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Article
Publication date: 1 May 2005

Avinandan Mukherjee and Prithwiraj Nath

The purpose of this paper is to propose and empirically assess three comparative approaches to measuring service quality: modified gap model, TOPSIS and loss function…

Abstract

Purpose

The purpose of this paper is to propose and empirically assess three comparative approaches to measuring service quality: modified gap model, TOPSIS and loss function. Aims to argue for the use of TOPSIS from decision sciences, and Loss function from operations research and engineering, as alternative approaches to the gap model.

Design/methodology/approach

The empirical evidence is provided by large sample consumer data on the service quality for leading Indian commercial banks. The service quality evaluations obtained from these three distinct methods are compared and tested for their mutual agreement.

Findings

Fndings show that the rankings obtained from different methods are statistically in agreement, suggesting that the alternative approaches can provide equally good measurement of service quality. But they should not be used in an interchangeable manner.

Research/limitations/implications

Research shows that a single measure of overall service quality based on gap model is over‐simplistic. It would be more useful to explore a richer profile of customer service quality provided by different measurement approaches. Each methodology has its own advantages and disadvantages, and should be used based on its suitability for a particular application.

Practical implications

This research offers profound practical implications. It offers managers with a framework of service quality improvement that measures service quality gaps, selects an optimal combination of attribute levels to deliver customer satisfaction, and focuses on reducing the future loss caused by poor quality.

Originality/value

Extant marketing literature is replete with gap model applications for measuring service quality. Drawing from interdisciplinary literature, alternatives are provided to the traditional gap model, which show equally good measurement with greater suitability of application under certain conditions.

Details

Journal of Services Marketing, vol. 19 no. 3
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 11 June 2018

Jody L. Crosno and Annie Peng Cui

This research aims to represent an initial exploration of how partitioned pricing influences consumers’ purchase decisions of new versus used products from the theoretical…

Abstract

Purpose

This research aims to represent an initial exploration of how partitioned pricing influences consumers’ purchase decisions of new versus used products from the theoretical perspectives of prospect theory and gain/loss decision frames.

Design/methodology/approach

Four experiments to test the hypotheses with multiple product categories have been conducted.

Findings

Results from a series of experimental studies find that consumers prefer partitioned pricing over all-inclusive pricing for new products, whereas all-inclusive pricing is more preferred for used products. In addition, the authors demonstrate that a high-quality brand can reverse this effect for used products; specifically, consumers prefer partitioned pricing over all-inclusive pricing for a used product with a high-quality brand.

Originality/value

This research contributes to the literature on second-hand consumption by examining the impact of pricing strategies on consumer purchase decisions of new versus used products. This study deepens our understanding of consumer decision-making for new versus used products and it provides implications for bolstering sustainable consumption.

Details

Journal of Consumer Marketing, vol. 35 no. 4
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 6 March 2017

Arash Geramian, Arash Shahin, Sara Bandarrigian and Yaser Shojaie

Average quadratic quality loss function (QQLF) measures quality of a given process using mean shift from its target value and variance. While it has a target parameter for…

Abstract

Purpose

Average quadratic quality loss function (QQLF) measures quality of a given process using mean shift from its target value and variance. While it has a target parameter for the mean, it lacks a target for the variance revisable for counting any progress of the process across different quality levels, above/below the standard level; thus, it appears too general. Hence, in this research, it was initially supposed that all processes are located at two possible quality spaces, above/below the standard level. The purpose of this paper is to propose a two-criterion QQLF, in which each criterion is specifically proper to one of the quality spaces.

Design/methodology/approach

Since 1.33 is a literarily standard or satisfactory value for two most important process capability indices Cp and Cpk, its upper/lower spaces are assumed as high-/low-quality spaces. Then the indices are integrated into traditional QQLF, of type nominal the best (NTB), to develop a two-criterion QQLF, in which each criterion is more suitable for each quality space. These two criteria have also been innovatively embedded in the plan-do-check-act (PDCA) cycle to help continuous improvement. Finally, the proposed function has been examined in comparison with the traditional one in Feiz Hospital in the province of Isfahan, Iran.

Findings

Results indicate that the internal process of the studied case is placed on the lower quality space. So the first criterion of revised QQLF gives a more relevant evaluation for that process, compared with the traditional function. Moreover, this study has embedded both proposed criteria in the PDCA cycle as well.

Research limitations/implications

Formulating the two-criterion QQLF only for observations of normal and symmetric distributions, and offering it solely for NTB characteristics are limitations of this study.

Practical implications

Two more relevant quality loss criteria have been formulated for each process (service or manufacturing). However, in order to show the comprehensiveness of the proposed method even in service institutes, emergency function of Feiz Hospital has been examined.

Originality/value

The traditional loss function of type NTB merely and implicitly targets zero defect for variance. In fact, it calculates quality loss of all processes placed on different quality spaces using a same measure. This study, however, provides a practitioner with opportunity of targeting excellent or satisfactory targets.

Details

Benchmarking: An International Journal, vol. 24 no. 2
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 4 December 2017

Shriniwas Gautam, Antonio L. Acedo Jr, Pepijn Schreinemachers and Bhishma P. Subedi

The purpose of this paper is to develop a straightforward method to quantify volume and value of postharvest losses in the tomato postharvest value chain in Nepal and…

Abstract

Purpose

The purpose of this paper is to develop a straightforward method to quantify volume and value of postharvest losses in the tomato postharvest value chain in Nepal and estimate the monetary loss shouldered by value chain actors.

Design/methodology/approach

The study combines interview data to quantify volume and prices with produce sampling to quantify quality losses, and does this at four nodes of the tomato value chain in Nepal: farmers, collectors, wholesalers, and retailers to estimate volume and value of postharvest losses.

Findings

Almost one-fourth of the total tomato harvest weight that enters the value chain is lost before it reaches consumers, and other one-fifth is traded by the value chain actors at reduced price due to quality damage. The total volume of postharvest loss (weight and quality loss) is not the same for all value chain actors and the average monetary loss ranges from 4 percent of gross revenues for farmers to 12 percent for wholesalers.

Practical implications

A standard method to account for both physical weight losses and quality losses of horticultural produce is lacking in estimates of the monetary value of postharvest losses for horticultural crops. Knowing such losses is essential for postharvest technology generation, promotion, and adoption. This study provides a framework that can be adopted and improved in future loss assessment studies for estimating the volume and value of postharvest losses in a horticultural value chain.

Originality/value

The uniqueness of the method used in this study is that it combines interview data to estimate price and volume with produce sampling to quantify quality losses, and does this at four nodes of the value chain: farmers, collectors, wholesalers, and retailers. This method could become a standard approach for assessment of postharvest weight and quality losses and to estimate the monetary value of total postharvest losses in the value chain for horticultural crops.

Details

British Food Journal, vol. 119 no. 12
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 17 April 2008

Seungwook Park

The process capability indices have been widely used to measure process capability and performance. In this paper, we proposed a new process capability index which is…

Abstract

The process capability indices have been widely used to measure process capability and performance. In this paper, we proposed a new process capability index which is based on an actual dollar loss by defects. The new index is similar to the Taguchi’s loss function and fully incorporates the distribution of quality attribute in a process. The strength of the index is to apply itself to non‐normal or asymmetric distributions. Numerical examples were presented to show superiority of the new index against Cp, Cpk, and Cpm which are the most widely used process capability indices.

Details

Asian Journal on Quality, vol. 9 no. 1
Type: Research Article
ISSN: 1598-2688

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Article
Publication date: 19 November 2019

Panagiotis H. Tsarouhas

As overall equipment effectiveness (OEE) is a metric to estimate equipment effectiveness of production systems, the purpose of this paper is to identify strategic…

Abstract

Purpose

As overall equipment effectiveness (OEE) is a metric to estimate equipment effectiveness of production systems, the purpose of this paper is to identify strategic management tools and techniques based on OEE assessment of the ice cream production line.

Design/methodology/approach

This paper presents the collection and the analysis of data for ice cream production under real working conditions. The data cover a period of eight months. A framework process to improve the OEE of an automated production system was proposed. Six major stoppage losses, i.e. equipment failure, setup and adjustment, idling and minor stoppage, reduced speed, defects in the process, and reduced yield, were examined with the help of Pareto analysis. In addition, the actual availability (A), performance efficiency () and quality rate (QR) measures, together with the complete OEE for each working day, week and month of the production line were shown.

Findings

The main goal of the study is to identify major stoppage losses, in order to examine and improve the overall equipment efficiency (OEE) of the ice cream production line through the application of an adequate management, i.e. TPM approach. Based on the obtained results, maintenance management strategy and production planning have been suggested to improve their maintenance procedures and the productivity as well.

Originality/value

The proposed method can be applied to each automated production system. The main benefits of this method are the improvement of productivity, quality enhancement of products, the reduction of sudden breakdowns and the cost of maintenance. Moreover, the analysis provides a useful perspective and helps managers/engineers make better decisions on the operations management of the line, and suggestions for improvement were proposed and will be implemented accordingly.

Details

International Journal of Productivity and Performance Management, vol. 69 no. 5
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 1 October 1998

Rune M. Moen

Measuring quality costs has been emphasized as an important part of quality improvement since the early 1950s. A chapter on quality costs seems to be almost compulsory in…

Abstract

Measuring quality costs has been emphasized as an important part of quality improvement since the early 1950s. A chapter on quality costs seems to be almost compulsory in every book pertaining to total quality management, business process improvement, and similar topics. There is no doubt that measuring quality costs is useful in order to direct improvement efforts; the problem is that the concept is not as valid today as it used to be. While customer requirements and production systems have changed considerably during the last decades, quality cost measurement is advocated in nearly the same way as it was 40 years ago. This work presents a new customer and process focused poor quality cost model that enables the provider of a product or service to focus on elements that really matter to his customers. The input to the model is customer requirements and the output is expected poor quality costs estimated through the Taguchi loss function. Quality function deployment is used to translate the voice of the customer to key process parameters, that is process parameters having a direct influence on the fulfilment of customer requirements. The quality function deployment matrix is also used to estimate intangible costs. Traditional cost categories have been altered, and the expected loss for each cost category is estimated based on actual process performance and stepwise quadratic loss functions with multiple intervals. The intended use of the model is as a top management decision‐making tool able to link quality improvement to customer satisfaction and loyalty.

Details

The TQM Magazine, vol. 10 no. 5
Type: Research Article
ISSN: 0954-478X

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Article
Publication date: 4 November 2014

Mark B. Mulcahy

The purpose of this paper is to study the relationship between reporting a loss and changes in board quality. Low quality corporate governance is associated with adverse…

Abstract

Purpose

The purpose of this paper is to study the relationship between reporting a loss and changes in board quality. Low quality corporate governance is associated with adverse accounting outcomes and is characterised by the lack of non-executive and independent directors on the board. Changes in these board quality indicators in response to the reporting of a loss and conditioned by the severity of the loss are examined.

Design/methodology/approach

This study uses four years of board information spanning the report of an initial loss for companies listed on the UK stock exchange. An industry and size matched control sample is used in a difference-in-difference analysis to isolate the impact of the loss from underlying changes in board quality.

Findings

Overall the results indicate that more severe initial loss events precipitate improvements in board quality over and above the control sample as well as less severe loss events.

Research limitations/implications

Although unambiguous, the reporting of a loss is only one measure of underperformance. Also the board quality indicators used in this study are two from several individual corporate governance variables and amalgamations used in the extent literature.

Practical implications

The findings demonstrate that the relationship between corporate governance and performance is endogenous and that the majority of any improvement in board quality actually anticipates the reporting of the loss. Any celebration of improvements in governance need to be tempered by an understanding of the precariousness of the firms at which these improvements are made.

Originality/value

This study contributes to a research stream that examines negative shocks, and losses in particular, as an event likely to precipitate firm-level changes in board quality, i.e. firms tend not to make improvements to board quality without the impetus to do so.

Details

Journal of Applied Accounting Research, vol. 15 no. 3
Type: Research Article
ISSN: 0967-5426

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Article
Publication date: 4 June 2018

Ali-Asghar Dadashnejad and Changiz Valmohammadi

One of most important tools for lean production is value stream mapping (VSM), which identifies and reduces errors, losses, waiting time and improves value adding time…

Abstract

Purpose

One of most important tools for lean production is value stream mapping (VSM), which identifies and reduces errors, losses, waiting time and improves value adding time, leading to enhanced product quality through empowering production unit in terms of production risk and cost reduction in the long term. This paper aims to present a general concept for production flow, such that value stream can be fully understood. For this purpose, this research investigates the effect of value stream on operational losses and analyzes the process that has been conducted in preview step operationally, using the discovered pattern.

Design/methodology/approach

In this research, related processes were evaluated after the review of the relevant literature and after extracting operational basics of lean approach using a questionnaire, such that all factors affecting operational losses and VSM were assessed. Then comparison between the result of current state map and the result of future state map were done and analyzed. Cronbach’s alpha was calculated to test the designed questionnaire’s reliability, which resulted in an acceptable level of 0.845. The structural equation modeling method through SPSS and Smart–Partial Least Square was applied to analyze the data and test the hypotheses.

Findings

The results reveal that implementing required changes and corrections will lead directly to production process improvement, which, in turn, results in higher customer satisfaction because of cost reduction and quality enhancement. Also, tests of the hypotheses confirm that VSM affects six operational losses, namely, equipment failures, set-up and changeovers, idling and minor stoppages, reduced speed operation, scrap and rework and startup losses.

Research limitations/implications

Though this study was done in a single manufacturing company, the implementation of this study delivers important results that can be deployed in other such manufacturing companies.

Practical implications

This tool helps to identify loss points, make right decisions, and choose the best methods and lean tools for improvement. The surveyed company can integrate lean principles and tools and achieve better results using this tool. Also, this tool could be used to analyze the process and to define necessary changes before changing the process components.

Originality/value

This study contributes to the body of knowledge in manufacturing research as the study regarding the effects of improvement opportunities identified through VSM on operational losses is still something new.

Details

Journal of Engineering, Design and Technology, vol. 16 no. 3
Type: Research Article
ISSN: 1726-0531

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Article
Publication date: 1 August 1994

Geanie W. Margavio, Ross L. Fink and Thomas M. Margavio

Quality improvement decisions are the catalyst for substantialtechnological improvements being made in the manufacturing sector. Thenew technology, however, has developed…

Abstract

Quality improvement decisions are the catalyst for substantial technological improvements being made in the manufacturing sector. The new technology, however, has developed faster than techniques for evaluating capital investments in such improvements. This is largely because the benefits of quality improvement technology are difficult to quantify. The Taguchi loss function is incorporated into a net present value capital budgeting technique to provide an estimate of these benefits. Describes the loss function in relation to key quality costs: appraisal and prevention costs, and internal and external failure costs. External failure cost savings are generated by reducing variability in the manufacturing process. These savings are then compared with the cost of the quality improving technology. Results indicate that these savings can be substantial, depending on the achieved reduction in the process variability, the cost of capital, and on the estimate of the cost of processing a customer’s return of the product.

Details

International Journal of Quality & Reliability Management, vol. 11 no. 6
Type: Research Article
ISSN: 0265-671X

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