Evolution of Quality Concepts

1. Evolution of Quality Concepts

2. Reading Paper Research Report Research Qs: Whether TQM results in improving the financial performance of companies that are committed to implement TQM? 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 effectivenessand ineffectiveness

3. Research Findings Early TQM Adopters Unable to define & prove impacts on TQM effectiveness Achieves high Accounting Variables#1 Quality Causal Events#2 TQM effectiveness Corporate Performance Improves measures Daily Stock Returns Achieves higher Experience TQM practitioners 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

4. Research Weaknesses Research Qs: Whether TQM results in improving the financial performance of companies that are committed to implement TQM? What are the causal factors (events) thatlead to TQM effectiveness  or ineffectiveness?

5. Evaluation Insights Q: What’s new today that came from this reading’s research gap?

6. Reading was published in 1998 Likely contributing to All it concludes that: TQM results can lead to high financial performance 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.

7. 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

8. Relevance of Lecture Slides to Paper Shows how TQM improvements result in higher (financial) performance

9. 8 principles of Quality • People work in a system. Managers must work on the system to improve it • All systems exhibit variability and this must be controlled • The majority of problems are because systems are poorly designed. Few problems are the result of worker error • The answer to problems is designing quality into the process • The relevant definition of quality is that of the customer • All members of an organization should contribute to improvement • Improvement must be planned and continuous • Better quality pays Clues to identifying Quality Causal Drivers, or Quality enablers

10. 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 clues to identifying Quality Causal Drivers, or Quality enablers

11. Other Quality Enabling Models Juran’s Quality Trilogy • Quality Planning • Quality Control • Quality Improvement • Constancy of purpose • Continual improvement • Cooperation between functions

12. Other Quality Enabling Models • Crosby’s 4 Absolutes • Define quality • Establish a quality system • Specify performance standards • Measure quality outcomes

13. 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

14. Evaluation Conclusion Q: What’s new today that came from this reading’s research gap? Have identified how financial performance can be achieved via TQM Have identified the quality enablers and even their assurance models

15. Group WorkMap out one of your university’s services you’ve encountered Underlying processes

16. Service processes = service experiences Become aware of service For each service process, identify: Devices & media used User interaction activities Provider interaction activities Where the service process takes place. Join/access service Use service Repeat use of service User Exit from service Each service process = service experience

17. How to use? A service is always underpinned by a number of processes  for each process identified: Identify the engaged user’s emotions and actions (engagement processes) Identify each interacting provider’s emotions and actions (interactive processes) Identify the devices and media eg hardware, software, equipment, vehicles, etc used to support (1) and (2) Identify where the process takes place

18. 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: • Research and identify the customer need • Identify the solutions that meet that need (including yours) • Develop and test a prototype of your proposed product/service solution