Impacts of company size and culture on quality management practices in manufacturing organisations

Measuring the impact of soft and hard total quality management factors on customer behavior based on the role of innovation and continuous improvement

Purpose

Total quality management (TQM) is a part of the total quality assurance perspective. This system, which is considered as a type of managerial philosophy, employs all organizational levels to constantly ameliorate the quality of goods and service. The purpose of this paper is to measure the effect of hard and soft TQM factors on the behavior of customers based on the role of innovation and continuous improvement.

Design/methodology/approach

The research model was extracted from TQM variables in hard and soft parts, customer behavior, innovation and continuous improvement by reviewing the literature and research background. Based on this, a questionnaire was prepared and then, distributed among the statistical population including 374 project managers, quality assurance managers as well as quality control managers by using simple random sampling. All sub-criteria of questionnaire were determined using Delphi technique, to test the research model. Having gathered the questionnaire, the hypotheses were analyzed by using structural equation modeling and AMOS software.

Findings

According to the statistical analyses, TQM has a significant effect on customer behavior through continuous improvement of the quality and innovation. Also, regarding the obtained results, the highest effect was related to the effect of hard TQM factors on customer behavior through innovation as 0.62. Furtheremore, TQM soft factors such as human resource management have significant effect on customer behavior through quality improvement and innovation. Moreover, TQM hard factors are effective on customer behavior through quality improvement and innovation.

Research limitations/implications

The questionnaire was designed and distributed in order to evaluate the hypotheses in this study. One of the primary rationales behind utilizing this method instead of other methods such as interview was high geographical distribution of organizations. Using other moderator variables such as knowledge management, customer knowledge management and customer emotions can be conducted in the future in this area.

Practical implications

Changing the organizational relationships from task orientation to the process orientation, and controlling the organizational performance by measuring process innovations and improvements, while paying attention to the customer satisfaction system are suggested in this paper. These implications should be implemented in construction projects by department of project management office. Furtheremore, providing different communication for receiving the opinions of the customer and imposing them in the product and service, paying attention to the response system and customer complaint, implementation of this process in the organization, and having a process approach for presenting and developing services are the main subjects in this regard.

Originality/value

Unlike previous studies on this subject, a structural equation model is used for assessing unobservable latent constructs and their related interrelationship in measuring the impact of TQM factors. Focusing on customer behavior which is a broader domain than customer satisfation through continuous improvement of the quality and innovation is another value of this research.

Quality management practices in SMEs: a comparative study between India and Namibia

Purpose

Small- and medium-sized enterprises (SMEs) have now become an important part of economy for not only developed nations but also for emerging economies. Irrespective of the benefits that can be derived, SMEs in emerging economies still lack the will to implement quality management (QM) practices. Using a comparative study, the purpose of this paper is to understand the status of QM practices in SMEs of emerging economies.

Design/methodology/approach

A survey-based approach was adopted to understand the established QM practices in the SMEs. A survey instrument was designed by reviewing the literature on QM initiatives in SMEs. A sample of 270 SMEs across Southern India and 189 SMEs in Namibia was selected through stratified random sampling technique.

Findings

The overall response rate was 19.52 percent for India and 26.46 percent for Namibia, respectively. There were similarities and differences in responses from SMEs in both countries. Similarities are in terms of limited implementation of QM practices, and also less use of tools and techniques. Reasons for not implementing include unknown to the authors, and the high cost of training. Differences emerged in the type of market (Indian SMEs catering to one major customer), CSFs and business performance indicators. It was interesting to find that management commitment and involvement do not have a major influence as CSF for SMEs in both the countries.

Originality/value

The research is the first attempt in bringing a comparative study about QM practices in SMEs from developing countries. The insights will help emerging economies to develop policies for education and training, and thus facilitate implementation of QM practices in SMEs.

R, Kannan S. S, P. A, Trehan R. Defect reduction in an electrical parts manufacturer: a case study

Purpose

Defective parts in manufacturing is a serious issue faced by every manufacturer. Even after proper care in design, material selection and manufacturing of product, there exists a defective part. The purpose of this paper is to explore the quality of the manufacturing, and find the use of effective quality tools to reduce the part defect rate in an electrical parts manufacturing unit, thereby, reducing the replaced cost of defective parts.

Design/methodology/approach

With the help of quality initiatives, like total quality management (TQM) and Lean Six Sigma (LSS), the firms can produce quality product in each stage of production. The paper focuses on the primary data collected from the XYZ electric manufacturer.

Findings

The main finding of this case analysis is that by the effective use of quality tools, the defective part return rate can be reduced, because of which the firm can observe reduction in replaced cost of almost INR24 lakh. In addition, 10A switch part contributes more in replacement cost. Further, it adds to the 35 percent of the overall part rejection.

Research limitations/implications

The study is more focused on particular type of switch product and can extend to other types of products. In addition, the analysis reveals the results of only 88 percent of the defective products.

Practical implications

The study provides results of the improved quality by effective use of quality tools and discusses the different types of defects in the electrical parts manufacturing. Introducing TQM and LSS to manufacturing can reduce the customer return rate to 1,300 parts per million (PPM) and even to 1,000 PPM in future.

Originality/value

The paper discusses the quality issues in the electrical manufacturer. Moreover, the case analysis briefs effective ways to improve the product quality and reduce the rejection rate.

A systematic literature review on total quality management critical success factors and the identification of new avenues of research

Purpose

The purpose of this paper is to present a systematic literature review to identify new avenues of research in line with the ongoing changes in quality and management required to firms, especially regarding customers.

Design/methodology/approach

This study uses a systematic review of the literature contained in the three databases Ebsco, JSTOR, and Springerlink and on the search engine Google Scholar.

Findings

An analysis of the literature identifies three different clusters of papers: “identification” papers, which show that customer focus has gained importance in recent times; “implementation” papers, which highlight that a general or shared model or scale to successfully implement total quality management (TQM) does not yet exist; and “impact-on-performance” papers, which show that few studies have considered the relationship between TQM and the issues of both marketing and performance, underlining the most significant gap in the TQM literature.

Research limitations/implications

This study is limited by the small number of databases and search engines used and by the restricted number of keywords used in searching these sources.

Practical implications

This work highlights a gap in the existing research and thus an incomplete consideration of the interplay between management, marketing, and quality issues, all centered on customers and other stakeholders. Researchers and firms are thus advised to adopt a wider view that considers the role of the quality process to support the firm’s engagement of customers in activities that enhance both the customer role and customer satisfaction.

Originality/value

This study uses a systematic literature review to review all critical factors of TQM and identifies new research avenues and different approaches to implementing TQM, focusing on the central role that customers play in achieving firm success.

Initiating quality management in a small company

Purpose

– The purpose of this paper is to identify critical aspects of quality management (QM) adoption in a small company. QM is more widely applied in large companies than in small ones. Previous research has pointed to QM ideas as sound and valid for small companies, but that many such initiatives fail because of poor implementation. With scarcity of resources and expertise, it is critical to study how QM can be initiated in small companies with often sceptical owner-managers.

Design/methodology/approach

– This paper is based on a single case study of a small company; data has been collected through two sets of interviews: one in late 2009 and one in mid-2012, as well as project reports and public financial data. This allows for a study of the adoption process over time.

Findings

– This study points to four critical areas when initiating QM work in a small company: the importance of initiation, the importance of contextualisation, QM adoption as an iterative process, and the need for external support.

Originality/value

– This paper highlights the importance of overcoming small business owners’ reluctance towards QM. Most research on QM initiatives in small companies has focused on the stages that follow an actual decision to begin a QM initiative. This paper shows that it is critical to carefully consider the stages leading to the decision. Further, it contributes with a case study on a small company, otherwise uncommon in QM research.

Mapping the linkage between Organizational Culture and TQM

Purpose

– The purpose of this paper is to examine the impact of Organisational Culture (OC) on total quality management (TQM) implementation in Indian small and medium enterprises (SMEs) in the auto component sector. Specifically; it attempts to propose a model linking OC and TQM for this sector.

Design/methodology/approach

– Survey method was used for data collection by targeting the whole population of 482 Indian auto component SMEs drawn from Auto Component Manufacturers Association members’ database. Out of 482, 150 completely filled questionnaires were taken for data analysis. Proposed relationships among identified dimensions of OC and TQM interventions have been validated through parameter estimation statistics and goodness-of-fit statistics using path analysis technique of structural equation modelling using AMOS 18.0.

Findings

– Based on the results, a culture influenced TQM model has been developed. The model demonstrates a linkage between cultural dimensions and TQM interventions, thereby suggesting that OC characterised by “openness”, “confrontation”, “trust”, “authenticity”, “proaction”, “autonomy”, “collaboration” and “experimentation” has a significant and positive impact on TQM implementation.

Practical implications

– The study presents many practical implications, specifically for quality managers in Indian auto component SMEs. The study has developed a culture influenced TQM model which identifies dimensions of OC that promote TQM implementation. The study also identifies various interventions of TQM in their order of significance, which can be used by SMEs in mapping the critical links between OC and TQM through this model. Thus, findings of the present study will help SMEs in this sector to move up the value chain and sustain their global competitiveness.

Originality/value

– The study provides a culture influenced TQM model which would assist managers in quality implementation in Indian auto component SMEs.

Performance measurement system design in service operations

Purpose

– The purpose of this paper is to investigate the influence of firm size on the performance measurement system (PMS) design in the service context. Focusing on several aspects of the PMS design, i.e. the significance of the information attributes (PMS attributes), the way the system is used (PMS use) and the measurement mechanisms (PMS mechanisms), the significance of firm size was explored.

Design/methodology/approach

– Data were collected by administering a mail questionnaire survey to the top-level management of private service firms operating in Malaysia. The sampling frame was based on information provided by the Department of Statistics, Malaysia, and the Central Bank of Malaysia. An extensive search of directories/portals was undertaken to compile the mailing list of each service sector. Samples were randomly selected from the list using proportionate stratified sampling.

Findings

– The findings suggest that firm size influences the way their PMS was designed. The larger the firm size, the greater the emphasis placed on designing a sophisticated PMS. The results also indicate that size has a greater effect on the PMS of professional service firms, compared to mass service firms.

Research limitations/implications

– The limitation of the study pertains to the objective to observe the practice among service organizations on a broad scale, thus limiting the ability to comprehend the reasons for the findings.

Practical implications

– To the PMS designers and users, the understanding may offer a basic knowledge for designing and developing an effective and efficient PMS to be a useful tool in facing the continuous growth and stringent service market competition.

Originality/value

– Rather than restricted to a specific service industry, the study removes the traditional perception that insists that each service activity and problem is unique, by examining the practice of PMS among service firms from a broad-based perspective. The focus is on the commonalities that exist between them in facing the consequences of the service revolution.

Why TQM programmes fail? A pathology approach

Purpose

– Implementing total quality management (TQM) is not without difficulties and achieving its promised benefits is not easy. The purpose of this paper is to identify the barriers to TQM successful implementation.

Design/methodology/approach

– A literature review has been done to explore the major reasons for the failure of TQM programmes.

Findings

– An examination of 54 TQM empirical studies identified 54 obstacles to successful TQM implementation. There are both theoretical and practical difficulties in applying TQM in organisations. An ineffective TQM package, inappropriate TQM implementation methods and an inappropriate environment for implementing TQM are the main reasons for TQM failure. The most frequently mentioned reasons for TQM implementation failures include insufficient education and training, lack of employees’ involvement, lack of top management support, inadequate resources, deficient leadership, lack of a quality-oriented culture, poor communication, lack of a plan for change and employee resistance to the change programme.

Research limitations/implications

– The review was limited to articles written in English language during the past 30 years (1980-2010).

Practical implications

– TQM does deliver better performance when an appropriate model of TQM is appropriately implemented in a supportive environment. The findings of this paper provide managers with a practical understanding of the factors that are likely to obstruct TQM implementation. Managers should overcome these barriers to achieve the TQM benefits.

Originality/value

– Understanding the factors that are likely to obstruct TQM implementation will help organisations in planning better TQM models.