Quality management system development: Some implications from case studies

Abstract

The literature in the field of Industrial Engineering suggests that the improvement of quality management practices is a continuous development process. According to this suggestion, a Quality Management System (QMS) is developed gradually step-by-step and not in sudden dramatic jumps. It has also been pointed out by many authors that the improvement of quality management progressively leads to more efficient internal operations, followed by better satisfied external customers and eventually superior marketing and financial performance. However, the results from a number of case studies in our investigation reveal that those manufacturing companies in Hong Kong which realize that quality is an important strategic consideration for improving their sales and marketing performance invest heavily in quality management and develop their QMS close to standard suggestions in the literature but the transformation is too rapid. These manufacturing firms do not really improve their customer satisfaction by making internal operations more efficient. Instead, they put great effort in developing their QMS in order to satisfy their customers with quality products at low prices, resulting in market growth but not gains in financial benefits. This investigation suggests that quality management in such companies should be conducted in a cost-effective way and directed towards improving the operational efficiency and effectiveness of the entire organization rather than simply satisfying the customers. © 1998 Elsevier Science Ltd. All rights reserved.