Search results

The ideals of total quality view contradicts with the traditional prevention‐appraisal‐failure (PAF) model. The PAF model, based on the “higher quality‐higher cost” notion, fails to explain the “higher quality‐lower cost” premise of total quality. The purpose of this study is to examine the behaviour of quality costs and investigate the two contradicting views.

Based on the literature, a generic descriptive model is developed to examine the dynamics of quality costs and quality level over time. Through illustrative examples, the behaviour of quality costs is demonstrated and relevant implications are highlighted.

The proposed model supports continuous improvement regardless of the effectiveness of the firm's quality improvement programs. When the quality improvement program is highly effective, the “higher quality‐lower cost” phenomenon is observed; whereas, in a less effective quality improvement program, the authors observe the “higher quality‐higher cost” phenomenon, which still calls for increased improvement effort necessary for quality sustainability.

The proposed model explains well the dynamics of quality costs, however, it can be further enhanced by incorporating the dynamics of the effectiveness of the firm's quality improvement program and its relation to quality level and quality costs.

The proposed model is a useful tool especially for quality improvement planning and budgeting decisions.

Balancing between the two contradictory views of quality costs, this study provides a deeper understanding of the relationship of quality costs and quality level.

The purpose of this paper is to address the following research question: how do the interlocking editorial advisory boards (EABs) of operations and supply chain management (OSCM) journals map out the field’s diverse academic communities and how demographically diverse is the field and its communities?

The study applies social network analysis (SNA) to web-based EAB data for 38 journals listed under operations management (OM) in the 2010 ABS Academic Journal Quality Guide.

The members of EABs of the 38 journals are divided into seven distinct communities which are mapped to the field’s knowledge structures and further aggregated into a core and periphery of the network. A burgeoning community of supply chain management academics forms the core along with those with more traditional interests. Male academics affiliated to the US institutions and to business schools predominate in the sample.

A new strand of research is opened up connecting journal governance networks to knowledge structures in the OSCM field. OM is studied separately from its reference and associated disciplines. The use of the ABS list might attract comments that the study has an implicit European perspective – however the authors do not believe this to be the case.

The study addresses the implications of the lack of diversity for the practice of OM as an academic discipline.

The confirmation of the dominance of particular characteristics such as male and US-based academics has implications for social diversity of the field.

As the first study of its kind, i.e. SNA of EAB members of OSCM journals, this study marks out a new perspective and acts as a benchmark for the future.

The dynamics of quality performance and quality cost are gaining renewed interest in quality management literature. Using large sample secondary data, the purpose of this paper is to build up empirical evidence for increasing quality performance in manufacturing in the long-run. The authors then examine whether it is possible to reduce internal and external failure cost over time without increasing prevention and appraisal expenditures in return. Finally, a scale effect in reducing quality cost is measured to clarify the long-run dynamics between quality cost and quality performance.

The authors conduct statistical analysis on a large sample secondary data set to reveal relationships between total cost of quality, its components and overall quality performance.

Significantly higher quality performance and lower quality cost are observed in the long-run. Quality costs grow less than half as fast as sales volume, pointing to a significant scale effect in quality cost reduction.

Businesses can use these implications for targeting failure costs and budgeting appraisal and prevention costs. Based on company-specific historical learning behavior through prevention and appraisal activities, an increasingly reliable prognosis of failure cost shall be possible.

For the first time, quality performance and cost dynamics are assessed using a secondary data set with more than 400 observations. A scale effect for quality cost reduction is measured. The results are of great importance to quality management practice and research.

This paper focuses on solving the problem faced by higher education institutions (HEIs) when prioritising information systems (IS) projects. In many instances HEIs face many more potential IS projects than they can cope with. Making good decisions as to which projects should be supported becomes a complex but crucial issue. In practice, managers may resort to simple heuristics or rules of thumb to decide on projects that should be evaluated against competing objectives. In such complex situations structured approaches exist such as multi‐criteria decision making. The case study reported here explores the application of such a technique, simple multi‐attribute rating technique (SMART), to support the IS Department of Leeds University when prioritising IS projects.

Next after butter and milk—as regards the total number of samples examined—come spirits, of which 6,938 samples were dealt with. Of the articles of which sufficiently numerous analyses were made to furnish reliable data, spirits as a class are the most extensively adulterated, and the 12 per cent. of adulteration recorded for the year under review does not, in all probability, nearly represent the real extent of the evil. Many samples are returned as genuine which have been watered beyond the legal limit because the vendors have exhibited dilution notices, a method of legalising what are essentially fraudulent practices which is, unfortunately, being extended to other foods and drinks, and bids fair to bring the whole execution of the “Acts” to a standstill. In addition to this there are the widest differences of opinion and practice amongst both Public Analysts and Local Authorities as regards those spirits which have been the subjects of prosecution, on account of their origin or mode of manufacture, i.e., for being partially or entirely the product of the “patent still.” Prosecutions of brandy for containing spirit not derived from the grape have been fairly common, and similar offences connected with whisky and rum have also been brought before the courts, and yet the proportion of “spirits” now found to be adulterated is 30 per cent. lower than it was ten years ago, when watering was practically the only offence recorded. In view of the interest aroused and the intrinsic importance of the whole question some details and some guidance also might be looked for in such a report as this. Unfortunately the spirits are all lumped together under one heading, and although the presence in brandy of alcohol not derived from the grape is referred to, no further details are given. It is, no doubt, the case that the Local Government Board is not in a position to express an authoritative opinion on any of the difficult problems to which we have referred, and has no legal power to fix standards or enforce their use; nevertheless the mere statement of the number of prosecutions, of brandy, for instance (for containing other than grape‐derived spirit) together with the maximum and minimum proportions of the foreign spirit or the figures for esters in the corresponding cases would have at least shown to what extent the recently promulgated standards for this liquor had gained acceptance throughout the country.

The purpose of this paper is to investigate the previous mixed findings in the relationship between diversification and firm performance. Using international and industrial conglomerates, the paper introduces productivity as a moderating variable to ascertain whether the mixed views in the diversification-performance nexus is due to variations in productivity. The findings in both proxies of performance (q and return on asset (ROA)) show that productivity is not a significant moderator in the diversification-performance link, except that under industrial conglomerates productivity enhances ROAs significantly. Meanwhile, the results show that diversification either has no significant value on firm performance or relates negatively with performance – a contrasting result to the hypothesis of this study.

This study adopts diversification measurement, categorisation approach and the methodology used in the work of Fauver et al. (2004) and the subsequent modification by Lee et al. (2012). This study, however, investigates the moderating effect of productivity on diversified firms and not ownership as shown in the previous studies. Performance is measured by two proxies to show robustness of the study. ROA is an accounting tool and Tobin’s q reflects a market-based performance of the firm.

The results show that productivity has no moderating impact on a market-based performance of a diversified firm. Regarding ROA, results show a split in finding by showing that productivity has no significant impact on international diversification; however, for industrial diversification, results show significant impact.

The paper adds to knowledge of finance by ruling out the view that the inconsistencies in the diversification and performance nexus in emerging economies could be due to vagaries in productivity. It is confirmed that productivity technically does not strengthen the link between diversification and performance: suggesting that factors other than productivity could establish a maximal impact on that link to minimise the inconsistencies in the findings on diversification-performance link.

A paradigm shift was observed a couple of decades back when the relationship marketing took over the transactional marketing. Concepts such as customer lifetime value came into existence. Customer lifetime value is nothing but the aggregate income which an organisation can expect from a customer as long as the customer remains a client. Customer Relationship Management (CRM) took the centre stage as the organisations are transformed into customer-centric organisations. The implementation of CRM earmarked the collection of customer data that enabled the personalisation of products. Business use cases emerged with differential pricing models and loyalty programs contributing to the profitability of the organisations. The different types of CRM, i.e. Strategic CRM, Operational CRM, Analytical CRM and Collaborative CRM, contributed further to the organisation to generate value for the customers as well as for the organisation. Innovations in the digital technologies supported the business use cases with the help of real-time data. The usage of real-time analytics delivered unmatched customer experience resulting in a higher degree of customer satisfaction and customer retention. Customer retention as we know is directly related to the longevity of an organisation, while customer acquisition is expensive. Researchers in this chapter have attempted to unleash the importance of CRM simultaneously presenting the impact of digital technologies on CRM. Readers could be greatly benefitted from this research as practical use cases are discussed, while academicians can cascade this information further.

This paper aims to present a survey of published literature about various quality costing approaches and reports of their success in order to provide a better understanding of cost of quality (CoQ) methods.

The paper's approach is a literature review and discussion of the issues surrounding quality costing approaches.

Even though the literature review shows an interest by the academic community, a CoQ approach is not utilized in most quality management programs. The evidence presented shows that companies that do adopt CoQ methods are successful in reducing quality costs and improving quality for their customers. The survey shows that the method most commonly implemented is the classical prevention‐appraisal‐failure model; however, other quality cost models are used with success as well.

The paper shows that the selected CoQ model must suit the situation, the environment, the purpose and the needs of the company in order to have a chance to become a successful systematic tool in a quality management program.