International Journal of Quality & Reliability Management

Hokey Min; Hyesung Min; Seong‐Jong Joo

2008 International Journal of Quality & Reliability Management

doi: 10.1108/02656710810865249

Purpose – This paper aims to develop a balanced scorecard for measuring the comparative efficiency of Korean luxury hotels and then set the benchmark of performance standards for Korean luxury hotels in the increasingly competitive hotel industry. It also aims to identify the root causes of inefficiencies and then propose ways to improve the competitiveness of Korean luxury hotels. Design/methodology/approach – This paper proposes data envelopment analysis (DEA) to measure the comparative efficiency of six luxury hotel chains in Korea, relative to prior periods and their key competitors. In particular, this paper develops the Charnes, Cooper and Rhodes (CCR) model that is designed to derive weights without being fixed in advance. Also, the results of the CCR model with constant returns to scale were compared to those of the Banker, Charnes and Cooper (BCC) model with decreasing returns to scale. Findings – The paper finds that the declining efficiency within some Korean luxury hotels coincides with more aggressive government crackdowns on bad bank loans in the wake of the International Monetary Fund (IMF) financial crisis and the slow adaptation of some hotels into ongoing hotel industry restructuring. The deep discount in hotel room rates did not necessarily lead to increased room occupancy. The revenue increase is not significantly correlated with the enhanced profitability of Korean luxury hotels. The Korean hotel industry reached the stage of market maturity and therefore the mere expansion of the hotel capacity would not necessarily enhance the hotel's profitability. Originality/value – This paper uncovers the financial weaknesses and strengths of the Korean luxury hotels and identifies challenges and opportunities for the Korean hotel industry. In addition, it helps Korean hotels formulate the future survival strategies by providing the detailed picture of where they stand in terms of competitiveness. This paper is one of the first attempts to utilise DEA to develop performance measures for hotels under the balanced scorecard framework. The proposed DEA can be easily modified or extended to similar settings in other hotels such as budget hotels or other countries such as USA and Japan.

Natcha Thawesaengskulthai; James D.T. Tannock

2008 International Journal of Quality & Reliability Management

doi: 10.1108/02656710810865258

Purpose – The variety of possible quality management (QM) and continuous improvement (CI) initiatives and their various possible permutations can make it difficult for a company to choose the best approach for their requirements. This paper aims to address the selection issue by presenting a method to compare popular QM and CI initiatives from the perspective of the pay‐offs, or expected benefits, to an organisation which successfully adopts the approach. Design/methodology/approach – The relevant QM and CI literature was analysed, examining key initiatives and their reported pay‐offs to the organisation. A matrix diagram approach is introduced which presents the extent and credibility of arguments advanced for these initiatives, in seven categories of pay‐off. A system of assessment is proposed, which quantifies the extent and weight of empirical evidence and estimates the strength of the claim for each pay‐off. Findings – The pay‐off matrix summarises the claims in each of the pay‐off categories, assesses their credibility, and displays the similarities and differences for six key initiatives: total quality management, six sigma, ISO 9000, business process reengineering, lean and business excellence. Graphical pay‐off profiles are presented. Significant differences between the claimed pay‐offs for these initiatives are identified, analysed and discussed. Research limitations/implications – The proposed matrix and assessment system attempts to support a comprehensive and rational approach to assess the pay‐offs of QM and CI initiatives. As with any analysis of literature, there is inevitably an element of selection, but this approach consciously attempts to avoid omission and promote objectivity. The analysis is based on articles published between 1990 and 2005. Hence, new research and additional evidence may change the weight and credibility of claims. Originality/value – This paper suggests a way in which evidence from the literature might be most effectively used by managers for decision support in the choice of quality and improvement initiatives. A similar approach might also be used for other areas, where businesses face choices and a considerable body of evidence exists to assist the decision‐making process .

John Davies

2008 International Journal of Quality & Reliability Management

doi: 10.1108/02656710810865267

Purpose – The purpose of this paper is to explore the integration issues that are important to consider when attempting to implement the European Foundation for Quality Management's (EFQM's) Excellence Model in UK universities. The aim of this paper is to explore the role that integration plays in effecting this implementation and to see how, in practice, integration might be achieved. Design/methodology/approach – A literature review reveals several factors in relation to integration. These factors were explored in four case studies of the implementation of the EFQM Excellence Model in UK universities. Findings – Evidence was found to support the view that the more that integration took place, the more likely it would be that implementation would be effective. Research limitations/implications – The research only covers four cases and therefore is only generalisable back to theory rather than to the population of UK university academic units. Practical implications – The paper proposes mechanisms for integrating the use of the EFQM Excellence Model into the organisation. Originality/value – This paper makes a contribution to the understanding of integration and its effect on the implementation of a quality improvement methodology. Academic managers in universities (and possibly managers in other organizations) may find its recommendations useful if planning a similar implementation.

Guillermo Zúñiga‐Arias; Ruerd Ruben; Ruud Verkerk; Martinus van Boekel

2008 International Journal of Quality & Reliability Management

doi: 10.1108/02656710810865276

Purpose – The purpose of the paper is to present an integrated methodology for identifying effective economic incentives to enhance quality performance by mango producers in Costa Rica. Design/methodology/approach – The study analyses the relationship between intrinsic product quality attributes and socio‐economic characteristics of mango producers in the Central Pacific zone of Costa Rica. Data are derived from a representative sample of 35 mango producers. A mango quality index for local and export market outlet is constructed and quality performance is subsequently related to farm‐household characteristics and contractual delivery parameters. Categorical regression methods are used to identify the relationships between farm‐household characteristics, production system features, marketing relationships and quality attributes weighted by consumers' preferences. Findings – Key attributes of the quality index – related to dimensions of ripeness, appearance and variability – appear to be strongly related to farm‐household characteristics like the producers' age and experience, input use intensity and family labour availability. Preferences for certain contractual regimes and marketing arrangements give rise to differentiation in quality performance. Long‐term delivery relationships and non‐price attributes appear as key factors for quality improvement in mango. Research limitation/implications – Although the study is based on a modest sample, the significant relationships between the constructs in the model are found to be sufficiently robust. Originality/value – The research approach enables the estimation of a model where quality performance is related to technical and institutional aspects related to the organisation of mango delivery chain.

J. Rodrigues Dias; Paulo Infante

2008 International Journal of Quality & Reliability Management

doi: 10.1108/02656710810865285

Purpose – The purpose of this paper is to investigate a new sampling methodology previously proposed for systems with a known lifetime distribution: the Predetermined Sampling Intervals (PSI) method. Design/methodology/approach – The methodology is defined on basis of system hazard cumulative rate, and is compared with other approaches, particularly those whose parameters may change in real time, taking into account current sample information. Findings – For different lifetime distributions, the results obtained for adjusted average time to signal (AATS) using a control chart for the sample mean are presented and analysed. They demonstrate the high degree of statistical performance of this sampling procedure, particularly when used in systems with an increasing failure rate distribution. Practical implications – This PSI method is important from a quality and reliability management point of view. Originality/value – This methodology involves a process by which sampling instants are obtained at the beginning of the process to be controlled. Also this new approach allows for statistical comparison with other sampling schemes, which is a novel feature.

Yun‐Shiow Chen; Chung‐Chu Pan; Wei‐Ning Yang

2008 International Journal of Quality & Reliability Management

doi: 10.1108/02656710810865294

Purpose – The purpose of the paper is to show that modern markets are characterized by rapidly changing environments and numerous external forces. Under these conditions, product lifetimes are rapidly reducing. Therefore, products require optimum inspection policies to maintain high quality and reduce costs in the competitive market. This study aims to establish optimal inspection policies of reliability analysis for quantal‐response product with Weibull lifetime components. Design/methodology/approach – This study considers a product consisting of m different components in series with lifetimes that follow Weibull distributions, and applies a competing failure model to examine the proposed series system for quantal‐response products. The maximum likelihood estimators of parameters of the Weibull distribution are derived based on the quantal‐response data in the proposed series system. The statistical features of the model are illustrated through a numerical example of two‐component series products, and the properties of the maximum likelihood estimators were studied via Monte Carlo simulation under a two‐stage inspected scheme for various sampling sizes and inspection time conditions. Findings – Simulation results demonstrate not only that the optimum inspection condition is the inspection times at T 1 =0.2 and T 2 =0.5 for the two‐stage inspected scheme, but also that the economical sampling size is 150 for both cases. Originality/value – This research results can be applied to the analysis of one‐shot products, e.g. firework, ammunition, airbag, injector, with Weibull components lifetime distribution or the stockpile storage test.