Effect of TQM principles on performance of Indian SMEs: the case of automotive supply chain

A balanced approach involving hard and soft factors for internalizing Lean Management and Six Sigma in hospitals

Purpose

This study examines the theoretical and empirical relationships between LM&SS, human resource management (HRM), climate for LM&SS and outcomes (employee well-being and performance) in hospitals. As part of this research, the authors examine the interplay between “hard” and “soft” practices for LM&SS and “soft” HR practices.

Design/methodology/approach

A cross-sectional, multisite survey study covering all internal service units at all eight Dutch university hospitals was conducted (42 units, N = 218 supervisors, N = 1,668 employees), and multivariate multilevel regression analyses were performed.

Findings

A systems approach involving “soft” LM&SS practices that are specifically HR-related has a positive effect (β is 0.46) on a climate for LM&SS. A climate for LM&SS is not related to perceived performance or employee health. It is, however, positively related to employee happiness and trusting relationships (both βs are 0.33). We did not find that a climate for LM&SS had a mediating effect.

Research limitations/implications

This study shows that a balanced approach involving both “hard” and “soft” factors is crucial to achieving the desired breadth and depth of LM&SS adoption at the macro, meso, and micro levels. The authors found that a climate for LM&SS positively affects employee well-being in hospitals.

Practical implications

In their attempt to create mutual gains for both their organization and their employees, hospitals that adopt LM&SS should foster a climate for LM&SS by embracing a balanced approach consisting of both “hard” and “soft” practices, thereby internalizing LM&SS at the macro, meso, and micro levels.

Originality/value

This is one of the first studies to examine in-depth the impact of “hard” and “soft” LM&SS on both employee well-being (subdivided into different components) and performance in healthcare, as well as the role of “soft” HRM in this relationship. Linking LM&SS, HRM and outcomes to a climate for LM&SS is relatively a new approach and has led to a deeper understanding of the mechanisms underpinning the internalization of LM&SS in healthcare.

Quality cost management in the SMEs of Poland

Purpose

The purpose of the study is to examine the research problem that represents an attempt to approximate the importance of quality costing in managing a modern enterprise using the selected enterprises from small and medium-sized enterprises (SMEs) in Poland.

Design/methodology/approach

The primary goal of the research is a need to acquire knowledge about the use of quality cost accounts in enterprises operating in Poland. The research has been conducted in the SMEs of production and services. From October 2018 to December 2018, survey-based research was carried out in the selected SMEs of production and service in Poland. The targeted participants of the study are from the medium-sized enterprises, employing 50–250 people.

Findings

The pilot studies conducted in companies indicate that modern enterprises are focused on quality. Many enterprises declare to be continuously improving quality system and quality costing. However, generally, these are large companies that have implemented ISO standards, often part of international corporations. The survey result of the study shows that medium-sized enterprises still make little use of modern cost accounting variants. Based on the study, only 9.75% (39 enterprises) from a representative group of 400 companies from the sectors of manufacturing, services and production as well as service companies apply quality costing. Some of the other enterprises are only taking measures to implement quality cost accounting.

Research limitations/implications

The research has been conducted in randomly selected SMEs in the form of a questionnaire interview. In order to further analyze the construction of quality cost management (QCM) systems and the use of information from QCM by enterprises, case study method should be used more widely.

Practical implications

The results of the study provide useful help for companies that are quality-oriented and want to implement quality costing. The survey has been conducted in 400 enterprises, and the survey results of considered SMEs reveal the most important aspects of the application of quality costing.

Originality/value

The questionnaire used, the answers provided and the resulting conclusions fill the identified research gap. In the author's opinion, findings of research are relevant and useful, not only for accounting practice but also for theory. They show that although TQM and quality costing have been very popular in the literature since the 1990s, the degree of application of quality costing in practice (except for large, often international companies) is too low. So, the suitability of QCM in managing a modern enterprise from the SMEs should be promoted.

Digital supplier selection reinforcing supply chain quality management systems to enhance firm's performance

Purpose

The geographical scattering of physical facilities in conventional supply chains enforces firms to shift toward digital supply chains (DSCs). While switching to DSCs, the decision-making becomes more complex with an upsurge in the size of the manufacturing firms. The manufacturing firms need to develop supply chain quality management (SCQM) systems to improvise their processes for delivering advance products and services. For developing SCQM, the role of the digital supplier is significant, as they may recuperate the quality management systems (QMS) for enhancing the firm's performance. The purpose of this paper is to explore the factors that affect the selection of digital suppliers. The other purpose is to evaluate the alternatives for identifying the best supplier that enhances the QMS for DSCs.

Design/methodology/approach

The decision-making is complex for digital supplier selection (DSS) and thus, the study has utilized integrated SWARA-WASPAS methods for their critical evaluation. The stepwise weight assessment ratio analysis (SWARA) method has been utilized for identifying the weightage of factors and weighted aggregated sum product assessment (WASPAS) for assessing the digital suppliers to explore the best alternative. The integrated SWARA-WASPAS method is the most advance approach in multi-criteria decision-making (MCDM) for the evaluation of the factors.

Findings

The study reveals that supplier competency is the most significant factor in selecting digital supplier in DSC that may improve the product and service quality. The study also explores that manufacturing firms needs an efficient system for developing value for the internal and external partners that help them to cope up with the dynamic world. On the basis of the WASPAS results, supplier S8 has been ranked as the best supplier who has highest competency in the form of responsiveness, resilience, sustainable practices and digital innovation.

Research limitations/implications

The factors are assessed on the decision team of experts that may be biased and thus, the research may further be validated through empirical studies. The research has to be extended in other nations for exploring how organizations and customers are responding to the DSCs.

Practical implications

The study has given insights to the manufacturing firms to consider the crucial factors for DSS, as it affects the overall performance of the organizations. The decision makers of manufacturing organizations should consider the factors such as supplier competency, digital innovation and information sharing for value creation that may provide them better opportunities for developing their DSCs along with their digital suppliers to connect with stakeholders appropriately.

Social implications

The improved SCQM aligned with DSS will offer quality products that are sustainable and provide social and economic benefits to the society. The DSS will be able to provide improvisation of the existing products and services for developing a sustainable value chains for the manufacturing organizations. This process will bring more transparency, viability and sustainability in the product and services. As a result, the DSC partners will be more transparent, viable and resilient.

Originality/value

The research on DSS and its importance in enhancing QMS is limited. This research is the novel approach to understand the criteria behind the selection of the digital suppliers’ role and their presence in enhancing the quality of products and services.

Adopting Six Sigma DMAIC for environmental considerations in process industry environment

Purpose

The aim of the study is to develop and apply a continuous improvement (CI) framework by introducing environmental considerations into the Six Sigma DMAIC (define–measure–analyze–improve–control) cycle for a continuous identification, evaluation and implementation of promising opportunities of enhancing environmental sustainability of process-based industries.

Design/methodology/approach

Action research approach within the research design of a single case study was used for illustrating the application of the proposed DMAIC framework for improving operational and environmental performance in the process-industry environment of a pharmaceutical manufacturing company.

Findings

The case study illustrated the implementation of DMAIC cycle for optimizing the energy consumption of pharmaceutical plants producing bulk drugs for medication. After improving the energy distribution in the cooling tower (CTW), chilled brine (CHB) and chilled water (CHW) system, the pharmaceutical plant was able to achieve an annual economic benefit of US$97,047 and environmental benefits of mitigating CO2 emissions of 807.44 t (CO2) by reducing the electricity and furnace oil consumption.

Originality/value

The framework may be adopted for environmental considerations specific to process-based industry such as chemical plant, fertilizer units, thermal power plant and food processing industry.

Let's get everyone involved! The effects of transformational leadership and organizational culture on organizational excellence

Purpose

This paper posited a dynamic relationship between transformational leadership, organizational culture, and organizational excellence in order to develop a better understanding of the casual linkages between these three areas.

Design/methodology/approach

The research methodology includes a multi-item scale questionnaire survey which included 448 samples from United Arab Emirates (UAE) with an average response rate of 61.1%. The hypotheses were tested by applying structural equation modeling (SEM) and path analyses. Analyses used the Mplus software package.

Findings

The key finding in this study suggests that creating the involvement culture provides the all-inclusive participation and holistic engagement from employees, which consequently leads to organizational excellence.

Research limitations/implications

The study is more focused on particular type of leadership and can extend to other types of leadership as well the other regions. The study extends the findings of previous studies that suggested authoritative was essential initially but that this would change with the emerging culture.

Practical implications

Managers should foster an involvement culture and adopt transformational leadership style in order to reap the benefits of the quality management approaches.

Originality/value

From existing research on leadership in QM context, we adopt transformational leadership in connection with organizational culture and organizational excellence. The originality of the study lies in its quantitative approach to test an already demonstrated phenomenon about the relationship between transformational leadership, organizational culture and business excellence. This study significantly contributes to the literature on QM by discovering that organizations with transformational leadership styles and involvement or adaptability cultures can perform well and achieve organizational excellence.

Food Safety Performance in Food Manufacturing Facilities: The Influence of Management Practices on Food Handler Commitment

The purpose of the study was to investigate the influence of management practices on food handler commitment and, ultimately, food safety performance in food manufacturing facilities. Two focus groups, one with six food handlers and the other with six food safety professionals, were used to develop a conceptual model that measured the effect of management practices on food handler commitment and organizational performance. The fitness of the structural model was measured via a survey with 945 respondents from 189 food manufacturing facilities and official food inspectors in the Emirate of Dubai, United Arab Emirates. The study found that training, communication, employee involvement, and organizational management support positively and significantly influenced employee commitment, and employee commitment positively and significantly influenced facilities' food safety performance. These results indicate food handler commitment is a critical factor in the relationship between all of the studied management practices and facilities' food safety performance. The study may have implications for food safety inspectors, enforcement officers, training agencies, and food manufacturing managements to consider human aspects in their work.

Modeling enablers of supply chain quality risk management: a grey-DEMATEL approach

Purpose

The purpose of this paper is to recognize and model the enablers of supply chain quality risk management (SCQRM) through an empirical study in the Indian automotive companies.

Design/methodology/approach

A systematic literature review was conducted to extract the key enablers of quality management (QM) and risk management in the context of manufacturing supply chains. A grey-based DEMATEL method was employed to identify and model the key enablers of SCQRM.

Findings

The results of empirical study showed that the effectiveness of QM and risk management systems for automotive supply chain is driven by a set of common enablers that could be employed for developing dedicated SCQRM systems. The common causal factors in the model such as the involvement of top leaders, inter-firm communication and strategic-level alignment between supply chain members on both these issues clearly state that there is a need for a broader policy at an early stage.

Practical implications

It is crucial for the automotive companies to develop and implement structured systems for SCQRM keeping in view the impact of any unaddressed quality risk on missed production targets, vehicle recalls and safety hazards.

Originality/value

This study ascertains the key enablers of SCQRM with emblematic focus on automotive industry and identifies if there are commonalities in these enablers.

Quality management principles and school quality

Purpose

The purpose of this paper is to test the relationship of process approach (PA), customer focus approach (CFA) and school quality with the moderation of professional certification of school principal to fill the gap of quality management practices in private schools.

Design/methodology/approach

Study applied quantitative design with the sample of 401 principals of private schools. Questionnaires were adapted from different studies, and pilot study was carried out. Confirmatory factor analysis was done along with structural equation modeling.

Findings

Results indicate that the process approach has a significant effect on functional quality and academic quality of schools. Customer focus approach medicates the relationship of process approach and functional quality. The study found no evidence of the relationship of moderation of professional certification of school principal with process approach, functional quality and academic quality.

Practical implications

Study contributed through the generation of new dimensions of school quality, putting professional degree of school principal as a moderator and by providing basis to understand the implementation of quality management system in schools. The outcomes of study will guide school managers to implement the process management approach to improve the school quality.

Originality/value

Originality of the study is defined in three ways; first, it is first study that examines the relationship of process approach, customer focus approach and school quality with the moderation of professional certification of principal. Second, it chooses “single” schools that have not been subject of any quantitative research exclusively. Third, it is a first attempt to examine the working of private schools in Pakistan with respect to quality management principles.

Quality management as a determinant factor of productivity

Purpose

The purpose of this paper is threefold: first, to analyse the current state of the literature on the relationship between quality management (QM) and productivity as a performance indicator; second, to identify the key constructs of QM practices related to productivity; and, finally, to reveal whether QM can actually be regarded as a determinant of productivity.

Design/methodology/approach

This research was carried out through a systematic literature review, considering 150 papers that studied this relationship between 1997 and 2017 and another 37 papers on the internal determinants of productivity.

Findings

The findings revealed that human resource management, top management and process management were the more relevant constructs of QM practices related to productivity. In addition, 89 per cent of the internal determinants of productivity were related to the proposed constructs of QM practices, which suggest that QM is a determinant factor of productivity.

Originality/value

This review analysed the literature on the relationship between QM and productivity, as few studies have done before, generating original, interesting and useful findings that can guide future research and that also represent a useful tool for researchers, practitioners, managers and policy makers.

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.

An empirical investigation on TQM practices and knowledge sharing mediation in software industry

Purpose

The adequate culture of knowledge sharing in organizations is considered a key factor for improving the employees’ performance. Along with knowledge sharing, total quality management (TQM) practices are the ways to achieve business excellence. The purpose of this paper is to explore the mediating effect of knowledge sharing on the relationship between TQM practices and employees’ performance.

Design/methodology/approach

The quantitative study has been carried out in software houses of Pakistan. Data were collected from 340 employees using survey questionnaires from software houses of Pakistan and is analyzed through structural equation modeling technique using SPSS 22.0 and SmartPLS 2.0.

Findings

The results reveal that knowledge sharing partially mediates between TQM practices and employee performance. Furthermore, the results indicate that the TQM practices should be implemented holistically rather than individually.

Research limitations/implications

The generalization of the results is limited as the sample size is relatively small and represents software houses of only four regions in Pakistan. Moreover, the study findings were only based on software houses. So, these should be applied to other sectors with caution.

Originality/value

This study complements the previous researches and seeks to extend literature that how the core elements of knowledge sharing mediate between TQM practices and employees’ performance especially, in developing countries like Pakistan.

Contradictions in TQM implementation

Purpose

The purpose of this paper is to confirm the existence of contradictions in total quality management (TQM) implementation among some Ghanaian companies and to provide a framework for balancing these contradictions.

Design/methodology/approach

Closed-ended questionnaires were used as a survey instrument. A sample of 80 managers from 40 Ghanaian multinational companies implementing TQM responded to the questionnaires.

Findings

The results showed that the implementation of TQM comes with inherent contradictions, which may hinder the success of TQM if not checked. Three pairs of contradictions were established in this study, namely “Standardization vs Innovation,” “Manipulation vs Empowerment,” and “Collectivism vs Individualism.” A framework was proposed to balance these contradictions in order to ensure TQM success.

Research limitations/implications

The study used all the 40 ISO certified firms in Ghana, but this number is quite small relative to ISO certified firms worldwide. Further, the study was done in Ghana and, for these reasons, generalization to the rest of the world is limited.

Practical implications

The proposed framework when applied by managers to balance the contradictions will achieve success in TQM implementation.

Originality/value

Previous studies have talked about the existence of the contradictions. This paper proposes a framework to balance the existing contradictions. This framework is new and has never been proposed in the literature to minimize the adverse effects of these contradictions on a firm’s profit generation.