Showing papers on "Quality (business) published in 1986"

Measuring strategic performance

Abstract: This paper demonstrates the inadequacy of traditional measures, that are based on a firm's profitability, for evaluating its strategic performance. Two other measures, one that attempts to assess the quality of a firm's transformations (and not merely its outcomes) and the other that attempts to measure the satisfaction of all of the firm's stakeholders (and not merely its stockholders), are shown here to be important discriminators of strategic performance. The performances of seven ‘excellent’ firms from the computer industry, featured in the recent book by Peters and Waterman, are contrasted with that of seven ‘non-excellent’ firms from the same industry, to develop a framework for measuring strategic performance.

Consumer Learning: Advertising and the Ambiguity of Product Experience

Abstract: This paper examines the influence of advertising on how and what consumers learn from product experience. A hypothesis-testing framework is adopted where consumers treat advertisements as tentative hypotheses that can be tested through product experience. Two experiments were conducted using product categories that provided either ambiguous or unambiguous evidence about product quality. The first experiment showed that when consumers have access to unambiguous evidence, judgments of product quality are dependent only on the objective physical evidence and unaffected by advertising. However, advertising had dramatic effects on perceptions of quality when consumers saw ambiguous evidence; judgments and product inspection behavior protocols showed that advertising induced consumers to engage in confirmatory hypothesis testing and search. The second experiment showed that advertising influenced quality judgments by affecting the encoding of the physical evidence; retrieval of ad-consistent evidence also appeared to occur, though to a lesser degree.

Introduction to Quality Engineering: Designing Quality into Products and Processes

Abstract: Contents: Variety and Quality. Variability loss and tolerance. Determining tolerances. Tolerance design and experimental design. Offline and online quality control. Parameter design and tolerance design: case study. Experimental design for smaller is better characteristics. Experimental design for larger is better characteristics. Bypassing the S/N ratio: spring experiment. Experimental design for dynamic characteristics.

Out of the crisis : quality, productivity and competitive position

Abstract: Chain reaction - quality, productivity, lower costs, capture the market theory of management for transformation diseases that management must cure when? how long? questions to help managers get started quality and the consumer quality and productivity in service organizations some new principles of training and supervision operational definitions, conformance, performance standards and regulations common causes and special sources of improvement more examples of improvement of the system some hazards of great ideas two reports to management plan for minimum average total costs for test of incoming materials and final product organization for guidance of improvement some illustrations for improvement of living transformation in Japan.

Quality Improvement and Learning in Productive Systems

Abstract: Recent interest in product quality suggests that effort devoted to improving the quality of manufactured products may reduce unit costs. This conjecture-that improving quality can lower costs-challenges the traditional assumption that unit costs increase with increased quality assurance activities and has significant implications for quality management. By introducing the idea of a quality-based learning curve, this paper links the previously disjoint literatures of quality control and learning curves to explain why high quality and low costs need not be inconsistent. When costs are affected by a quality-based learning curve, product quality favorably influences the rate of cost reduction due to learning. Thus, costs decline more rapidly with the experience of producing higher quality products. Two formulations of the quality-based learning phenomenon are presented. The first assumes that quality-based experience affects direct manufacturing costs. For this formulation, the optimal quality level is decreasing over time, but is always larger than the optimal base-case quality level. The optimal production quantity is constant if the interest rate is zero and increasing in time when the interest rate is positive. The second formulation assumes that quality-based experience affects quality control costs. In this case, the optimal quality level is always increasing over time. The optimal quantity behavior is qualitatively similar to the first formulation. A key feature of the second quality-based model is that it resolves the controversy between the economic conformance level model of Juran, which asserts that one should use cost-tradeoff analysis to find the optimal quality level, and the claims of Deming and Crosby, that zero defects is always the optimal quality level. For certain parameter values, the optimal quality policy in the second model conforms to the economic conformance level model but the dynamics of the model demonstrates the optimality of always pushing towards zero defects.

Modern methods for quality control and improvement

Abstract: History and Evolution of Quality Control Quality and Quality Systems Review of Fundamental Statistical Concepts Introduction to Control Charts Additional Control Chart Principles Control Charts for Attributes Control Charts for Variables Special Control Charts METHODS FOR QUALITY IMPROVEMENT: Graphical Methods for Quality Process Control Techniques Specification Limits, Tolerances and Related Techniques ACCEPTANCE SAMPLING: Single and Double Attribute Sampling Sequential and Multiple Attribute Sampling Plans Attribute Sampling Special Attribute Sampling Procedures Acceptance Sampling by Variables DESIGN QUALITY ASSURANCE: Industrial Experimentation Reliability TABLES: Author and Subject Indexes.

Raising school quality in developing countries: What investments boost learning?

Abstract: Low levels of student achievement and school quality persist in developing countries. The importance of school quality, in raising literacy and influencing economic development, is reviewed in this paper. Some of the lessons learned in how best to improve the quality and efficiency of schools are discussed within four areas. They are (1) school quality and development, (2) the definition of school quality, (3) improving school quality and (4) increasing school efficiency. Within these areas, considerable evidence now exists that low school quality accounts for low levels of literacy and achievement among Third World children. School quality is often indicated by levels of student achievement or by school characteristics which are unrelated to student performance. Instead, the definition of school quality as well as government investment strategies should focus on (a) school characteristics which influence student achievement, and (b) efforts which encourage more efficient management of material inputs by local school staff.

Data quality and due process in large interorganizational record systems

Abstract: As societies have become more dependent on information systems to conduct and record transactions between organizations and individuals, interorganizational computer systems have become a widely used method of coordinating the actions of independent organizations. This article examines the quality of data in one important interorganizational system—the criminal-record system of the United States.

Quality Problems, Policies, and Attitudes in the United States and Japan: An Exploratory Study

Abstract: This study drew on surveys of first-line supervisors in a single, broadly representative industry to compare practices and attitudes concerning quality in the United States and Japan. It focused on...

On the Nature of Competition With Differentiated Products

Abstract: There is an old debate going back to Bertrand (1883) and Edgeworth (1925) about the fragility of market equilibrium when competition arises among a few sellers. It was Hotelling's belief that price instability vanishes when products are differentiated (Hotelling, 1929). Recently attention was drawn to the fact that, even if product differentiation can weaken the forces leading to price instability, it cannot eliminate completely the possibility of price cycles (d'Aspremont et al. 1979). The purpose of this paper is to show that vertical and horizontal product differentiation do not operate in the same manner: a stable market outcome (including an endogenous product specification) arises more frequently with the former than with the latter.' Horizontal product differentiation is rooted in taste differences. More precisely, the potential customers have heterogeneous preferences about the proportion in which the attributes of the product should be combined. A wide range of substitute products can then survive in the same market simply because each of them combines the various attributes of the product in a proportion suitable to a particular segment of customers: between two products in the range the level of some attributes is augmented while that of others is lowered. Each variety has its own circle of customers, exactly as the inhabitants located around a particular shop form its potential market. None the less, competitors can raid these privileged market shares by adequate price cuts. By contrast, vertical product differentiation refers to a class of products which cohabit simultaneously on a given market, even though customers agree on a unanimous ranking between them: between two products in the range the level of all attributes is augmented or lowered. The survival of a low-quality product then rests on the seller's ability to sell it at a reduced price, compensating thereby for the higher a priori attractiveness of a more desirable quality. The seller of a low-quality product will specialise in the segment of customers whose propensity to spend on the corresponding range of products is low, either because they have relatively lower income, or relatively less intensive preferences, than other customers. At the same time, the seller of a high-quality product will enjoy an absolute advantage over his competitor.2 Interestingly, it turns out that price and product competition does not lead to the same results in these two situations, regarding the stability of the market equilibrium. To stress the differences, we have chosen to concentrate on two

Evolving Global Manufacturing Strategies: Projections into the 1990s

Abstract: Large manufacturers in Western Europe, North America and Japan show similarities and differences in their manufacturing strategies. A survey of nearly 1,500 large manufacturers in these areas shows that they all place major emphasis on new products, quality and the use of computer power in manufacturing. The differences in the pattern of strategic directions and priorities for manufacturers in each area are observed, and the implementation of manufacturing strategies discussed. Vulnerable elements in the pattern of dominant manufacturing strategies are observed. In the 1990s Japanese manufacturing management is likely to be focused on balancing the need for change with the need to preserve existing capabilities and strengths. The Americans will focus on fundamental approaches to quality control and sophisticated computer‐based information systems. European manufacturers will focus on the need for structural changes in the organisation, workforce and technology. All regions will be faced with a shortage of people with the various skills required to implement new technologies.

The use of perceptual methods by new clinicians for assessing voice quality.

Abstract: The purpose of this study was to determine the validity and reliability of using perceptual ratings for assessing voice quality in patients with vocal fold nodules or polyps. A 13-dimension percept...

Monopolistic Competition with Experience Goods

Abstract: This paper constructs a model of monopolistic competition where consumers cannot directly verify product quality prior to an initial purchase. Instead, consumers base initial purchases on observed prices, which perfectly signal firms' qualities both in and out of equilibrium. Equilibrium quality is less than efficient, but generally bounded away from the minimum quality. With free entry, observable product variety exceeds what would prevail with perfect information. As repeat purchases become large relative to initial purchases, or as firms become small relative to the size of the market, equilibrium product quality rises, and the market converges to the full information equilibrium.

Indexing product quality: Issues, theory, and results.

Abstract: Jn "The Concept of Quality and the Efficiency of Markets for Consumer Products," Hjorth-Andersen (1984) strongly condemns the use of overall productquality rankings, such as those published by Consumer Reports, as a basis for scientific research. His primary criticism is that creating an index of quality as a weighted average of subscores is usually misleading. He claims that this averaging process is unjustified except for brands that occupy approximately the same rank position on each attribute. This article reviews Hjorth-Andersen's arguments and identifies several important related questions on the use of published quality ratings in academic research. Statistical theory is developed to demonstrate that Hjorth-Andersen's conclusions are limited, and to examine the precise conditions under which his conclusions hold. Empirical evidence is presented that reveals the statistical frequency in real markets of the logical conditions deduced using our theory. Our conclusions differ significantly from those drawn by HjorthAndersen. A debate about the efficacy of quality indices is relevant not only to academic research but also to consumer welfare and strategic marketing planning. Consumer welfare and choice is affected by published quality ratings (Archibald, Haulman, and Moody 1983; Beales et al. 1981; Thorelli and Thorelli 1977). Commercial importance is evident from the widespread distribution of magazines like Consumer Reports. The consumer testing movement, started in 1927 by Chase and Schlink, has spread to agencies in more than 50 nations. These agencies are members of the International Organization of Consumers Unions (IOCU), and the combined circulation of their magazines is in the millions. Published quality ratings also influence academic research: our literature review' identified more than 30 studies that use objective quality ratings as data from which to draw inferences about price versus quality tradeoffs, advertising versus quality interactions, price versus quality changes over product life cycles, brand switching, market efficiency, and rational consumer judgments. Since this review concentrated on the marketing and economics literature, it is likely that the role of published quality ratings in academic research has been underestimated. In any case, academic researchers can and should assist product testing agencies in understanding sources of potential error in their quality scales. Strategic research, such as that conducted by the Strategic Planning Institute at Harvard University, has focused management attention on the influence of product quality on market performance measures like market share and rate-of-return on investment. For example, Phillips, Chang, and Buzzell (1983) indicate that product quality influences a firm's market share directly and its rate-of-return on investment indirectly through market share (see also Day 1986; Farris and Reibstein 1979; Urban et al. 1984). It is important that future research define coherently and measure accurately the construct of quality.

Commit to quality

Abstract: Getting Started. Quality is Everybody's Business. Value Analysis. Quality Teams: An Improvement on Quality Circles. Virtue Is Not Necessarily Its Own Reward. Evolution: Change in Corporate Culture. Quality Has Value: The Second Year. Listening Down----And Out. Adopting Theory: Adapting Practice. Appendix. References. Index.

An examination of just-in-time management for the small manufacturer: with an illustration

Abstract: SUMMARY Productivity increases attributed to the Japanese management approach known as just-in-time (JIT) include better customer service, higher quality levels, increased labour and machine efficiency and reduced inventory levels. These potential benefits, as well as others, have caused many large companies to examine JIT. Most of this interest has been focused on JIT applications for large repetitive manufacturers. Research, and the experiences of some managers, indicate its potential in job-shop and process industry environments. Little research has been conducted in small manufacturing environments This paper examines JIT, its elements, benefits and feasibility in a small manufacturing setting. A bottling company is described and examined in terms of its suitability for JIT implementation. This example shows that not all elements of JIT are feasible for all situations. Each element of a JIT system should be examined as it applies to small or large manufacturing or to repetitive, job-shop or process in...

Covariation Assessment by Consumers

Abstract: Two experiments were conducted to investigate the effect of prior beliefs and information format on consumers' assessment of the relationship between price and quality for four frequently purchased grocery products. In these studies, consumers were shown sets of data, each of which presented ranks of 10 brands of a product category on price and quality. Contrary to prior research on illusory correlation, consumers' estimates of covariation were relatively accurate and unaffected by the availability of relevant prior beliefs about the nature of the relationship between price and quality for grocery products in general or by format manipulations that varied the ease or difficulty of processing the data. These findings are discussed in terms of the effect of detailed instructions, the availability of simple heuristics for processing rank-ordered data, differences between social and consumer perceptions, and the stages of consumer information processing most likely to be affected by prior beliefs.

Campus Autonomy and Its Relationship to Measures of University Quality.

Abstract: (1986). Campus Autonomy and its Relationship to Measures of University Quality. The Journal of Higher Education: Vol. 57, No. 5, pp. 510-528.

Cost function estimation and quality bias: the regulated automobile insurance industry

Abstract: This article explores the implications of endogenous product quality (and therefore endogenous output) in the empirical estimation of cost functions for regulated automobile collision insurance firms. It contains a structural model of such a firm and provides an illustration of the types of biases that can result if data on quality of service are unavailable or otherwise omitted. The analysis shows how the directions of biases depend on the nature of the variations in the observed (nonquality) data. A new test suggests that such bias is present in insurance cost functions.

The Assessment of Quality in Higher Education: A Critical Review of the Literature and Research.

Abstract: The article discusses the elusive concept of quality and the problems involved in attempting to assess it. The article provides a comprehensive yet critical review of the literature and empirical research studies undertaken on the subject matter. Three types of studies are identified and are reviewed relative to their major findings, strengths, and weaknesses. Issues that remain to be resolved are also identified and discussed.

The Chain of Quality: Market Dominance Through Product Superiority

Abstract: The Strategic Importance of Product Quality Principles of Quality Improvement Quality Costs, The Second Measure of Quality Improvement Marketing Aspects of Quality Design Aspects of Quality Incoming Inspection Purchased Items Inspection and Test in Manufacturing Manufacturing Quality Reliability and Product Liability Multifunctional Quality Improvement Programs Organizing and Planning for Quality Improvement The Role of Staff Managers System Quality Audits Wider Application of Quality Improvement Index.