Total quality management in the banking industry a case study of joint stock commercial bank of viet nam

Total Quality Management in the Banking Industry - A Case Study of Joint Stock Commercial Bank of Viet Nam ABSTRACT Vietnam has recently become the 150th member of the World Trade Org

- A Case Study of Joint Stock Commercial

Military Bank of Viet Nam

In partial fulfillment of the requirements for the degree of

Masters of Business Administration

Advisor: Dr Shao-Hsi Chung Co-advisor: Dr Vo Phuoc Tan Graduate Student: Tong Quoc Thinh

December, 2010

AKNOWLEDGEMENTS

First of all, I would like to express my greatest appreciation to the Principal Office of The HCMC Industrial University and MEIHO University The cooperation between the two universities has provided us an EMBA program that is very practical, effective and very useful not only for myself but also for Vietnamese Business community The program gives

us opportunity to approach modern management technology and skills which are very useful for our contribution to our country development

Furthermore, I would like to thank all professors and classmates who not only extends their best sharing of knowledge and experience but also provides greatest help and encouragement during the program Specially, I am truly appreciated the help from the following people who have helped me to complete my graduation thesis:

- Professor/ Doctor: SHAO - HSI CHUNG - MEIHO Institute of Technology

He is the advisor and the mentor for me during the internship, writing and completion

of my thesis in Vietnam and Taiwan

- Professor/ Doctor: VO PHUOC TAN - The HCMC Industrial University He has provided greatest help during this EMBA

With limited time and knowledge, I am sure that there will be many areas for improvement in the thesis itself Therefore, I am very appreciated and opened for all comments from all professors and classmates Your inputs are very valuable to make my thesis practical and help my career development in the future

Once again, best wishes to all

Total Quality Management in the Banking Industry

- A Case Study of Joint Stock Commercial Bank of

Viet Nam

ABSTRACT

Vietnam has recently become the 150th member of the World Trade Organization (WTO), hence goods made in Vietnam have a greater chance to go to every country on the world However, the penetration into the marketplace, from the negotiations to the visits for placing

an order, the Western and American customers often have some requirements for the companies, factories and banks for their services

With over hundreds banks in Viet Nam economy, and several awaiting issuance of commercial banking licence, the market is tough A bank can only have an edge over the other in the deliverance of better service since all banks are selling the same products practically In recent years past, it is obvious that good, effective service delivery has been key issue in most banks

The major objectives of the study is to enquire into problems encounterd in the provision

of good quality services to customers in commercial banks with focus on Joint-stock Commercila Military Bank and to determine specfically the impact of the introduction of Total Quality Mnagement (TQM) on the services of Military Bank to the banking public Instument of data collection is questionnnaire and research questions

The method of analysis is the tables, percentage and chi-quare The major finding of the resaerch is that problems encountered in the provision of services in Military Bank include finanace, manpower among others

Keywords: Total Quality Mnagement (TQM), World Trade Organization (WTO)

Total Quality Management in the Banking Industry

- A Case Study of Joint Stock Commercial Bank of

Viet Nam Contents

AKNOWLEDGEMENTS I ABSTRACT II Contents III Tables V

Chapter 1 Introduction 1

1.1 The Background of the Study 1

1.1.1 The background theories 1

1.1.2 The process of establishment of commercial joint stock military bank 2

1.1.3 Targets of commercial joint stock military bank .3

1.2 Statement of the Problem 5

1.3 Objectives of the Study 5

1.4 Research Questions 5

1.5 Scope and Limitation of Study 6

1.6 Significance of the Study 6

1.7 Definition of Terms 6

Chapter 2 Literature Review 8

2.1 Commercial Banking in Viet Nam: 8

2.2 Introduction to the Concept of Tqm (Total Quality Management) 9

2.3 Definition of Total Quality Management 11

2.4 Basic Concepts of Total Quality Management 13

2.5 Roles of Services in Banks 14

2.6 Summary of Chapter 2 15

Chapter 3 Research Methodology 16

3.1 Research Design 16

3.2 Data Sources 18

3.3 Data Collection 18

3.4 Research Objects 18

3.5 Research Scope 18

3.6 Sample and Sampling Procedure/Techniques 18

3.7 Validation of the Instrument 19

3.8 Reliability of the Instrument 19

Chapter 4 Presentation and Data Analysis 20

4.1 Data Analysis 20

4.2 Hypothesis Review 26

Chapter 5 Summary, Proposal and Conclusion 29

5.1 Summary of Results 29

5.2 Proposal 29

5.3 Conclusion 30

5.4 Further Research Fields 30

References 32

APPENDIX - English Questionnaire 34

Tables

Table 4-1 The Age of the Participants Answering Questions 20

Table 4-2 The Gender of the Participants Answering Questions 21

Table 4-3 Marital Status of the Participants Answering Questions 21

Table 4-4 Educational Background Of The Participants Answering Questions 22

Table 4-5 Position of the Participants Answering Questions in the Office, Organisation 22

Table 4-6 The Level of Service Quality 23

Table 4-7 The Factors Affecting Service Quality 23

Table 4-8 The Issues in Providing Customers with Service Quality at Commercial Banks, Especially Military Bank 24

Table 4-9 The Effects Of Total Quality Management’s Introduction Of Military Bank 25

Table 4-10 The Evaluation of Bank’s Response Capacity to the Market’s Changes 25

Table 4-11 The Relationship between Total Quality Management’s Introduction and the Improvement of Service Provision of Military and Bidv Bank 26

Figures

Figure 3-1 The Research Process 17

Total Quality Management in the Banking

Industry

- A Case Study of Joint Stock Commercial

Bank of Viet Nam Chapter 1 Introduction

This chapter includes: the background of the study, statement of the problem, objectives of the study, research questions, scope and limitation, significance of the study, definition of terms

1.1 The Background of the Study

1.1.1 The background theories

According to Udeagha (1999), banks are considered as trusty keepers of belongings for most citizens, foreigners, groups, organizations and government Banks receive money in the form of deposits, transfers or payment from individuals, organizations and government for safe-keeping or transferring, ensuring that money is always available to their clients Various organizations, groups and government also get loans from the banks

According to Shorage (1990), banks mobilize the funds that are not used yet for manufacturing, and therefore the banks have to make people feel safe when they entrust money to them

Udeagha (1992) observed that banks hardly ever had faced challenges before 1986 At that time they didn’t put more attention to their management, so people didn’t put repose trust

in them But nowadays, there is more competition in the market because of changes of policies facilitating to open more banks Banking in Nigeria is now towards a buyers market However, because of extreme competition in the market, the banks’ customers no longer optimistically hold the trust in them In the early 1990’s there were more changes in the financial and banking market, resulting in demands of new ways for banks to compete At that time, the top management of banks found out that customers were willing to pay for high-standard products and services The successful people were the ones that changed their processes and permitted their staff to approach total quality management standards and techniques They also found out that high-standard services play an important role for their customers and that the successful business requires courteous, responsible, well-trained as

well as honest staff

According to Akpeyi (1996), the successful financial services, especially new generation banks, with their improved quality can strengthen international competition Thus, banks become to focus on quality of service as well as price and design of products Many of businesses take the trend and commit to provide high quality service in order to get success and survive No organizations could stay in their business unless it has satisfied customers According to Crosby (1986), the staff’s skills need to be improved and organizations need to recruit knowledgeable people at all levels in order to achieve quality improvement and total commitment to customer service Also it should be up to certain standards Customer service should be more important than one for the boss of organizations It is so primary to meet customers’ acceptable needs So it requires the more efficient interaction of the staff and customers

According to Akpeyi (1996), in a bid to improve the quality of service delivery and maintain their share of the market, banks must have positive strategies for the improvement

of their services It may be achieved by adopting concepts of total quality management (TQM)

These concepts include basic management techniques and intend to increase customer satisfaction, company’s survival and success in business In process of TQM, there are some essential elements that need to be focused on:

(1) Management commitment

(2) Quality awareness at all levels of the organization

(3) Integration and teamwork

(4) Focusing on prevention rather than inspection

(5) Long-term commitment by all employees to continous improvement

The concept of TQM is a important phenomenon in the finacial market Traditional quality is regared as means of geting competitive advantage in business This facilitates to meet the needs of internal customers, and TQM is the efficient management for increasing profitability and survival in fierce competition nowadays The management focuses on investigating TQM in the banking industry

1.1.2 The process of establishment of commercial joint stock military bank

Commercial joint stock military bank is a young bank Though Military Bank has only operated for ten years, for all events it spent and achieved that it has right to be proud of and

believe in its development in future Increasing in capital mobilization is the prior task in its orientation of development This is essential operation to improve capacity competition in condition of international integration and to ensure the demand of bank’s operation

In the early 90s, there were a large number of demands of capital and financial services for the economic operation of national defense to implement national defense of construction, national projects in military enterprises However, to meet these demands in banks was still limited Thus, on 04/11/1994/, Commercial Joint Stock Military Bank officially ran its business issued by decision 00374/ GP-UB of Ha Noi People’s Committee and by operation permit 0054NH-GP of Governor of State Bank of Vietnam on 1409/1994 Commercial Joint Stock Military Bank is one of five Commercial Joint Stock Banks whose headquarter is located in Ha Noi It has 20 billion VND of charter capital and 50 years of limitation operation Until 29/10/2004 its charter capital has increased from 20 billions VND to 398,4 billion VND and increased 19,9 times compared which the one in 1994

The first target of Bank is to meet the demand of capital and financial services in Military Enterprises which is running on business Along with the economic development of the country and the correct policy, Commercial Joint Stock Military Bank has achieved several successes It not only meets the demand of Military Enterprises, but it also serves effectively other economic sectors It plays an important part in the development of customers in particular and customers in general For shareholders, the Commercial Joint Stock Military Bank always tries to ensure the interest of shareholders and maintain dividend rate 15-20%/year For staffs, Bank constantly improves both material and spiritual living standard and ensure enough interests for all staffs

1.1.3 Targets of commercial joint stock military bank

With the prior policy to bring utility products and services to meet the demand of customers, Commercial Joint Stock Military Bank constantly enhances quality of the recent products and services as well as researches and develops new products and services

The products and services of Military Bank include:

- Mobilizing capital from enterprises, organizations and residents: Products of capital mobilization of the Commercial Joint Stock Military Bank are much diversified including savings and deposit account for individuals and business The saving packages of bank include traditional savings, accumulated savings, saving prepaid with different terms and

profits Additionally, Military Bank also receives capital investment trust of organizations and individuals from internal and external country

- Credit operation – guarantee: providing customers a diversified credit product including: short-term, middle term and long-term loans by VND and foreign currency to serve business and service; Financing and co-financing for projects; loan with installment for consumption and family expenses; loan to buy cars with installment; loan with installment to buy, build and repair houses; loan for studying abroad; loan to buy shares of equitized enterprises Services of guarantee includes: guarantee for loan capital, guarantee for payment, bid guarantee, guarantee for executing the contract, guarantee for product warranty

- International payment, import-export financing: with nearly 300 agency banks in almost of

70 countries all over the world, Commercial Joint Stock Military Bank provides quickly and safely for customers products and services according to international standard

- Bank cards: to enhance utility services for customers, Bank has developed ATM Active Plus service for customers in 2004 These cards bring to customers preeminent characters rather than the ones in other banks, such as: providing for card owner insurance services at Far East Insurance Company Additionally, due to successful connection to Vietnamese Commercial Bank, customers can do transaction in all places that accepted cards of Commercial Joint Stock Military Bank and ATM system of Vietnamese Commercial Bank in the whole country

- Foreign exchange operation: this is the strong field of Military Bank With a professional team and modern supporting system, Bank can meet the demand of foreign currency of customers with suitable and competitive prices and quick procedure Moreover, Bank can advise customers to manage, precaution of risk and beneficial business forms

- Other services: apart from the above products, Bank also provide to customers several other services, such as: financial advised service, deposit service, salary payment on behalf of enterprises, quickly money transfer services in the country, oversea remittance services…

1.2 Statement of the Problem

The quality of banks’ services has not be improved significantly and they still provide the same services and products TQM proceeds on the theory that developing dominant culture will improve commitent However, most banks do not gain their purpose when not calling upon to all of their employees for involvement.Also the effort on apply TQM, especially in service ogranizations, is resemble to struggles with old management by objectives (MBO)

Besides many managers have classified TQM as temporary vogue It is like short-lived programmes that are shown as final solutions Furthermore many ogranizations ar disapointed about TQM because of the following:

- Lack of vision and planning

- Satisfaction with the quick fix

- The process of change becoming too bound

- The world quality becoming too bound

- The conflict of culture changes and project appoarch

- Quality management become bureaucratic

- Management do not change its behaviour

- People were not really involved

These are the problems that researchers must find answers in process of study

1.3 Objectives of the Study

The specific objectives of the study are:

- Find the problems of offering high quality services for customers of Military Bank

- Determine impacts of the introduction of TQM and services of Military Bank to the public

- Evaluate the kinds of services that the bank offers

- Determine the ability of Military Bank in case of responding to changes of the market

- Make suggestions and recommendations based on the data of the study

1.4 Research Questions

The study helps to find answers for the following questions:

- Are there any problems of offering high quality services for customers at Military Bank?

- What is the impact of TQM on services Military Bank?

- What are high quality services Military Bank has been offering?

- Does Military Bank have the ablility to respond to changes of the market?

1.5 Scope and Limitation of Study

The study tends to TQM in the banking industry (accroding to study of First Bank Plc) It does not include TQM in other sectors of the economy

It reflects the picture of the overall performance in terms of service quality of other sectors of the economy However, researchers had to face several difficulties in process of study These are:

- Time: the study requires a lot of time for seeking materials Also the researh was carried out

at the same time of academic course

- Fund: the fund gained by the researchers without any government assistance was required for stationery, photocopying, typing, cyvlostyling of questionnaires and other writing materials and transportation cost

1.6 Significance of the Study

The study is so important from many aspects Furthermore, commercial banks are the safe place for safe-keeping of deposits A programme must be held to attract more customers

as well as offer services for them

In addition, banks play an important and strategic role in economy of a country, so need more efforts to remove difficulties for getting service quality This study is intended therefore

as a useful guide to bank managers in the performance of their responsibilities Also, the study provides reasearchers with many useful materials serving for next studies Moreover, the study helps policy makers formulate, modify and even streamline existing goverment policies having an impact on TQM in financial insitutions

(4) Idle Funds: the funds initially being of customers are not be returned to them

(5) Buyers Market: this is the situation where banks offer services on customers’ demands

(6) Customer: everybody who want to receive banks’ services, regardless of internal or

external ones

(7) Quality: it is the most expectation of customers about products and services

(8) Total Quality Management: this is the effort to improve service quality and maintain their own share of the market This is the management based on clear standards, primarily meeting reasonable needs of customers This is an essential require for a excellent organization

(9) Team work: A team is a group collected by members with the same interests and goals which are equally shared by them

(10) Satisfaction: this makes customers (internal as well as external) feel delighted to products of the bank

Chapter 2 Literature Review

2.1 Commercial Banking in Viet Nam:

Adekanye (1986) observed that banks, especially commercial banks, are entrusted with the funds of depositors These banks perform all the functions of the financial system The functions of a commercial bank include acceptance of deposits, provision for payment and lending to customers for commercial or industrial purposes and to other banks Commercial banks are also entrusted by operators in the foreign exchange market These banks play as both buyers and sellers They get securities transaction with government and play as agents of issuing houses Also, they act as law advisors and executors of wills

According to Adekanye (1986), commercial banks are entrusted with the funds of depositors which are generally used for their business purposes A fund management programme need to be held This programme must gain three basic objectives: liquidity, safety and income

Allile and Anao (1992) noted that liquidity has a separate application form for each bank Depositors often want to recover the funds or use them to pay to other parties Also, banks have dealt with their close customers who always have a need for credit These customers expect their banks to meet that need and always have money available to them Liquidity helps the banks to meet loan demands of their close and long established customers who enjoy good credit standing Banks need for liquidity is to:

- Meet statutory reserve requirements

- Provide a margin to meet the increasing needs of advances

- Provide for any envisaged interrupted cases of cash inflows

- Provide for buffer or conclusion against losses from bad debts

- Provide for timing differences in its cash flow arising from deposits returned earlier than loans time-limit

- Meet other operational needs of banks (Omulumo, 1993)

In order that shareholders could achieve their objectives, bank managers should try to earn profits; each bank needs profitability in order to:

- Achieve the objectives of maximazing the wealth of shareholders

- Meet repaymeny of charges on debts

- Survive in fierce cometition of the banking industry

- Grow and expand (Comption, 1980)

These objectives determine the pattern and distribution of assets in the portfolio Therefore, portfolio management of commercial banks is considered as the combination of different classes of assets for achieving optimum balance between liquidity, solvency and income To gain these objectives commercial banks must have a certain pattern and distribution of their assets Portfolio management therefore helps the banks determine how to get the best combination of their assets, achieving the objectives of liquidity, solvency and income (Roussak 1, 1975)

2.2 Introduction to the Concept of Tqm (Total Quality Management)

The concept of TQM does not only influence positively internal resources, it also considers external factors such as supplies of the organization and data about customers (Lawler, et al, 1992) noted that at least 50 percent (50%) of TQM organization collaborates with their suppliers in some way to increase the quality of component parts Sending quality action learn to consult with major suppliers may do this

According to Sastikin and Kiser (1993) the goals - use TQM to analyze and improve suppliers are neglected when developing a TQM programme This will be hard or impossible

to lead to success

Onanusi (1997) sees that one common mistake in initial quality is for organizations to start at a stage of involving all employees, rather the typical approach to TQM implementation are customer care and quality circles However, Harari (1993) recommends different ways to increase the effectiveness of quality service which include:

- Active support of Chief Executive for TQM techniques

- Involvement of employees in all aspect of the organization

- Demonstration of willingness by managers to change everything

- Focuses on needs of customers as primary objective

Despite the advantages of TQM and its relevance to virtually all organizations that aim

at achieving perfect, the concept of TQM has not gone without critics have predicted that it will fail to live up to the publicity given to it by business journalists and consultant, and will

be relegated to the vineyard of big management ideas that never paid out They believed that quality – bashing stage has begun and that these are a gathering storm of doubt and concern over quality program It has been observed by critics that many of the ambitious quality program launched by business have involved too great an investment for too little a result Some writers believe that quality service should not be at the expenses of human beings,

there should be concern for employees’ growth and welfare They argue that TQM is not directly concerned with designing work in ways that will fulfill the self of the staff, rather, its concern is to induce the employee to identify with the TQM mission of attaining quality Skeptics believe that lack of resources may restrict the extent to which comprehensive initial TQM can be adopted and sustained

Webb (1992) sees that the TQM optimizers rather than a satisfying strategy and its actions to reverse the established characteristics separation of conceptions and execution (planning and doing) at work

Dawson (1994) noted that although the key assumption of TQM is that developing a dominant culture will improve commitment, it is most unlikely to achieve its aim of total employee involvement, and may act to sustain or even create ethnic divisions because some societies are culturally pluralists, critics feel the struggle of people trying to apply the TQM approach especially in service organizations bears a resemblance to struggles people had with the old management by objectives In fact some disillusioned managers and reporter have classified TQM as another temporary phenomenon It is likened to many short-lived programs that were touted as the ultimate solution

Thus, in doing the TQM concept especially in a service especially in a service industry such as banking, we should pay full attention to treating employees That is why Peters and Waterman (1992) revealed that the excellently managed companies the average employee as the root source of quality and productivity gain They showed that the keys to excellence in companies’ success in achieving high quality and productivity are having high expectations for their employee performance respecting them as individuals, trusting them and treating them as adults Although the concept of TQM has been highly favored by some writers and

at the same time been attacked by critics who believe it can never work, it has also raised some controversies amongst certain writers for example TQM is increasingly coming under for decline of Western Economics Advocates of business process engineering (BPR), Hammer, et all (1993) suggest that despite the application of TQM principles, most western companies remain highly bureaucratic, with departments acting individually and throwing over the wall to the next, department designs, information products and most of all problems Macdonald (1992) has recommended that despite all the reservation and an assertion of critics, almost every company that has achieved a quality drive has improved He identified some reasons for some companies’ disappointment over TQM, and they include:

- Lack of vision and planning

- Satisfaction with the first stage success

- The process of change becoming too difficult

- The international quality becoming too bound

- Culture change versus project approach conflicted

- Quality management become bureaucratic

- People were not really involved

- Lack of business measurable to measure TQM

Okolie (1992) observed that many TQM initiatives fail because companies does not have clear goals, thus, they cannot gain any benefits or progress

Crosby (1989) contends that most are unsuccessful because they have focused on quantified improvement only and have neglected employee empowerment Other obstacle to the success of quality service is competitiveness in the market, workers with unproductive attitude, incompetent failed managers, and lack of incentives for employee’s quality goods and services and insufficient commitment by management to implementing quality

2.3 Definition of Total Quality Management

Macdonald (1992) showed that changes of global economy have made many organizations accept specific strategies for its existence There are some strategies needing to

be used, including: managing strategies, tools of modern marketing, reconstruction and technique, etc However, during recent time, targets have been changed for improving products and distributing service technology to increase market profit These improving technologies are based on new concepts: total quality management (TQM) The world recognized that all individuals in each organization must contribute to complete customer services with a special management quality; this can be achieved by human, systems, assisting tools and techniques, although TQM is a new definition and mentioned by many different materials The world quality means that customer’s requirement is suitable to their need The definition agreed that companies have tendency to produce reasonable products or service without mistakes and avoid producing mistakes by using preventive solutions at the beginning

Okolie (1992) said that definition of TQM as a management of all aspects of service quality to customer He stated that such management including distributing product quality, price and service differs from the traditional definition of quality, just focuses on controlling and ensuring quality

Levine and Helper (1883) defined TQM as a combination of a set of solving problems tool by philosophy management such as training, improving and giving right to all level of

organization in order to concentrate on customer’s requirement

Wruck and Jensen (1994) asserted that TQM has brought a specific historic approach to improve organization’s effect, is durable foundation of definition and at the same time a strategy was given to improve activities, accounting for how many organizations as well as people truly work TQM requires that every material and mental aspects of the organization has to be improved suitably to customer’s need To confirm this, Solarin (1996) declared that application of management quality is not limited in organization’s areas It has gone into every departments and organs The introduction of TQM is always started by a clear commitment from top leaders of the organization The Chief Executives and other top management personnel must lead by encouraging and urging a total change of culture and company’s price to show that it is a qualitative company Total essence of TQM helps organization to serve customer better and more effective By this way, it produces profit enough to maintain the company in business

Juran (1979) realized that philosophy behind receiving definition of TQM help the organization to continue business for contributing to social stability, create useful products and services to customer and bring satisfaction as well as development to members of the organization

Deming (1986) observed that producing products and services with high quality costs a lot of money; however, in practise, it is a necessary factor to long-term existence of the organization Organization’s existence cannot be achieved without total commitment mentioned in TQM’s definition Then, Rose (1994) asserted that TQM is a combination of practical management, being emphasized in improving process, meeting customer’s need, reducing networks, bringing long-time ideas, increasing involvement between labourers and competitive teamwork based on solved problems and close relationship to suppliers

Debo (1996) summed up the TQM’s definition as a strategy to improve business activities through employees’ responsibility from top leaders to the lowest rank of the organization in order to meet customer’s need at lowest price by improving continuously products and services, business process and involved people The concept of total quality management cannot be achieved without responsibility of laborers and management

Wilkinson and Wilmot (1995) argued that intelligent development of managers makes laborers try to produce product with high quality They don’t need to be good employees, but people who want to get success, finish work successfully, influence and challenge their abilities

Ishikawa (1985) showed that a successful organization in managing total quality must reject systems making people be frightened such as punishment because of working bad, estimating system with relative comparison between laborers and salary Thus, employees’ responsibility in achieving total quality depends mostly on managers It contains comprehension and agreement in work, knowing how to do the job and the reasons it was done with necessary materials, tools; doing improving methods and the time happening risks According to Crosby (1898), quality management will be applied and successful if it was started from the top leaders, who lead total system to quality achievement Without quality management, total system will be collapsed They are people, who have worked for a long time as managers, create organization system, decide designing style and produce products and services The process of improving quality must be started by management, individual’s responsibility to total quality

Deming (1986) argued that employees’ value is estimated directly by qualified systems created by managers In his opinion, this cannot lead expected results; moreover, management is training and managing employees for analyzing and estimating, improving working process

2.4 Basic Concepts of Total Quality Management

Deming (1986) realized that the following principles make managers orient to quality improvement

- Firstly, it is concentration on working process: quality products and services depend mainly

on process of designing and producing, management is necessary to training and leading employees in estimating, analyzing and improving producing process

- Changeable analyzing ability: in his view, change is under control during the process or process’s result is basic problems of quality, so they need to be analyzed and controlled by those who work directly in organization Only when the origin of changes is defined by employees in any position, suitable steps will be done to improve working process

- Management by fact: total quality management requires that data must be collected systematically in every time in a problems solving process

- Learning and improving continuously: long-term existence of a business depends on examining problems solving process as a continuous task And this continuous task guarantees that employees who don’t involve directly in the task will be separated