidly in recent years. Some people see TQM as something necessary to reach competitiveness but others claim TQM to be merely a management fad. We believe that there are several reasons for the different opinions about TQM. One is that the gurus, who often are seen as fathers of TQM, do not like the concept. Another one is that there are several similar names for roughly the same idea. A third one, which, maybe, is the most severe, is that there are many vague descriptions and few definitions of what TQM really is. In this paper we will discuss some of the problems with TQM and describe and discuss our own view of TQM as a management system consisting of the three interdependent components: values, techniques and tools. We strongly believe that this definition will help to understand and implement TQM.
Keywords: TQM, Techniques, Management styles
A systemic view of organisational change and TQM While total quality management (TQM) has been widely applied in the management of change, and is likely to remain a priority into the next century, failure rates at times above 75 per cent give cause for concern. The study on which this paper is based has reviewed TQM as an approach to change management. Four interrelated classifications of organisational change are presented: change as structure (or "functional change"), process, values, or power distribution. Of these, it is contended, TQM adequately addresses only process change, with incidences of failure closely correlated to the application of process-based TQM techniques in change contexts characterised by structure, values or power. This study suggests that, for TQM to be applied successfully, either an approach is required which adequately addresses all types of change context (a so-called "systemic" approach), or its application needs to be restricted to those contexts where process dominates.
Keywords: Systemic thinking, Organizational change, Total quality management
The propagation of quality management concepts in the Indian
manufacturing industry: some empirical observations Presents findings from a study that investigated the propagation of quality management practices among Indian manufacturing companies over a period of 16 years from 1980 to 1996. Reports the findings of a mail questionnaire survey conducted on 500 selected companies from 14 manufacturing sectors. The extent to which quality management practices have been implemented is reported and the obstacles to adoption are identified. The spread of quality initiatives in various functional areas is analysed and discussed. The paper will be of particular interest to practicing managers as it identifies a number of policies that governments may use to stimulate the adoption of quality management concepts in developing countries.
Keywords: India, Manufacturing, Quality, Surveys
Whistleblowing towards quality Valid acts of whistleblowing - employees informing on dubious practices in the workplace - is increasingly being viewed in a favourable light, with statutory protection following. Examples of whistleblowing are presented, including education and disaster situations which, being life-threatening, have immediate perceived value. Provides criteria for valid forms of whistleblowing, the formulation of codes of ethics for whistleblowers, and suggests the way forward for the quality profession, who may be assisted through whistleblowing.
Keywords: Whistleblowing, Total quality management, Ethics, Human resource management,
Disasters, Higher education
Learning by auditing: a knowledge creating approach The following case study demonstrates how an organisation can integrate learning with normal business processes so that it not only shares its knowledge and continuously improves at a high rate, but also, achieves this without significant disruption to its routine business. Against a background of traditional learning techniques that advocate linear learning, the study advances the theme of multiple learning processes to facilitate a more flexible approach to organisational learning. The study describes how auditing can be used as a learning tool to detect potential problems before they become operationally troublesome. A number of audit processes outline how an organisation can expedite collective learning, generate considerable quantities of information, and consider early responses to forces of change.
Keywords: Paradigms, Learning, Models, Auditing
Quality management approach in China In order to provide readers with a better understanding of China's approach to quality management, this paper presents China's quality management history, the main quality management efforts adopted by the Chinese government, the product quality situation, and the reasons for product quality problems. Finally, it has been concluded that governments can only play a role in shaping the context and institutional structure surrounding companies, while governments cannot create competitive industries; only companies can do that. If the quality of people, especially governmental officials, top management, and employees does not improve, it is very difficult for the country to improve product quality.
Keywords: TQM, Product quality, Quality management, China
The effect of company size on the relationship between TQM strategy
and organisational performance The purpose of this study was to test the effects of company size on the strength of the relationship between TQM and organisational performance. Based on a cross-sectional study of manufacturing firms in Australia and New Zealand, the paper tests two hypotheses involving TQM and organisational performance. The central finding of the study is that TQM has a significant and positive relationship with most of the dimensions of organisational performance. The relationship weakened for defect rates and warranty costs when it was co-varied for company size. We conclude that company size impedes the implementation of TQM. Larger companies tend to gain greater benefits from TQM than smaller firms. These findings are consistent with some of the literature. Overall, the findings show that a typical manufacturing organisation is more likely to achieve high organisational performance with TQM than without TQM. The findings have implications for managers wishing to formulate a business strategy based on TQM.
Keywords: Performance, ISO 9000, Continuous improvement, Kaizen
Designing and installing a performance measurement system within a
professional society - a case study Performance measurement is now commonplace in the private sector. The early focus on financial results has expanded to include measurement of customer satisfaction, business processes, and opportunities for learning and growth. With the increased scrutiny on public and not-for-profit organizations to demonstrate measurable results, private sector measurement techniques have been borrowed and applied to these enterprises. The Oregon State Bar (OSB) is the only state bar association in the USA that is known to have pursued a rigorous focus on measurable results for its programs and services. This case study is designed to examine the measures in place for services to sections (special interest groups) within the OSB and recommend improvements. Research on goal setting theory, process management, survey design, and implementation strategies have been used to underpin the case study. The study will show that multiple indicators are necessary at various points in time during the year in order to measure fully whether the desired results are on track for the year.
Keywords: Performance measurement, Public sector, Case studies, Legal profession
Improving service quality: a tale of two operations At two different warehousing/distribution facilities of the same organization, workers were surveyed about their experiences with the company's TQM program. The facilities were nearly identical with respect to infrastructure, technology, and systems but only one was considered a success from a quality perspective. The survey indicated that the successful facility exhibited greater attention to the human aspects of the quality process than the unsuccessful facility, for example, a greater degree of management support for TQM, communication and teamwork between managers and workers, effective supervision, effective corrective action procedures, and follow-up of quality problems. While this study was limited in scope to two operations within the same organization, lessons for the successful implementation of service quality can be drawn from this case study.
Keywords: Quality management, Service quality, Quality, TQM
Institutionalising customer-driven learning through fully integrated
customer feedback systems Most companies understand the importance of complaint handling, customer satisfaction measurement and service recovery, and many firms have systems and procedures to do at least part of these activities. However, few companies have implemented integrated customer feedback systems to systematically collect, analyse and disseminate the various types of feedback coming into the firm and guide customer-focused learning, continuous improvement and process redesign. A key reason is the difficulties faced in integrating various systems and procedures. This paper focuses on how to design, and cost-effectively run, a completely integrated customer feedback system (CFS) that ensures continuous learning and improvement in service quality, as well as productivity.
Keywords: Learning, Customer satisfaction, Service quality, Customer orientation
Service quality in consulting: what is engagement success? There are various views about the nature of service quality in a consulting engagement. This paper utilises literature from a number of disciplines, along with exploratory interviews with seven consultants and one client, to address one question, namely, "What is engagement success in consulting, from both the client and the consultant points of view?" In addressing this question, the paper considers distinctions between types of consulting, client expectations and needs, and short- and long-term revenue streams. It concludes by suggesting that a consulting engagement is successful if the consultant has met client expectations (by improving one or more of client performance, client capabilities, or organisational culture, without making any category worse) - whether or not a core need has been addressed - and the consultant has enhanced his or her reputation, with expectations of future revenue streams - whether or not any immediate income has been received.
Keywords: Consulting, Service quality, Success, Professional services, Organizational development
Managing increased part-time: does part-time work imply part-time
commitment? Puts the focus on the possible relations between part-time work and organisational commitment. An empirical study, using data from ten Norwegian institutions caring for the elderly, concludes that part-time work has both direct and indirect effects on different types of commitment. First, and contrary to what was expected, it seems as though affective commitment decreases as the hours worked approach that of a full-time job. Second, part-time arrangements have an indirect effect on several types of commitment through the degree of participation in the organisation's decision processes. Part-time workers participate less, and seem to exhibit less affective, and higher continuance commitment. Effects of these findings on outcomes, such as plans to leave the organisation, the voicing of criticism, loyalty to the organisation, and withdrawal and apathy among workers, are discussed. Implications for human resource management are also discussed.
Keywords: Part-time work, Nursing homes, Norway, Commitment
Measuring internal customer satisfaction Identifies two empirically derived measures of internal customer support used to assess team effectiveness from the perspective of the team's internal customers. The measures, personal service and technical competence, are based on analysis of the responses of 465 individuals representing 150 internal customer teams. When compared, the expected (self) ratings of the members of internal intact work teams were more positive than those ratings actually attributed to them by their internal customers. The findings reveal members of work teams tend to over estimate the effectiveness of their team's performance when compared with the ratings the same teams receive from their internal customers. The measurement of internal customer satisfaction is a tool that can be a useful aid for managers of service quality and their work teams to help them more accurately measure the effectiveness of their units.
Keywords: Customer satisfaction, Measurement, Service quality
Is a critical incident critical for a customer relationship? Focuses on the criticality of critical incidents in customer relationships. Aims to discuss the theoretical and practical implications of the notion of "critical" in a critical incident. Why is something perceived as critical? What does it lead to? Is criticality a feature built into the service or is it a contextually-defined phenomenon, depending both on the customer, the service provider, the interaction and the surrounding relationship environment? Suggests a contextual framework for describing, analysing and understanding critical incidents, based on the idea that critical incidents are always embedded in customer relationships. Two interdependent context dimensions are used: the time dimension, and the situational dimension. These elements, combined, lead to a focus on customer-perceived and relationship-oriented contexts, which reveal new insights into the role of critical incidents. This framework is used in an empirical study concerning business customers' perceptions of "critical incidents" in their relationship with a hotel. The findings indicate that the majority of positive and negative critical incidents reported had only a minor impact on customer behavior.
Keywords: Customer service, Service quality, Hotels
One-stop-shop information mall - MTR's experience Following the establishment of the corporate intranet in the MTR Corporation, the departmental intranet for the operations engineering department (OED), known as the OED information mall, has initially taken shape to provide users with easy access to single-page, Web-based integrated management system (IMS) documentation. While the evolving intranet technologies are proven to offer a large degree of functionality to enhance information dissemination and document management, it is recommended that the OED information mall be developed further for effective distribution and management of the OED information. Visualises the basic concept and overall planning of the proposed OED departmental intranet and the benefits it will bring.
Keywords: Service quality, Internet, Information systems
Service quality at banks and credit unions: what do their customers say? Bank and credit union customers were surveyed to determine bank and credit union service quality performance. The results of our study indicate that credit unions rate significantly higher than banks on 11 of the 14 service quality questions: access; courtesy; communication; credibility; security; empathy; tangibles; basic service; fairness; fixing mistakes; and guarantees. The findings also indicate that neither banks nor credit unions do a good job of surveying customer needs or retaining customers. Other results indicate that 50 percent of total respondents surveyed reported that they had stopped using a financial service provider because of poor service performance. The vast majority of that group reported that their decision was made because a bank failed to provide adequate service.
Keywords: Service quality, Customer care, Consumer attitudes, Banks, Credit unions
Walk-through audit provides focus for service improvements for Hong
Kong law firm This paper describes and illustrates the application of a relatively new approach to assessing the operations management aspects of providing customer service. It presents the results of a customer-based assessment, the walk-through audit (WTA), administered on new clients at a recently established law firm. Although the clients rated their services above satisfactory in general, relatively poor performance was noted in four areas. While using the same evaluation instrument, the firm's senior partners identified a set of like deficiencies, yet consistently ranked the firm's performance higher than did their clients. Next, the WTA was administered to small samples of new clients at four of Hong Kong's most highly-respected and well-established law firms. Although the benchmarked firms' received higher ratings for all audited areas, the ratings were statistically significantly higher (p < 0.01) in the four areas of concern. The benchmark results were successful in attracting the attention of the study firm's partners who agreed that corrective action needed to be initiated relative to the four problem areas.
Keywords: Hong Kong, Kaizen, Operational audit, Customer satisfaction, Legal profession
As always we have only skimmed the surface of relevant articles this week and only those that are particularly relevant for Asia-Pacific managers. Many other articles are available as well including those focusing on other countries and international perspectives.
Total Quality Management Research (1) |
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