Literature Review - SMCR Model & Quality - Stacie v3 2908

TEEP: International Consulting Program in Taiwan Client: BUFAB Taiwan

I. Business Communication Model

1. Berlo’s communication model - SMCR Model

S – Sender

Sender (source) is the one from whom the thought originates with the help of

communication skills, Attitude, Knowledge, Social System and Culture.

Communication Skills: taking pause, repeating the sentences, accent, cross-checking

with recipients, listening to queries…

Attitude: The sender must have the right attitude to create a long lasting impression

on the listeners

Knowledge: the clarity of the information with in-depth knowledge which the

speaker wants to convey to the second party and ready to answer any questions

Social System: the sentiments, cultural beliefs, religious feelings of the second party

Culture: the cultural background of the community or the listeners where the speaker

is communicating or delivering his speech.

M - Message

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When an individual converts his thoughts into words, a message is created. Any message

further comprises of the following elements:

Content: the matter or the script of the conversation. It is in simpler words, the

backbone of any communication which has to be sensible, accurate, crisp, related to

the thought to hit the listeners

Element: Hand movements, gestures, postures, facial expressions, body movements,

gestures

Treatment: the way one treats his message and is conveys to the listeners.

Structure: in order to convey the message in the most desired form.

Code: body movements, language, expressions, gestures which enable receivers to

decode the correct information.

C - Channel

Channel - Channel actually refers to the medium how the information flows from the

sender to the receiver.

R - Receiver

When the message reaches the receiver, he tries to understand what the listener actually

wants to convey and then responds accordingly. This is also called as decoding.

The receiver should be on the same platform as the speaker for smooth flow of

information and better understanding of the message.

2. Problems facing by Bufab Taiwan when communicating with other Bufab sisters

We addressed that the lack of comprehensive communication is the main reason making

other Bufab sisters not using Bufab Taiwan service. As such, we tackle this problem by

showing what should be improved by Bufab Taiwan when communicating with other

sister companies.

Applying the Berlo’s communication model, there is some chosen factors were not

applied correctly by Bufab Taiwan which are

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- Senders: Being a multinational corporation located in 23 countries with more than

800 employees from different countries, Bufab Group definitely was challenged by

Culture and Social system differences; and these are two of the big problems for

Bufab Taiwan also.

- Message: Being considered performing well and contributing a great part in the

Group’s cost reduction, however, Bufab Taiwan has not earned the creditability from

others sister yet due to the way they deliver the message, in other words, the Context

of message from Bufab Taiwan to sisters. With the same amount of information and

number it is crucial to choose the right context to make communication process

successfully between two parties.

Besides, one missing an essential step in the communications process of Berlo is

feedback. There is Inadequate Feedback from other sister company after being

introduced by Bufab Taiwan. Without that, Bufab Taiwan cannot know if the receiver

received or understood the message.

In the limitation of this research, we try to solve the most critical problem – Context

of message sending out by Bufab Taiwan to other sisters, which, in our strong belief

would help to maximize the efficiency and effectiveness of the two parties’

communication, as such increase the performance of not only Bufab Taiwan but also

the whole Bufab Group in the near future.

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II. SPQL MODEL

1. Quality Management – Q Part

1.1 Literature Review

1.1.1 Quality management and its principles

There are different assumptions defining “Quality” from the simple till the

complicated ones.

Quality is fitness for use (Juran, 1989).

Quality is conformance to requirements (Crosby, 1996).

Quality should be aimed at the needs of the consumer, present and future

(Deming, 1986).

Quality is the total composite product and service characteristics of marketing,

engineering and maintenance through which the product and service in use will meet

the expectations of the customer (Feigenbaum, 1991). Quality is the totality of

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

stated or implied needs (ISO 9000).

The American National Standards Institute (ANSI) and the American Society for

Quality Control (ASQC) 1978, define quality as the totality of features and

characteristics of a product or service that bears on its ability to satisfy given needs.

The European Foundation for Quality Management (EFQM) defines quality as to

meet the needs and expectations of the customers, personnel, financial stakeholders

and society (Geraedts, et al., 2001).

Based on the definitions above, it can be concluded that quality is focused on

customer. Customer focused quality is driven by customer satisfaction and has

become the principle definition of quality from a managerial perspective. Quality is

meeting and exceeding customer needs and expectations.

As such, Quality management ensures that an organization, product or service is

consistent. It has four main components: quality planning, quality control, quality

assurance and quality improvement. Quality management is focused not only on

product and service quality, but also on the means to achieve it. Quality management,

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therefore, uses quality assurance and control of processes as well as products to

achieve more consistent quality.

Over time, the theory of quality management was developed on the basis of

contributions from quality leaders (e.g. Deming, 1982), formal evaluation models

(e.g. EQA, MBNQA) and results of measurement studies or empirical research (e.g.

Saraph et al., 1989; Flynn et al., 1994; Conca, Llopis, & Tari, 2004; Tari, Molina, &

Castejon, 2007). On these bases a number of authors identified the key factors of

quality management. For example, Conca et al. (2004) extracted eight key factors:

leadership, quality planning, employee management, supplier management, customer

focus, process management, continuous improvement and learning. A similar

classification was proposed by other authors (e.g. Fuentes, Montes, & Fernandez,

2006; Tari et al., 2007, Zakuan, Yusof, Laosirihongth- ong, & Shaharoun, 2012).

Applying the same dimensions, in the guidlelines for Quality Management principles

of ISO there are 8 keys factors as the figure below

Customer focus: An organization incorporates customer requirements into the

quality of product and service (Conca et al., 2004), because ignoring these

requirements could unfavourably affect business (Ahire et al., 1996). Thus, an

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organization should analyse customer opinions and expectations regarding

product/service quality in order to improve processes, relations with customers and

customer satisfaction (Flynn et al., 1994; Tari et al., 2007).

Leadership: The role of managers in practising leadership is one of the keys of

quality management (Ahire et al., 1996; Tari et al., 2007; Pecujlija, Azemovic,

Azemovic,& Cosic, 2011). Management should ensure a favourable ‘climate’ for the

development and implementation of quality management, involving all employees.

Involvement of people: It turned out that involving teams positively affects the

employees’ commitment to quality (Ahire et al., 1996). Thus, organisations should

establish a system for monitoring, measuring, evaluating and rewarding employees

for high performance (Ahire et al., 1996). Rewarding contributors is important

because it includes measuring employees’ performance, provides feedback from

employees and demonstrates to employees that the organization recognises and

respects their efforts (Zhang, 2001).

Process approach: A desired result is achieved more efficiently when activities

and related resources are managed as a process which would benefit the organization

in lowering costs and shortening cycle times through effective use of resources;

Improving consistent and predictable results; and focusing and prioritizing

improvement opportunities.

System approach to management including Identifying, understanding and

managing interrelated processes as a system contributes to the organization’s

effectiveness and efficiency in achieving its objectives.

Continuous improvement: Process stability is related to continuous

improvements (Tari et al., 2007). Implementing continuous improvements may

prevent the occurrence of nonconformance. Huang and Lin (2002) showed that

continuous improvements can shorten the production cycle. This positively affects

productivity and organizational performance. Management may implement

continuous improvements through the use of specific organizational structures (e.g.

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quality committee) (Conca et al., 2004). In this case, an organization should identify

areas where improvements can be implemented.

Mutual beneficial with suppliers: The quality of purchased products/services

significantly impacts production process effectiveness (Tari et al., 2007) and the final

product quality (Flynn et al., 1994). Therefore, organizations should have clear

specifications for purchase and should evaluate the suppliers’ quality. Improving

relationships with suppliers positively affects organizational performance and

performance of suppliers (Tari et al., 2007). Promptness and flexibility of suppliers’

response to organization’s requirements can be critical to an organization (Ahire et

al., 1996). Therefore, organizations should provide technical support to suppliers and,

if possible, help improve their performance.

1.1.2 Quality Standards

In term of quality standards, the ISO 9000 family addresses various aspects of

quality management and contains some of ISO’s best known standards which provide

guidance and tools for companies and organizations who want to ensure that their

products and services consistently meet customer’s requirements, and that quality is

consistently improved.

1.1.2.1 ISO 9001:2008

ISO 9001:2008 sets out the criteria for a quality management system and is the

only standard in the family that can be certified to. It can be used by any organization,

large or small, regardless of its field of activity. In fact ISO 9001:2008 is

implemented by over one million companies and organizations in over 170 countries

ensuring that customers get consistent, good quality products and services, which in

turn brings many business benefits.

1.1.2.2 Requirement for certified ISO 9001:2008 organization

Checking that the system works is a vital part of ISO 9001:2008. An organization

must perform internal audits to check how its quality management system is working.

An organization may decide to invite an independent certification body to verify that

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it is in conformity to the standard, but there is no requirement for this. Alternatively,

it might invite its clients to audit the quality system for themselves.

1.1.3 Quality improvement

1.1.3.1 PDCA cycle (Deming Cycle)

PDCA (plan–do–check–act or plan–do–check–adjust) is an iterative four-step

management method used in business for the control and continuous improvement of

processes and products.

The four phases in the Plan-Do-Check-Act Cycle involve:

Plan: Identifying and analyzing the problem.

Do: Developing and testing a potential solution.

Check: Measuring how effective the test solution was, and analyzing whether it

could be improved in any way.

Act: Implementing the improved solution fully.

The application of the PDCA cycle has been found more effective than adopting

“the right first time” approach. Using of the PDCA cycle means continuously looking

for better methods of improvement. The PDCA cycle is effective in both doing a job

and managing a programme (Kondo, 1995; Lesjak 2006). The PDCA cycle enables

two types of corrective action – temporary and permanent. The temporary action is

aimed at results by practically tackling and fixing the problem. The permanent

corrective action, on the other hand, consists of investigation and eliminating the root

causes and thus targets the sustainability of the improved process. The aspects of the

PDCA cycle were applied to internal quality-assurance procedures: What are we

trying to accomplish? How will we know that a change is an improvement? What

changes can we make to improve?; and implementing the quality improvement

process. (Seaver, 2003; Sokovic 2005)

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1.3.1.2 CAPDo – Check Act Plan Do

In many situations of using PDCA approach, an assessment of the current process

is a good starting point, which often helpful to begin with the check step to identify

major issues. This approach was named CAPDo. Using check phase, followed by act-

plan-do can result in decisions based on current process performance.

Like PDCA, CAPDo is comprised of four stages.

Check: Identify current process problems that desired results, determine the scope

and the key players of the projects.

Act: Implement obvious changes to drive the process closer to desired results.

Determine the best improvement approach.

Plan: Determine what is desired for the future. Develop the plan.

Do: Implement the plan to drive the process to the futuristic goal, ensuring that

the new process is documented and supported by the persons who use the process.

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1.1.3 Inspection and product test

Inspection is a process of measuring, examining, testing or any other comparison

between unit and proper requirements (ASQC, 1983). Inspection may be conducted in

accord with the following purposes: discovering defects; reducing defects;

eliminating defects; in which judgement inspection is used to discover defects; ·

informative inspection is used to reduce defects; · source inspection is used to

eliminate defects.

The figure of control function and inspection methods (after Shingo, 1986 and

1988) below demonstrated control function and inspection method including long and

short cycle with three steps: inspection and feedback, action and errors/defects.

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According to Shingo, 1988 the importance of source inspection in the

implementation of quality managemetn is established by the following weights:

source inspection, 60%; 100% inspection (poka-yoke), 30%; immediate action, 10%.

Figure of cost of defects (after Lynch, 1989) below indicates the importance of defect

detection at source for cost reduction. Therefore, the costs derived from producing

defective parts are eliminated.

1.1.4 Know-how technics and knowledge created from quality management

It is widely believed that the underlying practices in QM are essential for effective

management and help to generate a sustainable competitive advantage. While QM

can improve the performance of existing organisational processes, dynamic market

conditions also require an organisation to explore and innovate (Owlia, 2010; Yang &

Wei, 2010). Organisations need to simultaneously exploit existing resources and

explore new skills, capabilities, and resources to meet emerging challenges

Organisations use quality management (QM) to improve process performance.

However, further improvements and business excellence require acquisition and

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integration of new knowledge organisation-wide. It is a challenge for managers to

design and execute QM practices so that they create new knowledge as well.

QM practices such as CI (continuous improvement), SQC (Stastical quality

control), customer satisfaction management, process management practices,

individual learning, and product/service design methods can create heterogeneous

knowledge. Knowledge generation takes place through interactions between tacit and

explicit knowledge.

Socialization: Tacit to tacit. Knowledge is passed on through practice, guidance,

imitation, and observation.

Externalization: Tacit to explicit. This is deemed as a particularly difficult and

often particularly important conversion mechanism. Tacit knowledge is codified into

documents, manuals, etc. so that it can spread more easily through the organization.

Since tacit knowledge can be virtually impossible to codify, the extent of this

knowledge conversion mechanism is debatable. The use of metaphor is cited as an

important externalization mechanism.

Combination: Explicit to explicit. This is the simplest form. Codified knowledge

sources (e.g. documents) are combined to create new knowledge.

Internalization: Explicit to tacit. As explicit sources are used and learned, the

knowledge is internalized, modifying the user's existing tacit knowledge.

1.2 Bufab Taiwan’s Quality Assurance Strengths

1.2.1 Quality Standards

Bufab Taiwan (BTW) was ISO 9001: 2008 certified;

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Bufab Taiwan QCM employees are certified TQE, 5 Core Tool (APQP, PPAP,

FMEA, SPC, MSA), QMS Auditor (ISO9001, TS16949, ISO17025 or AS9100), ISO

14001 / OHSAS 18001 Audit

Bufab Taiwan lab was ISO 9001: 2008 certified and recognized one of the most

advanced lab in Taiwan’s market; all equipment have been inputted to the Arriving

Quality Control, Initial Sample Quality Control and Service Sister Companies all over

the world to evaluate the product according to Customer Demand with BTW

expertise

1.2.2 Effectiveness of Quality Assurance

Bufab Taiwan Quality Assurance covers 5 functions which commit not only to

deliver high qualified products and professional services to customers; but also retain

good relationship with Taiwanese fastener suppliers through Product control;

Supplier Management; Management System; Drawing Review and Customers

Compliant/Claim (as the figure below).

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Based on the job scope of BTW Quality Assurance Department, there are 4 key

points showing clearly effectiveness of the Department, which would be explain

details as below.

1.2.2.1 Quality Continuous Improvement

Acting as the HUB and Supporting Centre, Bufab Taiwan mainly deal with

Taiwanese Suppliers, which makes CAPDo approach an excellent approach to assure

quality

Check: Assessment of the Current Process is a good starting point to identify

major issues;

Followed by Act-Plan-Do can result in decisions based on Current process

performance;

1.2.2.2 Inspection

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Bufab Taiwan Inspection Model

By following a clear integrated model, the inspection process proves strong

effectiveness through 5 main steps: Sampling Plan, Inspection, Defect identified,

Action, and Communication with Customer & Supplier.

Besides, the routine inspections as per Customers’ demand was implemented

(including but not limited to:PPAP - Production Part Approval Process , IMDS

- International Material Data System, MSDS -Manufacturer's Safety Data Sheet , 0-

150 PPM - Parts Per Million, etc)

1.2.2.3 Product Test

After being tested by BTW Quality Assurance, products could be transferred to

any other sisters without re-checking;

BTW laboratory comprises two rooms; well-equipped with cutting-edge

technology which is consistent to Bufab Group’s development and fastener industry

trends;

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Sampling Plan

Inspection

Defect IdentifiedAction

Communication(Customer &

Supplier)


Machines and Equipment being used are certified a number of International

Standards like ISO4042; DIN7985; ISO898-1, ISO898-2, etc.; and are confident to

meet customers’ expectation;

Capabilities of Bufab Taiwan laboratory

- Drive and torsional strength testing

- Hardness measurement

- Micro hardness

- Hydrogen Embrittlement

- Case depth

1.2.2.4 Failure Cost reduction to achieve optimum quality

Cost of Quality Model

The first priozity of Bufab Taiwan is to minimize the cost burdened on their

customers (Bufab Sister companies) but still assure the optimum quality level. Based

on the Cost of Quality model, BTW strategy is to eliminate cost of poor quality

(internal and external failure costs) and reduce cost of good quality (appraisal costs

and prevention cost)

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Cost of Quality Formula

Derived from: Feigenbaum, Armand V. (1991), Total Quality Control (3 ed.), New

York, New York: McGraw-Hill, p. 109, ISBN 978-0-07-112612-0.

Figure above demonstrated successfully the role of BTW quality assurance

department in supporting Bufab sister companies to get optimum quality level at

reasonable price.

- Prevention Cost is reduced with qualified personnel;

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Failure Cost Reduction &

Optimum Quality

Prevention Cost Reduction

Qualified personnel

Evaluation Cost Reduction

Suppliers’ Identification; Audit & Survey

Internal Failure Cost Elimination

Initial Sample Control; In-process Control; Arriving

Control

External Failure Cost Elimination

Customer Complaint Management


- Evaluation Cost is reduced by suppliers’ identification, suppliers’ periodical

audit and survey;

- Internal Failure cost is eliminated thanks to initial sample control; in-process

control and arriving control;

- External Failure cost is eliminated with Customer complaint managments.

1.2.3 Quality Control Expertise

Not only attracting the most talented qualified employees in the market Bufab

Taiwan continuously enriches their expertise and experience through

- Socialisation: periodically internal training, hands-on experience on a daily basis

- Externalisation: internal documents recorded on ERP incorporated with intranet

system

- Combination: sufficiently accessible accurate and reliable information and data for

future plan/decisions

- Internalisation: continuous self-improvement and updates on products (meeting with

Bufab Global’s Quality assurance management on a weekly basis; Bufab Group’s

meeting once a year)

Adopting such strong knowledge and experience, Bufab Taiwan’s employees

contribute a great deal to:

• Taiwanese Supplier:

÷ Support to identify and solve technical problems;

÷ Pool of expertise and resources with Supplier at yearly meeting to achieve

mutual improvement

• With Taiwanese fastener market:

÷ Understand the supply chain and product process

÷ Maintain good communication/relationship with suppliers

• Bufab Sister Companies & Bufab Global

÷ Technical support for Bufab Sisters by visiting End-users

÷ Knowledge sharing in Bufab Global meeting

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With strategy “Quality and Customer First!”, Bufab Group future development

plan would be to upgrade to high level products so that profit and capability of

research & development can be increased which confirm the importance of Bufab

Taiwan as a HUB, especially Quality Assurance Department in technical

supporting/consulting Supplier and Customer.

- Strong expertise of Quality Assurance Department would help to identify the most

efficient and highest-quality fastening solutions with both standard products or

special new parts developed together in order to optimize production and the end

product.

- Professionalism would build up customers trust, maintain accountability and enhance

Bufab Group’s image as a leading company in the industry

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REFERENCE

1. Berlo, D. K. (1960). The process of communication. New York, New York: Holt,

Rinehart, & Winston.

2. Bette Ann Stead, (1972) Berlo's Communication Process Model as Applied to the

Behavioral Theories of Maslow, Herzberg, and McGregor; ACAD MANAGE

J September 1, 1972 vol. 15 no. 3 389-394

3. Y. Kondo, Companywide Quality Control, 3A Corporation, Tokyo, 1995.

4. M. Seaver, Gower Handbook of Quality Management, Third Edition, Gower

Publishing Ltd., England, 2003.

5. M. Sokovic, et al. Quality management - Seminar, Educational material, Faculty of

Mechanical Engineering, Ljubljana, Slovenia, 2005 (in Slovene)

6. M. Lesjak, J. Kusar, Optimisation of working place, Diploma thesis, Faculty of

Mechanical Engineering, Ljubljana, Slovenia, 2006 (in Slovene).

7. S. Russel, ISO 9001:2000 and the EFQM Excellence Model: competition or co-

operation? Total Quality Management, Taylor & Francis Ltd., 11/4-6 (2000) 657-665.

8. Quality control methods: Towards modern approaches through well established

principles; Division of Systems Science, Graduate School of Science and

Technology, Kobe University, 1± 1 Rokkodai-cho, Nada-ku, Kobe 657, Hyogo, Japan

9. Ehigie, B.O., & McAndrew, E.B. (2005). Innovation, diffusion and adoption of total

quality management (TQM). Management Decision, 43, 925–940.

10. Asifa, Henk J. de Vriesb and Niaz Ahmadc (2013) Knowledge creation through

quality management Muhammad; Total Quality Management, Vol. 24, No. 6, 664–

677

11. Owlia, M.S. (2010). A framework for quality dimensions of knowledge management

systems. Total Quality Management & Business Excellence, 21(11), 1215–1228.

12. Yang, C.L., & Wei, S.T. (2010). Modelling the performance of CoP in knowledge

management. Total Quality Management & Business Excellence, 21(10), 1033–1045.

13. ASQC (1983) Glossary and Tables for Statistical Quality Control, 2nd Edn

(Milwaukee, WI, American Society for Quality Control).

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14. SHINGO, S. (1986) Zero Quality Control: Source Inspection and the Poka-yoke

System (Cambridge, MA, Productivity Press).

15. SHINGO, S. (1987) The Sayings of Shigeo Shingo: Key Strategies for Plan

Improvement (Cambridge, MA, Productivity Press).

16. SHINGO, S. (1988) Non-stock production: the Shingo System for Continuous

Improvement (Cambridge, MA, Productivity Press).

17. LYNCH, K. (1989) Managing the product development process: eliminating waste in

the oý ce, Quality, 28, pp. 29± 30.

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Literature Review - SMCR Model & Quality - Stacie v3 2908

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