Critical success factors of Total Quality Management implementation in Indian Iron and Steel Industr

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Critical success factors of Total Quality Management implementation in Indian Iron and Steel Industries (IISI)

1 Scholar Final year M.Tech (Industrial Engg & Management) CSIT Durg.

2 Associate Professor Department of Mechanical Engg CSIT Durg, Chhattisgarh, India ***

Abstract - Over the past few decades, many organizations have implemented Total Quality Management (TQM) to create a culture of continuous quality improvement and improve business performance. Various QMS implemented in organizations are ISO 9000, Total Quality Management (TQM), Aerospace Standards (AS) and many others. These standards cover aspects such as management leadership, process management, teamwork, quality improvement, and relationships with suppliers and customers. It is expected that the implementation of TQM will ultimately improve the overallperformance ofthe business.

The main objective of my project is to investigate and evaluate TotalQualityManagement (TQM) practices insteel production and also to determine their impact on their performance. In this regard, a TQM implementation questionnaire on business performance factors is prepared and a survey study is to be conducted with quality management and engineering professionals to collect their opinions on QMS implementation. A sample questionnaire is distributed to experts, managers and supervisors of various firms to study and cover the overall impact of QMS implementation onvarious business performance factors.

Key Words: Quality Control (QI), Quality Control (QC), Quality Assurance (QA)Total Quality Management (TQM), Critical Success Factors (CSF), Indian Iron & Steel Industries(IISI).

1. Introduction:

Organizations that adopt a quality management strategy focus on achieving and maintaining high quality outputs using management practices as inputs and quality performanceasoutputs.PioneersinTQM,suchasDeming, Juran, Crossby, and Feigenbaum, emphasized the importance of quality philosophy as an essential competitive weapon for organizational transformation. Researchers define quality management (QM) as a set of guiding principles and management style adopted by managers in organizations to improve organizational competitiveness and performance. A study by many researchersidentifiesrelationshipsbetweenQMpractices and examines the effects of these practices on performance, but finds inconsistencies and conflicting results among researchers. These findings suggest that

there is a positive relationship between QM or TQM practices and firm performance and among other variables such as product quality, product and process performance, perceived quality, quality drivers, reduced costs, more satisfied customers, and improved financial performance. In general, a large body of literature emphasizes the positive impact of QM practices on performance, but others have not found a relationship betweenQMpractices TQM andperformance.

Therefore, quality management (QM) plays an important role in the productivity and performance of an organization. Quality practices seem to be important for the continued survival of Indian organizations. Today, despite this debate, TQM is widely accepted and is the most important research topic in both academic and professional settings. However, there is a lack of agreement on the research and some results contradict thetheoriesofqualitymanagement.

With increasing throat cut competition and the age of globalization, the concept of supply chain quality management is at the forefront of industry today It requires coordination with suppliers and customers, ratherthantreatingthemasopponents,sothattheflowof materials from the supplier to the end customer is smoother. It includes optimization of various concepts such as reducing product delivery times, supporting justin-time concepts, improving product quality, etc. To be successful intheir business, organizations need to control not only costs but also quality in the supply chain. Successful supply chain management largely depends on howqualityismanagedthroughoutthesystem.Soitisnot false to say that quality management is essential for success in today's competitive world. Different types of qualityneedtobemanagedbothinsideandoutsideof the supply chain system. This includes information quality, product quality, service quality, etc. This has resulted to the successful implementation of quality management systems in different organizations around the world. The implementation of QMS is used in organizations as one of the most effective tools for managing and improving quality and thus increasing the company's competitiveness.Organizationsimplementvarious quality management systems, the most well-known are the standards given by the International Organization for

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Standardization (ISO) and Total Quality Management (TQM) tools. Other quality management systems implemented are AS standards typically implemented in the aerospace industry, TS standards implemented specially in the automotive industry and so on The basis for organizations is that they want to improve business performance as a result of the implementation of quality management systems through the improvement of one or more intermediate factors such as information quality, operational performance, service quality, etc. This work examines the impact of the implementation of quality management systems on business performance through theimprovementofvariousintermediateproducts.

1.1 Research Objectives

Plenty of organizations have already implemented a QMS as a rate controlling and expediting measure for change. QMS practices are expected to improve organizations performance by improving information quality, operational performanceandqualityofservices, products etc.Manyresearchershaveidentifiedastrongrelationship between various TQM practices and investigated their tangible and intangible effects on quality performance, financial and market performance through various models.Infact,moststudieshaveidentifiedarelationship betweendifferentqualitymanagementconstructsandthe impact of each on performance measures. There is a lack ofresearchintheliteratureontheoveralleffectofQMSon business performance through the improvement of other factors and the examination of the overall effect of QMS implementationonvariousperformancefactors.Basedon the analysis of past research, the aim of the project is to study the impact of TQM implementation in the steel sector.

My objective is to explore the relationship between Quality Management Practices (QMP) and Organizational Performance (OP) in the manufacturing sector by developing a conceptual framework and recognizing the importance of QMP Critical Success Factors (CSFs) to organizational performance, and to develop a quality management practice measurement tool for Indian manufacturing and service organization. To achieve this goal, a well-developed set of items to measure the QMP constructs had to be developed. The development of a valid tool for quality management practices that can be usedinmultiplecountriesandmultipleorganizationswill be useful for practical and academic perspectives. In addition,theliteraturereviewpromisestorevealalackof research regarding some critical factors of QM practices. Therefore,currentresearchproposesaholisticframework for QM practices based on a comprehensive overview of thefactorsthatcontributetothesuccessofQMpractices.

2.0 Literature Review

SnezanaTopalovic,2014:-Implementationoftotal quality management to improve production performance and increase customer satisfaction levels. In the banking sector, the following four TQM variables, i.e. top management commitment, courtesy, responsibility, tangible values, have an impact on customer satisfaction andbusinessimprovement.

Bell & Omachonu, 2011: – A framework of quality management practices, recognized by organizations and governments worldwide and subsequently becoming the defactostandardformanagementsystems.

Buttewort–Henemann: Total quality can be achieved by managing business processes that ensure total customer satisfactionatalllevels.

Terziovski&Power,2007,Arumugametal.,2008,Suetal., 2008: However, many studies reveal that effective ISO implementation can benefit organizations through improved efficiency, management controls and productivity,leadingtoincreasedperformance.

Magd, 2008: Quality has been identified as one of the competitive strategies for improving business performance in the global market. In order to increase efficiency, continuous improvement and performance of firms, many firms adopt quality management practices as aqualitymanagementtool.

Massoud M. Arshida & Syed Omar Agil: - Critical success factorsforTQMintheLibyanIronandSteelCompanyare continuous improvement, top management commitment, education and training, supplier quality management, employee empowerment, recognition and rewards, and customerfocus.

3.0 Methodolgy

3.1 DATA COLLECTION

3.1.1 PRIMARY DATA

Primarilythedataiscollectedfromsomepreviousarticles, websites and some other theoretical books which are relatedtomyTotalQualityManagementproject.

3.1.2 SECONDARY DATA

Insecondarydata, asshownintheresearchflowdiagram, twoqualitativeandquantitativeapproachestocollectdata for research purposes. Two methods, questionnaire survey and semi-structured interviews are used to collect the data. The main intention of the questionnaire was to recognize the critical success factors of TQM

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implementation in iron and steel industry in India. For betterunderstandtheimplementationofTQMinironand steel industry in India interview method is mainly used. Interviews with quality managers insteel industries were used for topics and problems that emerged from the findingsofthequestionnaires

3.2 SEMI-STRUCTURED INTERVIEW

In semi stuctured interview, total of 140 copies of the questionnaire were distributed to the target quality managers who are working in Indian Iron and Steel Industries. In questionnaire Five-point Likert scales with the options of Strongly disagree, disagree, neutral, agree and strongly disagree were used. Ollis et al. (2003) reportedthatthisscalegivesrespondentsmorecomfortin choosing widely. The questionnaire contains 27 statements to identify critical success factors of TQM implementation.

The questionnaire was validated by distributing it to academics in India who specialize in TQM and quality management.Theyprovidefeedbackonthecontentofthe questionnaire;theircommentsweretakenintoaccount;a changewasmadeandthedocumentwasrevalidated.

Around 140 questionnaires sent to the target people, out ofwhichatotalof130havecompletedquestionnairesand revert.ThecollecteddatawereanalyzedusingLikertscale mean and standard deviation. Consultation with quality managers were used to elevate a clear understanding of the issues that resulted from the questionnaire and to obtainadditionalinformationonTQMimplementation.

LITERATUREREVIEW

QUESTIONNARIEDESIGN

SEMISTRUCTUREDINTERVIEW

DATACOLLECTION

Andhra Pradesh, Karnataka, West Bengal, Chhattisgarh, Jharkhand, Maharashtra Odisha&Gujarat

DATAANANLYSIS

1. DESCRIPTIVEANANLYSIS. 2. MEAN&STANDARDDEVIATION 3. T-TEST

RESULT&DISCUTIONS

CONCLUSION

Figure: Researchflowchart

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Figure : Classificationofrespondentsasperexperience.

The data, which were collected through a questionnaire design and a semi-structured interview, were analyzed usingafive-pointLikertscalemethod.Inthismethod,fivepoint Likert scales (strongly disagree, disagree, neutral, agree and strongly disagree) were used in the TQM questionnaire. The questionnaire contains 27 statements to judge the critical success factors for TQM implementation.

A Likert scale is a type of rating scale which is used to measureattitudesoropinionsofthepeopleunderreview. Usingthisscale,respondentsareaskedtorate thinhgs on theirlevelofagreementandknowledge.

A type of psychometric response scale in which respondents specify their level of agreement with a statement, usually on five points: (1) Strongly disagree; (2) I do not agree; (3) neither consent nor dissent; (4) I agree;(5)Fullconsent.

A Likert scale consists of a series of five Likert-type statements representing similar questions related to a critical success factor of TQM and combined into a single composite score/variable. Likert scale data can be analyzedasintervaldata,i.e.themeanisthebestmeasure ofcentraltendency.usemeansandstandarddeviationsto describescale.

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3.3.2 Descriptive analysis

Five-points Likert scale method MEAN & STANDARD DEVIATIONwithT-TESTcalculationswithoneexample:

Opinion on statement Rating

Agreed Managers in No.

A.StronglyDisagree 1 27 B.Disagree 2 43 C.Neutral 3 14 D.Agree 4 15

E.StronglyAgree 5 31 Total 130

Critical Success Factor

MEAN MEAN 2 SD T-TEST

Mean =((27*1)+(43*2)+(14*3)+(15*4) +(31*5))/130 =2.85

Mean-2 =((27*12)+(43*22)+(14*32) +(15*42) +(31*52))/130 =10.31

Standarddeviation(SD) =√(Mean2-mean) =√(10.31-2.85) =2.73

Continuous improvement.

2.19 6.18 2.00 0.32

4.31 19.2 3.86 0.64 2.85 10.45 2.76 4.42 20.33 3.99 Top management commitment

3.67 14.79 3.34 2.49 7.18 2.17 3.4 13.2 3.13 3.91 17.42 3.68 2.62 8.88 2.50 3.2 11.8 2.93 3.84 15.21 3.37 3.63 14 3.22 Educationand training

3.91 15.68 3.43 0.71 2.26 6.75 2.12 2.37 7.03 2.16 Employee Empowerment

2.30 7.27 2.23 0.63 2.85 10.31 2.73 2.48 7.90 2.33

SupplierQuality management

2.22 6.95 2.17 0.82 3.92 17.05 3.62 2.48 7.88 2.32

Recognition& Reward 2.58 8.11 2.35 0.79 3.98 17.13 3.63

Customerfocus

3.35 12.38 3.01 0.27 4.09 17.91 3.72 4.13 17.41 3.64 4.48 21.28 4.1

T-TEST: T-testisconductedbyusingexcelinthefollowingway:

All Mean values of individual critical success factor are selectedforarray-1

All Standard deviation of individual critical success factor valuesareselectedforarray-2

Twotaildistributionand

Twosampleequalvariance(homoscedastic)

4.0

RESULT & DISCUSSION

Critical Success Factors (CSF)

TheweightageofeachTQMfactorwas evaluatedbyusing a set of questions and a five-point Likert scale. Quality managers were asked to rate their response from 1 to 5 whether they agreed or disagreed with the given statements. Using five-point Likert scale, the mean is measured as 3 ((1+2+3+4+5)/5), therefore the mean is greater than 3, indicate that the statement is agreed. The abovetableshowsthemeanofeachfactorexaminedinthe current study. Critical success factors are continuous improvement, top management commitment, education and training, supplier quality management, employee empowerment, recognition and rewards, and customer focus.

MostoftheTQMmanagerswereagreedthatthesefactors play a significant role in achieving effective TQM implementation in an organization. This result is supportedbyparallelreaserchdoneinthesamearea.Top management commitment plays a significant role in promoting TQM implementation in steel sector As far as Steel sector is concerned,top management commitment andcustomerfocusplayasignificantroleinthesuccessful

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implementationofTQM.Forthewin-winconditionofTQM implementation, customer focus is a key element in addressing and resolving customer problems and complaints in companies that apply the TQM philosophy The development of a quality policy must reflect the goal of the organization which includes corporate values, expectationsandfocus.

From the questionnaire survey, the following statements are identified as critical success factors for TQM implementation.

1. In your organization, TQM is implemented in all departments.

quality managers are strongly agreed and up-to 22% are agreed and 6% & 14% are agreed & strongly agreed respectively. It is shows that in steel industry there is no sufficientTQMleaderstoimplementTQMsuccessfully.

3. SufficientTQMleadersarethereinyourblastfurnace department.

In blast furnace department, TQM leaders are less in number 21% strongly agreed and 33% are agreed. As shown in above figure, more than 50% TQM leaders are saying that blast furnace department doesn’t having sufficient TQM leaders to implement TQM successfully speciallyinsmallscalesteelindustries.

managers

Inthesurvey,insteelindustriesTQMisimplementedinall departments.Thisstatementisstronglydisagreedby32%, disagree by 41% only 11% & 6% quality managers are agreed&stronglyagreedasshowninabovechart.

2. YourorganizationishavingcompetentTQMleaders.

Accepted

Due to insufficient of number of TQM leaders, the interaction level between TQM leader and the top management or the shop floor workmen is also not that much of efficient. It effects on contentious process improvement.

4.

interaction between TQM leaders and shop floorworkmen.

Accepted quality managers (%)

The above chart shows that, the steel industries are doesn’t having adequate TQM leaders. Up-to 41% of

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In survey, found that more than 50% of quality managers said that there is no good interaction between TQM leadersandshopfloorworkmen.

Interactionfromshopfloorworkmenismostimportantto communicate the message or instructions top managementtotheshop floor workmen.Andalsofinding theproblemsfacedbytheworkmen,ideascollectionfrom shopfloorworkmentosolveproblems.

Interaction from top management is also most important to modify the process to solve the problems and continuousimprovementinprocesstechnology.

TQM leaders are having direct contact with top managementandshopfloor workmen.IftheTQMleaders are not sufficient then the interaction from shop floor workmen will decreases as shown in the blow. The communication gap will create between top management and shop floor workmen it is most important for continuousimprovementinprocess.

5. Short time breakdowns will deteriorate the product quality.

Accepted quality managers

8%

Short time breakdowns are deteriorating the quality of individual department product. It is strongly agreed by 43% and agreed up-to 34% of quality managers in the survey.

6. During short time breakdown time there will be a quickcommunicationbetweeninternalcustomerand internalsupplier.

Accepted quality managers (%)

Agree

Duringshorttimebreakdownperiodstherewillbeaquick communicationthisstatementisdisagreedbyTQMquality managers up-to 65% (strongly disagree 46% & disagreed 19%). Shor time breakdowns will deteriorate the quality of product but the communication gap between internal customerandinternalsuppliershowninabovefigure.

If there is a quick communication, then internal customer will take the necessary measures/actions to maintain same quality and avoid the problems. Poor quality of raw material, which are supplied by the internal supplier will reduceproductivityandincreasethecostofproduction.

In blast furnace process the raw material quality is most important (physical properties and chemical properties). The process is carried out by assuming the quality of raw material is good and constant. If any changes in raw materialquality,riteactionatritetimeismostimpotentto maintainproductqualitybecausewhatevertheactionsare taken the reaction will start (minimum time to start reactionsinsidethefurnace)after2-3hours.Afterstarting reaction, result on quality will occur after 3-4 hours minimum sometimes 2-3 days (if rite action at rite time nottaken).

7. In short time breakdown periods, internal supplier is storingtheproduct(sinter/pellet/coke)separatelytill gettingqualityanalysisreport.

Duringshorttimebreakdowns, a. The quality of internal supplier product (sinter/pellet/coke) will be deteriorated by short timebreakdownsand b. Internal supplier will not be informing quickly to theinternalcustomer.

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A. Strongly Disagree

B. Disagree C. Neutral D.Agree E. Strongly Agree

Even though “internal supplier is storing the product (sinter/pellet/coke)separatelytillgettingqualityanalysis report” this statement is disagreed by 77% (strongly disagreed by 16% & disagreed by 61%) of quality managersaspermysurvey.

If poor-quality material is mixed with good quality this will create a problem in blast furnace. Most of the industriesarestoredseparatelytillgettingqualityanalysis whenalreadyinternalcustomeri.e.,Blastfurnaceisfacing problems.

In some steel industries, every time during short time breakdown periods the poor-quality material is stored separately. After getting quality analysis it will supply to the internal customer by communicating with each other. The internal customer small amount of the poor-quality material is blended with large amount of good quality material by storing poor quality material separately in storagebinsatstockhouse.

8. Well support of top management in investing capital fornewtechnology.

Top management is well supported to invest capital for new technology implement this is disagreed quality managers by 72% & strongly disagreed by 4%. Only 21% areagreed&4%arestronglyagreedbyqualitymanagers.

Accepted quality managers (%)

Present market competition is mere so to give strong competition in the market for long term need to implement new technology is more important. It will give result that good control in quality, reducing production costperunitisalsoreduceandincreasingproductivity.

5.0 Conclusion & Future Scope Of Work

5.1.1 CONCLUSION

All the 7 parameters listed in the table above were identified by the quality managers who were interviewed as critical factors in the Indian iron and steel industry. These factors are continuous improvement, top management commitment, education and training, supplier quality management, employee empowerment, recognitionandrewards,andcustomerfocus.

Critical Success Factor MEAN MEAN2 SD T-TEST

Continuous development. 3.86 16.66 3.53 0.17

Topmanagement commitment 3.22 12.07 2.93 0.22 Education and training 2.85 9.82 2.57 0.37

Employee Empowerment

2.54 8.49 2.43 0.39

Supplier Quality management 2.87 10.62 2.71 0.37

Recognition& Reward 3.28 12.62 2.99 0.29

Customerfocus 4.01 17.24 3.62 0.51

Table:

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Through this research, I found that in the steel industry, each department should have at least 2-3 numbers. Head ofTQMexceptHOD(HeadofDepartment).TQMmanagers focus primarily on quality by finding the cause of poor quality, get feedback directly from the shop floor worker from time to time, and focus on continuous process improvementthroughthequalitycycle,i.e.PDCA.

If the quality managers in each department are sufficient, in case of any problems (short-term failure or raw material change) in any department (sinter/pellet/coke oven),theyimmediatelyinformedtheTQMmanagerofthe direct internal customer (blast furnace). Then this TQM leader(blastfurnace)calculatesthefollowing

Answer: To what extent the physical and chemical propertiesoftherawmaterialieagglomerate/pellet/coke will change and how it will behave inside the furnace is calculated before affecting the final quality of the hot metal.

B. To what extent it will affect the quality of the blast furnaceproductiehotmetalandnearSMS.

C.Aconstantqualityofhotmetalismaintainedby

i. Change of input raw material according to availability.

ii.Changeinloadratio(Sinter:Ore:Pellet)

iii.Changingprocessparameters.

D. Sometimes TQM leaders in blast furnaces cannot control the quality, and if they refuse, they immediately report to TQM leaders in the superior department (SMS), thentheygotoPCM.

5.1.2 FUTURE SCOPE OF WORK

Education and training level in an organization andtheirinstantfeedbackisimprovedby

a. Motivating the worker who developing new plans to do work with friendly or who develops new process plans.

b. Improvement in quality of daily routine work is enhancedthroughdevelopingplans.

Employee Empowerment found to be improved by involving TQM managers in their departments by takingthefollowingresponsibilitiesinaleadrole.

a. Daily meetings with top management and HOD regarding how to achieve target production with qualitybyavailablerawmaterialandtheirquality.

b. Daily meetings with all other department TQM leadersregardingbreakdowns(whatistheproblem?

Why occurred? Finding solutions doesn’t repeat the same thing etc.) and what extent internal supplier qualityisinfluencedoninternalcustomerqualityand finally external customer quality with respect to productioncost.

Supplier Quality management has been enhancedbytheorganizationbymeansof

a. Fastest communication between departments (internal customer and internal supplier) regarding quality,totakeriteactionatritetime.

b. Conducting institutional and on field trainings timelytoall.

6.0 REFERENCES

1. Critical success factors of Total Quality Management implementation with in the Libyan Iron and Steel Company; Massoud M. Arshida & Syed Omar Agil, September24-26,2013.

2. Implementation of total Quality Management in order to improve production performance and enhancingthelevelofcustomersatisfaction(Snezana Topalovic,2014).

3. Oakland S. Total Quality Management – The route to improving performance. Second Edition Oxford: Buttewort-Henemann;1993.

4. Stevenson J. Production / Operations Management. FourthEdition.Boston:Irwin.Homewood;1993.

5. Zairi M. The TQM lagasy- Guru’s contributions and theoreticalimpact.TheTQMJournal,2013.

6. Fotopoulos CV, Psomas EL. The structural relationship between total quality management factors and organizational performance. The TQM Journal,2010.

7. Implementation of Total Quality Management in order to improve production performance and enhancingthelevelofcustomersatisfaction.Snezana TopalovicOctomber-9,2014.

8. Implementation of self-assessment evaluation for TotalQualityManagement:acasestudyofwholesale sectors;2012.

9. The present status of quality and manufacturing managementtechniquesandphilosophieswithinthe Libyan Iron and Steel industry; Rajab Abdullah Hokoma, Mohammad Kurshid Khan, Khalid Hussain, August-2009.

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10. Total Quality Management in industrialized building system:Implementationandbenefitsinconstruction projects; Awag Mohsen Alawag, Wesam Salam Alaloul,M.S.Liew,MuhammadAliMusarat,Abdullah O.Baarimah,SyedSaad,SyedAmmad-June-15,2022.

11. RelationshipbetweenTotalQualityManagementand Organizational performance: Empirical evidence from selected airlines in Nigeria aviation industry; April-2020.

12. CasestudiesontheimplementationofTQMintheUK automotive SMEs (Sha'ri Mohd. Yusof Universiti Teknologi Malaysia, Johor Bahru, Malaysia, and Elaine Aspinwall University of Birmingham, Birmingham,UK,August2000-February2001)

13. Implementation of TQM: A Case Study in an Auto Company (N. Venkateshwarlu, Ashish Agarwal and ManojKulshreshtha,April-June2011).

14. A Case Study of Total Quality Management in a Manufacturing and Construction Firm (Ammar AlSaket,January2003).

15. TQM implementation issues SME review and case study (Sha'ri M. Yusof and Elaine Aspinwall, UniversityofBirmingham,UK,27May2014).