Ching-Chow Yang

The refined Kano's model and its application

Abstract Kanos model of five categories of quality attributes – attractive, one-dimensional, must-be, indifferent, and reverse quality – is widely used by industries and researchers. However, the model has a deficiency that prevents firms from precisely evaluating the influences of quality attributes. The weakness is a failure to take account of the degree of importance accorded to certain quality elements by customers. Kanos model can be refined. The present study adds the importance of quality attributes and, in so doing, the refined model divides Kanos first four categories into eight categories – highly attractive and less attractive, high value-added and low value-added, critical and necessary, and potential and care-free. Based on the refined model, firms can obtain a more accurate understanding of the quality attributes from the customers perspective, and can thus make more precise quality decisions. In addition to modifying Kanos model, the present study also develops an importance–satisfaction (I–S) model. By integrating the refined Kanos model and the I–S model firms can gather even more valuable information on quality decisions. The refined Kanos model and the I–S model are illustrated with a case study.

Supplier selection using combined analytical hierarchy process and grey relational analysis

Purpose – The purpose of this paper is to develop an evaluation model considering the qualitative and quantitative criteria for supplier selection in an outsourcing manufacturing organization.Design/methodology/approach – In this paper, the authors propose an integrated model by combining the analytical hierarchy process (AHP) and grey relational analysis (GRA) into a single evaluation model. The model is illustrated with a case study of a notebook computer manufacturer to demonstrate the effectiveness of this integrated model.Findings – Through the proposed model, it is possible to effectively integrate the specialized knowledge and experience of each dispersed evaluator, and the quantitative data to select the best suppliers for cooperation.Originality/value – The decision‐aiding software (AHP‐GRA model) has been implemented in Excel to automate the supplier selection process. This can widely apply the integrated model for the industry.

Improving the definition and quantification of quality costs

A difficulty facing companies today is the inadequacy of most cost-accounting systems in addressing quality costs and in supplying appropriate data in a suitable format that considers total cost. The main reason for this inadequacy is a lack of adequate methods for determining the financial consequences of poor quality associated with various quality activities. The present study addresses these needs by first refining the traditional ‘Prevention–Appraisal–Failure’ (PAF) categories of quality costs and hidden costs through the definition and addition of two new categories: ‘extra resultant cost’ and ‘estimated hidden cost’. Using this new categorization, the study then provides a detailed classification of the items of quality costs in terms of an expanded list of quality activities along the product life-cycle. The study then demonstrates the calculation of several kinds of total costs using different formats of a ‘cost of quality account matrix’, including a calculation of the sharing of responsibility for these costs among relevant departments.

Service quality attributes determine improvement priority

Purpose – Although there are many quality measurement theories and models, all are imperfect; that is, each has its own advantages and disadvantages. Particularly, some models cannot indicate accurate improvement priorities. The purpose of this study is to develop an integrated performance model that improves service quality and acquires accurate improvement priorities that promote customer satisfaction and eliminate resource wastage.Design/methodology/approach – This study applied a performance matrix and quality loss function (QLF) theory to determine priority items needing improvement. A questionnaire was designed to determine the priority of improvement objectives derived from certain questionnaire items that do not fall into the appropriate performance zone (APZ) of the performance matrix. Finally, the QLF was adopted to rank the improvement objectives in terms of priority. A large QLF area indicates customer satisfaction needs improvement.Findings – This study utilized an employee satisfaction surve...

An integrated model of value creation based on the refined Kano's model and the blue ocean strategy

It is not sufficient for a contemporary firm to satisfy its customers; to be really successful, a firm must create value for its customers. In so doing, it will also derive value from its customers. The pursuit of both value for customers and value from customers is thus a ‘win–win’ strategy. In this regard, the present study first redefines the categories of customer value by suggesting a new category of ‘creative value’, and then discusses how this category of ‘creative value’ relates to other forms of ‘value’. The paper then explores the concepts inherent in the refined Kanos model and the actions associated with the ‘blue ocean’ strategy. Using these concepts, the study presents an integrated model of ‘value creation’ and explains how this model can be used to select appropriate practical actions to enhance customer value, and by implication, also enhance customer retention, customer acquisition, and customer margin – all of which make significant contributions to company profits. A case study is presented to illustrate the ease of application of the model in practice.

Identification of customer delight for quality attributes and its applications

In the past two decades, the pursuit of customer satisfaction has been the focus of business management. However, in an age of increasing competition, merely satisfying customers is not enough; rather, delighting customers has become essential for long-term success. Most studies of customer delight have focused on conceptual discussion or theoretical analysis, and there has been a lack of pragmatic methodology that can be applied by practitioners. To address this problem, the present study creates a ‘customer-delight barometer’ (CDB). This can be used to classify ‘delight-driving’ attributes and ‘satisfaction-driving’ attributes. Using this barometer, a ‘delight-driver satisfaction’ model and a ‘competitiveness index’ (CI) are also developed. The ‘delight-driver satisfaction’ model classifies the attributes into nine categories. Firms can then make precise decisions on proposed quality improvement according to the features of the categories in which the attributes are located. The CI can also be used to compare a firms competitiveness with its competitors. A case study is provided to demonstrate the practical application of the models developed in this research. The study concludes that the CDB, the ‘delight-driver satisfaction’ model, and the CI are all useful tools for firms to utilise in pursuing customer delight and seeking to attain competitive advantage.

Establishment of a Quality-Management System for Service Industries

Abstract Excellent service quality generates a competitive advantage for service organizations, but firms must implement a comprehensive system of quality management if they are to develop effective and reliable service quality. In contrast to manufacturing industries, most service industries lack a well-managed and comprehensive system of quality management. The present study develops a holistic quality-management system for service organizations – based on sound theoretical and pragmatic considerations. The feasibility and effectiveness of this quality-management system for service organizations is demonstrated by using the HP and IBM companies in Taiwan as case studies. In addition, the results of a separate empirical case study reveal that the insurance, hotel, and airline industries are well advanced in implementing quality management. However, other service industries need to make improvements in some aspects of quality management. These analytical results represent a useful benchmarking reference for those service organizations that have lower implementation levels in some quality-management practices. The present study thus presents an innovative and comprehensive quality-management system for service industries and demonstrates its theoretical and practical application in a number of service industries.

Development of an integrated model of a business excellence system

In the era of a new century, high utilisation of technology and the Internet has caused dramatic changes in the market environment and business management. Therefore, industries will have to adopt many management systems or tools, especially the prevailing management systems. But they often encounter many problems in the implementation of these systems individually. It is needed to integrate these systems for the organisations to energise excellent performance. The aim of this paper is to develop an integrated business excellence system that incorporates total quality management (TQM), the Six Sigma programme, and other management methods or tools. The system is based on the frameworks of the Malcolm Baldrige National Quality Award (MBNQA) and the European Quality Award (EQA). Because the aim of implementing a business excellence system such as this is to achieve customer loyalty and excellent corporate performance, an integrated performance management system – incorporating strategic planning, Balanced Scorecard, and Hoshin management – is also developed and embedded in the integrated business excellence system presented here.

An integrated implementation model of strategic planning, BSC and Hoshin management

In pursuit of excellence in business performance and long-term profits, strategic planning and Hoshin management have been widely implemented as strategic-management tools for some time. In recent years, the Balanced Scorecard (BSC) has also been gaining in popularity. Indeed, some organisations have been implementing these three management systems simultaneously. The present study compares and contrasts strategic planning, Hoshin management and BSC. Although differences exist, these strategic-management systems can be integrated on the basis of the features they share in common. Moreover, because each system has its shortcomings, the combination of the differences can overcome the individual weaknesses of each methodology. The paper presents an integrated model of strategic planning, BSC and Hoshin management, and provides a practical case study of its hugely successful implementation. The study confirms that this integrated model is feasible and effective.

Customer‐focused rating system of supplier quality performance

This paper establishes an objective‐orientation driven supplier customer satisfaction performance rating system. The purpose is to provide a methodology for “integrating supplier and manufacturer capabilities and applying different strategies for quality improvement”. This study was undertaken to specify the interaction and mutual movement among three groups in the supply chain “Supplier‐Manufacturer‐Customer” and integrate the results from four factors: incoming inspection, line reject performance, supplier service quality and product reliability. These factors are transformed into measurable, quantitative, Just‐in‐time (JIT) parameters, utilized in planning and establishing a supplier performance rating system focused on satisfying both internal and external customers.