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Prepare a collaboration write up stating the importance of inventory

management, the objectives and requirement for effective inventory management.
The importance of volume (how much to order) and timing (when to order) in inventory management. Review outsider authors and justify why inventory control is so important to operation performance of operation managers.
Review the quality management system and it evolution. The dimension and determinant of quality. The concept of total quality management (TQM).
How does effective quality and inventory management promote the organization operation performance?
Prepare collaboration with 400 to 500 words with references to external authors. All citation must be Harvard referencing.

PRINTED BY: Bukola Fasalojo <[email protected]>. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. 17 Quality Management Key questions What is quality and why is it so important? How can quality problems be diagnosed? What steps lead towards conformance to specification? What is total quality Management (TQM)? INTRODUCTION Quality is the only one of the five ‘operations performance criteria’ to have its own dedicated chapter in this book. There are two reasons for this. First, in some organizations a separate function is devoted exclusively to the Management of quality. Second, quality is a key concern of almost all organizations. High-quality services or products can give an organization a considerable competitive edge. Good quality reduces the costs of rectification, waste, complaints and returns and, most importantly, generates satisfied customers. Some operations managers believe that, in the long run, quality is the most important single factor affecting an organization’s performance relative to its competitors. Figure 17.1 This chapter covers quality Management 534 Operations Management, 7th Edition Page 1 of 34
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PRINTED BY: Bukola Fasalojo <[email protected]>. Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. Check and improve your understanding of this chapter using self-assessment questions and a personalized study plan, a video case study, and an eText all at www . myomlab . com . OPERATIONS IN PRACTICE Quality at the Four Seasons Canary Wharf 1 The first Four Seasons Hotel opened over 45 years ago. Since then the company has grown to 81 properties in 34 countries. Famed for its quality of service, the hotel group has won countless awards including the prestigious Zagat survey, numerous AAA Five Diamond Awards and it is also one of only 14 organizations that have been on the Fortune magazine’s list of ‘100 Best Companies to Work For’ every year since it launched in 1998, thus ranking as ‘top hotel chain’ internationally. From its inception the group has had the same guiding principle, ‘to make the quality of our service our competitive advantage’. The company has what it calls its Golden Rule: ‘Do to others (guests and staff) as you would wish others to do to you’. It is a simple rule, but it guides the whole organization’s approach to quality. Quality service is our distinguishing edge and the company continues to evolve in that direction. We are always looking for better, more creative and innovative ways of serving our guests ’, says Michael Purtill, the General Manager of the Four Seasons Hotel Canary Wharf in London. ‘ We have recently refined all of our operating standards across the company, enabling us to further enhance the personalized, intuitive service that all our guests receive. All employees are empowered to use their creativity and judgement in delivering exceptional service and making their own decisions to enhance our guests’stay. For example, one morning an employee noticed that a guest had a flat tyre on their car and decided on his own accord to change it for them, which was very much appreciated by the guest. The golden rule means that we treat our employees with dignity, respect and appreciation. This approach encourages them to be equally sensitive to our guests’needs and offer sincere and genuine service that exceeds expectations. Just recently one of our employees accompanied a guest to the hospital and stayed there with him for the entire afternoon. He wanted to ensure that the guest wasn’t alone and was given the medical attention he needed. The following day that same employee took the initiative to return to the hospital (even though it was his day off) to visit and made sure that the guest’s family in America was kept informed about his progress. We ensure that we have an ongoing focus on recognizing these successes and publicly praise and celebrate all individuals who deliver these warm, spontaneous, thoughtful touches. 534 535 Operations Management, 7th Edition Page 2 of 34
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International Journal of Innovation, Management and Technology, Vol. 1, No. 4, October 2010 ISSN: 2010-0248 398 Abstract —In any business–to-customer (B2C) type of environment, satisfying a customer is the ultimate goal and objective. More often than not, it can be quite an issue. This is perhaps due to the fact that organizations sometimes do not really understand of what actually goes on in a customer’s mind. As such, this predicament has provided as a challenging task to most business conglomerates that places strong emphasis on customer relations. Although many researches and studies were conducted on the actual working of the customer's mind, till today it is a still a mystery. Therefore, this research focused on the measurement of customer satisfaction through delivery of service quality in the banking sector in Malaysia. A quantitative research was used to study the relationship between service quality dimensions and customer satisfaction. Assurance has positive relationship but it has no significant effect on customer satisfaction. Reliability has negative relationship but it has no significant effect on customer satisfaction. Tangibles have positive relationship and have significant impact on customer satisfaction. Empathy has positive relationship but it has no significant effect on customer satisfaction. Responsiveness has positive relationship but no significant impact on customer satisfaction. The study highlights implications for marketers in banking industry for improvement in delivery of service quality. Index Terms —Assurance, Empathy, Reliability, Responsiveness, Tangibles. I. INTRODUCTION The objective of this paper is to seek and measure the level of customer satisfaction and services rendered in the banking industry in Malaysia. As a matter of fact, many banks subscribe to the fact that high customer satisfaction will lead to greater customer loyalty (Yi, 1991; Anderson and Sullivan, 1993; Boulding et al., 1993) which, in turn, leads to future revenue (Fornell, 1992; Bolton, 1998). For that matter, many organizations (including banks) that resorted to having superior service quality have been found to be market leaders in terms of sales and long-term customer loyalty and retention (Anderson and Sullivan, 1993; Boulding et al., 1993; Eklo¨ f and Westlund, 2002). Examples of such banks include Hongkong & Shanghai Bank (HSBC), Standard & Chartered (Stand Chart), Citi Bank , just to mention a few. Highlight a section that you want to designate with a Manuscript received August 18, 2010. Jayaraman Munusamy is an Associate Professor at Limkokwing University of Creative Technology. E-mail: [email protected] Shankar Chelliah is a lecturer at the School of Management, Universiti Sains Malaysia. E-mail: [email protected] certain style, then select the appropriate name on the style menu. The style will adjust your fonts and line spacing. II. INDUSTRY In Malaysia, the banking industry is substantially backed by the commercial banks, investment banks, and Islamic banks. Together, they represent as the primary mobiliser of funds and as the main source of financing to support the national economic activities. Meanwhile, the non-banking financial intermediaries, comprising development financial institutions, provident and pension funds insurance companies, and takaful operators, complement the banking institutions in mobilising savings and meeting the financial needs of the economy. Banking policies, rights and guidelines comes under the purview of the Central Bank or commonly known as Bank Negara. Guided by the principle that it should act only in the economic interest of the nation, this Bank should not profit as a primary consideration. Based on that, the functions of Bank Negara are carried out within the context of promoting economic growth, plus a high level of employment, maintaining price stability and finally, a reasonable balance in the country's international payments position, eradicating poverty and restructuring society. In particular, the Central Bank ensures that the availability and cost of money and credit in the economy are consonant with national macroeconomic objectives. In this respect, the Bank acts as the banker for currency issue, keeper of international reserves and safeguarding the value of the ringgit, banker and financial adviser to the Government, agency responsible for monetary policy and management of the financial system and banker to the banks. As Malaysia practices the `open enterprise’ policy, banks in the country are free to compete against one another. However, there remains a deep concern on what kind of pull that these banks can impact upon their customers in order to entice and retain their customers. Moving from a product and sales philosophy to a marketing philosophy gives the bank a better chance to beat the competition.Submit your manuscript electronically for review. III. PROBLEM STATEMENT This paper, at the same time provides a brief review of some of the relevant approaches that have been used for the measurement of customer satisfaction. It then discusses different views that have been developed in relation to the transferability of satisfaction measures across industries and Service Quality Delivery and Its Impact on Customer Satisfaction in the Banking Sector in Malaysia Jayaraman Munusamy, Shankar Chelliah and Hor Wai Mun
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International Journal of Innovation, Management and Technology, Vol. 1, No. 4, October 2010 ISSN: 2010-0248 399 outlines the research questions addressed in this investigation. One of the main problems faced by consumers when it comes to banking is issue of the banking hours being too rigid and not flexible. Usually, most banks operating hours are from Mondays to Fridays –begins operation from 9.30 - 4.30pm. Prior to this, banks used to operate services beginning from 10 am in the morning and ending at 4 pm from Mondays to Fridays, but due to consumer demand, the trend changed, with the banks beginning services an hour earlier. Despite the practice of beginning services half-an-hour earlier, some banks that are positioned in shopping malls and department stores will still have to open for service at 10 am, as the shopping malls and department stores open up for business. Besides the banking hours, other issue consumers also are facing in queuing up at some banks. Standing in line for a long time at the banks is non-productive and a sheer waste of time. As such, most banks now have developed a way to address consumer problems. A suggestion box placed at the foyer or entrance of the bank or a well-conducted survey is a good start to learn about consumer needs. For the purpose of this Paper, feedbacks from the survey revealed the reasons that led to customer satisfaction. It was demonstrated that in order to maintain the grip on customer, many banks have now set up suggestion and complaint avenues such as hotlines, 24-hour call services and online services. At a glance, the issues in relative to consumer banking have seen some changes in the past decade, specifically:- the economy crisis during the 90s’ the wake of the bank mergers the change in banks’ operation hours the introduction of the telephone banking the rapid growing of the internet banking the growth of spending power of the Generation Y customers the growth of the Islamic banking IV. LITERATURE REVIEW A. Customer Satisfaction Before proceeding further, it is best that one fully understands the definition of the phrase ‘Customer Satisfaction`. The phrase does not only express a happy customer, but rather complex than that. Customer satisfaction is actually a term most widely used in the business and commerce industry. It is a business term explaining about a measurement of the kind of products and services provided by a company to meet its customer’s expectation. To some, this may be seen as the company’s key performance indicator (KPI). In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. It is well established that satisfied customers are key to long-term business success (Kristensen et al., 1992; Zeithami et al., 1996; McColl-Kennedy and Scheider, 2000). It also defined as a global issue that affects all organizations, regardless of its size, whether profit or non-profit, local or multi-national. Companies that have a more satisfied customer base also experience higher economic returns (aker and Jocobsson, 1994; Bolton, 1998; Yeung et al., 2002). Consequently, higher customer satisfaction leads to greater customer loyalty (Yi, 1991; Anderson and Sulivan, 1993 Boulding et al., 1993) which in turn leads to higher future revenue (Fornell, 1992; Bolton, 1998). For that matter, many market leaders are found to be highly superior-customer-service orientated. They have been rewarded with high revenue and customer retention as well. For that matter, organizations in the same market sector are compelled to assess the quality of the services that they provide in order to attract and retain their customers. Apparently, many researchers conceptualize customer satisfaction as an individual’s feeling of pleasure (or disappointment) resulting from comparing the perceived performance or outcome in relation to the expectation (Oliver, 1981; Brandy and Robertson, 2001; Lovelock, Patterson and Walker, 2001). There are two general conceptualizations of satisfaction here, namely, the transaction-specific satisfaction and the cumulative satisfaction (Boulding et al., 1993; Jones and Suh, 2000; Yi and La, 2004). Transaction-specific satisfaction is the customer’s very own evaluation of his or her experience and reaction towards a particular service encounter (Cronii and Taylor, 1992; Boshoff and Gray, 2004). This reaction is expressed by the customer who experiences a product or service for the first time. Meanwhile, cumulative satisfaction refers to the customer’s overall evaluation of the consumption experience to date (Johnson, Anderson and Fornell, 1995); an own accumulation of contacts with services provided them from day-to-day. It is from this accumulation that customers establish a personal standard which is used to gauge service quality. However, in general, it is agreed that customer satisfaction measurement is a post-consumption assessment by the user, about the products or services gained (Churchill and Surprenant, 1982; Yuksel and Rimmington, 1988). B. Service Quality Without any doubt, service quality is very important component in any business related activity. This is especially so, to marketer a customer’s evaluation of service quality and the resulting level of satisfaction are perceived to affect bottom line measures of business success (lacobucci et al., 1994). Customer expectations are beliefs about a service that serve as standards against which service performance is judged (Zrithaml et al., 1993); which customer thinks a service provider should offer, rather than on what might be on offer (Parasuram et al., 1988). To some, service quality can also be defined as the difference between customer’s expectations for the service encounter and the perceptions of the service received. According to the service quality theory (Oliver, 1980), it is predicted that customers will judge that quality as ` low` if performance does not meet their expectations and quality as `high` when performance exceeds expectations. Closing this gap might require toning down the expectations or heightening the perception of what has actually been received by the customer (Parasuraman et al., 1985). According to Gronroos (1982), perceived quality of a given service is the result of an evaluation process since consumers often make comparison between the services they
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