ANALYSIS OF TOTAL QUALITY MANAGEMENT – A STUDY WITH ...

IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 4, August 2012
ANALYSIS OF TOTAL QUALITY MANAGEMENT – A STUDY
WITH SPECIAL REFERENCE TO SELECTED SME’S
Ambuli.T.V
Assistant Professor,
Department of Management Studies,Jerusalem College of
Engg, Chennai,India
AnanthaPadmanabhan .G
Professor and Head( Retd.,),
P.G Department and Centre for Research in Economics,
Guru Nanak College, Chennai, India
Abstract: Total Quality Management (TQM) is an enhancement to
the traditional way of doing business. It is a proven technique to
guarantee survival in world-class competition. Only by changing
the actions of management will the culture and actions of an entire
organization be transformed.
Keywords-component; TQM, SME, SQC, Weighted Average
Score
I. INTRODUCTION
TQM is for the most part common sense. Analyzing the
words, T – Made up of the whole. Q – Degree of excellence a
product or service provides. M – Act, art, or manner of
handling, controlling, directing, etc.
Therefore, TQM is the art of managing the whole to
achieve excellence. The Golden Rule is a simple but effective
way to explain it: “Do unto others as you would have them do
unto you”. Besterfield (2005)
The British Quality Association (BQA) has Management
alternative definitions of total quality management. The first
focuses on soft qualitative attributes, containing elements such
as customer oriented, cultural as advantage, removal of
performance barrier, teamwork, training and involvement of
employees.
The second BQA definition comprises production aspects
such as systematic measuring and control of the work, setting
standards for performance and the use of statistical procedures
to achieve quantity. This definition focuses, contrary to the
first, on hard quantitative attributes.
The third BQA definition is a mixture of the two previous
definitions, which provide an acknowledgement of the
scientific as well as the humanistic approaches
II.
CHRONICLES OF QUALITY MOVEMENT
In the early 1900s F. W. Taylor emphasized on quality by
including product inspection and gauging areas of
manufacturing management, in 1924, W. Shewart introduced
‘statistical Control Charts’ to monitor production, around
1930, H. F. Dodge and H. G. Romig introduced tables for
acceptance sampling, during 1950s, the quality movement
evolved into quality assurance, W. Edwards Deming
introduced ‘Statistical Quality Control’ (SQC) methods also
known as Total Quality Management (TQM) in
manufacturing, and extending into service sectors and into
areas such as sales, marketing and customer service.
At the same time Joseph Juran began his ‘Cost of Quality’
approach, emphasizing accurate and complete identification
and measurement of costs of quality. In mid 1950s Armand
Fiegen Baum proposed ‘total quality control’ for
manufacturing and raw materials. “Zero Defects” was
introduced by Philip Crosby which focused on employee
motivation and awareness. In 1970s, there was a shift to
‘strategic approach to quality’ the focus was towards
correcting of defects and prevention of defects was the main
concept which placed close link to quality to productivity and
profits.
In 1950 Japanese economy was completely disrupted in
the Second World War, their first task was to restore the
industrial production with a new image and reputation for
exports of high quality at low prices, for which they sought the
efforts of Dr. W. Edward Deming and trained large number of
engineers in Statistical Quality Control, there was a
spectacular improvement in quality coupled with an
appreciable reduction in cost of production and became a
major exporting country.
Quality, reliability, and fair price expectation by the US
consumers, besides the strong consumer movement led the
producers to think of quality in 1980, since than they started
implementing quality in production, the US government too
recognized quality is critical to the nation’s economy. In 1985,
NASA announced an Excellence Award for Quality and
Productivity. The Malcolm Baldrige National Quality Award
was established by the Act of congress in 1987.
Quality has been a tradition in India while quality was a
way of managing business in the US and Japan, it was not so
in India. Quality movement was consolidated in 1980s, in the
Indian industries by the pioneering efforts of Confederation of
Indian Industries (CII). Walter Shewart initiated the Statistical
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Quality Control (SQC) in 1947-48 through factory visits,
discussions, and lectures, only in 1982 the quality circle was
born, slowly Indian companies are accepting and introducing
Total Quality Management (TQM), this is done with the
initiative of the Confederation of Indian Industries (CII),
Government of India. “National Quality Council for India”
was promoted and integrated towards national movement
annual “Quality Summit” is being organized annually to bring
awareness to the Indian industries.
Improvements in quality can lead directly to increased
productivity and other benefits. Recent evidence shows that
more and more corporations are recognizing the importance
and necessity of quality improvement if they are to survive
domestic and world-wide competition. In today’s Globalized
economy quality management and control is recognized as the
foundation of business competitiveness and is proactively
integrated into all business. Many companies are trying very
hard not only to satisfy their customer’s needs, this can only
be achieved through cost reduction, improvement in product
performance, increased customer satisfaction and a constant
effort towards world class organizations. In order for
companies to survive and grow in the future, it is essential that
they deliver high quality goods and services.
Many companies understand that TQM is necessary for
them to remain competitive, retaining their market share and
to be able to respond to changing competitive demand in today
business world. Small and medium sized enterprises (SMEs),
have been slow in adopting TQM when compared to large
companies, very few had advanced. Globalization is driving
companies toward quality as a necessary tool to compete
successfully in worldwide markets. A direct outcome of this
new emphasis is the philosophy of total quality management
(TQM). In essence, TQM is a company-wide perspective that
strives for customer satisfaction by seeking zero defects in
products and services.
III IMPORTANCE OF TOTAL QUALITY
MANAGEMENT
Implementing a total quality management system has
become the preferred approach for improving quality and
productivity in organizations. TQM, which has been adopted
by leading industrial companies, understood that it is a
participative system empowering all employees to take
responsibility for improving quality within the organization.
Instead of using traditional bureaucratic rule enforcement,
TQM calls for a change in the corporate culture.
Quality management is important to companies for a variety
of reasons.
1. Product quality
IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 4, August 2012
quality include: performance, reliability and
durability.
o Quality management ensures product
quality. Some primary aspects of product
2. Customer Satisfaction
o Quality management ensures customer
satisfaction.
3. Increased Revenues
o
4. Reduce Waste
o
5. Teamwork
o
Quality products and services give the
company a spotless reputation in the
industry. This reputation allows the
company to gain new customers and sell
additional products and services to existing
customers. A quality management program
also removes inefficient processes within the
system.
A quality management program helps
companies reduce waste. Companies that
house inventory are paying for the storage,
management and tracking of the inventory.
The costs of having the inventory are built
into the price of the product. Implementing a
quality management program reduces the
amount of inventory that costs the company
money and occupies valuable space. Quality
management means that there is a systematic
approach to keeping inventories at
acceptable levels without incurring waste.
Work closely with suppliers to manage
inventory using a Just-in-Time (JIT)
philosophy. In short, a JIT inventory system
helps the suppliers and manufacturer remain
in close communication to become more
responsive to the customer.
Quality management systems force company
departments to work as a team. Different
areas of the company become reliant upon
one another to produce a quality product that
meets and exceeds the customers'
expectations. A quality system incorporates
measures that affect sales, finance,
operations, customer service and marketing.
IV IMPORTANCE OF SMALL AND MEDIUM
ENTERPRISES IN THE ECONOMY
Small and Medium-sized Enterprises (SMEs) are commonly
recognized as one of the leading groups of economic activities
globally, and pose enormous impacts on social issues. Most
companies are currently categorized under SMEs and the
goods and services that SMEs offer are diverse. Moreover,
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SMEs are suppliers for large enterprises. It is said that SMEs’
performance, both positive and negative, in the Asia-Pacific
region may be more influential than any other region in the
world because of the rapid economic growth of the region
today. SMEs’ share in total economic activity varies across
countries and for a given country over time; they play a
significant role in virtually every economy and represent a
large segment of the private sector. Furthermore, firm size
distribution within an economy is determined not only by
prevailing consumption patterns, resource endowments and
technology, but also by the degree of market competition, the
legal and regulatory environment, the availability of credit, all
of which are influenced
NEED FOR QUALITY
Globalization is driving companies toward total quality
management (TQM) as a necessary tool to compete
successfully in worldwide markets. The total quality
management (TQM) approach involves more than simply
meeting traditional rejection rate standards. The end result of
total quality management (TQM) is the efficient and effective
use of all organizational processes in providing consistent
quality at a competitive price. The total quality management
(TQM) philosophy is a long-term endeavor that links people
and processes in a system that alters the corporate culture to
become one where quality is the core aspect of business
strategy. In cultivating the total quality management (TQM)
philosophy, strategic implementation must involve a focused
effort on the part of every employee within the organization. It
cannot be applied successfully on a piecemeal basis. Total
quality management (TQM) requires that management, and
eventually every member of the organization, commit to the
need for continual improvement in the way work is
accomplished. Business plans, strategies, and management
actions require continual rethinking in order to develop a
culture that reinforces the total quality management (TQM)
perspective. The challenge is to develop a robust culture where
the idea of quality improvement is not only widely understood
across departments, but becomes a fundamental, deep-seated
value within each functional area’s as well.
Small and Medium Enterprises (SMEs) has a direct impact
on the economic development in both the developed and
developing countries. Small and medium sized enterprises
(SME's) are at the centre of interest since the quality debate
for several reasons. One is that larger organisations will not be
able to improve the quality of their products, services and
processes, unless their suppliers or the second-tier suppliers
also grow to a higher level of quality maturity. It is believed
that the adoption of total quality management (TQM) in Small
and Medium Enterprises (SMEs) is a must, a gradual
progression and selection of appropriate "quality tools and
initiatives" as and when necessary, with the ultimate aim of
continuous improvement in the organisations.
STATEMENT OF THE PROBLEM
IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 4, August 2012
Total Quality Management (TQM) has become a frequently
used term in discussions concerning quality. The international
and national competitive environment is in a process of
constant change by the globalisation of markets and the
increased interdependence of economic agents. The role and
contribution, which small organisations contribute to the
economy, has become widely recognised. As all organisations,
regardless of size and financial status, are involved in the
quality revolution, issues concerning the quality development
of small organisations are of major focus.
V OBJECTIVES
• To evaluate role of management in TQM
implementation.
• To analyze system factors towards the
implementation of TQM
METHODOLOGY
The research strategy that the study will utilize is the
descriptive method. A descriptive research intends to present
facts concerning the nature and status of a situation, as it exists
at the time of the study. In this study, primary and secondary
research both are incorporated. The reason for this is to
understand more about the issue and the different variables
that involve with it. The primary data for the study is
represented by the survey acquired from the respondents
through a structured questionnaire.
HYPOTHESIS
• There is no significant difference in the mean
agreeability scores on the opinion statements on
TQM among the respondents.
• There is no significant difference in the overall mean
opinion score among different groups of respondents.
• There is no significant gap between perception and
adoption of Management
leadership toward implementation of TQM
OPINION ON TQM
TABLE – 1 OPINION ON TQM
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It is seen from the above table that among the 10
opinion statements on TQM, the mean agreeability score
ranges between 3.616 to 3.912 and the score is higher in the
statement S1 and is least in the statement S5.
Null Hypothesis:
There is no significant difference in the mean
agreeability scores on the opinion statements on TQM among
the respondents.
ANOVA TABLE- A
SOURCE DF S S M S F
Between 9 62.180 6.909 6.745**
groups
Within 4989 5110.391 1.024
groups
**- Significant at 1 % level
Since the F is significant the null hypothesis of no
difference in the mean score on opinion statements on TQM
among the respondents is rejected and there is significant
difference in the mean scores among respondents. The mean
scores among the respondents is furnished below:
TABLE -2 MEAN OPINION SCORE
ATTRIBUTES WEIGHTED AVERAGE RANK
SCORE
S1 3.912 1
S2 3.892 2
S3 3.842 5
S4 3.708 7
S5 3.616 9.5
S6 3.616 9.5
S7 3.888 3
S8 3.656 8
S9 3.762 6
S10 3.846 4
Source : Primary data
IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 4, August 2012
S.
Weighted
TQM
No
SA A N DA SDA average
OPINION
.
score
1. S1 159 195 100 35 11 3.912
2. S2 167 202 53 66 12 3.892
3. S3 164 177 99 36 24 3.842
4. S4 112 192 140 50 6 3.708
5. S5 110 187 127 53 23 3.616
6. S6 99 194 134 62 11 3.616
7. S7 128 210 145 12 5 3.888
8. S8 110 177 150 57 6 3.656
9. S9 107 228 120 29 16 3.762
10. S10 150 207 75 50 17 3.846
State Perce Adopti Mean Standard ‘t’-value
ment ption on Differe Error of (Df=445)
No
nce Mean
Difference
S1 3.592 3.460 0.132 0.060 2.201*
S2 3.874 3.401 0.473 0.053 8.994**
S3 3.729 3.621 0.108 0.045 2.407*
S4 3.776 3.536 0.240 0.043 5.532**
S5 3.818 3.729 0.090 0.051 1.772
S6 3.469 3.587 -0.119 0.048 -2.456*
TABLE- 3 MANAGEMENT LEADERSHIP
Statem Percepti Adopt Mean Standard ‘t’-
ent No on ion Differe Error of value
nce Mean
Difference
1 3.509 3.622 -0.113 0.059 -1.91
2 3.818 3.592 0.226 0.055 4.11**
3 3.516 3.558 -0.041 0.038 -1.10
4 3.516 3.304 0.212 0.048 4.38**
The above table showed that among the 10 opinion
statements on TQM S1-S10, S1 has secured higher mean score
and stood at top, followed by statement S2 secured higher
mean score and stood at second and statement S7 has secured
next higher score and stood at third and finally S5 & S6 have
secured least score and stood at last.
VI PERCEPTION AND ADOPTION OF TQM
Using the paired‘t’ test, the gap analysis is performed
between perception and adoption of TQM among the
respondents and the results are presented in the tables given
below:
**-Significant at 1 % level.
*-Significant at 5 % level
It is seen from the above table that among the six
statements about Management leadership all the statements
except S5, there is significant gap between perception and
adoption of Management leadership and in S1 to S4 the
perception score is higher and in S6 it is lesser than adoption
score.
TABLE- 4 SYSTEMS & PROCESS
**-Significant at 1 % level.
It is seen from the above table that among the four
statements about Systems & Process the statements S2 and
S5, there is significant gap between perception and adoption of
Systems & Process and the perception score is higher than
adoption score.
Suggestions and conclusion
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• Among the general opinions on TQM, the mean
agreeability score range between 3.616 to 3.912 and
it is higher in the statement S1 and is least in the
statement S5
• .There is significant gap between perception and
adoption of Management leadership and in S1 to S4
the perception score is higher and in S6 it is lesser
than adoption score..There is no significant gap
between perception and adoption of Management
leadership and the perception score is on par with
adoption score.
• .There is significant gap between perception and
adoption of Management leadership and in S2 and
S3 the perception score is higher and in S1 it is lesser
than adoption score.
• There is significant gap between perception and
adoption of Systems & Process and the perception
score is higher than adoption score.
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