Concepts in Operations Management of David Garvin - Essay Example

David Garvin’s concepts in Operations Management Introduction Product quality is regarded as the basis for every business growth and sustainability, and hence a key business strategy. Garvin’s (1984) article elaborates on this aspect of business strategy from different perspectives. The article is an expansive elaboration of product quality, beginning with different definitions in different contexts; also includes an explanation of different elements of product quality. The author has demonstrated how product quality as a whole and with its distinct elements can be integrated into business strategy, with significant implications attached to the concept. Further, a demonstration of how product price, sakes and marketing, profits and losses can be closely associated with the product quality has been elucidated. Overall, this article focuses on the interdependence of product quality, cost and performance and on the company’s profits and losses. This review of product quality is based on qualitative synthesis of researches conducted in different industrial and market segments. The article provides a comprehensive explanation of product quality and its implications on overall business management. Based on these researches, the author was able to construe the concept of quality in a versatile manner that can be easily understood; another factor contributing to the affirmative approach of this study is the flow of explanation. The article begins with definition of product quality from five different perspectives namely, the transcendent approach of philosophy; product-based approach of economics; the user-based approach of economics, marketing and operations management; the manufacturing-based approach and value-based approaches of operations management. The author’s approach of choosing these specific perspectives explains the very point he intends to drive regarding quality and its impact on different aspects of business. Perspectives such as philosophy and/or economics may not directly imply operations management, but have a significant impact on the overall business. Each of these five approaches briefly explains the view point of different researchers on quality/product quality along with definition of quality. The explanation also highlights reasons for origin of the view point in specific perspective. For instance, the product-based quality is attributed to the differences in quantity keeping in mind the durability factor which was one of the strategies in manufacturing. While explaining each of these approaches, the shortcomings of each approach have also been indicated, thus providing good insight into these approaches. Further, Garvin has identified eight dimensions of quality that determine the extent and scope of product quality: performance, features, reliability, conformance, durability, serviceability, aesthetics and perceived quality. In this process, their relationships with different approaches to quality, as explained earlier, have been explained. Inferences from different researches have been integrated into a strategic framework that fit into different process/functions of the business. For this, Garvin has explicitly indicated the importance of quality dimensions on different functions of a business, and further extended to explain the behaviour of quality on business attributes such as price, advertising, market share, cost and profitability. Garvin’s concepts can be considered as the fundamentals of quality management that are applied in the contemporary businesses with significant modifications and refinements. For example, the most sought-after McDonalds hamburgers (Schiller, Miller-Kovach & Miller; 1994) have been a huge success in the fast food product segment. They are characteristically known for universally uniform taste, freshness and presentation in all parts of the world. Consumers are well aware of this consistency whenever they seek for the McDonald’s hamburgers. This consistency is the unique feature of this product, and consumers’ expectation in terms of quality is fixed. This consistency could be regarded as standards of quality by consumers because they do not experience any form of variation and hence cannot compare with others in same product line or same range of price. However, from a production perspective, the way McDonald makes the hamburgers may not be regarded as the best of all current methods. In spite, McDonald’s process of production must be highly standardized and defined, as a result of which consistency in the product is being achieved. This standardization will significantly contribute to profits by preventing defects, rework and wastage of time, effort, resources and raw materials. Applying Garvin’s concepts of product quality, the low cost of McDonald’s Hamburgers indicates a specialized process that produces consistency in the hamburgers; in turn, this consistency also helps in speedy delivery. From a user-preference perspective, both, low cost and speedy delivery in addition to higher level of advertising are a few considerations that attract more consumers, and thus generate more profits. From a quality perspective, it again depends on the segment of consumers and their preferences. For example, if the consumers prefer speedy delivery and low cost, with a decent presentation, McDonald’s hamburger would be the most suitable; however, if consumers prefer flexibility of taste, then they would prefer other brands with same products, like Wendy’s or Burger King. Another aspect applicable to McDonald’s hamburgers that has not been explained in Garvin’s study is the influence of culture on consumers’ preferences, eating habits in this case, which can significantly impact profits and sales for the company in certain regions of the world. For example, hamburgers may not find similar sales rates in the Western and Eastern countries because some religions in the Eastern countries like in India and in China do not consume meat in same proportions as the Westerners (Beng-Huat, 2000). Considering London taxi cab service as a product, gradation on quality depends upon customer (passenger) satisfaction. Passengers look for safety and security aspects in this service. They seek adherence to traffic rules by the taxi drivers, and a display of professional behaviour. While these are the general expectations of passengers from London taxi service, specific preferences also exist. Passengers who wish to avoid traffic opt for the black-cab taxis that are allowed to ply in bus lanes and thus reduce the travel time or avoid getting trapped in traffic. With such preferences, passengers usually do not mind paying higher tariffs. Conversely, passengers who do not wish to pay high tariffs opt for the minicabs that charge comparatively lesser; however, these taxis are not allowed to ply in the bus lanes and hence take longer time to reach the destination. Hence, this service is highly user-based. Secondly, another factor that determines the quality of this service from a user perspective is the availability of taxi service to passengers whenever and wherever they require; passengers consider minimal or no waiting time as good quality service. It also depends on type of cab, socioeconomic groups of passengers, localities and time during which the cabs ply. From a product/service perspective, quality is viewed in terms of profits made or revenue generated. This usually depends upon factors such as location in the city and time of plying; demand levels, regions covered and even season of the year. Here, profits do not depend upon service quality, as both originate from two opposing entities of business, i.e. service provider and the customer. A comprehensive application of Garvin’s product quality concepts is possible at a local branch of Starbucks because of its strategic integration of quality aspect in all the functions associated with its business. Starbucks employs Total Quality Management (TQM) system in designing its products, processes and infrastructure; in its planning processes; in production and distribution methods; also in its field services including the associated suppliers. Starbucks strategies in product implementation prove the rich experience around consumption of coffee, an experience that weaved into people’s expectations and taste of everyday life. For suppliers of coffee beans, Starbucks’ premium prices, ethical practices and relationship have set benchmarks which have continually improved the supplies and sustained their relationship. Their focus towards employee satisfaction through partnering practices is evident through employee performance and customer experience. From a customer perspective, Starbucks offers, in addition to their standard products, a wide range of coffee and food products considering cultural, taste, presentation requirements. In addition to these, their value-based approaches towards quality include strategic business practices that strive towards continuous enhancement of performance in terms of customer satisfaction, processes/operations, employee commitment and motivation, supplier relationship, marketing processes and increasing profitability for all its stakeholders (Michelli, 2007). A hindsight of this article is indicative that Garvin’s synthesis could not establish a precise meaning for product quality, and leaves the reader with multiple and ambiguous understandings related to quality. From a structural aspect, this article could have been better presented using tabular comparisons of approaches, dimensions and also correlates, in addition to demonstrative explanation. This synthesis missed out consideration of sociocultural influences on product preferences, manufacturing processes and user-preferences; this aspect can be vaguely related to the aesthetics and perceived quality dimensions, but not explicitly stated. Secondly, measurement of quality in terms of its dimensions could have been great value addition to this study. Thirdly, this study is highly manufacturing oriented and does not address impact of quality on service-oriented sectors. A more objective explanation of strategic integration of quality into business processes is more preferable to a subjective one. However, considering the period during which this study was conducted, scope for an objective analysis and application can be regarded as limited. In conclusion, ‘Quality’ in all management operations is as important as it is in doing business and earning profits, which has been illustrated in this article through analysis and synthesis of different researches. Garvin’s synthesis and analysis can be considered as one of the initial lessons to understanding product quality, its dimensions and attributes including its implications on different entities of the business, i.e. company’s business, customers, employees and processes. Evolution of different quality control models and the contemporary methods can be related to Garvin’s approach. On the whole, definition of quality differs with the sources’ preferences and expectations, like consumers, manufacturers, and suppliers perceive quality in different ways. This article lays foundation to this principle, which has been taken as a base for creating different ways of achieving and maintaining quality standards by organisations. References Beeskey, M.E and Glaister, S. (1997). Information for regulating: the case of taxis. In Beesley, M.E’s Privatization, regulation and deregulation. (2nd ed, pp:142-167). Routledge: London. Beng-Huat, C. (2000) Singaporeans Ingesting McDonald’s. In Consumption in Asia: lifestyles and identities. (pp:183-201). Routledge: Oxford. Garvin, D.A. (Fall, 1984). What Does “Product Quality” Really Mean? Sloan Management Review. Vol.26, No.1, pp: 25-43. Michelli, J.A. (2007). The Starbucks experience: 5 principles for turning ordinary into extraordinary. McGraw-Hill Professional: U.S.A. Schiller, M.R, Miller-Kovach, K and Miller, M.A. (1994). Total quality management for hospital nutrition services. Jones & Bartlett Publishers: Maryland, U.S.A. Read More