TOTAL QUALITY MANAGEMENT: A LITERATURE REVIEW AND AN AGENDA FOR FUTURE RESEARCH

Total quality management (TQM) is a revolutionary approach to effective management. The research in TQM has emerged from practical needs of organizations embracing this philosophy, and the literature is mostly conceptual and practitioner-oriented. There is a lack of sound theoretical framework classifying past efforts and guiding future research. To fill the void, a study of the published TQM literature is undertaken. A review, classification, and analysis of the research in TQM spanning the last two decades is presented. A total of 226 TQM-related articles are identified from 44 refereed management journals published from 1970 to 1993. These articles are then classified and analyzed using the following two-dimensional scheme: (1) article orientation (conceptual, case study, empirical, analytical, simulation, and overview) and (2) article focus using the Malcolm Baldrige National Quality Award criteria. The analysis of the literature presents pertinent developments in each of the seven criteria. In addition, it provides future research directions as well as a ready reference of the TQM literature. The suggestions for research should guide future developments in the TQM field and help transform it into a formal discipline.     

THE PERILS OF EXCELLENCE: BARRIERS TO EFFECTIVE PROCESS IMPROVEMENT IN PRODUCT-DRIVEN FIRMS

Several authors have suggested that a focus on manufacturing capability and on continued process improvement may be a powerful source of competitive advantage, yet many firms appear to have encountered great difficulties in taking advantage of this insight. This paper reports on the results of five these conducted under the auspices of the MIT Leaders for Manufacturing program at the Microwave Technology Division of the Hewlett-Packard Company. We found considerable evidence that the marginal returns to process development within the division were probably considerably higher than the division's cost of capital, suggesting that process improvement probably was underfunded despite the fact that improving manufacturing capability had been identified as a key strategic priority. We found no evidence that this “underfunding” reflected either a failure to recognize the problem or an overly hierarchical or rigid organization. Rather it appeared to flow from the historical strengths of the division. A devotion to leading-edge technical solutions and to immediate customer service at almost any price had created barriers to the effective funding of process improvement that were deeply rooted in the organizational structures, information systems, and formal and informal incentive structures that had evolved to support the division's historical emphasis on excellence on product design. Our results highlight the problems that very successful product-driven companies may encounter in attempting to make continual process improvement central to their strategic mission.     

REENGINEERING CHANNEL REORDERING PROCESSES TO IMPROVE TOTAL SUPPLY-CHAIN PERFORMANCE

This paper discusses the relationship between business process reengineering and channel performance for firms implementing electronic data interchange (EDI) linkages within the U.S. grocery industry. Both quantitative and qualitative data sources are combined to test the hypothesis that channel transformation involving adoption of EDI and redesign of replenishment processes enables performance improvements more than an order of magnitude greater than implementation of EDI alone. This new process, enabled by EDI, provides retailers with 50- 100% higher inventory turns for products on continuous replenishment processes (CRP) relative to retailer performance using traditional ordering processes. Firms adopting EDI without using CRP to reengineer the ordering processes have failed to realize any statistically significant improvements in either inventory levels or warehouse stockouts. This research provides evidence to support the claims of process reengineering that are common in the popular business press, but for which statistically significant empirical evidence is minimal. The findings of the research also demonstrate the potential improvements that firms can realize through extending the business process reengineering concept to include the firms' entire supply chain.     

LINKING PROCESS CHOICE WITH PLANT-LEVEL DECISIONS ABOUT CAPITAL AND HUMAN RESOURCES

We examine how process choice links with design decisions about capital and human resources. Our analysis confirms empirically most expected differences between process- and product-focused plants for these decisions. What is unexpected is how top-performing plants resemble other plants within the same process choice category in most respects, while distinguishing themselves on a few selected process attributes. For example, better performing process-focused plants not only achieve higher machine flexibility levels and lower overhead costs as expected, but also have more intensive preventive maintenance programs. Similarly, product-focused plants that achieve certain hallmarks of process-focused plants also enjoy superior performance.     

Research Selectivity, Managerialism, and the Academic Labor Process: The Future of Nonmainstream Economics in U.K. Universities

This paper reports the results of empiricalresearch designed to explore the impact of researchselectivity on the work and employment of academiceconomists in U.K. universities.Research selectivityis seen as part of the general trend towardmanagerialism in higher education in both the U.K. andabroad. Managerialism based on performance indicatorsand hierarchical control has been contrasted withcollegiate control-based or informal peer review. However,analysis of the academic labor process has idealizedcollegiate relations at the expense of professionalhierarchies and intellectual authority relations. We argue that in the U.K., there has evolved amainstream economics which is located within awell-defined neoclassical core. We find that theexistence of lists of core mainstream journals which arebelieved to count most in the periodic ranking exerciseposes a serious threat to academic freedom and diversitywithin the profession, institutionalizing the controlwhich representatives of the mainstream exercise over both the academic labor process and jobmarket. In this way, managerialism combines with peerreview to outflank resistance to new forms ofcontrolling academic labor at the same time asreinforcing disciplinary boundaries through centralizedsystems of bureaucratic standardization andcontrol.     

A THREE-PHASE APPROACH TO INSTILLING A CONTINUOUS LEARNING CULTURE IN MANUFACTURING EDUCATION AND TRAINING

We describe a “learn-by-doing” approach that involves the following three phases designed in part to integrate management and engineering curricula and instill a continuous learning philosophy: (1) involve cross-functional teams as “process and business owners” in a replica of a real-life manufacturing/design problem (Do), (2) require teams to not only learn by doing but to then apply or implement what they have learned in phase 1 (Apply), and (3) share best practices and knowledge gained with subsequent participants (Document). These last two phases are essential and potentially the most valuable but are often ignored in the learning process. They can be accomplished either manually or through the use of an electronic bookshelf (e.g., company or school intranet), which is a database system used to collect and store templates of best practices, collective wisdom, and related information associated with learning and operational activities. We describe two of several educational packages we have developed and discuss their impact on our teaching, our students, and practitioners.     

PROCESS IMPROVEMENT: AN EXPLORATORY DATA ANALYSIS APPROACH WITHIN AN INTERVAL-BASED OPTIMIZATION FRAMEWORK

This article revisits an old problem; “systematically explore the information contained in a set of operating data records and find from it how to improve operational performance by taking the appropriate decisions in the space of operating conditions,” thus leading to continuous process improvement. A series of industrial case studies within the framework of the internships in the Leaders for Manufacturing (LFM) program at Massachusetts Institute of Technology led us to a reexamination of the traditional formulations for the above problem. The resulting methodology is characterized by the following features: (1) problem statement and solutions are expressed in terms of hyperrectangles in the decision space, replacing conventional pointwise results; (2) data-driven, nonparametric learning methodologies were advanced to produce the requisite mapping between performance and decisions; (3) operating performance is in essence multifaceted, leading to a multiobjective problem, which is treated as such. The proposed methodology has been applied to a number of industrial examples and in this paper we provide a brief overview only of those that can be discussed in the open literature.     

ON-LINE QUALITY MANAGEMENT: INTEGRATION OF PRODUCT INSPECTION AND PROCESS CONTROL

A growing recognition that quality management is an important factor in defining a firm's competitive position has led to renewed attention to this function and has resulted in implementation of elaborate systems for on-line quality control comprising product inspection and process control. Traditionally, these functions have been treated independently, with very little interaction. In this paper we examine, in detail, a scheme that integrates the two functions, and we demonstrate that such an approach can result in significant cost savings. The motivation for this work comes from our experience in a wafer fabrication facility that suggested that exchange of quality information between different stages of production could result in significant performance improvements. To illustrate this approach, we consider a specific environment characterized by a single-stage continuous production process whose status is monitored by an X̄ control chart. We assume that quality-related costs may be described as a function of the process output. This is analogous to Taguchi's quality loss function and may be interpreted as a generalization of conventional classification of process output as either acceptable or defective units. The integrative scheme essentially relies on utilization of the process status information (based on process control) in making product inspection decisions. For this system we derive a cost model and develop a solution procedure to determine optimal decision parameters. Limited computational results indicate that the scheme has significant potential for reducing quality-related costs.     

A NEW LEARNING APPROACH TO PROCESS IMPROVEMENT IN A TELECOMMUNICATIONS COMPANY

Redesigning and improving business processes to better serve customer needs has become a priority in service industries as they scramble to become more competitive. We describe an approach to process improvement that is being developed collaboratively by applied researchers at US WEST, a major telecommunications company, and the University of Colorado. Motivated by the need to streamline and to add more quantitative power to traditional quality improvement processes, the new approach uses an artificial intelligence (AI) statistical tree growing method using customer survey data to identify operations areas where improvements are expected to affect customers most. This AI/statistical method also identifies realistic quantitative targets for improvement and suggests specific strategies predicted to have high impart. This research, funded in part by the Colorado Advanced Software Institute (CASI) to stimulate profitable innovations, has resulted in a practical methodology used successfully at US WEST to help set process improvement priorities and guide resource allocation decisions throughout the company.     

ON THE TABLETOP IMPROVEMENT EXPERIMENTS OF JAPAN

Originally conceived by Frank and Lillian Gilbreth, the “tabletop improvement experiments” have been used in Japan since 1925 to teach important principles of continuous improvement. The experiments, designed for classroom use, communicate their lessons in a striking and memorable way. The work-related experiments categorize the sources of resistance to change and show how to neutralize them. The process-related experiments sharpen understanding of where the biggest opportunities for process improvement usually lie. Surprisingly, the experiments are hardly known in the West. We describe all of them and document their history for the first time.