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Showing papers in "International Journal of Quality & Reliability Management in 2000"



Journal ArticleDOI
TL;DR: In this article, the reliability and validity of the instrument were tested and validated using data from 212 Chinese manufacturing companies, and the comparison between this instrument and the three other quality management instruments were made.
Abstract: From an extensive review of the literature in the field of total quality management (TQM), 11 constructs of TQM implementation were identified. An instrument measuring these constructs was developed. The reliability and validity of the instrument were tested and validated using data from 212 Chinese manufacturing companies. Various methods were employed for this test and validation. Comparisons between this instrument and the three other quality management instruments were made. It was concluded finally that the instrument presented in this paper was reliable and valid. Researchers will be able to use this instrument for developing quality management theory. Industrial practitioners will be able to use this instrument to evaluate their TQM implementation so as to target improvement areas.

411 citations


Journal ArticleDOI
TL;DR: In this paper, the authors conducted a survey on the relationship between TQM, ISO 9000 certification and business performance improvement and found that ISO 9000 standards are partially related to the implementation of TQMs and the improvement of business performance.
Abstract: Records the research on the relationship between TQM, ISO 9000 certification and business performance improvement. The research is based on a survey conducted in Norway. Finds that the TQM criteria (or enablers) such as quality leadership, human resource development, quality information, etc. contribute to the improvement of customer satisfaction and business performance. However, none of these TQM enablers can guarantee enhanced performance. It is these enablers as a whole that contribute collectively to the improvement of performance. The study also finds that ISO 9000 standards are partially related to the implementation of TQM and the improvement of business performance. The recommendation is that ISO 9000 should be incorporated with the philosophy and methods of TQM.

271 citations


Journal ArticleDOI
TL;DR: In this article, the authors developed a new tool for reliability and failure mode analysis by integrating the conventional aspects of the failure mode and criticality analysis (FMECA) procedure with economic considerations.
Abstract: The aim of this paper is to develop a new tool for reliability and failure mode analysis by integrating the conventional aspects of the popular failure mode and criticality analysis (FMECA) procedure with economic considerations. Here FMECA is approached as a multi‐criteria decision making technique which integrates four different factors: chance of failure, chance of non‐detection, severity, and expected cost. To aid the analyst to formulate an efficient and effective priority ranking of the possible causes of failure, the analytic hierarchy process technique is adopted. With this technique, factors and alternative causes of failure are arranged in a hierarchic structure and evaluated only through the use of a series of pairwise judgements. With this new approach to failure investigation, the critical FMECA problem concerning the (direct) evaluation of failure factors is also by‐passed. The principles of the theory and an actual application in an Italian refrigerator manufacturing company are reported in the paper.

235 citations


Journal ArticleDOI
TL;DR: In this paper, a methodology was developed to measure cost of quality failures in two major road projects, largely based upon a work-shadowing method, and the initial data were collected and categorised into definable groups and how the costs were estimated for each of these categories.
Abstract: A methodology was developed to measure cost of quality failures in two major road projects, largely based upon a work‐shadowing method. Shows how the initial data were collected and categorised into definable groups and how the costs were estimated for each of these categories. The findings suggest that, if the projects examined are typical, the cost of failures may be a significant percentage of total costs, and that conventional means of identifying them may not be reliable. Moreover, the costs will not be easy to eradicate without widespread changes in attitudes and norms of behaviour within the industry and improved managerial co‐ordination of activities throughout the supply chain.

199 citations


Journal ArticleDOI
TL;DR: In this article, a survey of practicing project managers supports the theory that organizational learning practices are associated with project knowledge, which is associated with Project performance, and managers can use this research to develop specific strategies to increase project success through learning.
Abstract: Describes the organizational learning practices in a project management environment to ensure project quality. The project management and organizational learning processes are described using the plan‐do‐study‐act (PDSA) cycle from quality management. Data from a survey of practicing project managers support the theory that organizational learning practices are associated with project knowledge, which is associated with project performance. Project knowledge is associated with learning that occurs both within and across projects. Managers can use this research to develop specific strategies to increase project success through learning. Researchers can use the results to understand how learning occurs in project environments. Implications are provided for project managers to use in focusing the learning activities of a project team.

195 citations


Journal ArticleDOI
TL;DR: In this article, the authors report the finding of a study of the production and maintenance function of four processing/manufacturing companies and highlight the difficulties that these companies have been faced with in their attempt to implement total productive maintenance (TPM) initiatives in order to improve organisational efficiency.
Abstract: Since the 1980s, quality initiatives, seen as critical for greater competitiveness, have gained much attention from British management under the influence of Japanese management principles. This has resulted in a widespread adoption of quality techniques such as quality circles, teamworking, customer care, total quality management (TQM) and total productive maintenance (TPM), etc. This paper reports the finding of a study of the production and maintenance function of four processing/manufacturing companies. It intends to highlight the difficulties that these companies have been faced with in their attempt to implement TPM initiatives between the production and maintenance departments in order to improve organisational efficiency. The paper concludes that implementing TPM is by no means an easy task, which is heavily burdened by political, financial, departmental and inter‐occupational barriers.

186 citations


Journal ArticleDOI
TL;DR: E-Business and ERP: Transforming the Enterprise as mentioned in this paper examines the changing but essential role of ERP, places it in the context of the Web-based technologies defining today's e-business environment, and reveals how to blend the best aspects of both to create a strong and flexible twenty-first century business enterprise.
Abstract: From the Publisher: Is Your Company Getting the Most from Its Investment in Change? Many companies have already invested heavily in infrastructure change, some are making that investment now, and all are contemplating the costs of becoming or evolving as an e-business. Is your company a "greenfield" organization with no back-end systems, or one whose infrastructure support systems are integrated across the enterprise? Are you just beginning to think about e-business capabilities, or are you on the leading edge of convergence? Whatever your company's position on the ERP/E-Business Matrix, E-Business and ERP: Transforming the Enterprise provides the proven techniques you need to know to meld enterprise resource planning capabilities with the communications power of the Internet. Is Your Company Positioned for E-Business Success? The Internet has revolutionized twenty-first century business. Organizations today can communicate with customers, suppliers, and sellers at e-speed with the click of a mouse. Yet, with all of the excitement about the external possibilities of the Internet, companies still need efficient internal processes to make and move products, manage finances, recruit and motivate employees, and excel. E-Business and ERP: Transforming the Enterprise covers the skills and tools you will need to combine existing ERP software and capabilities with emerging Web-based technologies. In this forward-thinking outline for a new business structure, executives and managers will discover: Strategies for established companies to penetrate the Internet marketplace Procedures that lower costs across the supply and demand chain Techniques that help you meet—and master—the dot.com challenge The companies best positioned to succeed in the near future are those that can balance existing ERP-based infrastructures and capabilities with exciting new e-business innovations. E-Business and ERP: Transforming the Enterprise examines the changing but essential role of ERP, places it in the context of the Web-based technologies defining today's e-business environment, and reveals how to blend the best aspects of both to create a strong and flexible twenty-first century business enterprise.

179 citations


Journal ArticleDOI
TL;DR: In this paper, the authors discuss the trends in the adoption of quality management practices in the Australian manufacturing industry and highlight some of the barriers to adoption of TQM in Australian manufacturing.
Abstract: Discusses the trends in the adoption of quality management practices in the Australian manufacturing industry and highlights some of the barriers to the adoption of such practices. Furthermore, the paper discusses the factors that are considered to be critical to the adoption of TQM in Australian manufacturing. The longitudinal quantitative and qualitative results show that TQM is largely implemented in the manufacturing/operations function with little progress in other functional areas. Overall, the popularity of TQM, ISO 9000 certification, statistical process control and quality circles has diminished. The obstacles to the adoption of quality management practices point to the short‐term vision of Australian managers and the misconception concerning the costs and benefits associated with a TQM programme. Based on the results of surveys and the case study research, numerous factors critical to success are identified. Concludes that there is no single best approach to implementing the TQM philosophy. An approach unique to the needs and culture of the organization must be developed.

163 citations


Journal ArticleDOI
Rodney McAdam1
TL;DR: In this article, a study is made of 20 SME cases, where a quality model, the balanced scorecard, has been applied, and a grounded model is derived which shows the critical factors in regard to the principles of TQM, when quality models are applied in an SME context.
Abstract: This paper adopts a critical perspective in seeking to inquire how TQM‐related models, developed initially in large organisations, are applied in the SME context. Using a grounded inductive approach, a study is made of 20 SME cases, where a quality model, the balanced scorecard, has been applied. A grounded model is derived which shows the critical factors in regard to the principles of TQM, when quality models are applied in an SME context. The findings indicate TQM, when a quality model is applied in an SME context. The findings indicate that SMEs can be compromised by the mechanistic and formalised nature of such models, which the SMEs consider as adding bureaucracy, while needing to remain flexible and innovative in a very dynamic environment over which they have little control.

154 citations


Journal ArticleDOI
TL;DR: In this paper, the authors used a principal component factor analysis with a VARIMAX rotation technique to identify seven hotel factors out of 33 hotel attributes and determine the levels of satisfaction among Asian and Western travellers.
Abstract: Given the rapidly changing profile of travellers, in terms of their nationality, this study investigates Asian and Western travellers’ perceptions about the service quality of Hong Kong hotels. Using a principal component factor analysis with a VARIMAX rotation technique, this study identifies seven hotel factors out of 33 hotel attributes and determines the levels of satisfaction among Asian and Western travellers. The seven hotel factors derived from factor analysis are: staff service quality, room quality, general amenities, business services, value, security, and IDD facilities. The results from the regression analysis suggest that Asian travellers’ overall satisfaction is primarily derived from the value factor, whereas their Western counterparts are influenced by the room quality factor. This study is strategically and managerially important to the Hong Kong hotel industry. Using the results of the study, hoteliers can focus their efforts to provide quality service and facilities that their Asian and Western customers perceive as being important and as having high value.

Journal ArticleDOI
TL;DR: In this paper, the authors examined management culture and quality performance in a sample of New Zealand manufacturing organizations and found no significant correlations were found between the organizational cultures and cost of quality, or with supplier quality.
Abstract: For many years culture has been claimed as an important component of organizational success in general and TQM and quality improvement in particular. This study examined management culture and quality performance in a sample of New Zealand manufacturing organizations. The culture was measured using the Organizational Culture Inventory, and quality performance was measured using questions from Leading the Way: A Study of Best Manufacturing Practices in Australia and New Zealand. Different management cultures were found to have correlations with quality indicators such as: warranty claims, percent defectives, ratio of quality inspectors to direct production workers, and delivery in full on time. No significant correlations were found between the organizational cultures and cost of quality, or with supplier quality. We suggest that through understanding these relationships between culture and quality, managers may be able to develop more effective and competitive organizations.

Journal ArticleDOI
TL;DR: In this paper, the authors examine the underlying factors affecting the quality of a building project and identify factors that showed a strong correlation to good quality performance, which can help clients, project managers, designers and contractors with information that can help them become more efficient with their limited resources and achieve better quality outcomes.
Abstract: Reports the findings of a research study, which was undertaken to examine the underlying factors affecting the quality of a building project Aims to identify factors that showed a strong correlation to good quality performance The ultimate goal is to provide clients, project managers, designers and contractors with information that can help them become more efficient with their limited resources and, as a result, achieve better quality outcomes A total of 110 recently‐completed building projects in Hong Kong were examined and analysed Using factor analysis and stepwise multiple regression analysis, factors affecting the quality of the building project were identified It was shown that project management action by the project team was the most powerful predictor of client’s satisfaction with quality Other factors included effectiveness of the construction team leader, the client’s emphasis on quality, and the client’s emphasis on time

Journal ArticleDOI
H. Yamashina1
TL;DR: In this article, the role of total productive maintenance (TPM) in achieving world-class manufacturing is discussed and impacts of TPM on the culture and structure of the organization are discussed.
Abstract: Deals with the basic requirements for world‐class manufacturing and discusses the role of total productive maintenance (TPM) in helping to achieve world‐class manufacturing. Examines the roles of TPM in TQM and JIT. Finally, impacts of TPM on the culture and structure of the organization are discussed and pitfalls of TPM implementation are dealt with. Provides an in‐depth look at the development of Japanese manufacturing strategy and concludes with the view that the first step to world‐class manufacturing is to implement TPM successfully and to create an active organization.

Journal ArticleDOI
TL;DR: In this paper, the authors show that equipment maintenance and reliability management are important strategies that can considerably influence the organization's ability to compete effectively and develop strategies that look into these important competitive factors.
Abstract: Today’s business environment is considerably complex and, as a result, more factors influence the organization’s ability to compete effectively. Organizations today compete on several factors such as time, price, technology, innovation, quality, reliability, and information management. In all these, equipment maintenance and reliability are important strategies that can considerably influence the organization’s ability to compete effectively. This paper develops strategies that look into these important competitive factors. It shows that equipment maintenance and reliability management are importantly associated with an organization’s competitiveness and must be given adequate attention in the organization’s strategic planning.

Journal ArticleDOI
TL;DR: In this paper, a case study of TPM implementation in a high-precision machining factory in mainland China is presented, where the first two phases of the programme have been completed, producing significant improvement in production performance.
Abstract: Total productive maintenance (TPM) is an innovative approach to maintenance which holds the potential for enhancing effectiveness of production facilities. It demands significant change of work culture and radical restructuring of work. Introducing TPM in operations located in developing countries, such as mainland China, is a major challenge because the environment is typically traditional and unfavourable to the transformation. This paper presents a case study of TPM implementation in such an environment – a high‐precision machining factory in mainland China. The workforce in the factory consists primarily of migrant workers who are driven by instant gratification, and who are passive and hesitant to take new challenges. None of these characteristics is conducive to TPM. A three‐phase programme was adopted by the factory to implement the change. The first two phases of the programme have been completed, producing significant improvement in production performance. While the advanced stage of the multi‐year programme is still in progress, the lessons so far learned from the change initiative are discussed.

Journal ArticleDOI
TL;DR: In this article, a conceptual model from the review of literature on ISO 9000, TQM, performance measurement and strategy is extracted and used for the final framework, which is divided into two parts, "formulation" and "implementation", as stages of post-ISO 9000 quality development.
Abstract: For both ISO 9000 and TQM concepts there have been many research programmes and publications. However, the coincidence of these topics and/or the ambiguity about their relationship has emerged in a number of discussions. This paper examines this relationship and provides a framework to assist manufacturing organisations to move beyond the requirements of ISO 9000 towards total quality. The research methodology adopted was based on extracting a conceptual model from the review of literature on ISO 9000, TQM, performance measurement and strategy. The conceptual model, provided the basis for the final framework, which was divided into two parts, “formulation” and “implementation”, as stages of post‐ISO 9000 quality development. The research empirically examined these stages by surveying over 200 industrial companies including 18 detailed case studies which produced a number of findings. The research findings have been integrated to form the post‐ISO 9000 quality development framework.

Journal ArticleDOI
TL;DR: In this article, the authors argue that in order to effectively manage quality in the construction project environment, firms need two things: externally orientated, flexible, quality improvement systems and a targeted approach to investing in key stable relationships in the supply network of which they are a part.
Abstract: Argues, with evidence from a number of related studies, that in order to effectively manage quality in the construction project environment, firms need two things. First, externally orientated, flexible, quality improvement systems are required. Second, firms need a targeted approach to investing in key stable relationships in the supply network of which they are a part.

Journal ArticleDOI
TL;DR: In this paper, an approach to partnering developed by a European conglomerate which is being employed throughout the UK is described, and the main points relating to quality as perceived by the project participants, as well as some of the overall advantages of adopting this approach to partner are identified.
Abstract: Subcontractors and suppliers are playing an increasingly important role in project construction – it is not uncommon for as much as 90 per cent of a project to be undertaken by subcontractors. The result of this increased involvement is that main contractors are now concentrating their efforts on managing subcontractors rather than employing direct labour. Outlines an approach to partnering developed by a European conglomerate which is being employed throughout the UK. Commences with an overview of recent studies into the UK construction industry concentrating on partnering, quality and lean production. The second part discusses the context of these points from a quality, general and construction project management perspective. A form of benchmarking is described and the actual partnering approach is detailed. Finally, the paper identifies the main points relating to quality as perceived by the project participants, as well as some of the overall advantages of adopting this approach to partnering.

Journal ArticleDOI
TL;DR: In this paper, the authors presented a research instrument to measure the extent to which IT supports quality management, and the construct of quality management supported by information technology was operationalised, where data from 110 public organisations that have applied for the Malaysian Prime Minister's Quality Award (Public Sector) were gathered in a field survey to enable a rigorous examination of the construct operationalised.
Abstract: Both quality management and the use of information technology have been widely researched over recent years. However, there has been no well‐founded empirical research on the two together – on how IT can support quality management practices. This paper presents a research instrument to be used in such research. In order to measure the extent to which IT supports QM, the construct “quality management, supported by information technology” was operationalised. Data from 110 public organisations that have applied for the Malaysian Prime Minister’s Quality Award (Public Sector) were gathered in a field survey to enable a rigorous examination of the construct operationalised. Analysis of literature suggested eight dimensions of quality management, namely leadership, output quality assurance, strategic planning process, human resource utilisation, important innovations, information and analysis, customer satisfaction, and quality results. The research findings supported this and suggested a ninth dimension, supp...

Journal ArticleDOI
TL;DR: A survey of 100 construction firms in Botswana found that although the values embedded in TQM could be adopted within the organisations into which it is implemented, the cultural context of the greater society resisted some of the values as mentioned in this paper.
Abstract: Total quality management (TQM) as an integrated approach to management that represents a holistic management philosophy, rather than a series of techniques, is embedded with cultural values and assumptions that are consistent with its culture of origin. This study aims to determine the outcome of implementing TQM in a place that does not share its cultural base. A survey of 100 construction firms in Botswana found that, although the values embedded in TQM could be adopted within the organisations into which it is implemented, the cultural context of the greater society resisted some of the values. It was concluded that, for TQM to be successful in a particular cultural setting, it has to take on some of the host cultural values.

Journal ArticleDOI
TL;DR: In this article, a 26-item scale for assessing service quality in a UK construction professional service context is presented. But the authors do not discuss the possible future uses of this scale.
Abstract: Discusses the development of a 26‐item scale for assessing service quality in a UK construction professional service context. The research builds upon work undertaken by service marketing academics in the USA who have developed a generic service quality measurement instrument (SERVQUAL). The data collection (involving the assessment of 244 professionals by their clients) and analysis stages of the research are described in detail. The findings of the research are that construction professional service quality can be described as a four‐dimensional construct (the writer has called the factors “what”, “how”, “when” and “who”), and that the assessment scale possesses both reliability and validity. Concludes with a discussion of the possible future uses of this scale.

Journal ArticleDOI
TL;DR: It is concluded that audit managers must ensure appropriate levels of quality and effectiveness of quality audit systems.
Abstract: Quality audits are prominent and proven management tools for assessing compliance and effectiveness of quality systems They are commonly used in the effort to improve overall business performance However, similarly to any other physical or conceptual system, they may fail to achieve objectives set forth, raising concerns among auditees and clients alike Argues for the provision of adequate confidence to various interested parties in the quality of auditing services A quality audit is conceptualized using the systems approach Subsequently, a quality assurance framework based on the application of the 1994 and 2000 versions of the ISO 9001 standard in auditing is presented Audit system effectiveness is modeled using the concepts of audit reliability, availability and suitability Audit failures, risks and maintainability are addressed in detail It is concluded that audit managers must ensure appropriate levels of quality and effectiveness of quality audit systems

Journal ArticleDOI
TL;DR: In this article, the authors investigated the differences in quality management between Shanghai and Norwegian manufacturing companies and found that Shanghai companies place greater emphasis on quality control and statistical methods while neglecting customer satisfaction and quality assurance.
Abstract: Records the research that investigates the differences in quality management between Shanghai and Norwegian manufacturing companies. The research is based on a survey supported by the Norwegian Association for Quality Management (NFK) and the Shanghai Association for Quality Control (SAQC). The research reveals major differences between the two parties. Compared with their Norwegian counterparts, Shanghai companies place greater emphasis on quality control and statistical methods while neglecting customer satisfaction and quality assurance. The final conclusion is that, although managers appreciate the importance of quality management, quality management in Shanghai is still focused on internal quality control, which is still far from Total Quality Management (TQM). Practical implications for future improvement in Shanghai companies and foreign joint ventures in Shanghai are discussed. Future research is also discussed.

Journal ArticleDOI
TL;DR: In this article, the authors examined the motivation for, processes and outcomes of quality assurance implementation using ISO 9000 framework in small business organisations in the UK, and noted that although quality management has gained momentum in this sector, the lack of strategic thinking and skills needed to embed a total quality orientation has often meant that the espoused benefits of implementing quality assurance schemes are not realised.
Abstract: The past decade witnessed a remarkable growth in the number of small businesses in the UK seeking to implement formal quality assurance systems, principally the ISO 9000/BS5750. Based on two case studies, this paper examines the motivation for, processes and outcomes of quality assurance implementation using ISO 9000 framework in small business organisations in the UK. It notes that although quality management has gained momentum in this sector, the lack of strategic thinking and skills needed to embed a total quality orientation has often meant that the espoused benefits of implementing quality assurance schemes are not realised.

Journal ArticleDOI
TL;DR: In this article, the authors compare and contrast manufacturing strategies and business practices between TQM and traditional (or non-TQM) firms in the Chinese manufacturing industry, by analyzing survey results of 243 Chinese manufacturing firms.
Abstract: Quality has been identified as a key competitive weapon in the global market. Chinese firms are making considerable effort in implementing quality management in order to gain global competitiveness. The purpose of this study is to compare and contrast manufacturing strategies and business practices between TQM and traditional (or non‐TQM) firms in the Chinese manufacturing industry. This study explores the differences that may exist between TQM and traditional non‐TQM firms in manufacturing strategies and business practices by analyzing survey results of 243 Chinese manufacturing firms. Differences between TQM and traditional non‐TQM firms are investigated in several respects.

Journal ArticleDOI
TL;DR: In this article, the application of benchmarks developed from a scorecard approach to a total quality management (TQM) program is discussed, which aims to attain quality within an organisation whose primary operations are centred on a number of construction projects.
Abstract: The application of benchmarks developed from a scorecard approach to a total quality management (TQM) programme are discussed. The programme aims to attain quality within an organisation whose primary operations are centred on a number of construction projects. The innovative scorecard measures developed and implemented within the Morrison Construction Group are reviewed and reported upon, and the resulting benefits derived from the implementation of the scorecard are discussed. Real and virtual benchmarks are established and utilised as metrics within this construction organisation’s scorecard. From implementation of the scorecard, it is clear that superior measures are those which incorporate internal and external customer survey findings which include the mapping of practical efforts centred on the perceptions of the client and the myriad other stakeholders in a construction project.

Journal ArticleDOI
TL;DR: This article examined two distinctly different reasons for resistance to total quality management in US corporations and found evidence that personality characteristics, and especially growth needs strength (GNS) and organizational citizenship behavior (OCB), are related to preferences for enriched jobs of the type associated with the quality environment.
Abstract: Examines two distinctly different reasons for resistance to total quality management (TQM) in US corporations. One of these is that workers will perceive TQM as controlling rather than empowering: in effect, seeing it as a ploy to get them to work harder for fewer rewards. Alternatively, it may be that TQM is seen as empowering but that all individuals do not want enriched, empowered jobs. Asks whether personality characteristics, and especially equity sensitivity, growth need strength, and willingness to engage in organizational citizenship behavior, are related to each other and whether they will influence individuals’ reactions to job characteristics associated with the quality environment. Findings offer support for the second of the possibilities raised, with results suggesting that resistance is not related to perceptions that jobs under TQM are seen as controlling. Finds evidence that personality characteristics, and especially growth needs strength (GNS) and organizational citizenship behavior (OCB), are related to preferences for enriched jobs of the type associated with the quality environment.

Journal ArticleDOI
TL;DR: In this paper, the authors present the results of a study on quality management infrastructure practices and quality performance in manufacturing companies located in the North and Central regions of Mexico and the US Midwest region.
Abstract: Presents the results of a study on quality management infrastructure practices and quality performance in manufacturing companies located in the North and Central regions of Mexico and the US Midwest region. Seven quality management infrastructure practices – top management support, strategic quality planning, quality information availability, employee training, supplier quality, customer focus, and quality citizenship – were assessed and compared. The research covered 372 manufacturing companies in both countries. Our findings show significant differences between the three regions. Companies located in the North region of Mexico exhibit significantly better levels of quality management infrastructure practices than companies located in the US Midwest and Central Mexico regions. Implications for decision‐makers for location, outsourcing, and joint ventures are discussed.

Journal ArticleDOI
TL;DR: In this paper, the adequacy of perceived quality measurement instruments by comparing the SERVPERF and EP methods was verified by analyzing the multitrait-multimethod matrix using the structural equation model methodology.
Abstract: This paper verifies the adequacy of perceived quality measurement instruments by comparing the SERVPERF and EP methods. After a discussion of the differences between the two methods, a quality perception measurement instrument for the company is developed and applied to a sample of ceramic company clients. The methods are compared by analyzing the multitrait‐multimethod matrix using the structural equation model methodology. Results indicate that SERVPERF has greater reliability, greater convergent and discriminant validity, explains variance more completely, and consequently introduces less bias.