Quality management and performance: a comparison between the UK and Turkey

Purpose: The aim of this article is to detail the correlation between quality management, specifically its tools and critical success factors, and performance in terms of primary operational and secondary organisational performances.

Design/methodology/approach: Survey data from the UK and Turkey were analysed using exploratory factor analyses, structural equation modelling and regression analysis.

Findings: The results show that quality management has a significant and positive impact on both primary and secondary performances; that Turkish and UK attitudes to quality management are similar; and that quality management is widely practised in manufacturing and service industries but has more statistical emphasis in the manufacturing sector. The main challenge for making quality management practice more effective lies in an appropriate balanced use of the different sorts of the tools and critical success factors.

Originality/value: This study takes a novel approach by: (i) exploring the relationship between primary operational and secondary organisational performances, (ii) using service and manufacturing data and (iii) making a cross-country comparison between the UK (a developed economy) and Turkey (a developing economy).

Limitations: Detailed contrast provided between only two countries.     

Response Generalization in Behavioral Safety

Abstract

This paper details concerns with the potential misuse of the term “response generalization” in the behavioral safety literature. Stokes and Baer's (1977) technologies of generalization and the basic literature on response induction are used to make the claim. Ludwig and Geller's (2000) Journal of Organizational Behavior Management special issue describing their work with pizza delivery drivers is used as an example. The potential problems of non-technical use of language in a technological behavioral science are briefly discussed. Finally, Baer, Wolf, and Risley's (1968, 1987) criteria of applied behavior analysis are re-visited in this context in hopes of calling researchers of organizational behavior management to more closely align their work with the tradition of applied behavior analysis.     

Integrating risk and performance management in quality management systems for the development of complex bespoke systems (CBSs)

Abstract

Risk and performance management are at the core of complex bespoke systems (CBSs). CBSs are developed to customer–specified requirements in terms of structure, functionality and conformance. This article examines how risk and performance management are integrated as essential systems in the successful development of projects across multi-organizational functions in complex bespoke system (CBS) organizations. The article argues for the development of a quality management system that consists of two sub-processes: quality control and quality development. Using three case studies from engineering companies, we provide evidence and insights of the way change control, quality development and quality performance are developed in innovating business solutions.     

Measuring management quality in the factory

The last decade has seen a growing consensus that manufacturing matters. The factory as the producing unit is the core of the firm's manufacturing activities. However, even now, it is not agreed on or even fully understood what constitutes a well-managed factory. This article attempts to create a causal model of management quality in the plant, identifying key managerial levers for improving plant performance. The model is based on an integrated view of three core processes: supply chain, product and process development, and strategy deployment. We postulate that the joint performance of the three processes is determined by the quality with which they are managed. Management quality is operationalized as consisting of six types of action: delegation (or decentralization), integration (or coordination), measurement, employee participation, communication, and employee development.This management quality model has been applied to the design of the Top Usine 1995 Best Factory Award administered in cooperation with the French weekly L'Usine Nouvelle. Data collected from participating plants do substantiate our view that plant performance is substantially driven by management quality: the six management quality dimensions are shown to be statistically linked to performance improvement rates in the plant, and we provide further evidence of this link by detailing the case example of the award winner. Our survey also shows that supply management appears to be a common problem area for the factories participating in the Top Usine award, including the best ones.     

A two-phase robot selection procedure

In this paper, a two-phase methodology is proposed for robot selection. In phase 1, data envelopment analysis is used as a means to determine the technically efficient robot alternatives, considering cost and technical performance parameters. Using data envelopment analysis permits us to consider the fact that the performance parameters specified by the vendors are generally unattainable in practice. In the second phase, a fuzzy robot selection algorithm is utilized to rank the technically efficient robots according to both predetermined objective criteria and additional vendor-related subjective criteria. The algorithm is based on calculating fuzzy suitability indices for the technically efficient robot alternatives, and then, ranking the fuzzy indices to select the best robot alternative. A comprehensive example is provided to illustrate the decision procedure. The algorithm proposed in here is also applicable to a broader area of decision problems, e.g. facility site selection, determination of the best CNC machine or flexible manufacturing system among a set of mutually exclusive alternatives.     

Effect of best management practices on the performance and productivity of small firms

Abstract

Recent research on productivity finds that best management practices are a crucial but neglected element in explaining firm productivity. This stream of research also focuses on why a large number of firms may not implement best management practices despite their apparent benefits. In this paper, we examine the adoption of best management practices in small leveraged buyout (LBO) firms. Our choice of small LBO is motivated by the fact that these firms undergo extensive restructuring and, therefore, there is an opportunity to study the adoption process of best management practices. The findings show that buyout companies introduce best management practices (operations, monitoring, targets and incentive-related practices) at different stages of their development, and more importantly, these practices evolve in response to changes in various firm-level characteristics. For example, companies emphasizing cost leadership tend to follow targets and monitoring related practices while firms following a differentiation strategy are more likely to implement incentives and operations related management practices. Buyout sponsors’ board representatives and new CEO also play a critical role in the adoption of these best management practices which are linked to superior firm performance, measured as growth in revenues, productivity and return on assets.     

Developing management capability within a horizontal supply chain in performance measurement deployment and evolution: a Dynamic Capabilities and Goal Theory perspective

Abstract

Complex collaboration in rapidly changing business environments create challenges for management capability in Utility Horizontal Supply Chains (UHSCs) involving the deploying and evolving of performance measures. The aim of the study is twofold. First, there is a need to explore how management capability can be developed and used to deploy and evolve Performance Measurement (PM), both across a UHSC and within its constituent organisations, drawing upon a theoretical nexus of Dynamic Capability (DC) theory and complementary Goal Theory. Second, to make a contribution to knowledge by empirically building theory using these constructs to show the management motivations and behaviours within PM-based DCs. The methodology uses an interpretive theory building, multiple case-based approach (n = 3) as part of a USHC. The data collection methods include, interviews (n = 54), focus groups (n = 10), document analysis and participant observation (reflective learning logs) over a five-year period giving longitudinal data. The empirical findings lead to the development of a conceptual framework showing that management capabilities in driving PM deployment and evolution can be represented as multilevel renewal and incremental Dynamic Capabilities, which can be further understood in terms of motivation and behaviour by Goal-Theoretic constructs. In addition, three interrelated cross-cutting themes of management capabilities in consensus building, goal setting and resource change were identified. These management capabilities require carefully planned development and nurturing within the UHSC.     

History in Organization and Management Theory: More Than Meets the Eye

Abstract

There has been a growing debate about the role of history in management research with several authors making suggestions on how to bring the two (back) together and others even highlighting the need for a “historic turn”. What we argue in this paper is that, while history was indeed sidelined by the scientization of management since the late 1950s, it started to make a comeback from the 1980s onwards and is increasingly employed in a number of research programs. We stress that the crucial question for management scholars engaging with history (or wanting to do so) is how it relates to theory. First of all, we present a systematic overview of the way history has been used—both at the micro (organizational) and macro-levels of analysis—distinguishing between what we refer to as “history to theory” and “history in theory”. In the former, we consider those research programs, such as (neo-)institutionalism, where history serves as evidence to develop, modify or test theories. In the case of “history in theory” we identify research programs where history or the past are part of the theoretical model itself as a driver or moderator, with “imprinting” as a prime example. Second, we also identify a growing number of studies that go further by displaying what we call “historical cognizance” in the sense of incorporating period effects or historical contingencies into their theorizing efforts. Finally, drawing on our broad overview, we make more specific suggestions for increasing the visibility and influence of history in organization and management theory.     

The effect of the drum-buffer-rope (DBR) approach on the performance of a synchronous manufacturing system (SMS)

The main objective of any manufacturing system is to organize the resources in a shop floor for effective transformation of raw materials into finished products. Synchronous manufacturing (SM) is a manufacturing management philosophy that has a set of principles, procedures and techniques where every action is evaluated in terms of a common global goal of the organization (Seetharama et al., 1997, Production Planning and Inventory Control). A manufacturing system that adopts the above principle is called as synchronous manufacturing system (SMS). In order for a manufacturing plant to achieve the benefits of a synchronous operation, a logistical manufacturing (SM) is a manufacturing management philosophy that has a set of principles, procedures and techniques where every action is evaluated in terms of a common global control system that is manageable and results in predictable performance is required. The drum-buffer-rope (DBR) approach, which is a generalized system, satisfies the above requirements through computer simulation. This paper focuses on the effect of DBR principles on the performance of a synchronous manufacturing system. A case study has been taken up in a small-scale industry and analysis has been carried out on the effect of the DBR approach on the performance of the system. This work has been performed on an IBM/PC compatible system using the promodel software and C language.     

Heuristic for scheduling in a two-machine bicriteria dynamic flowshop with setup and processing times separated

This paper addresses the two-machine bicriteria dynamic flowshop problem where setup time of a job is separated from its processing time and is sequenced independently. The performance considered is the simultaneous minimization of total flowtime and makespan, which is more effective in reducing the total scheduling cost compared to the single objective. A frozen-event procedure is first proposed to transform a dynamic scheduling problem into a static one. To solve the transformed static scheduling problem, an integer programming model with N ² + 5N variables and 7N constraints is formulated. Because the problem is known to be NP-complete, a heuristic algorithm with the complexity of O (N ³) is provided. A decision index is developed as the basis for the heuristic. Experimental results show that the proposed heuristic algorithm is effective and efficient. The average solution quality of the heuristic algorithm is above 99%. A 15-job case requires only 0.0235 s, on average, to obtain a near or even optimal solution.     

Managing learning and developing management

Dr Alan Mumford is best known in the UK for his pioneering work on managerial learning and board-level development in the corporate sector. After his early career in the construction industry, he worked as an internal management development adviser to a number of UK companies before leaving fifteen years ago to join International Management Centres Europe as a professor. Alan continues to advise as an independent consultant and to devote time to writing. A prolific author, his classic text Management Development: Strategies for Action recently appeared in its fourth edition published by the Institute of Personnel and Development, and his reflections on board-level and senior executive development in Learning at the Top (McGraw-Hill, 1995). Of greatest renown is his collaboration with Dr Peter Honey on developing the Learning Styles Questionnaire and the Manual of Learning Styles (Honey, 3rd edn, 1992) which have become the most frequently used diagnostic and development tools on UK corporate management development programnles. Jean Woodall interviewed Alan at his home in London.

Jean Woodall is Professor of Human Resource Development at Kingston University.     

Global product development projects: measuring performance and monitoring the risks

Abstract

This article investigates the development and application of key performance indicators for global product development. Two in-depth, longitudinal case studies with multinational Danish manufacturing companies were conducted, and highlight how key performance indicators, typically used for collocated, cross-functional product development, do not provide the predictive insight required to avoid the additional risks encountered in the global product development environment. Grounded in the case study results and building on established methodologies in performance measurement literature, a framework was developed and validated in two additional Danish companies to support project managers to develop: preventive indicators, which support the avoidance of identified risks, and outcome indicators, which support the measurement towards the attainment of project objectives. The study is unique as it is one of the very few longitudinal studies of engineering design activities in a global context, providing the in-depth contextual understanding towards key risks and their influence on performance; an important step to support researchers and practitioners with the development of preventive measures.     

A generic accounting model to support operations management decisions

Information systems are generally unable to generate information about the financial consequences of operations management decisions. This is because the procedures for determining the relevant accounting information for decision support are not formalised in ways that can be implemented in information systems. This paper describes a formalised procedure, which is based on the following theoretical propositions: (i) cost behaviour is described on the basis of a company's contracts for purchasing and selling resources, and (ii) hierarchical relationships between decisions are recognised, because some decisions have to be made earlier than others. Earlier decisions determine the feasible alternatives for later decisions (e.g. through constraints in available production capacity or components), and the plans that supported the earlier decisions serve as instructions for later decisions. The procedure can be implemented in information systems to provide accounting information in case later decisions deviate from these instruc tions (within the limits of the real-world constraints) because new information becomes available.     

The recruitment and selection of hospital medical consultants

Abstract

The literature on selection has been dominated in recent decades by the ‘prediction’ paradigm. Such an approach requires a substantial number of positions to be filled in order to compute validity coefficients. There are other approaches, using a different paradigm, when concentrated on adjusting the organization and the employee. Here careful analysis of job demands is essential. This article describes such an analysis, taking the medical consultant as an example. The method can be used in an iterative way. It is useful when one has to work with small numbers of positions.     

An integrated framework of mimetic pressures,quality and environmental management,and firm performances

Abstract

Manufacturers have extensively recognised the strategic importance of quality and environmental management. However, there is little guidance on how they adopt and exercise both management practices in a way that enhances firms’ performance outcomes. To fill the research gap, this paper empirically investigates the relationships among mimetic pressures, a firm’s quality management practices (QMPs), environmental management system (EMS), and environmental and financial performances. By using a data set collected from 212?U.S. manufacturing firms, this study examines the proposed hypotheses. Our major findings are: first, mimetic pressures are a driving factor for EMS but do not motivate the adoption of QMPs; second, QMPs are an important enabler not only for enhancing firms’ financial performance but also for promoting EMS and environmental performance; and finally, EMS does not influence firms’ financial performance directly, but indirectly does so through enhancing environmental performance. This study contributes to the literature of quality and environmental management and provides practical implications by addressing motivating factors of both QMPs and EMS, and identifying factors for successful environmental management practices.     

Notes from an Introspective Behaviorist

Abstract

Based on the three-contingency model of performance management, I make the following argument: (1) Often, we fail to behave as we should because the natural contingencies supporting appropriate behavior are ineffective; the natural contingencies involve outcomes for each individual response that are either too small, though of cumulative significance, or outcomes that are too improbable. The delay of the outcome is essentially irrelevant. The psychodynamic model of the cognitive motivational theorists provides a poor explanation for why we fail to behave as we should. (2) The performance-management contingencies in organizational behavior management (OBM) must usually involve deadline-induced aversive control, even when they are based on powerful reinforcers. Furthermore, such performance management succeeds only to the extent that the person's behavioral history, “Jewish mother,” has inculcated an appropriate value system. Wiegand and Geller's critique of the necessity of the use of aversive control fails to take into account the necessity of deadlines and the difference between instrumental and hedonic reinforcers; furthermore, it greatly over values the power of intrinsic reinforcement contingencies in OBM.     

Probabilistic and membership approaches in the construction of control charts for linguistic data

Abstract

Two approaches for constructing control charts for quality assurance when the observations are in the form of linguistic data are presented. Both approaches are based on fuzzy set theory and use fuzzy subsets to model the linguistic terms used to describe product quality. They differ in the interpretation of the control limits and in the procedure used to reduce the fuzzy subsets to scalars for determining the chart parameters. The results obtained with simulated data suggest that, on the basis of sensitivity to process shifts, the control charts for linguistic data perform better than conventional p control charts. The number of linguistic terms used in classifying the observations was found to influence the sensitivity of these control charts. The transformation method used to obtain the representative values and the amount of fuzziness do not seem to affect the performance of either type of control charts.     

An Enhanced Concave Program Relaxation for Choice Network Revenue Management

The network choice revenue management problem models customers as choosing from an offer set, and the firm decides the best subset to offer at any given moment to maximize expected revenue. The resulting dynamic program for the firm is intractable and approximated by a deterministic linear program called the CDLP which has an exponential number of columns. However, under the choice‐set paradigm when the segment consideration sets overlap, the CDLP is difficult to solve. Column generation has been proposed but finding an entering column has been shown to be NP‐hard. In this study, starting with a concave program formulation called SDCP that is based on segment‐level consideration sets, we add a class of constraints called product constraints (σPC), that project onto subsets of intersections. In addition, we propose a natural direct tightening of the SDCP called , and compare the performance of both methods on the benchmark data sets in the literature. In our computational testing on the data sets, 2PC achieves the CDLP value at a fraction of the CPU time taken by column generation. For a large network our 2PC procedure runs under 70 seconds to come within 0.02% of the CDLP value, while column generation takes around 1 hour; for an even larger network with 68 legs, column generation does not converge even in 10 hours for most of the scenarios while 2PC runs under 9 minutes. Thus we believe our approach is very promising for quickly approximating CDLP when segment consideration sets overlap and the consideration sets themselves are relatively small.     

Performance and risk management

Abstract

Performance and risk management are seen by some as two ends of the same spectrum. Performance measurement and management is about steering an enterprise towards a profitable and viable future, whilst risk management is about avoiding the pitfalls that can overwhelm and ultimately put an enterprise out of business. But should the functions and processes of performance measurement and management be integrated with those of risk management? What are the consequences of this integration? How should this be done in practice? In this editorial we briefly chart the debate between those who propose it is important to keep the functions separate and those who advocate integration before presenting the empirical research that informs this conversation.     

Mitigating Inventory Overstocking: Optimal Order‐up‐to Level to Achieve a Target Fill Rate over a Finite Horizon

Service level agreements (SLAs) are widely adopted performance‐based contracts in operations management practice, and fill rate is the most common performance metric among all the measurements in SLAs. Traditional procedures characterizing the order‐up‐to level satisfying a specified fill rate implicitly assume an infinite performance review horizon. However, in practice, inventory managers are liable to maintain and report fill rates over a finite performance review horizon. This horizon discrepancy leads to deviation between the target fill rate and actual achieved fill rate. In this study, we first examine the behavior of the fill rate distribution over a finite horizon with positive lead time. We analytically prove that the expected fill rate assuming an infinite performance review horizon exceeds the expected fill rate assuming a finite performance review horizon, implying that there exists some inventory “waste” (i.e., overstocking) when the traditional procedure is used. Based on this observation and the complexity of the problem, we propose a simulation‐based algorithm to reduce excess inventory while maintaining the contractual target fill rate. When the lead time is significant relative to the length of the contract horizon, we show that the improvement in the inventory system can be over 5%. Further, we extend our basic setting to incorporate the penalty for failing to meet a target, and show how one can solve large‐scale problems via stochastic approximation. The primary managerial implication of our study is that ignoring the performance review horizon in an SLA will cause overstocking, especially when the lead time is large.