“Quality is never an accident; it is always the result of high intention, sincere effort, intelligent direction and skillful execution. It represents the wise choice of many alternatives.” – Willa Foster
This research operations report provides an analysis of managing quality in operations with an application to the banking industry. The report defines quality and explores why quality is important by presenting some benefits associated with good quality and some costs of poor quality. The analysis then explores the pioneers of quality management through to modern ideas of quality management.
The aim of this report is to highlight the importance of managing quality for competitive advantage and profitability, through the provision of superior product/service quality. The banking industry was chosen as an industry to apply the concepts of managing quality due to the service nature of the industry as traditional quality management has its origins in product quality but can be extended to include service industries with some modifications.
The source of the materials in the report is various academic journals from varying disciplines about managing quality and academic textbooks.
Sebastianelli & Tamimi (2002) define quality through different approaches including the transcendent definition, the products-based approach, the user-based approach, the manufacturing approach and the value based approach. They further state that the different approaches to defining quality are rooted in the varying disciplines; such as marketing assuming the user-based approach and the traditional economic models assuming the value based approach. This paper therefore takes the manufacturing approach, with its roots in operations and productions management approach to quality defined as ‘conformance to specifications’ (Crosby 1979 cited in Sebastianelli & Tamimi 2002). There are also dimensions of quality
Bibliography: Freiesleben, J., 2005, “The opportunity costs of poor quality”, The Quality Assurance Journal, vol. 9, no.1, pp. 3–10, Retrieved on 2 April 2012 Hill, T., 2005, Operations Management, 2nd Edition, Palgrave Macmillan, Basingstoke Maslow, A. H., 1943, “A theory of human motivation” Psychological Review, vol. 50 no. 4, pp. 370-396, retrieved on April 2 2012 Schroeder, R., G., Goldstein, S., M Talha, M., 2004, “Total Quality Management (TQM): an overview, The Bottom Line: Managing Library Finances”, Vol.17 no.1 pp.15-19 retrieved on 30 March 2012 Zu, X., Robbins T.L, Lawrence D Source: Bisgaard, S., 2008, “Quality Engineering”, vol. 20, no. 4, p390-401, Fig 1 Figure 1.2 Source: Bisgaard, S., 2008, “Quality Engineering”, vol. 20, no. 4, p390-401, Fig 5 Figure 1.3 Source: Bisgaard, S., 2008, “Quality Engineering”, vol. 20, no. 4, p390-401, Fig 3