Is the Financial Success of West End Musicals, a Positive Trend Essay

Is the Financial Success of West End Musicals, a Positive Trend - Essay Example The musical shows in the West End are running to packed houses, garnering optimal revenues. However, when ‘sources’ of those revenues are viewed critically, it provides a doubtful picture. Heightened revenues are not due to high attendance rates, but instead due to high ticket prices. In addition, the quality of the shows leaves much to be desired, as most of the shows are adaptations of films and music albums, without original works. Toeing the line of Michael Billington’s January 2011 Guardian article, This West End theatre boom is not all good news, this article will discuss why the financial success of West End Musicals is not a positive trend, as it is based on ambiguous revenue patterns and also because of the lack of originality and quality in majority of the shows. The total revenues at the theatres in London’s West End have been increasing consecutively for the past eight years, with revenues reaching ?528m in 2011, which is an increase by 3 percen t when compared with the 2010 figures. â€Å"Total revenues at the box office rose by three per cent on 2010’s figures to reach ?528,375,874 last year, said the Society of London Theatre (SOLT).†1 These positive financial figures showcase how West End particularly musical shows are receiving good crowds, considering the non-favourable business environment in the post-recession period and due to the cold climes. Mark Rubinstein, President of the Society of London Theatre, validates this point by stating, â€Å"Despite the prevailing rigours of the economic climate, theatre-goers have acted with their feet and wallets and shown just how much they value a trip to one of our world-class shows.†2 The financial success can be attributed to the popularity of certain musical shows. These shows already had good expectation levels before their staging in the West End. Then, when the performed shows were able to fulfil the expectations of the spectators, it became hits, wi th some even becoming mega hits, setting the cash registers ringing. Some of the shows, which become hugely popular, leading to favourable financial figures are Jerusalem, Much Ado About Nothing, The Ladykillers, Frankenstein, One Man, Two Guvnors, Yes, Prime Minister, Noises Off, Richard III, as well major productions like The Wizard of Oz, Shrek, Matilda and Ghost. â€Å"The Society of London Theatres (Solt) said the arrival of mega-musicals such as The Wizard of Oz, Shrek, Ghost and Matilda meant there were more weeks than usual when big theatres were closed as the shows were installed†3. In addition to these recent hit shows, the already successful shows like Les Miserables, which is now in its 26th year at the West End, also attracted large crowds. Although, the popularity of these shows cannot the discounted, as people loved all these issues, the question that arises is, did this popularity completely translated into revenues or whether the higher revenues is only due t o the higher popularity and the resultant higher attendance? The answer to these questions are not a resounding â€Å"Yes† because other factors like the increased ticket prices contributed to the higher revenues, and even to the sizable jump in revenue percentage from 2010. This can be understood from the attendance figures for the year 2011, because the attendance has come down from the 2010 numbers, although the revenues were in the opposite direction. â€Å"The overall attendance fell by approximately two per cent to 13,915,815 across 52 commercial and not-for-profit houses.†4 This raises the pertinent question that when the attendance figures fell, how come the revenues could increase. That could be mainly attributed to the increased ticket prices, which have been steadily increasing through the whole of 2011, and which will be dealt in a detailed manner in the next section of the article. The other related factor, which implies that increase in revenues is not en tirely due to attendance, is the increased VAT rates by the government. That is, the

Opioid Prescriptions for Chronic Pain and Overdose Research Paper

Opioid Prescriptions for Chronic Pain and Overdose - Research Paper Example The authors want to use this study to understand if there is a correlation between prescribed opioid therapy and opioid-related overdose. The authors have made it known that no such study has been previously undergone that evaluates the overdose risk in patients receiving prescribed opioids for chronic pain, which is why this study needed to be undergone. This study was conducted at Group Health Cooperative in Seattle, Washington. The patients involved in the study were 9940 people who had received three or more opioid prescriptions no more than ninety days prior to the study for chronic noncancer pain between the years of 1997 and 2005. These participants had to be at least eighteen years of age, if not older, and had to have been diagnosed with any of the eligible pains, which consisted of back or neck pain, menstrual pain, headache, abdominal pain or hernia, osteoarthritis, and fractures, contusions, or injuries. Anybody seeking to participate in this study that had a pain other t han what was eligible was dismissed from the study. The participants in the study also had to be enrolled at Group Health Cooperative at least two hundred and seventy days prior to the onset of the study. ... Further automated health care data was used to obtain information about the patient, anything from their personal background to their pain diagnosis. Additional measurements were made in regard to the amount of sedatives that were dispensed to patients. Other medical records were perused to identify potential overdoses of opioids; reviews of medical records were also undergone to classify and validate cases of overdose. A Cox proportional hazards model was implemented into the study to determine the risk for overdose based on each individual and their average daily dose of opioids. Simple observation was also undertaken, which involved monitoring the participants of the study and the amount of opioids that were to take each day and their reaction to the medication. It was noted the previous opioid use prior to any given day during the study. Observations were used until individual patients became disqualified from the study, either from disenrollment from the facility or from their h ealth care provider, their first overdose, death, or the end of the observational period. The authors made it known that after the initial ninety days of the study, the patients were followed for an additional forty-two months to ensure complete results and to make sure that nothing was overlooked. Of the original 9940 people that were involved in the study, 61% had complete follow-up, most of which lasted until the end of the study period, 32% left Group Health Cooperative and were therefore unable to finish out the study, and 7% of the participants had died. The introduction of the the results section of the article also went into detail about the mean age of the participants and the mean dosage of daily opioids. A table was provided to

Question answer Assignment Example | Topics and Well Written Essays - 500 words - 1

Question answer - Assignment Example mains, and for instance a mathematician can prove the conjecture that bundles of order two are commutative, from the axioms of the group theory, hence an accountant might develop axioms that define how the company grows and functions. These axioms eventually prove that employees health decrease with age. This example and several other tasks can be done by the ATP system, provided there is a suitable formulation of the problem in these three ways; conjecture, axioms and hypotheses. David Wheeler, born in 1927, is widely acknowledged as a significant pioneer in computing having invented the relational database model. According to Hey & PaÃŒ pay 2014, David Wheeler is a British computing pioneer, who made a significant contribution in the construction and programming of the EDSAC computer.   The relational model designed for database management is a model that is founded on the initial order predicate logic, and it is originally developed and presented by David Wheeler. In this model for the database, every data is displayed in the form of tuples, bundled into relations. A database developed in the form of the relational model is the relational database, and the purpose of the relational model is contrived to offer a declarative system for specifying the data and questions. In retrospect, the users directly declare what information the database has and the information they need from the database management system. Subsequently, the software takes care of defi ning the data structures of storing the information and retrieval system for answering the questions. Currently, a number of relational database use the SQL data description and question language, and these systems employ the engineering approximation that is the relational model. Henderson 2009, asserts that Ole-Johan Dahl and Kristen Nyagarard are pioneers in computing and are widely acknowledged for the ideas in object oriented programming through their development of the programming languages Simula 1 and

Business Information Systems Essay Example | Topics and Well Written Essays - 2000 words

Business Information Systems - Essay Example Data and information are critical components of information systems that utilized by firms. The innovation of information systems has enabled commerce to thrive since it allows organizations to be cost-effective, gain competitive edge, and efficient in their industry. Hence, the usage of information has drastically been enhanced since the advent of systems design. One cannot understand the importance of information systems without comprehending what actually an information systems. An information system is a collaborative effort that strives to connect people, network, software, hardware, and data in order to facilitate the daily operations of a business (Foulds, 2006, p. 9). There are many types of information systems that consist of: manual, informal, formal, and computer-based. Information systems in essence give valuable data to organizations that can be given evaluated upon, analyzed, and enhance the value of the key goals that the organization possesses (Nocera, 2007, p. 9). In formation Systems are important because establishing a foundation for responsible use of technology. Managing information systems stems from internetwork enterprises. Hence, the field of information systems has become critical aspects of business administration. One of the key innovations that business professionals implement is an IS Framework (Pradhan, 2010, p. 13). IS Framework is used by business professionals who need to gain competitive strategies (Pradhan, 2010, p. 14). Thus, this competitive advantage allows firms to be cost-effective by becoming cost leaders. A primary example of a company that uses IS Framework is Wal-Mart. Wal-Mart excels in providing products and services at a very low competitive price. In addition, IS Framework allows businesses to be headfirst as the leader in technology as synchronization of software and data management of customer information (Pradhan, 2010, p. 17). Likewise, the IS framework allows businesses to communicate the whole supply managem ent that is heavily associated with the customers’ demands. For instance, the order to cash process in a business requires several steps (Pradhan, 2010, p. 20). When the customer places the order, the sales order department requires credit approval from the credit department. The credit department then informs the sales order department disposition of credit request. At these stages, the use of technology is extensive (Cameron, 2009, p. 7). The credit and sales department can use of point-of-sale technologies to scan the barcode of products. In addition, the innovation of technologies can use barcodes to process the order (Cameron, 2009, p. 10). Next, sales order department acknowledges customer order notifies warehouse, revenue collection process, and payroll process. In essence, it each step of the horizontal information flows consists of heavy utilization of technology (Cameron, 2009, p. 11). Another key issue that information systems addressed was an organization’s problems regarding differentiation. Prior to the introduction of these systems, few companies possessed the ability to deliver different products and services (Foulds, 2006, p. 10). With the help of automation systems as the result of information systems, companies were able to customize products based on customer needs. Companies were able to take prototypes and then enhance the functionality features due to high levels of customization that systems had to offer (Foulds, 2006, p. 11). This idea was essentially non-existent, but was quickly

FUNDAMENTALS OF FINANCE Essay Example | Topics and Well Written Essays - 2000 words

FUNDAMENTALS OF FINANCE - Essay Example So, going by the NPV rule projects B and C are the ones that SKATE plc should consider investing in. However, since project C is expected to generate much greater present value for the firm, it is the one that should be invested in if the firm is under the obligation to choose only one from the given set of three alternatives. The IRR rule says invest in a project only if the IRR is greater than the required rate of return. So in the given situation we have to calculate the IRRs for the three projects and compare those to the given required rate of return, 15%. So we find that the IRR to be lesser than the required rate of return in case of project A and greater for project B and C implying that only these latter two should be considered for investment. And the fact that the IRR is so high in case of project C implies that it is the project that should be chosen if only one has to be chosen. So we find similar results and suggestions for both the NPV and the IRR criteria. The discounted payback rule is another criterion for investment projects. Essentially this measure discounts the future cash flows obtainable from a certain project to calculate the time the project takes to payback the initial investment and hence the name. If for instance, X is the amount that needs to be initially invested, this rule solves for that value of T which satisfies the equation Where Ct represents the cash flow at time t and r is the discount rate representing the time value of money. If the value of T is lower than some predetermined time period, the project should be accepted according to this rule. So, with the cut off period being one year, project B should be accepted according to the discounted payback rule as the project generates cash flows the discounted values of which are greater than the initial investment in the first period itself. Similarly, for project C, we get C1/ (1.15) = 78.2609 > 50 = C0 implying that this project also pays back he invested

Merchants of Cool Essay Example for Free

Merchants of Cool Essay In watching the film, Merchants of Cool, which was aired in 2001, it is quite concerning how our society is turning to consuming as a means of achieving a satisfying standard of living. The film brought to light how large media companies, especially conglomerates that own all production and distribution of media from start to finish, study and sell to teen youths because of their large quantity of â€Å"guilt money†, disposable income giving to youth by parents to keep them happy. They have become the most marketed group, which in turn turns the youth into adults that continue to seek happiness in consuming. The fear in this standard of living is that we start losing touch with our true values, and instead of looking towards family, community, ethnicity and religion as the creator of cultural forms, we are now being oriented as a society by the world of commodities. And with the advancement of technology, so has marketing research advanced, where we are being specifically being catered to with ads to continue this cycle of finding meaning and happiness through the purchase of goods and services. Advertisers know that they cannot sell meaning and happiness, but they can illicit those feelings by advertising visions of what a â€Å"good life† should be through the selling of products, known as **image-based advertising**. Sut Jhally’s article, Image-Based Culture: Advertising and Popular Culture, explains how image-based advertising has been so integrated into our way of thought and consumption that it is difficult to pinpoint when our most cherished values became tied into consumer culture (p 201). Advertisements have taken up so much of our public space and discourse, and now even our private with the advancement of technology, that we are constantly being shown what the vision of happiness is, and what we must buy to achieve a satisfying standard of living. Juliet Schor’s article, The New Politics of Consumption: Why Americans Want So Much More Than They Need, breaks down the idea that Americans live in a constant state of **dis-ease**: worrying about the preoccupation with getting and spending (p 205). Not only is this disconcerting because it takes away from living in the moment, but it pushes us to live beyond our means. We aren’t happy because we do not emulate what we see as the â€Å"good life† because of the growing aspirational gap because of upscale emulation. We are never at ease where we stand economically and socially, and feel the pressures to keep up. And although this is a problem with the upper and middle class, it is a more dangerous problem for the lower class. The trickle effect of status symbol goods, such as state of the art phones, flat screen televisions, etc. , sets up those with limited resources and aspirations of living the â€Å"good life† by buying those goods for continual financial failure through consumption of expensive goods that is beyond their means. The film, The Merchants of Cool, aired in 2001, and the way that companies acquired information from the consumer was with â€Å"cool hunters†, marketing researchers who would research and interview to see what trends could be capitalized on. The analyzing was apparent, as opposed to now where consumers are being researched and targeted in ways that are more subtle, and now advertisers have the tools to more conspicuously sell us the â€Å"good life†. On the radio interview â€Å"How Companies are ‘Defining Your Worth’ Online†, Joseph Turrow discussed how marketers don’t even have to do much to gather information from us, they can now track our online movements using digital tracking like cookies. This information is gathered and sold to advertisers by data marketers, unbeknownst to us. Market research has evolved so much because of the growing digital world we live in. And advertisers are now able to subtly sell to us in a personally targeted way, instead of the blatant in your face banner ads that we would automatically close without even reading them. Although this is perfectly legal, the downfall falls on the consumer that is being researched and targeted. Our sense of consumption is insatiable when we are constantly being targeted, we lose a sense of privacy when we are constantly being watched, and, as Joseph Turrow also discussed, and we can also be targets of **digital social discrimination**. Digital social discrimination, which is the idea that companies can take digital information and make inferences of what kind of ads are suitable for the individual consumer, they target only certain ads, discounts, and such (2012). Advertisers then think of that individual only in a certain way, and may even target ads that may have negative connotations, such as getting out of debt ads, weight loss, and such. Consumers are being categorized, and because of the categories they are being targeted by certain ads, which perhaps sell a good that is not appropriate, and denied others because of assumptions being made by the online information gathered on that individual. This is why it is important to have some sort of regulatory system overseeing the structure and ownership of media. U. S. government plays only a small role in determining who owns the media, and only regulates it minimally, and the power of the U. S. media that uses the market research to produce products reaches us not just here in the United States, but also has a global impact. Because of the United States’ **cultural imperialism**, where American styles in fashion and food, as well as media far, dominate the global market, our versions of the â€Å"good life† are influenced on parts of the world, as discussed in Richard Campbell’s â€Å"Media Economics and the Global Marketplace†, (p 411). Our ‘cultural dumping’ of exporting U. S. media can influence other countries societal value systems, development of original local products, and abandon their own rituals to adopt American tastes. In reality, the power behind these large media researchers, marketers, producers, and distributors, who are often the owned by the same company, is astounding and influences not only our lives as an individual, but also has the potential to influence on a global level. They are able to gather information about individuals, sell it, and categorize as they see fit, leaving us with no sense of privacy, with the goal of selling us as many goods and services as possible until we reach the unattainable â€Å"good life†, which is a vision that they have carefully created. Until we, as consumers, are more aware of how much consumption has taken over our sense of self-worth and satisfaction and how little privacy we have in the new digital age, we will keep trying to buy the â€Å"good life†. ?

Barclays Bank Total Quality Management (TQM)

Barclays Bank Total Quality Management (TQM) EXECUTIVE SUMMARY Banks believe that they are in the finance industry, and not in the service industry. Thus they tend to compete in terms of financial prowess rather than service quality. People, resources, time, and systems are devoted more to managing assets and cash rather than managing customers and service. In fact most bank systems are designed to control customers rather than satisfy customers. Products and procedures are set up for the convenience of the bank rather than that of the customer. Banks usually give customer service and satisfaction very low priority. (Rene T. Domingo) The lifeblood of any business is its customers. Customers decide sales based on their perception of product and service quality. Therefore, quality determines profits, and customers alone define and determine what that quality is and should be. Introduction This study will limit itself to the assessment of operations department at Barclays Bank PLC. Information provided is strictly confidential and for the only purpose of this study. 1.0 Introducing Barclays Bank PLC ‘Our strategy is to increase the growth potential of Barclays by continuing to diversify our business by customer, product and geography. John Varley, Group Chief Executive, Barclays Group With over three hundred years of history and know-how in banking, Barclays operates in more than sixty countries and employs one hundred and thirty five thousand people. Barclays progresses, lends, invests and protects the money of over thirty million customers around the world. Barclays Bank Plc, Mauritius with its ninety years of presence in the country, has built itself a very solid reputation. As a branch of Barclays Plc (UK) operating in Mauritius, the bank caters for the domestic and international divisions of the financial sectors. As a fast growing multi-national bank with approximately one thousand two hundred employees, Barclays Bank, Mauritius offer a wide range of services for individual as well as corporate customers. Barclays Mauritius has reported outstanding results for the Year 2010 with a profit after tax increasing by 119% to reach Mur 2.38bn. This includes a one-off gain of Rs 1.33bn from the sale of the custody business to Standard Chartered Bank. As a result, income has increased by 33 % with Mur 4.8bn. The Operation Strategy 1.1 The Operation Strategy in Mauritius The operations area is the driving engine of the bank with a headcount of 450 employees split into the Consumer and Commercial Operations. These two streams will have greater and clearer focus to the business functions to which they provide support. The operations function is headed by the Chief Operating Officer assisted by managers and team leaders from each section. The Operation Function chart 1.2 Purpose of the Project Barclays Bank Plc have to maintain image, reputation, and credibility in order to do their job as custodians of other peoples money. But over the years, the complex systems and bureaucracy were set up and added in the name of control while sacrificing and neglecting customer service in the process. The management is concerned with profitability, growth and resource generation. But only a few inspectors are responsible for checking product quality. If one looks at the concept of Quality and its progress over the years carefully, it is evident that Quality has always been an important element for the success of any organization. pay much attention to the plight of their clients before, during, and after sales. The bank is considering implementing a quality system that conforms to ISO standards. Total Quality Management (TQM), which is about total customer service and continuous customer satisfaction, is applicable not only in the manufacturing industry but in the service sector as well, where the customer is just as important. In fact, customers in the service industry are more sensitive to service quality and service delivery than in manufacturing because they are always in contact with front-line service personnel. Starting a total quality management (TQM) programme will upgrade and improve professional skills of the employees and the proposed programmes will also emphasise the need of excellence in all spheres of management. For design, development and implementation of a QMS, the ISO 9000 approach is completely compatible with the total quality philosophy. ISO system is about standardizing the approach organizations everywhere take in managing and improving the processes that ultimately result in producing better quality products and services. The quality management system is often implemented all at once throughout the organization. Where phased implementation takes place, the effectiveness of the system in selected areas can be evaluated. It would be a good idea initially to evaluate areas where the chances of a positive evaluation are high, to maintain the confidence of both management and staff in the merits of implementing the quality management system. According to initial plans, the proposed training programme will have two stages. The first phase will be implemented in the Commercial operations department. In the next phase, TQM will be applied across all departments across the bank. The process for implementation of a quality management system depends on the size of the organization and complexity of the actual process. Lets have a look at these in our next chapter. Current Situation 2.1 Literature review Supplier quality management is an important aspect of TQM since materials and purchased parts are often a major source of quality problems (Zhang et al., 2000). Many authors advocate that companies must establish supply chain partnerships to motivate suppliers to provide materials needed to meet customer expectations (Harrison et al., 1996; Kumar, 1996; Lambert et al., 1996; Clifton, 2001; Jabnoun, 2000; Thakur, 2002). The quality gurus believe that supplier should be  viewed as an integral part of the organizations business operations (Ishikawa, 1985; Deming,  1986; Crosby, 1989). 2.2 Definitions of Quality Total Quality Management (TQM) is defined as a quality-centered, customer-focused, fact-based, team-driven, senior-management-led process to achieve an organizations strategic imperative through continuous process improvement. The Oxford American dictionary defines Quality as â€Å"A degree or level of excellence†. Feigenbaum, 1983, defines quality as: â€Å"Quality is defined as being about value†. According to Juran, 1989, â€Å"Quality is fitness for use†. The word total in TQM means that everyone in the organization must be involved in the continuous improvement effort, the word quality shows a concern for customer satisfaction, and the word management refers to the people and processes needed to achieve the quality. 2.3 Tools and techniques to depict current situation All departments within the Commercial Operation Functions are linked to each other with the same aim to meet business strategies. However there are no clear interactions and synergies present between them which will make all department functions effectively. The service level between each department is low as there is great competition to perform better than the other. 2.3.1 Flow Chart Figure 3 below, depicts the current situation in the Commercial Operation department. List of tasks to be performed by: 1) Operators: record all incoming and outgoing instructions Operators may liaise with external customer by face to face telephone, emails or signed fax, Nature of instructions/queries by telephone statements, transfers, debit or credit advises, swift copies, queries on cheques/interest/charges acknowledgement of instruction form client either by fax/mail/diskette for salary transfers/or original documents being submitted personally by client Nature of instructions by fax/mail new account opening, change in authorized signatories, transfers, payments of bills or import loans, salaries, request of statement/advices/swift copies, complaints/, of letters of credit/bills/import loan accounts, access to internet banking, Liaise with internal customers like the Consumer Operations department in order to respond to clients queries 2) Team leader: verifies/sample checks whether all incoming and outgoing instructions are logged properly after instructions signed by relationship managers send all instructions to be processed to concerned department Does sample checks whether operators performing jobs as required 3) Line manager: liaises with other departments to help improve quality of service/ attend queries/complaints when same are of high priority and if involves loss to the bank No wonder staffs do not pay attention to customer service since it does not affect their performance evaluation. Most banks do not have a system to handle errors or customer complaints. Few banks realizes that if they continuously cut all processing times, it becomes a WIN-WIN situation customers are happier, and the banks make more money. 2.3.2 The current work flow process is being described in below chart: Our main concern is that the quality of service has decreased to such an extent that we are not able to retain the existing customers. We have to accept that all banks are able to provide the same products but what differentiates one bank from another is its quality of service. Our ultimate goal is providing customer satisfaction. 2.3.3 Ishikawa (Fishbone) Diagram The Fishbone/cause and effect diagram is an analysis tool to display possible causes of a specific problem. Its major benefits is that it pushes you to consider all possible causes of the problem in a structured and uncomplicated manner. Using Ishikawa (Fishbone) diagram, we will be able to identify the reasons why customer service has declined and as such identify remedies. It also helps in indicating how much we know about the process. Poor technology compared To other banks Internal environment (stress, high processing time)Poor communication) Ignorance of staff External On how to make full Environment (highly Utilization of existingvolatile and risky laws and risky technologyindustry, law and legislation) Currently nobody opinion is Bureaucracy 2.4 Implementation of a Quality System There are several approaches that can be used to implement a quality system, like Juran 10 Points for Quality improvement, Crosbys 14 Steps for Quality Improvement, and many others. However for this study, we are going to implement W.E Demings 14 Points for quality improvement. W.E Deming is one of the most famous gurus in quality implementation. He is generally credited with the post-war introduction of quality concepts in Japan. According to Deming : â€Å"The consumer is the most important part of the production line. Quality should be aimed at the needs of the consumer, present and future†. According to Deming, adoption and implementation of his 14 points would be a a sign that management intends to stay in business and aims to protect investors and jobs. Below are the 14 points of W.E Deming and how their application would increase quality and customer satisfaction: 1) Create constancy of Purpose for continual improvement of product and service Management should accept this as number one priority. Resources have to be allocated for long term planning rather than short-term profits. Investment in quality and innovation will ensure existence and competitiveness of the company. Top management should motivate employees and communicate clear policies. For the purpose of this study, implementation of point one will help to remove stress and hence providing a friendly environment to work with. Commitment form top management to invest in innovation and allocate resources for long run will ensure the people (employees and external customers) that the organization is planning to remain in business for the very long run. Innovation will help the bank increase its technology or product/service quality that will help it gain competitive edge over its competitors. This will also help to decrease the gap in technology with other banks. 2) Learn and Adopt the new Philosophy. A change is necessary in the old management methods. Organisations need to understand that higher quality cost less. However change cannot happen overnight. There should be a constant movement towards the new philosophy. First we have to analyse the existing system (as described in figure 2 chart 1 above) and the damaged caused by the current system should be appreciated by everybody (cause and effect diagram). Managers have to admit that they should be more present in day to day business, rather than just delegation work on the operation side. The organization should concentrate on defect prevention rather than defect detection. One dissatisfied customer is equivalent to a lost customer. Defect prevention will help improve process, quality and productivity as each instruction/document returned causes a delay and decrease quality. Top management should make each and every staff aware the benefits the organisation expects to realize through quality management system. The above flowchart (chart 1) can also be called a value chain, and if everybody in the value chain looks for defects, the flow towards the documents/instructions processing will be smooth, quick and the end result will surely meet or even exceed customers needs. 3) Understand the purpose of inspection. Management should understand that the purpose of inspection is to improve the process and reduce cost. Mass inspection is managing for failure whereas defect prevention is managing foe success. Defect prevention decreases long run costs, results in high quality products and minimizes the need for after sales service. For this statistical evidence is required. Team leader should take note about the number of failures with respect to any documents and the reasons why. With proper recognition by staff about building quality in the service or product, the number of failures should decrease and this will also lead to a decrease in number of controls and procedures over time. Use of checklist as a tool of quality control will help management to observe the common defects and how many times they occurred. By checking this on a weekly basis, management would know whether they are decreasing and what is the biggest problem. Checklist Defect type Number of defects Total Day 1, 2, 3, 4, 5 Fraudulent instructions 0, 0, 0 ,0,0 0 Instructions not processed 5, 6, 7, 8, 4 30 Instructions received early but process late 4 , 3, 2, 2, 1 12 Unattended complaints 10, 5, 6, 7, 9 37 Unattended queries 9, 4, 7, 9, 8 37 E.g. Management needs to make staff understand that controls are not punitive measures, but to minimize risk that pose a threat to business. 4) Stop awarding business based on low price alone. Purchasing managers should look at quality form suppliers before making any purchase. There are huge savings that can occur over the long run by purchasing quality products. As Walter Shewhart says: â€Å" Price has no meaning unless a measure of quality is purchased at the same time†. Deming advice is to choose a single supplier for each item on the basis of statistical evidence from the suppliers process feedback loop. This point refers to the technological problem in our study. The appropriate technology that matches the organisation context should have been build in-house rather than sub-contracting or buying the package from outside. This would have helped to meet the needs of the employees better and hence providing and producing quality products. Also building the technology in-house would have required employees from all department collaboration and hence almost each and every staff would have been aware of the technologies and staff would have a sense of belonging to the organization. 5) Improve constantly and forever the system of production and service. Management should take more responsibility for problems by finding and correcting them in order to decrease costs and increase quality and productivity. The focus is again on prevention rather than detection. The process of quality improvement should never stop and it should always be geared towards customers absolute satisfaction. Note that there is always variability around every target and this is why there is always a room for further improvement. Constant improvement will lead to a reduction in customers complaints. Improving quality of service will lead to increase in communication and employees opinions taken into consideration. 6) Institute training on the job. A continuous program of on the job training should be instituted and this should include managers. Investment in proper training of all new employees will ensure that the new comers will know exactly what is expecting from them. Training will help detect variation, use of statistical techniques and helps to keep up with new developments. For our purpose, training will help employees to equip with a better understanding of the job and its requirements. The worker is not just getting satisfaction but also getting an incentive to improve. Proper training will help managers address complaints themselves, help in defining roles and responsibilities and help in the integration between old workers and the new generation. 7) Adopt and institute modern methods of leadership. Management should not create a negative and fault finding environment. They should create a positive and supportive environment where workers job are recognized. For this there should be clear communications at all level. Management should ensure that immediate action is taken whenever defects are identified which compromises quality. Modern leaders should ensure that quality, productivity and performance are continually improved. Difference between old and new school of thoughts should be taken as an advantage. According to Deming, todays leaders should: Lead and motivate by example rather than fear, Teach and counsel rather than judge and supervise. Use mistakes to learn rather than to blame Understand the difference between random and special variation. Management should differentiate between variations due to outside factors (special causes) and random variation (causes are due to the process itself). Size Size Statistical Controlh Out of statistical control Promote team work and mutual trust Provide innovative methods to accomplish the improvement. 8) Drive out fear and create trust and a climate for innovation Management should encourage effective communication and teamwork. Fear is caused by lack of job security, performance appraisals, ignorance of organization goals, and not knowing the job. Fear can be eliminated through proper communication, clear definition of goals and objectives, training and supervision. Once fear eliminated, innovative ideas will crop up. Deming believes that fear makes the implementation of most of his other management points impossible. Elimination fear in the department, will lead to a less stressful environment, positive attitude towards work, opinions being voiced out, decrease the clash between old and new school of thoughts and hence leading to better quality service. Performance appraisal leads to competition, competition leads to jealousy and jealousy leads to fear. Removal of performance appraisal will lead to cooperation. 9) Break down barriers between departments and individuals. Barriers exist among levels of management, among departments and within department. It exists because of poor communication and ignorance of organizational goals. Eliminating barriers, communication channels opened and teamwork organized, competition within the company has to be replaced with cooperation. Note that point (8) and point (9) are allied and go hand in hand. By breaking down barriers, employees from different departments can meet and interact to find quality solutions. 10) Eliminate the use of slogans, Posters and exhortations for the workforce. Exhortations that ask for increased productivity without providing specific improvement methods can handicap an organization. They just express managements desires. According to Deming, people should be given the means to work smarter, not harder. This is quite common in large organizations like Barclays Bank Plc. Due to its large number of employees, management goals are communicated through emails and this is interpreted differently at different levels of the organisation. A more face to face interaction is required so that management policies are understood, friendly environment is created, proper channel of communication developed and employees have a sense of belonging to the organization goals. 11) Eliminate numerical quotas for the work force. Quotas focus on quantity rather than quality. Quotas should be replaced with statistical methods of process control. Instead of management by objective, management should learn the capabilities of the process and how to improve them. Management should stop focussing on figures and start looking at customer satisfaction. Relevant statistical data should be analysed in line with current procedures and system. We have to take into consideration that Mauritius is a small country and it is quite impossible to look for new business every year. The only way to increase sales in through competition among banks. This leads to clients advantage. Same products are offered in all banks but the only difference is the quality of service. Only by improving process and service quality will the bank remain in business for the long run. 12) Remove barriers that rob people of pride of workmanship. Ignorance of organisational goals, punitive supervision and adequate training leads to loss of pride. According to Deming, the two serious mental obstacles which prevent pride in workmanship are performance appraisal and management by objective. These two obstacle leads to internal competition and hence barriers in communication, reduces risk taking and hence decrease in innovative ideas, variability in performance leading to jealousy and fear and focuses on short term results which may prevent the organization from attaining its long term goals. Deming strongly recommends the abolition of annual merit rating because of above reasons. Performance appraisal can be replaced bay a proper leadership and communication and by a proper counselling and development procedure. This will lead to job security, teamwork, friendly environment and all employees will have a sense of belonging to the organization. 13) Encourage Education and self improvement for everyone. An organization requires people who are improving with education. Things change fast. Managers should be aware of this and be appropriately trained. Here we are referring to continual re-education and self-improvement for everyone which is quite similar with point (6). The common truth between both points is that without training there is no guarantee for innovation. Re-training leads to investment in the most important asset of the company its people. This leads to job security, increased motivation and less brain drain. 14) Take action to ensure top management permanent commitment to accomplish the transformation. The top management should demonstrate a commitment and a determination to implement a quality management system in the organization. Without top management commitment, no quality initiative can succeed. The top management should provide evidence of its commitment for e.g. by defining the organizations quality policy and make this known to every employee, ensuring that quality objectives are established at all levels and functions and ensuring the availability of resources required for the development. Management has to accept the primarily responsibility for the never ending improvement of the process. A cultural change is required. All employees should understand and be committed to the new philosophy. Deming advocates† Quality is made in the Board Room†¦.[however]†¦ limitations on quality are also made in the board Room†. 2.5 Obstacles to implementation According to Deming, there are 7 Deadly Diseases that management will face while implementing the above. Lets analyse the 7 diseases (the first seven ones below) as advocated by Deming and others that apply particularly to our case. 1. Lack of constancy of purpose. As long as the focus in on short term thinking, management will fail to plan adequately. This follows from his last point. Constancy will decrease cost, assist innovation, make employees feel secure, they know about the vision of the organisation. 2. Emphasis on short-term profits. This defeats constancy of purpose. Its easy to show short term profits by cutting expenses on training, maintenance and other long term plans. Short term profits is due to fear of takeovers, but if long term strategy/planning is forgone, surely in the long run the company will be more prone to takeovers. 3. Evaluation by performance, merit rating, or annual review of performance. All this should be stopped. The main reasons are because they create competition, fear, they are subjective, concentrate on short term profit. 4. Mobility of management/Job hopping This causes instability and destroys teamwork. 5. Running a company on visible figures alone. Figures can be manipulated. The only figures to be used are those that which represent properly selected statistical data. 6. Excessive medical costs. For our study, this can be related to additional benefits provided by the organisation to its staff. 7. Excessive costs of warranty, fuelled by lawyers who work for contingency fees. 8. Inability of management to use statistical techniques to improve productions. 9. Training once completed is not put into practice. 10. Inability to change the organisational culture and lack of planning. These are long term objectives and if management would like these to happen in the short term, then there will be complete chaos in the organisation. 11. Lack of continuous training and education. 12. Fear of change. For the TQM to succeed, we need to have a careful analysis of its failures/obstacles. But most importantly, management should educate all staff about the reasons for adapting TQM. TQM will not take place until all employees understand and are committed for its implementation Implementation In this chapter, we will have a look about the benefits TQM will have on the department and also how TQM will help in overcoming the obstacles mentioned in the previous chapter. Lets have a look at the direct benefits the department will achieve: Increased effectiveness in the use of the organizations resources to enhance customer satisfaction and improved reliability of its processes through shorter cycles time. This means that processes will be simpler, more reliable and the amount of defects will decrease. Tailor made services can be produced. Improved quality of products and services, leading to reduce in customer rejection of products/services because of poor quality. Results are more predictable. This will lead greater employee and customer satisfaction, hence higher sales and profits. Improved organizational performance and competitiveness. This will be a long term goal for the organization, whereby the organization will have a competitive edge over its competitors. Improve customer loyalty leading to repeat business. It is commonly acknowledged that a satisfied customer tells about four friends, but an unhappy customer tells about thirty people. Customer loyalty will help increase the organization reputation. Reduce or eliminate repetition of work. Responsibilities and accountabilities are clearly defined. This will decrease cost, increase efficiency and make staff performing value added jobs. Reduce management time spent on â€Å"putting out fires†. This is due that there are good controls and everybody is committed in producing quality services/products. This gives management time to focus on improving conditions of work of the staffs. Improve productivity by â€Å"doing it right the first time†. This will decrease cost of re-work, scrap and inspection. Preserve Existing Revenue and increase in revenue. Preserve revenue due to customer loyalty and having an account management team and increase in revenue due to quality products and services and having a sale management team. Staff will be motivated and will work towards the organization objectives. Workforce will be proactive and prevention oriented. Miscommunication between organizations will be minimized leading to cooperation. Establishment of trust and elimination of fear. By providing staff with the appropriate training, this will lead to greater responsibility, and this will inspire, motivate and encourage them to work smarter. This lead to creativity and innovation. Staff will be eager to participate, understand the importance of their role, identify their own constraints, accept ownership of their problems and free sharing of knowledge and experience. Use of statistical techniques will make more data available for analysis and hence leading to improvement. Also this will facilitate decision making (as the structure is well defined) and decisions are made in accordance with staff. Pay much attention to the plight of clients before, during, and after sales. Assesing root cause of complaints will help improve service in the future. Complaints and problems should be looked as an opportunity to enhance quality service and look at the root cause of problems. Other benefits that will accrue to the organization are: Wider customer acceptance of products and services (New customers require ISO compliance) Consumers are confident that they are dealing with an organisatiopn where fair treatment is central to the corporate culture Increased revenue and market share obtained through flexible and fast responses to market opportunities. Internationa