Contingency Approach
to Quality
Operation Management 380
Quality Management
By Vanessa Tanner
Overview
Definition
• Quality
• Contingency approach
Structural Approach
• 5 phases
• 7 S model
Real Life Scenario
Y2K exercise
Summary
Work Citing
Definition
 Contingency Approach presupposed that there
is no theory or method for operating a business
that can be applied to all corporation or to all
instances.
 Different perceptions concerning the definition
of quality
 Purse different paths and strategies to achieve
customer service
 Depends on the environment in which the
company operates
Different Perspectives

Definition of Quality:
Transcendent
Product-based
User-based
Manufacturing-based
Value-based
A contingency approach model of
quality
There is no supreme way to standardize
 These factors are called contingency
factors :

• Exterior : environment,
• Interior : production size, technology, etc

The organization has to become accustom
to external and internal factors
Purse Different Paths

Phase 1 :
• Determine the Factors

Phase 2
• Purse different strategies

Phase 3
• Document

Phase 4
• Implement change

Phase 5
• Maintenance
Phase 1
Determine Factors

Determine the
– Contingency factors
– Situational factors
7 S MODEL
Organizational Factors
Staff
 Style
 Skills
 Shared Value
 Structure, Shared systems

Phase2
Purse Different Strategies
Are plans realized
 Determine a Tactic

• Top down increment
• Full bottom-up strategy
Phase 3
Document
Document the implementation
 Content
 scope

Phase 4
Implement Change
Managing progression
 Encourage change
 Create a mission statement

Phase 5
Maintenance
Developing support
 Making the transition
 Implement resources

Contingency

Contingency in the model will show a
relationship between two or more
variables
• Chi-squared test (test static)
Chi square -
Data – Automotive
A
B
C
D
E
Indirect 6
suppliers
Assembly 13
17
13
9
5
5
7
16
9
Direct
19
Suppliers
22
20
25
14
Formula - Calculations

Chi Square
• Calculation
• ((O - E)2/E)
• Total = 14.026

Degree's of freedom
• df = (r-1)(c-1)
• Total = 8
• For significant chi
greater than 15.51
• The distribution is not
significant.
Exercise – Chi Square
Consistency
Reliability
21
56
Assemblers 50
24
Suppliers
Analysis Data

Total
•
•
•
•
•
•
Assembler – 77
Supplier – 74
Total 151
Degree of freedom = 1
Chi-square = 24.59517
P less than or equal to 0.01
• The distribution is
significant
60
50
40
30
20
10
0
Asembli
ers
Supplier
s
Real World Scenario

Disaster recovery plan – The Gartner Group
•
•
•
•
Operational risk
Security risk
Lack of capacity
Application factor
Exercise


Y2K
Steps to ensure that you are not left “holding the
bag”
•
•
•
•
1. List every business process in the department
2. List the tasks for every business
3. Prioritize
4. Assume that the system fails write a contingency
plan for the course of action that you will accomplish
to regain your quality in your system
Test your Contingency plan
Staff Review
Department review
Failures in System
Summary
There is no single universally acceptable
method which is suitable in all
circumstances
 No single implementation
 No universal system

Summary


Document of the
implementation
Continuous
reengineering of the
contingency approach
References




Mintzburg, H, The Structuring of Organization
Foster, Thomas S. Managing Quality an integrative
approach . Prentice Hall. 2001
Hosapkins, Will G A new view of Statistics
www.sportsc.org
Baughn, Bigelow Introduction to Leadership
Person Custom Publishing 2001
References
Dennis, Haley, Tegarden System Analysis
and Design John Wiley and Son Inc 2001
 Peters, Waterman In search of excellence
New York 1982
