Description

Performance measurement is of vital importance to a manufacturing organization to compete and make profits over time. An organization that is not able to efficiently utilize its resources in creating value for its customers will not survive in the competitive business global environment of today. Several key-factors found to affect the performance of a manufacturing company but chief among them is quality and Total Quality Model (TQM). Quality has been used as key performance indicator to achieve excellence in work organization. which ultimately specifying the concept of Total Quality Model. The implementation phase of quality concepts sorted and suggested in the environment of manufacturing company. The manufacturing industry comprises of two basic types of performance measures those that relates to results (competitiveness, financial performance) and those that focus on the determinants of the results (Quality, speed, dependability, flexibility, cost, innovation)later is also known as key performance indicator(KPI). In this paper quality is used according to the manufacturing-based approach, that is free of errors and conform precisely to their design specification. The firms have sought to enhance their competitiveness by employing total quality management (TQM), which means continuous improvement system on all operations Performance and quality has direct correlation with each other e.g. there is a range of expectations (All quality issues) of customer according to attributes (KPI). The theme and main concern of this paper will be that, how does TQM relate to performance measurement of manufacturing organization. Quality could only be improved at the expense of performance and vice versa.
Introduction