In this essay, the Quality Management will be analysed in terms of Resources and Awareness, from which several realistic illustrations are proposed, as well as the insights and predicted
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° TRƯỜNG ĐẠI HỌC KINH TẾ TP.HÒ CHÍ MINH
KHOA QUAN TRI
UEH
UNIVERSITY
TIEU LUAN KET THUC HOC PHAN
MON: QUAN TRI CHAT LUONG
Giáo viên hướng dẫn: Nguyễn Văn Hóa
Sinh viên thực hiện: Phạm Hồng Hiền
Mã số sinh viên: 31221021708
Mã lớp học phần: 23C1MANS50209201
Phong hoc: BI-404
Budi hoc: Chiều thứ 3
= TP Hồ Chí Minh, ngày 18 tháng 10 năm 2023 <
® @
Trang 2FOREWORD
In today's dynamic and competitive business landscape, the pursuit of quality is paramount
Quality management, a multifaceted and evolving discipline, serves as the cornerstone of
organizational success and customer satisfaction From manufacturing to service industries,
quality management principles have become a driving force for enhancing products, services,
and processes In this essay, the Quality Management will be analysed in terms of Resources
and Awareness, from which several realistic illustrations are proposed, as well as the insights
and predicted recommendations for future Throughout the process of the essay, it cannot
avoid several mistakes and disatisfactions because of the limited conditions of a student
Therefore, I hope this essay will luckily receive you empathy and understanding
Trang 3TABLE OF CONTENT
1 Introduction
1.1 Rationale for choosing the topic
1.2 Objective of the essay
1.3 Research questions
1.4 Main content of the essay
2 Quality Management and Resources
2.1 Resources in Quality Management
2.1.1, Financial resources
2.1.2 Human resources
2.1.3 Physical resources
2.2 The importance of allocating resources effectively
2.3 Realistic Examples of Quality Management in case of resource scarcity
3 Quality Management and Awareness
3.1.The significance of awareness about Quality Management
3.2 How Awareness can affect the performance of Quality management
3.3 Concrete examples of how awareness can either promote or hinder Quality
management
4 Tools and Methods in Quality management
4.1 Used tools and methods in Quality Management
4,2 How the tools and methods can be employed to optimize both resources and
awareness related to Quality management
5 Applications of Quality Management
5.1 Specific examples of applying Quality Management tools and methods
5.2 Evaluated outcomes and benefits
6 Conclusion
6.1 Summarized main content
6.2 Important insights and future recommendations
REFERENCES
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Trang 41 Introduction
1.1 Rationale for choosing the topic
According to Quality Management Essentials (David Hoyle, 2007), quality is a result
produced when a need, expectation, requirement or demand is met or satisfied In contrast,
anything that does not satisfy the need has poor quality In reality, we totally cannot be
successful if we do not be aware of what we need to satisfy expectations and control them
Therefore, several approaches are needed for organizations to achieve, sustain and improve
quality Furthermore, some authors have indicated similarities between sustainability and
quality in terms of their philosophies and applied practices (Klassen and McLaughlin et al.,
2012) Both sustainability and quality take a proactive managerial stance that focuses on long-
term goals and maintaining performance achievements Consequently, that 1s why this essay
focuses on Quality Management, which means concentrating on the sustainable development
or at least the sustainability of organizations
1.2 Objective of the essay
For the significance of Quality Management mentioned above, this essay aims to clarify:
e The correlations between Quality Management and Resources
e The correlations between Quality Management and and Awareness
e Tools and methods which are used in the field of Quality Management
e How Quality Management is applied in reality
1.3 Research questions
Based on the objectives of the essay, the research questions are to make clear about:
e How Quality Management and Resources and affect each other?
e@ Whether or not the Awareness influences Quality Management and vice versa?
@ Which tools and methods are the most often used in Quality Management?
@ What are the most realistic evidences for Quality Management?
1.4 Main content of the essay
In order to obtain the objects, the essay includes the following parts as the main content:
e Introduction to the essay
® Quality Management and Resources
Trang 5® Quality Management and Awareness
e® Tools and Method in Quality Management
e How Quality Management is applied
® Conclusion
2 Quality Management and Resources
2.1 Resources in Quality Management
2.1.1 Financial resources
Deming and Shewhart (1986) and Skinner's (1969) claimed that quality are portrayed
in the Chain Reaction Theory The theory's central proposition is that if a firm firstly improves
its quality (e.g by the analysis and improvement of cross-functional processes), it can lead to
decreased cost, reduced rework, time and materials, and an improvement in total plant
productivity The operations management literature has also laid claim to the benefits of
quality approaches to removing waste from processes and in so doing improving performance
across a sandcone of measures 1.e quality, delivery, flexibility and ultimately cost (Ferdows
and De Meyer, 1990) The results indicated by Robert Handfield,Soumen Ghosh &Stanley
Fawcett (2018) provided the support for the relationship between a company's quality-driven
strategies and improved financial performance
Furthermore, according to Peter J Danaher & Roland T Rust (1996), improving
service quality can increase revenues through:
(1) Retaining a higher percentage of existing customers: Effective Quality
Management also ensure the quality of the products or services provided (through model of
3Ds, QCDSS or RATER model for service and 8-element for manufacturing dimension) This
means, the rate of customers satisfied with the companies stand a higher chance of rising,
whereas the risk that we lose our customers can be minimized;
(2) Attracting more customers through positive word of mouth: According to
researchers (Bickart and Schindler, 2001; Kumar and Benbasat, 2006; Zhang et al., 2010; Pitta
and Fowler, 2005), consumers tend to seek and evaluate information about stores and products
through previous customers before making purchasing decisions Before the internet era,
consumers shared their product experiences through traditional word-of-mouth (WOM)
Trang 6methods, such as discussions with friends and family (Sundaram et al., 1998) Traditional
WOM communication is understood as face-to-face communication among consumers related
to any product, brand, or service; customers often turn to WOM to reduce uncertainty about
new products or services before making purchases (Arndt, 1967);
(3) Increasing the usage rates of existing customers: Apart for the whole factors that
need to be considered when deliver a product to customers, we should focus more on the
aspects of Reliability, Conformance, Durability, and Serviceability to prove to the current
customers that their choice of our company is completely true Therefore, we can better the
usage rates of those current customers
By that way, the revenues and profits of the companies can be improved considerably
And the profits can totally be re-invested for reports and researches to find out the best
methods, approaches or processes to continuously improve In detail, basing on the 4M model
affecting quality, all 4 factors Man, Machine, Materials and Methods are decided by the
financial problem Especially for the machines, the stronger finance is, the better the functions
of machines are On the contrary, in case of lack of or no financial adequacy, the processes of
Quality Management can be ignored or less invested, which leads to the inefficiency of
functions or even the mistakes that the companies can make and lose their reputation,
customers, and profits Therefore, we can totally confirm that Quality Managementand
financial status are affecting each others
2.1.2 Human resources
According to Alvaro D Taveira et al (2003), Elements of the Total Quality
Management were defined and measured using the Malcom Baldridge Award criteria The
particular factors examined were “Management Support of Quality”, “Human Resources”,
“Information and Analysis”, “Customer Focus and Satisfaction” , and “Processes and Quality
Results” From those, we can declares that Human Resources is one of the decisive elements
for Quality Management Moreover, the study by Ching-Chow Yang (2006), confirms that
Human Resources considerably affects Total Quality Management practices, concluding that
Human Resources have a significantly positive effect on the implementation of Quality
Management What is more, Implementing Human Resources Management practices can also
Trang 7have a huge effect on customer and employee satisfaction It positively influences
“employees' quality awareness” and “corporate image” as well
Overall, on the other hand, successful implementation of Total Quality Management
could result in an increase in customer satisfaction as well as benefit corporate image It can
also boost the satisfaction and employees’ quality awareness Enterprises that focus on the
implementation of Total Quality Management also need to pay considerably attention to
Human Resources , if they are to increase the firm's performance significantly
The extent to which Human Resource Management (HRM) affects Total Quality
Management (TQM) was tested by Joseph R Carter, Larry R Smeltzer, Ram Narasimhan
(2006) Five primary results emerged are: First of all, organizations with more successful
TQM programs tended to stress formal performance evaluations of purchasing employees
Second of all, purchasing employees at firms of successful TQM were more involved in key
decisionmaking processes impacting their jobs Third of all, employees in firms with more
successful TQM programs had a higher level of perceived support in job security and less fear
of failure for taking risks Fourth of all, purchasing employees in more successful TQM
companies approached more TQM-related training sections Fifth of all, purchasing
employees of more successful TQM companies were more likely to be rewarded for
individual goal achievement than those of less successful TQM organizations
To sum up, Human Resources is the factors that both directly or indirectly affect the
performance of the companies, even on their profits and revenues However, the TQM can
help to control Human Resources, boosting their potentials for better performances and
efficiency
2.1.3 Physical resources
Xingxing Zu (2009) proved through the analysis of the structure model that the core
Quality Management directly result in the improvement of quality performance, and the
infrastructure Quality Management contributes to quality performance Even in 4M model
affecting Quality Management (Man, Machine, Materials and Method), there are 2 out of 4
elements that counted as Physical Resources (Machine and Materials) As according to Singh,
R., Gohil, A M., Shah, D B., & Desai, S (2013), it is directed towards obtaining customer
Trang 8satisfaction by delivering the highest quality products Through the concentrated
improvement, defects are eliminated out of the process after identifying the parameter of
machines which affect the quality of products
Even Alan M Kalet, Samuel M H Luk, Mark H Phillips (2019) also claimed in their
research that machine implementation can assist activities include improvements in planning
time, advanced dosimetric QA, increased safety checks, plan quality, predictive machine
maintenance, and developments key for new QA paradigms driven by adaptive planning All
those factors are either directly or indirectly affecting the process of the companies In other
words, which level that machines are used and implemented in the process will partly decide
the level of effectiveness of functions, leading to revenues and profits of the company
On the contrary, it is certain that the effectiveness of Quality Management brings
better performance of the company, then resulting in better profits The profits can totally be
re-invested in the machines or revolutionized machines or other factors of Physical Resources
like Materials (updated or higher quality materials) serving for the process of companies
In conclusion, Physical Resources is one of the most significant factors in Quality
Management, beside Financial and Human Resources It will be the background for
effectiveness of functions and process of any organizations In case of nothing or lack of
Physical Resources, the company cannot certainly function well, or even cannot complete its
proposed targets, leading to the decrease in the revenues and profits
2.2 The importance of allocating resources effectively
According to Jiajie Xu, Chengfei Liu & Xiaohui Zhao (2008), Resource management
has long been acknowledged as a crucial topic for carrying out corporate procedures
However, process factors like structural and task interdependence have not received
significant attention in the majority of recent resource allocation studies
A company must focus its resources in the areas where it can take advantage of market
possibilities that provide the greatest potential for long-term shareholder returns Officers and
the board of directors of a corporation cannot feasibly assess the merits of each project, which
would necessitate a vast amount of information from the business case for each initiative The
Trang 9existing research focuses more on project-oriented decisions about resource allocation and
capital budgeting than it does on managerial concerns related to resource allocation or capital
budgeting at the business level (Prakash Deo, 2017)
Therefore, it is totally clear that allocating resources effectively is extremely important,
affecting the survival of the organization For finance, this is the blood of the company, the
potential of the company is based on this factor For the Human and Physical resources, these
two are important because it decide whether the companies are effective or not to obtain the
determined goals Lacking these resources or “nothing” will certainly lead to the collapse of
the companies
2.3 Realistic Examples of Quality Management in case of resource scarcity
Financial Resources: One of the businesses that vanished into thin air after filing for
bankruptcy is Long-Term Capital Management The 1997-1998 Asian economic crisis had an
impact on Long-Term Capital Management When economies in nations like Thailand and
Indonesia faced a slowdown in growth and currency devaluation, it was initially perceived as
a regional catastrophe However, the issue did not end there and continued to grow In
addition to the Russian government's debt default, Long-Term Capital Management's
speculative fund also failed that year
Human Resources: Small British textile business Polly Peck International (PPI) saw
fast growth in the 1980s and joined the FTSE 100 Index before going bankrupt in 1991 with
debts of £1.3 billion, which eventually forced the company's CEO, Asil Nadir, to flee to
Northern Cyprus in 1993 One of the business scandals that prompted changes in UK
company law and gave rise to the first iterations of the UK Corporate Governance Code was
the Polly Peck affair Actually, The share price plummeted following a raid by the UK Serious
Fraud Office in September 1990, Asil Nadir, the CEO, was found guilty of embezzling funds
from the business
Physical Resources: VISERY, a successful company in Vietnam, however, there were
major setbacks in addition to these achievements This involves building workplaces and
buying machinery and equipment in large quantities, most of it being used Some of the
equipment had been created in 1988, but it wasn't until around 2000 that it was bought A
Trang 10significant amount of money was also spent on breeding studies, but it wasn't put to good use
As a result, VISERI was forced to import 60 to 70 percent of its silk and silkworm eggs from
China each year, some of which had inconsistent quality Additionally, there have been cases
where the costs of specific silkworm kinds, which are known for their great output, have
suddenly skyrocketed from 20-27 thousand Vietnamese dong per kilogram to as much as 40—
47 thousand Vietnamese dong per kilogram
Those examples showed us that in case of lack of or even nothing in the resources, the
Quality Managment cannot be ensured, leading the the collapse of the organizations
3 Quality Management and Awareness
3.1.The significance of awareness about Quality Management
The study by JSNAINI, D B J et al., 2021, supports the idea that every aspect of the
company must participate in continuous quality improvement via employee and manager
involvement in both thinking and action Every employee must be able to synchronize their
self-awareness and organizational awareness in order to achieve the alignment mentioned in
quality awareness TQM implementation will operate smoothly if corporate awareness and
self-awareness are in sync To make sure that job descriptions are really in line with
organizational needs or with the company's quality manual, extensive management
engagement is necessary A strong communication network is a requirement in establishing
perceptions of distribution quality awareness in order to support this Through constant
interaction, communication seeks to advance common values and business understanding The
creation of efficient work processes that adhere to standard operating procedures is facilitated
by effective communication between employees and supervisors
3.2 How Awareness can affect the performance of Quality management
Engaging people in the implementation process and enabling them to actively engage
are essential components of retaining perceived distribution quality awareness when TQM is
being implemented As a strategic problem that supports corporate objectives, managers must
be aware of the different options for incorporating employees in quality awareness efforts
The second factor that might contribute to quality awareness in carrying out the business’