Operations Management - Managing Quality - Essay Example

Memorandum To, Mr Mrs. (Insert With regard to our loan requests processing department and quality, three themes come into play: the changes and snags in measurement of quality, the lack of information about the reasons for perceived changes in quality, and the dearth of studies on quality when compared to economic efficiency. There are no commonly accepted measures of quality in loan requests processing department. Measures that are used frequently include surveys of clients, changes in inputs, the array or number of quality results and performance indicators, particularly a methodical appraisal of clients' complaints of delaying tasks.

Here are my recommendations for improving the speed and quality of loan requests department. Firstly, we should amend the loan approval procedure for consumers by categorizing consumers in two categories. First category should be of new customers or the people availing this service from us first time. Consumers availing this service from us second time or more should be constitutes the second category. The checking criteria for providing loan to the customers of first category should be very strict while people from second category should be provided loan to nearly previous amount of money checking the client's relationship with the bank in previous transaction or transactions.

I also suggest changing the payment method of the loan underwriters from time period basis to the combination of time based salary plus incentive with respect to number of loan requests processed. In this way the loan underwriters will try to complete maximum number of loan requests in order to gain more incentive. Complexities and deficiencies in quality measurement are, in part, associated with the intricacies in defining quality and the varied application of the term. The term quality stands for a high level of quality in an economic terms but the term quality to explain fitness for purpose is the one that is most pertinent to the development of performance indicators for contracts.

The leaning to a rising stress on the customer is clear from the economics and operations views of quality while the loan requests marketing view is completely reliant on the consumers' perceptions of quality as a point of comparison to their expectations. The customer, in both TQM and service quality literatures, is stressed and several organizations seem to be gathering feedback via customer satisfaction surveys. Such issues include the use of broad indicators (satisfied/dissatisfied) rather than precise facets of satisfaction, the fact that such surveys often do not seek information on expectations, and the results are almost invariably positively distorted.

Additionally, a broad range of indicators, and fake indicators, are presumed to mean satisfaction and/or quality. Quality and satisfaction can be separated although they are related. More, consumers can make objective, quantitative quality assessments and do not have to be confined to measures of how they feel or whether, and how frequently, they complain. In short, the significance of performance monitoring against the backdrop of contracted services approaches to monitoring, and their likely effects on costs and quality upshots, do not seem to be explored.

The literature review has recognized three major areas for examination. First, whether the contractor is capable of delivering as per specifications and whether the risk warrants QA or systems certification. Second, whether the contractor will be faithful to the agreed terms. Diverse approaches to find out this include verification (checklists and reports), third party inspections, and customer input or complaints. Lastly, more modern approaches to performance monitoring appear to emphasize conclusions for customers, benefits for consumers of quick loan approval services, and partnerships or cooperative relationships with contractors.Regards.(Insert Name)