International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 04 Issue: 07 | July -2017
p-ISSN: 2395-0072
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Effect of TQM Practices on Quality Performance Through Operating Performance – An Empirical Study Rinoop V1, Anu P Anil2, Dr. Satish K P3 1M.Tech
Student, Dept. of Production Engineering, GEC Trichur, Thrissur, Kerala, India Research Scholar, Dept. of Mechanical Engineering, GEC Trichur, Thrissur, Kerala, India 3Professor, Dept. of Production Engineering, GEC Trichur, Thrissur, Kerala, India ---------------------------------------------------------------------***--------------------------------------------------------------------2PhD
Abstract - Total Quality Management (TQM) is defined as a
continuous effort by the management as well as employees of a particular organization to ensure long term customer loyalty and customer satisfaction. In the recent days TQM has generated a substantial amount of interest both among managers and researchers across the globe, but still there is a lack of a clear idea about the effect of TQM practices on Indian Manufacturing Organizations. Previous studies reported mixed results of the relationship between TQM practices and different performances. So this work is an attempt to analyze more precisely and find the relation between individual TQM practices and Quality performance through Operating performance in the Indian context. Based on the Literature study 13 TQM constructs were selected. The empirical data was collected from a survey in Indian manufacturing organizations using a self-administrated questionnaire. The reliability and validity of the practices and performance measures were evaluated. The data was analyzed and hypotheses were tested using structural equation modelling. The study showed that a positive and significant effect on quality performance by TQM practices through operating performance. Some but not all of the categories of TQM practice were particularly strong predictors. Knowledge management, continuous improvement, and customer focus were found to contribute more on quality performance through operating performance in Indian manufacturing organizations.
organization. Total Quality Management (TQM) is defined as a continuous effort by the management as well as employees of a particular organization to ensure long term customer loyalty and customer satisfaction. These days TQM practices are getting attention from management as well as from researchers because it is believed to improve customer satisfaction and is considered as a strategy for improving competitiveness around the world. Based upon the possible benefits TQM has attracted researchers around the world and gone for various studies. But there are mixed results about the relationship between TQM practices and organization’s performance. Some of the studies give positive results (Sim and Killough, 1998; Ittner and Larcker, 1995, 1997; Banker and Porter, 1993; Daniel and Reitsperger, 1992) while some found that there is no significant advantage for using TQM practices (Soltani et al. ,2005; Taylor and Wright, 2003; Sohal and Terziovski, 2000; Terziovski and Samson, 1999). Also number of researches in the Indian context is very few. So there exists a possible scope to identify the relationship between TQM practices and Organization performance. Here in this study Organization performance is measured through operating performance and quality performance. The possibility of an indirect effect on quality performance by operating performance was also evaluated. This will help managers to find out the interdependencies between the core TQM practices and their relationships with operating performance and quality performance.
Key Words: Total quality management, Operating Performance, Customer satisfaction, Multiple regression, Knowledge management
2. LITERATURE REVIEW 2.1 Critical Factors of TQM
1. INTRODUCTION
A study was done on previous literatures related to TQM implementation and have examined the concept of TQM ( Saraph J. V et.al,1989 ;Sila I et.al, 2002 ; Sureshchandar, G.S, 2002 )and the different critical factors that contribute to successful implementation of TQM. Empirical researches ( Quazi et. al, 1998; Ahire,Golhar and Waller, 1996, Black & Porter 1996) gave an idea about which all TQM practices can contribute success of organization. Critical TQM practices identified by different researchers were different from each other and it was observed that there was no universalistic set of practices (Hoang D.T .et.al, 2006; Arumugam V. et.al, 2008). There are also some Quality Award models which provide a useful benchmark framework for industries such as
In the current world scenario customers are more conscious about quality more than quantity. The meaning of word quality has changed because of the evolution of the world. Many authors defined quality in different aspects. Phil Crosby said quality is conformance to specifications. On the other hand, Joseph Juran said quality is fitness for use. For every organization in order to gain competitive advantage they have to completely satisfy their customers. One happy and satisfied customer brings several new customers along with him on the other hand one disappointed customer will spread bad words and spoil the reputation of the
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