Quality function deployment (QFD) is a structured approach to seek out customers, understand their needs, and ensure that their needs are met. QFD is probably the most important management tool developed to assure quality in new or improved products and services. As with any other tool, the quantum of benefits obtained from the use of QFD is proportional to the effectiveness of its use. To enhance the effectiveness and efficiency of QFD as a means to transfer the``voice of the customer'' into design and production, a new comprehensive hierarchical framework for QFD planning process and a zero-one goal programming model for the selection of design requirements are proposed. The hierarchical framework contributes to the strategic guidance and provides clear direction for QFD teams during the construction of the house of quality. The decision model assists in determining a set of design requirements that most effectively meet customer needs subject to limited resources and other organizational restrictions. An illustrative example is also provided to demonstrate the practical usage of the design selection model.
Earnings management is an indicator of the corporate governance quality and investor protection standard. We study the frequencies and magnitudes of earnings management under two different thresholds, zero earnings and prior earnings, in the Chinese market from 1997 to 2004. We model earnings as a mixed-normal distribution and obtain parameter estimators that measure the frequency and magnitude of earnings management. We show that the practice of earnings management has gone up both in frequency and magnitude during the post-2000 period. We also find that the frequency and magnitude of earnings management are higher when firms try to avoid negative earnings than when firms try to report earnings increase. Our findings reflect the current economic environment in China and caution investors on the low-disclosure quality in the Chinese stock market.
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