Impacts of quality management practices on competitive performance in manufacturing companies experiences from the united states, japan, germany, italy, and korea

PHAN CHI ANH (PhD) Impacts of Quality Management Practices on Competitive Performance in Manufacturing Companies - Experiences from the United States, Japan, Germany, Italy, and Korea VIETNAM UNIVERSITY PUBLISHER HOUSE, HA NOI LIST OF CONTENTS L I GI I THI U PREFACE 11 LIST OF TABLES 17 LIST OF FIGURES 20 Chapter Introduction 21 1.1 Motivation and Objectives of This Research 21 1.2 Research Methodology 22 1.3 Structure of the Book 25 Chapter Literature Review 27 Chapter Design and Measurement Analysis 41 3.1 Research Framework 41 3.2 Data Collection 50 3.3 Measurement Analysis 56 Chapter Quality Management Practices and Competitive Performance: Empirical Evidence from Japanese Manufacturing Plants 66 4.1 Introduction 66 4.2 Analytical Framework 68 4.3 Plant Characteristics 74 4.4 Hypotheses Testing 80 4.5 Implications and Discussions 91 4.6 Limitations and Further Research 94 4.7 Conclusion 94 Chapter 5.International Comparison on Quality Management Practices in Manufacturing Companies: Empirical Evidences from the United States, Japan, Germany, Italy, and Korea 96 5.1 Introduction 96 5.2 Analytical Framework 98 5.3 Hypothesis Testing 106 5.4 Discussions and Implications 129 5.5 Limitations and Future Research 131 5.6 Conclusions 131 Chapter 6.Empirical Study on Effect of Quality Management Practices and Just-In-Time Production Practices on Competitive Performance in Manufacturing Companies 133 6.1 Introduction 133 6.2 Background 135 6.3 Analytical Framework 138 6.4 Hypothesis Testing 144 6.5 Implications and Discussions 159 6.6 Limitations and Future Research 163 6.7 Conclusions 163 Chapter The relationship between Quality Management Practices and Their Effects on Competitive Performance 165 7.1 Introduction 165 7.2 Background 167 7.3 Analytical Framework 170 7.4 Hypotheses Testing 174 7.5 Discussions and Conclusions 185 Chapter Conclusions 189 8.1 Limitations of the Research 189 8.2 Contributions to Academic Literature and Implications for Practioners 191 8.3 Future Research 193 REFERENCES 197 Appendix A: Question Items of Quality Management Scales Japanese Sample 204 Appendix B: Question Items of Quality Management Scales Five Countries Sample 210 Appendix C: Question Items of JIT Production Scales - Five Countries Sample 215 Appendix D: Question Items of Quality Performance and Competitive Performance 218 Appendix E: Contextual factors 219 L I GI I THI U Ch=t l>?ng mAt yBu tC quan trEng Fóng góp vào sH thành công cJa viKc cLnh tranh toàn cMu cJa doanh nghiKp thO tr>Png quCc tB TQ quan FiRm chiBn l>?c cLnh tranh, ch=t l>?ng th>Png F>?c xem nh> gCc rT cJa sH khác biKt QuVn trO ch=t l>?ng bao gWm mAt loLt hoLt FAng F>?c thHc hiKn có hK thCng nhXm nâng cao ch=t l>?ng trình, FOnh h>[ng khách hàng, cVi tiBn ch=t l>?ng liên t\c, sH tham gia cJa ng>Pi lao FAng, v.v… FR thiBt l^p trì mAt l?i thB cLnh tranh Các nguyên t_c quVn trO ch=t l>?ng, qui trình k` thu^t kiRm soát cVi tiBn ch=t l>?ng Fã F>?c áp d\ng nghiên cbu rAng rãi thB gi[i F>?c thQa nh^n cho ncn tVng cJa quVn trO td chbc Trong nheng nfm gMn Fây quVn trO ch=t l>?ng Fã trg thành mAt nheng Fc tài nghiên cbu quan trEng nh=t lhnh vHc quVn trO kinh doanh Các nhà khoa hEc cC g_ng phân tích mCi quan hK nhân quV giea ch=t l>?ng l?i thB cLnh tranh nhXm chj cho nhà quVn trO th=y >u tiên lA trình áp d\ng quVn trO ch=t l>?ng tLi doanh nghiKp CuCn sách chuyên khVo Tác ng c a qu n tr ch t l ng t i k t qu c nh tranh c a doanh nghi p s n xu t - Kinh nghi m t$ Hoa K&, Nh)t B n, +,c, Ý Hàn Qu1c trình bày kBt quV nghiên cbu thHc chbng vc hoLt FAng quVn trO ch=t l>?ng tLi 163 doanh nghiKp sVn xu=t tLi n>[c phát triRn thB gi[i Hoa Kl, Nh^t BVn, mbc, Ý, Hàn QuCc giai FoLn 2003-2008 HoLt FAng nghiên cbu nXm khuôn khd DH án nghiên cbu quCc tB High Performance Manufacturing (HPM) hqn 40 hEc giV quCc tB thHc hiKn liên t\c tLi 11 quCc gia tiên tiBn thB gi[i tQ nfm 1988 FBn t^p trung vào v=n Fc quVn trO doanh nghiKp sVn xu=t khía cLnh chiBn l>?c, nhân lHc, ch=t l>?ng, churi cung bng, Fdi m[i sáng tLo…CuCn sách t^p trung trình bày nAi dung là: Nghiên cbu mCi quan hK giea c=u phMn cJa quVn trO ch=t l>?ng, Ftc biKt quan hK giea hoLt FAng có tính ch=t ncn tVng quVn trO ch=t l>?ng nh> quVn lý nguWn nhân lHc chiBn l>?c v[i hoLt FAng k` thu^t FOnh h>[ng vào kiRm soát cVi tiBn trình Nghiên cbu tác FAng cJa thHc hành quVn trO ch=t l>?ng t[i mAt sC kBt quV hoLt FAng cvng nh> l?i thB cLnh tranh tLi nhà máy chB tLo nh> chi phí sVn xu=t, ch=t l>?ng sVn phwm, giao hàng Fúng hLn, tính linh hoLt Nghiên cbu so sánh quVn trO ch=t l>?ng tLi quCc gia khác nhXm làm rõ nheng sH t>qng FWng khác biKt thHc hành quVn trO ch=t l>?ng Nghiên cbu sH cAng h>gng lên kBt quV hoLt FAng tích h?p áp d\ng quVn trO ch=t l>?ng v[i hK thCng quVn trO sVn xu=t khác tLi nhà máy chB tLo KBt quV cJa nghiên cbu chj rXng viKc trEng áp d\ng hoLt FAng quVn trO ch=t l>?ng sz giúp doanh nghiKp FWng thPi nâng cao l?i thB cLnh tranh vc ch=t l>?ng sVn phwm dOch v\, giVm chi phí sVn xu=t, nâng cao tCc FA sVn xu=t cvng nh> tính linh hoLt cJa hK thCng sVn xu=t BC c\c cJa cuCn sách bao gWm bVy ch>qng Fó ba ch>qng FMu tiên trình bày tdng quát vc quVn trO ch=t l>?ng, nghiên cbu ndi b^t vc quVn trO ch=t l>?ng thB gi[i khung khd phân tích quVn trO ch=t l>?ng nghiên cbu Ch>qng phân tích thHc trLng quVn trO ch=t l>?ng tLi nhà máy chB tLo Nh^t BVn, nôi cJa quVn trO ch=t l>?ng hiKn FLi Ch>qng phân tích sH t>qng FWng khác biKt vc thHc hành quVn trO ch=t l>?ng tLi n>[c phát triRn nh> Hoa Kl, Nh^t BVn, mbc, Ý, Hàn QuCc Ch>qng phân tích mCi quan hK giea quVn trO ch=t l>?ng hK thCng sVn xu=t tinh gEn mà cCt lõi ph>qng thbc sVn xu=t JIT Ch>qng phân tích tác FAng giea thHc hành ch=t l>?ng khác t[i kBt quV cLnh tranh cJa doanh nghiKp sVn xu=t Các kBt lu^n quan trEng cJa nghiên cbu cvng nh> hàm ý cho nhà nghiên cbu thHc hành quVn trO ch=t l>?ng F>?c trình bày Ch>qng CuCn sách có thR F>?c s{ d\ng ch>qng trình Fào tLo quVn trO kinh doanh g b^c FLi hEc cao hEc nh> sách chuyên khVo cho môn hEc quVn trO hEc, quVn trO ch=t l>?ng, quVn trO sVn xu=t tác nghiKp, Fdi m[i sáng tLo, kinh doanh quCc tB Các giVng viên, nhà nghiên cbu, cán bA quVn lý doanh nghiKp có thR tham khVo tài liKu giVng dLy, nghiên cbu thHc hành vc quVn trO ch=t l>?ng Tác giV cuCn sách xin bày t| sH cVm qn chân thành t[i FWng nghiKp thuAc DH án HPM Trung tâm Nghiên cbu QuVn trO Kinh doanh (CBAS), Tr>Png mLi hEc Kinh tB, mLi hEc QuCc gia Hà NAi, Ftc biKt Giáo s> Matsui Yoshiki, Khoa QuVn trO Kinh doanh, mLi hEc Tdng h?p QuCc gia Yokohama Fã h?p tác, h>[ng d~n, góp ý, hr tr? cho sH thành công cJa nghiên cbu Trong trình biên soLn cuCn sách không thR tránh F>?c mAt sC khiBm khuyBt, tác giV xin trân trEng Fón nh^n tiBp thu ý kiBn góp ý cJa FAc giV FR tiBp t\c có nheng nghiên cbu chuyên sâu vc quVn trO ch=t l>?ng quVn trO kinh doanh Tác gi6 10 higher levels in the corporation This plant has a strategic plan, which is put in 848 writing 845 Plant management routinely reviews and updates 771 a long-range strategic plan 589 The plant has an informal strategy, which is not 822 very well defined 747 The plant manager is part of the business strategy 668 planning process for business unit(s) at the plant - Information Analysis Charts showing defect rates are posted on the 714 shop floor 664 Charts showing schedule compliance are posted 752 on the shop floor 706 Charts plotting the frequency of machine 660 breakdowns are posted on the shop floor 673 Information on quality performance is readily 724 available to employees 813 Information on productivity is readily available to 529 employees 748 My manager never comments about the quality of 729 my work - Small Group Problem Solving During problem solving sessions, we make an 513 Removed 205 effort to get all team members’ opinions and ideas before making a decision Our plant forms teams to solve problems 748 772 In the past three years, many problems have been 755 solved through small group sessions 627 Problem solving teams have helped improve 773 manufacturing processes at this plant 783 Employee teams are encouraged to try to solve 536 their own problems, as much as possible We don’t use problem solving teams much in this plant Removed 846 Task-related Training for Employees Our plant has a low skill level compare with our 829 industry - At this plant, some employees lack important 592 skills - Our plant employees receive training and 759 development in workplace skills on a regular basis 821 Management at this plant believes that continual training and upgrading of employee skills is 677 important 715 Employees at this plant have skills that are above 771 average in this industry 658 Our employees regularly receive training to improve their skills 841 206 Our employees are highly skilled in this plant - Removed Employee’ Suggestion Management takes all product and process 640 improvement suggestions seriously .827 We are encouraged to make suggestions for 783 improving performance at this plant .657 Management tells us why our suggestions are 684 implemented or not used .705 Many useful suggestions are implemented at this 596 plant 788 My suggestions are never taken seriously around 770 here 761 Cleanliness and Organization Our plant emphasizes putting all tools and 645 fixtures in their place 669 We take pride in keeping our plant neat and clean 857 839 Our plant is kept clean at all times 764 871 Employees often have trouble finding the tools 660 they need 685 Our plant is disorganized and dirty 850 840 654 - Process Control Customer requirements are thoroughly analyzed 207 in the new product design process Processes in our plant are designed to be “foolproof” 675 761 A large percent of the processes on the shop floor Removed 840 are currently under statistical quality control We make extensive use of statistical techniques to reduce variance in processes 739 823 We use charts to determine whether our manufacturing processes are in control 654 713 We monitor our processes using statistical process control 675 884 We are frequently in close contact with our 684 customers 628 Customer Involvement Our customers seldom visit our plant Removed Removed Our customers give us feedback on our quality 617 and delivery performance Our customers are actively involved in our 590 product design process 720 Removed We strive to be highly responsive to our 602 customers’ needs 793 We regularly survey our customers’ needs 797 208 757 Supplier Quality Involvement We strive to establish long-term relationships with 632 suppliers 609 Our suppliers are actively involved in our new 594 product development process 671 Quality is our number one criterion in selecting 645 suppliers 448 We use mostly suppliers that we have certified Removed 683 We maintain close communication with suppliers 699 about quality considerations and design changes 766 We actively engage suppliers in our quality improvement efforts 783 We would select a quality supplier over one with a lower price 549 209 Appendix B: Question Items of Quality Management Scales — Five Countries Sample (Factor loadings are given in parentheses following each item) Top Management Support for Quality All major department heads within the plant accept their responsibility for quality (.72) Plant management provides personal leadership for quality products and quality improvement (.82) The top priority in evaluating plant management is competitive performance (.52) Our top management strongly encourages involvement in the production process (.63) Our plant management creates and communicates a vision focused on quality improvement (.79) Our plant management is personally involved in quality improvement projects (.77) employee Formal Strategic Planning 210 Our plant has a formal strategic planning process, which results in a written mission, long-range goals and strategies for implementation (.87) This plant has a strategic plan, which is put in writing (.87) Plant management routinely reviews and updates a long-range strategic plan (.78) Information Analysis Charts showing defect rates are posted on the shop floor (.71) Charts showing schedule compliance are posted on the shop floor (.71) Charts plotting the frequency of machine breakdowns are posted on the shop floor (.68) Information on competitive performance is readily available to employees (.81) Information on productivity is readily available to employees (.76) Small Group Problem Solving During problem solving sessions, we make an effort to get all team members’ opinions and ideas before making a decision (.64) Our plant forms teams to solve problems (.80) In the past three years, many problems have been solved through small group sessions (.78) Problem solving teams have helped improve manufacturing processes at this plant (.78) Employee teams are encouraged to try to solve their own problems, as much as possible (.65) We don’t use problem solving teams much in this plant (.72) 211 Task-Related Training for Employees Our plant employees receive training and development in workplace skills on a regular basis (.87) Management at this plant believes that continual training and upgrading of employee skills is important (.76) Employees at this plant have skills that are above average in this industry (.58) Our employees regularly receive training to improve their skills (.89) Our employees are highly skilled in this plant (removed) Employee Suggestions — Implementation and Feedback 212 Management takes all product and process improvement suggestions seriously (.82) We are encouraged to make suggestions for improving performance at this plant (.77) Management tells us why our suggestions are implemented or not used (.76) Many useful suggestions are implemented at this plant (.82) My suggestions are never taken seriously around here (.72) The plant has an informal strategy, which is not very well defined (.67) Cleanliness and Organization Our plant emphasizes putting all tools and fixtures in their place (.69) We take pride in keeping our plant neat and clean (.85) Our plant is kept clean at all times (.86) Employees often have trouble finding the tools they need (.57) Our plant is disorganized and dirty (.79) Process Control Processes in our plant are designed to be “foolproof” (.75) A large percent of the processes on the shop floor are currently under statistical quality control (.84) We make extensive use of statistical techniques to reduce variance in processes (.81) We use charts to determine whether our manufacturing processes are in control (.70) We monitor our processes using statistical process control (.87) Preventive Maintenance We upgrade inferior equipments in order to prevent equipment problems (.71) In order to improve equipment performance, we sometimes redesign equipment (.55) We estimate the lifespan of our equipment, so that repair or replacement can be planned (.74) 213 We use equipment diagnostic techniques to predict equipment lifespan (.75) We not conduct technical analysis of major breakdowns (.55) Customer Involvement We are frequently in close contact with our customers (.69) Our customers seldom visit our plant (removed) Our customers give us feedback on our quality and delivery performance (.70) Our customers are actively involved in our product design process (.58) We strive to be highly responsive to our customers’ needs (.72) We regularly survey our customers’ needs (.71) Supplier Quality Involvement 214 We strive to establish long-term relationships with suppliers (.64) Our suppliers are actively involved in our new product development process (.72) Quality is our number one criterion in selecting suppliers (.55) We use mostly suppliers that we have certified (.61) We maintain close communication with suppliers about quality considerations and design changes (.80) We actively engage suppliers in our quality improvement efforts (.77) We would select a quality supplier over one with a lower price (removed) Appendix C: Question Items of JIT Production Scales — Five Countries Sample (Value inside bracket shows factor loading for each question item for pooled sample) Setup Time Reduction We are aggressively working to lower setup times in our plant (.71) We have converted most of our setup time to external time, while the machine is running (.60) We have low setup times of equipment in our plant (removed) Our crews practice setups in order to reduce the time required (.78) Our workers are trained to reduce setup time (.80) Our setup times seem hopelessly long (.55) Pull system Suppliers fill our kanban containers rather than filling purchase orders (.76) Our suppliers deliver to us in kanban containers, without the use of separate packaging (.76) We use a kanban pull system for production control (.82) We use kanban squares, containers or signals for production control (.82) Equipment Layout We have laid out the shop floor so that processes and machines are in close proximity to each other (.73) We have organized our plant floor into manufacturing cells (.57) Our machines are grouped according to the product family to which they are dedicated (.51) 215 The layout of our shop floor facilitates low inventories and fast throughput (79) We have located our machines to support JIT production flow (.79) We have located our machines to support JIT production flow (.66) Just-in-Time Delivery by Suppliers Our suppliers deliver to us on a just-in-time basis (.79) We receive daily shipments from most suppliers (.68) We can depend upon on-time delivery from our suppliers (.76) Our suppliers are linked with us by a pull system (.65) Suppliers frequently deliver materials to us (removed) Daily Schedule Adherence We usually meet the production schedule each day (.82) Our daily schedule is reasonable to complete on time (.65) We usually complete our daily schedule as planned (.83) We build time into our daily schedule to allow for machine breakdowns and unexpected production stoppages (removed) We build extra slack into our daily schedule, to allow for catching up (removed) We cannot adhere to our schedule on a daily basis (.63) It seems like we are always behind schedule (.75) Repetitive Nature of Master Schedule 216 Our master schedule repeats the same mix of products from hour to hour and day to day (.84) The master schedule is level-loaded in our plant from day to day (.77) A fixed sequence of items is repeated throughout our master schedule (.75) Within our schedule, the mix of items is designed to be similar to the forecasted demand mix (removed) We use a repetitive master schedule from day to day (.81) Our master schedule does not facilitate JIT production (removed) Synchronization of Operations Capacities are balanced in our supply network (.82) Our manufacturing capacity is balanced throughout the entire manufacturing process (.83) We can easily determine bottleneck operations in our supply chain (.74) We have large in-process inventories between different operations (removed) Our suppliers not use large inventories to supply us (removed) 217 Appendix D: Question Items of Quality Performance and Competitive Performance Please circle the number that indicates your opinion about how your plant compares to its competions in your industry, on a global basis (1=Poor or low end of the industry, 2=Below average, 3=Average, 4= Equivalent to competitor, 5=Superior or top of the industry) Manufacturing cost Conformance quality On time delivery performance Flexibility to change volume Inventory turnover Cycle time QRDQN01 QRDQN02 QRDQN03 QRDQN04 QRDQN05 QRDQN06 QRDQN07 QRDQN08 218 Significantly better Better A little better About the same A little worse Worse Significantly worse Quality Conformance How does the quality of your products compare to your competitors’ products? Primary product performance characteristics Secondary options or features; characteristics that supplement the basic functioning of the product Reliability of the product; probability of failure in a specified time Conformance to established standards Durability; amount of use before the product deteriorates or needs to be replaced Serviceability; ease of repair Aesthetics; how the product looks, feels, sounds, tastes or smells Overall product quality perceived by customers Appendix E: Contextual factors (Adopted from Cua et al., 2001 and Ahmad, 2003) Plant Size Number of employees = number of hourly personnel + number of salaried personnel Process Type The production process in this plant is best characterized as follows (what percent of product volume fall into each category?) One of a kind (C5) (–%) Small batch (C4) (–%) Large batch (C3) (–%) Repetitive/line flow (C2) (–%) Continuous (C1) (–%) Process Type = * C5 + * C4 + * C3 + * C2 + × C1 219 ... addition, evidence of moderate effect of contextual factors on the implementation of quality management practices and JIT production practices was found These findings may lead to the conclusion... Evidence from the United States, Japan, Germany, Italy, and Korea. ” Chapter is entitled as “Empirical Study on Effect of Quality Management Practices and Just -in- Time Production Practices on Competitive. .. in applicability of quality management. ” - To study the relationship among quality management and other manufacturing management systems to know whether integrated implementation of quality management