This essay discusses about one particular aspect of Value Chain Management, which is Quality and Performance Management, relates this to the theories put forward by the major Theorists also known as the “Quality Gurus” and interprets it from both a customer and a business process perspective. The subject matter we are going to consider is firstly the dimensions of quality, for both service quality and quality for goods, the cost, and outlining the theories of selected “Quality Gurus” to relate it to the topic of this essay. This report also points out a lot of theories, views and ideas that we will relate to actual business cases and associate them together to determine whether they are in line with the principles and theories of Quality and performance Management. Considering Quality and Performance Management, it was emerged from the industrial revolution between 1820 and 1840, evolved throughout the years and since then; its public awareness has kept on increasing. Nowadays, most business still makes use of these theories and implements it in all its activities. Before we give further explanation on Quality and performance management, we will define and explain Value Chain Management and how quality is one of its most important features.
2.1 Value Chain Management
Value Chain management can be defined as the process of establishing and setting up of group of activities that creates and promotes Value by producing goods and services from raw materials for purchase by consumers, thus providing them with greatest value at lowest price( Harrold koontz and Heinz Weihrich, 2007). The aim of value chain management is to create an on-going and endless chain of activities from the supplier to the manufacturer and in turn to the customer, to comply with his or her expectations and surpass it. For this to be achieved, all activities and tasks from the management level, i.e. planning, coordinating, staffing, leading and managing must be carried out in the most effective and efficient way. To understand it in a better perspective, increasing the value of a product normally expand the margin between the cost price and the selling price (Harrold koontz and Heinz Weihrich, 2007). So if a consumer is willing to meet the selling price of a particular product from a company, the latter must make sure to keep this margin as large as possible to ensure maximum profitability to the company.
Now regarding, quality and performance management which is the main topic of the essay, it is one important aspect of value chain management as mentioned before since its proper and appropriate use will bring about a better quality of the product, therefore increasing its value which brings about value chain management.
2.2 Quality and Performance Management
To understand quality and performance management, we need first to comprehend what quality is all about. Quality is a concept that can be defined and described in various different ways, depending on a person’s personal opinion on how they perceive it. Considering the “Quality Gurus”, Juran defines quality as “fitness for use” (Tumamala and Tang, 1996), Crosby defines quality as the conformance to requirements (Crosby, 1979) while Deming’s relates quality to a product if it has a good and sustainable market and if it is enjoyed by customers (Deming, 1986). According to a study where 86 managers from different firms of eastern United States were asked to define Quality, the responses includes quality defined as perfection, consistency, speed of delivery, eliminating waste, compliance to policies and procedures, doing the right thing at the doing time, providing good and usable products and total customer service and satisfaction (James R. Evans, 2010). From this, quality and performance management will depend on how an organisation perceives quality. Quality can be characterized in two ways internally oriented, from the employees point of view and externally...