IMPROVING QUALITY OF MANAGEMENT AT THE FOUR H GROUP

NAME OF THE AUTHOR:

Course:

Professor:

Institutional Affiliation:

City:

Date:
 2

Improving quality of management of four h group

Abstract

Many surveys that have been recently conducted by different companies and institutions

have looked at improving quality management and project management. The quality in project

management is on the decrease because of the ever changing business requirements, according to

the results of the surveys. Due to this, quality or schedule of project deliveries is being

compromised and this may have had a significant impact on their stand or place in the market

globally. A topic of common interest is the improvement in project delivery. The objective of the

improvement is to attain the purpose of the project, inhibit risks in the schedule of the project

delivery and cause minor possible quality defects. Customers are looking for high dexterity or

quickness in project management, which simply means the ability to quickly adhere to new

changes.

An advantage that has emerged is increasing awareness towards service quality.

Companies that are manufacturing oriented have for the longest time executed quality control.

Service companies have tried copying the manufacturing companies in quality control but

because of the differences in the business levels, service companies need to adopt a different

methodology to ensure quality management.

The concentration of this research is on finding the assets that are suitable from theories acquired

from the systems and quality management of companies that are manufacturing oriented.

Systems and theories associated with quality management approach are examined as well as the

few theories that relate to service quality. A qualitative research approach was selected, looking
 3

at the nature of the research objectives. A multi-method case study was carried out on four h

group to further understand the topic

The main objective of the research is to investigate the current state of quality

management in the case company, and recommend improvements based on the findings. The

case company in this case is the four h group. The findings show the current state of quality

management in the case company and as a result, a quality manual is written with regards to the

study findings and theories.

Keywords

Quality management, project management, quality manual and quality systems

Purpose of the study

Conducting a research about management and its quality, specifically in the service

industry, is the purpose of the thesis. The research looks at answering the research questions;

what can or should four h group do to assure quality in their customer service or processes? How

quality is handled or displayed at four h group at the moment, and is it good? What should a

process or quality manual for the case company include?

The objectives and structure of the thesis

I will start by giving an introduction of the case company and going through quality

definitions in terms of service businesses e.g. quality project management in information

technology companies and from a theoretical view, investigate more about the quality.

Dimensions of service quality are introduced and the basic concept of service characters is

shown. The relation and importance of the dimensions in the evaluation process of customers’
 4

quality are discussed. The basis held for other approaches towards service quality is the

Gronroos’ model of service quality.

I go on to the management perspective after the introduction of the quality concepts.

Following, is opening up the development of theories on quality management and explaining the

important parts of the approach on quality management. The quality system and its contents are

looked at as other related matters are also observed. The first two theories that are most advanced

are deeply examined.

I will then analyze the collected information sources and discuss the research methods

used in the theses. I will then introduce the case company and their situation in quality

management, analyzing the processes of the case company with the theories and information

acquired from quality and quality management. This will be followed by taking a look at the

results from the case company situation comparison, and the literature. The conclusion will help

to realize whether the purpose of the thesis has been met and if the research questions have been

answered

Introduction

Description of the case company

In Bangladesh, four h group is a legendary name in the sector of garments as it is among

the garment exporters that are well-established. The four h group commenced its business

operations in the year 2004, though it was initially established in the year 2003. It manufactures

and exports a huge number of casual and fashion products for men, ladies and children

depending on the sizes, ages, and seasons. The group also deals with manufacturing knit fabric
 5

that include interlock, single and double jersey, thermal, rib cotton elastin, cotton elastin and

many others.

The four h group has its head office in Chittagong, and has overseas office located in

Hong Kong. Four h group’s vision is to be the global leader in exporting garments. The motto or

slogan of the group is ‘better than before, better than the rest.’ The group has more than 13000

employers and has an annual turnover of approximately 125 million US dollars. It has majority

of its business clients from middle-east countries, japan, Canada, Europe and the USA.

Throughout its operational years, the four h group has achieved a number of trophies,

certificates, and awards from the Bangladesh government and its ministries, and other

organizations. The four h group comprises of; four h lingerie limited, badgetex apparels limited,

divine design limited, nafisa apparels limited, Islam pack and accessories limited, four h fashions

limited, intimates elastic industries limited, and alamode apparels limited.

Definitions

A relatively recent occurrence that ensures that a product, an organization or service is

consistent with quality is quality management. It is grounded on both retrospective and

prospective reviews. The scope of quality management is however not just constrained to service

or product quality but also deals with the means to obtain and retain quality standards. Therefore,

in definition, quality management can be said to be an act of performing tasks and activities

which are necessary to retain a level of excellence that is desired. This includes quality

improvement and quality control as well as creating and implementing assurance and quality

planning.
 6

Consistent and continuous quality improvement is a must requirement for all systems of

quality management. Improvement of quality is a repeating process and should be practiced at

regular intervals. It is not a one-time effort but rather an ongoing process that lasts with the life

of a company. Examples across different industries have shown that any negligence on the

improvements of product process and quality results in catastrophic results for the products and

the company in general.

Project management

Recently, the information technology (IT) market has developed into a more service-

oriented and global marketplace thus raising the expectations of the client’s. Because of the

economic conditions that are competitive, numerous IT organizations have discovered that it is

getting difficult by the day to compete. This also applies to other organizations. To thrive in the

global business environment, it is required of organizations to look for different ways to increase

efficiency and improve quality in management so as to gain a competitive edge (Zeng et al,

2007).

Most of the information technology companies have been going for a more adaptive and

flexible project management practices and processes lately. What is mostly emphasized is the

removal of barriers of communication in the structures of organization by establishing

departments that are functional (Fernandez et al, 2009). Iterative and incremental practices are

more frequently used in project management according to a project management institute (PMI)

carried out in the year 2015. The use of these practices is moreover becoming a trend, with 38%

of organizations reporting continuous use, up 8% points since 2013. However, in comparison, it

 7

is not surprising that organizations that are highly agile achieve a 75% better project outcome to

56% of organizations that have low agility.

The average of 16.2% of software projects were completed on budget and time,

according to Standish chaos report (2015). Additional results show that 31.1% of the projects

were cancelled before they were completed, and 52.7% of the projects cost 189% of their

original value. Adaptability and flexibility in project management are desired by organizations

that are project based. Many challengers maybe faced by the organization in dealing with global

projects because of the project teams being located in different time zones and locations and

because the project managers having to handle language and cross-cultural differences. Project

quality management has become a need for organizations that want to remain in the It market

that is competitive, in the conditions of today’s global economics. Quality is an occurrence; it’s

an emergent property of people’s varying beliefs and attitudes, which often change over the

development life-cycle of a project, according to Atkinson (1999).

Project quality, in the earlier decades, has been described by experts as; the totality of

characteristics and features of a service or product that bear its ability to satisfy implied or stated

needs, fit for purpose or use, the quality of a product is its capability to satisfy the expectations

and needs of the customer (Bergman, 1994), conformance to requirements (Crosby, 1979) and

improvement and growth through research and innovation.

Quality as an important factor in project management

Together with the three main pillars (cost, time and scope), quality is an important

element of project management. Quality is the most important and critical factor that may affect

the completion of the budget or schedule if the level of quality is not agreed with the client or
 8

quality is not planned early enough (Goswami, 2015). A delivered project value, from the

perspective of a customer, can be weighed according to the level of quality associated with it

(Johnson and Liberatore, 2013). The goal of quality management implementation is to prevent

risks in the schedule of delivery, cause the least possible difficulty, and achieve the objectives of

the company.

Many IT companies, in earlier decades, carried out surveys and studies in collaboration

with institutions and business schools to establish the causes of the failure of a project and to

enhance the policies and practices in the management of a project. A study was carried out on

large scale information technology projects (IT), by Mckinsey and company, with the oxford

university (2012). The results of the study showed that on an average, large IT projects surpassed

their schedules by 7% and their budgets by 45% while delivering 56% less predicted value. The

major cause of failure was that the stakeholders and users did not participate in the project

activities that were daily or weekly.

A conducted survey by IBM stated that the biggest hindrance in the success of projects

was noted as people factors: corporate culture 49%, lack of support from senior management

32%, and changing attitudes and mind-sets 58%. The most common reasons or causes of project

failure were quality issues, functionality issues, and the project being substantially late (Gartner,

2012).

According to earlier literature reviews by different authors, the choice of methodology in

the project management determines the level of quality associated to the project delivery. Wrike

statistics (2015) states that projects meet 68% of their quality standards when a methodology of

project management is used by organizations and a minute percentage without any methodology.
 9

Further, the success of a project is measured 15% additionally when high quality deliverables are

produced by the organizations.

The wider relevance

Economic competitiveness is a driving force in the global marketplace. Organizations are

required to be adaptive and flexible in their project management processes to survive in the

market that is competitive. The expectations of the customers’ are rising by the day as services

and products have prices that are competitive and are easily and internationally available.

Organizations are focused on costs of operation to gain a competitive edge by improving

management practices, streamlining development, and automating their testing tools (Aarseth et

al, 2013).

Quality

Earlier on, ‘quality’ in business, earlier on, meant that a product was faultless and

conforming. Today, the word ‘quality’ has a deeper meaning; quality nowadays implies

continuous improvement as well as better management systems. Quality is seen from within a

company; in its operations and processes. Quality has been described by experts as; quality in a

service or product is not what the supplier puts in but rather what the customer receives and is

willing to pay for (Kano, 1984), conformance to requirements (Crosby, 1979), the totality of

characteristics and features of a service or product that bears on its ability to fulfill implied or

stated needs, the quality of a product (service or article) is its capability to fulfill the expectations

and needs of the customer (Bergman, 1994) and exceeded expectations that delight the customer

(Kano, 1984). The modern qualities see quality from four perspectives that are different. These
 10

four perspectives are system quality, performance, customer quality and conformance

(Tuominen, 2000).

Customers currently assume that the service or product they are purchasing is of quality

or up to the standard. Manufacturing companies normally assure their customers of quality by

guaranteeing conformance for a certain period of time and the products that do not conform will

be replaced or exchanged. Products or services can be rated with stars or other forms of

measurement or scales to reveal the quality offered to clients.

The traditional manufacturing quality control models formerly dictated that the

measurement of the quality of a certain product or service was carried out by a separate unit.

According to the modern manufacturing quality control model this view is outdated. The thought

now is on how to take means that are proactive to ensure quality and that everyone is held

responsible (Gronroos, 2007). Quality management will further be analyzed and discussed as

they are important aspects of quality as a term. This research refers to the modern concept of

quality.

Dimensions of product/service quality and quality model

` Dimensions of product role, impact when a customer or client is evaluating a process or

a product or a service provider. This is because the dimensions are a part of the product and total

service being evaluated by the customer. Approaches to the subject differ depending on the

inventors of the model and the different authors.

When organizations understand how products and services are evaluated, they are able to

influence these evaluations and channel them to the direction that is desired (Gronroos, 2007).

Gronroos invented one of the earliest models of product and service quality. The experience is
 11

discussed in two dimensions which is the technical quality (what) and the functional quality

(how) and concerns the relation of the actual experienced product or service and whether the

customer’s expectations have been met, Bergman et al.

The technical quality is concerned with the provided product or service, for example the

type of product provided or the food provided in the restaurant. The functional quality is

concerned with the delivery, for example; how was the product packaged, was the product user-

friendly or the behavior of the waitress while serving the food (Bergman et al, 1994). Gronroos

model was modified by Edvardsson et al (1989) by adding two dimensions, the outcome quality

and the integrative quality. Technical quality also involves the design and skill of the system.

The service system as a whole is described by the new integrative dimension which is how

different parts of the system work in unity, for example how a product is manufactured till the

point it reaches the consumer. Expectations and needs of the customer or the standards or

specifications of the actual product or service are included in the outcome quality (Dale, 1999).

The quality determinant of services and products was approached in ten dimensions by

Parasuruman et al. Most of the ten dimensions relate to the outcome quality of the process. They

are responsiveness, reliability, tangibles, credibility, communication, access, understanding,

competence, courtesy and security. After further scrutiny and analysis by Parasuruman et al, the

ten dimensions were reduced to five. They are responsiveness, empathy, assurance, reliability

and tangibles.

Reliability refers to the performance consistency and the correctness or punctuality of the

service or product procedure. Responsiveness entails the ability of the provider to replace non-

conforming products, attend to the issues of the customer and the willingness to assist the client.
 12

Assurance deals with the skills, behavior, and knowledge of the provider. Safety and credibility

are also included which portray the believability, honesty and trustworthiness of the provider.

Tangibles deal with the physical aspects. Empathy shows the capability to understand and

communicate with the consumer.

A sixth important dimension was added to the five dimensions by Gronroos. The sixth

one was recovery. The focus of the new dimension is on the action taken by the provider of the

service or product after a customer complains about the service or product or if a failure occurs.

These dimensions offer a basis or are part of how the client judges the service or the product.

However, despite the dimensions, as stated by Gronroos, the client still compares the experience

received from the product or service to the earlier expectations. The expectations are cultured by

previous or past encounters with the company and the competitors of the company or the

branding and marketing of the company. Combined, these encounters offer a foundation for the

company’s image and impacts heavily on the future expectations of the customer (Gronroos,

2007).

The outcome quality of delivery plays a vital role as many aspects can be measured. It is

therefore observed that the behavior and skills of employees largely impacts good service quality

and should be the top priority of a company. Therefore an important structure in an organization

is quality management as it concerns everyone in the company, from the management at the top

to the interns of the company.

Importance rate of dimensions

Satisfying or not satisfying customers’ expectations does not always matter. The different

dimensions matter less compared to the overall quality. Dimensions can be put into three
 13

different categories, according to an investigation done by Johnston et al, 1990 on service quality

in the UK. The category of the dimension is based on the quality and importance of the

experience. The categories are dual threshold factors, hygiene factors and enhancing factors.

Hygiene factors are on the basic expectations of the customer. Failure to achieve these

hygiene factors brings about dissatisfaction of the customer. Examples of this category include

returning emails and returning phone calls. Failure to achieve the enhancing factors does not

bring about dissatisfaction due to the fact that the customer did not have any expectations on

delivery. However, performing these enhancing factors brings about satisfaction as the customer

is surprised with the attributes that enhance quality. Examples of this category include giving

additional products or free gifts to customers for purchasing certain products or a hotel

receptionist remembering the name of the customer. These are the typical enhancing factors.

Threshold factors are two sided. Performing above average level will increase quality and

contribute to the satisfaction of the customer while performing below average will lead to the

dissatisfaction of the customer. For example in delivery, late delivery of items will lead to the

disappointment of the customer, but reliable delivery that is extra fast or that comes earlier than

expected will delight the customer hence lead to customer satisfaction.\

Theory of quality gaps

The Gonroos model of experience in relation to expectations with a gap is explained by

the theory. According to Parasuraman et al and Zeitham et al, quality is the measure of the gap

between the expectation and experience of the customer. The first gaps occur when the

management’s expectations of consumer expectations and the actual consumer expectations

differ. If the management happens not to know what the consumer actually wants, then the
 14

offered product will contrast completely with what the consumer is looking for. This

unawareness can be as a result of misinterpreted or incorrect information from a market research.

It also could also be because of miscommunication between the management and the employees

(Gronroos, 2007).

The first gap partly causes the occurrence of the second gap. In the second gap, the

standards and design for quality do not go hand in hand with the perceptions of quality of the

manager. Standards set by the manager might appear wrong if the first gap is large or significant.

This might not change even if the designs for quality are consistent. Mistakes may also arise in

planning, scarcity of resources, management absence in the commitment to service quality

culture, or organizational stiffness which enhance the gap (Gronroos, 2007).

The occurrence of the third gap happens between the actual delivery and quality

specifications. This gap is as a result of employees who have varying performances in their work

or are either unwilling to deliver on the desired level. The causes of these problems are numerous

and they are usually either a lack of operational and technological support, perceptions of the

employees on the specifications of the task or supervision and management (Gronroos, 2007).

The fourth and final gap brings about a comparison between the external communications

about the service or product and the actual process. This is relevant in the sense that the

difference between the marketed process and the actual service is described. The promotions and

advertisements of the company should not give out incorrect information, nor promise more than

can actually be delivered (Gronroos, 2007).

As observed, the gaps are largely caused by the management performances that are

inadequate, and relate to the organization’s own culture and structure. This therefore suggests
 15

that quality management that is well functioning provides the methods of correction to these

gaps, after their identification.

Encounters

Albrecht et al 1985 brought the idea of encounters, which are the moments of truth that

are critical. Basically, this is any interaction that is direct between the customer and the product

or service provider. The encounters may be inform of face to face situation with an employee,

through telephone or through email. Encounters with the customers matter a lot, especially to the

consumer. The quality of the encounter plays an important role when rating the quality and

overall impression of the company. The customer perceived service quality will be damaged, if

the service encounters are not managed properly (Gronroos, 2007).

The encounters always matter to the customer, from the customers’ point of view

(Gronroos, 2007). It is therefore very important for a company to handle the encounters

effectively by providing the required support to the employees that are dealing with the

customers. This type of support includes investments in technology, managerial support, and

working systems of administration. This support is necessary because it assists the employees to

maintain and improve the level of quality during the encounters with the customers.

Measuring quality

The perceived quality occurs as a rule in the customer’s mind, and different customers

have starting points that are diverse. However, there are tools that can be put to use to measure or

determine quality. To add on, these tools require the customer’s cooperation. The tools of

measurement are split into qualitative or quantitative depending on the research technique that is

used. In quantitative research for example, the matter is investigated through statistical,
 16

computational, or mathematical techniques. The issues in qualitative research are addressed by

observations, discussions or interviews. Customer surveys, based on this division, can be stated

as of quantitative measurement, since its aim is to gather up data in plenty to be turned to

statistical figures. Discussions that are face to face with the customers then give qualitative data

to be managed in the company or organization.

Listening and talking to the customer is always the principle method to get to know their

experiences, expectations and real needs. Therefore, direct contact or encounters should be the

preference. It becomes even more important in a situation where the customer is dissatisfied and

requires to be satisfied or compensated (Gronroos, 2007). The employee in communication or in

direct contact with the customer during the encounter, a part of service performance, is required

to manage the quality while the service is being delivered or performed. The momentary quality

can’t be dictated by any other individual normally, and the presence of a supervisor cannot

always be available during each and every encounter. Of course the quality can be reviewed after

the encounter but then if the quality of service was not up to standard or a failure happened to

occur, bad results would have been already registered (Gronroos, 2007).

A questionnaire was designed by parasuraman et al (1988) to measure quality which

compares and measures the perceptions and expectations of a customer. The scale comprises of

22 items. The customer first examines the level of their expectation in regards to some aspect of

the product and the experience of the product at the same scale. The organization or company

can then read the questionnaires and then compare in various areas of product or service delivery

and identify the spots that are properly functioning and those that are not and require attention

for quality improvement. An aspect of quality management is getting ready for the mistakes that
 17

are to occur in the future and enhancing the quality of service dimensions before the customer or

consumer actually acquires or gets them.

This measurement, however, has its own shares of problems. First, the expectations are

measured after the actual experience, as is done often, prompting the measurement to be biased

in a way. Second, the expectations may be influenced by the actual process at the moment. The

expectations may be formulated or be as a result of the actual process, and therefore it will be of

no use in, some cases, measuring the expectations (Gronroos, 2007).

Quality management

Quality management evolution

The overall management function that implements and determines the quality policy are

aspects in quality management (Shere, 2009). Waiting for problems to happen then solving them

is not a usually economical or effective behavior. In the long run, this type of behavior will not

lead to any improvements because the root of the problem might not be discovered. The quality

thinking management processes have since developed and evolved from the initial quality

management (inspection), to the most recent (total quality management).

 18

References

Tarí, J.J., 2011. Research into quality management and social responsibility. Journal of Business

Ethics, 102(4), pp.623-638.

Kang, G.D. and James, J., 2004. Service quality dimensions: an examination of Grönroos’s

service quality model. Managing Service Quality: An International Journal, 14(4),

pp.266-277.

Pasupathy, K.S. and Triantis, K.P., 2007. A Framework to Evaluate Service Operations: dynamic

service-profit chain. Quality Management Journal, 14(3), pp.36-49.

Stevenson, W.J., Hojati, M. and Cao, J., 2007. Operations management (Vol. 8). Boston:

McGraw-Hill/Irwin.

Sallis, E., 2014. Total quality management in education. Routledge.