Professional Documents
Culture Documents
Submitted by:
MC200401935
ZEESHAN SULTAN
(Fall 2022)
i
Table of contents
1. CHAPTER 1: INTRODUCTION.................................................................................3
1.1 Introduction:.......................................................................................................................
1.2 Background:........................................................................................................................
1.3 Objectives:...........................................................................................................................
1.4 Significance:........................................................................................................................
1.5 Research question:..............................................................................................................
1.6 Research model:..................................................................................................................
2. CHAPTER 2: Literature Review..................................................................................9
Process & knowledge management:...............................................................................11
Training & Education:....................................................................................................12
Leadership:.......................................................................................................................12
Supplier quality management:.......................................................................................13
Customer focus:...............................................................................................................13
Strategic quality planning (SQP):..................................................................................14
3. CHAPTER 3: METHODOLOGY..............................................................................15
2.1 Type of research:..............................................................................................................
2.2 Data collection:..................................................................................................................
2.3 Sources of data collection:................................................................................................
2.4 Data collections tools/instruments:.................................................................................
2.5 Subjects/participants:.......................................................................................................
2.6 Data processing, Analysis techniques and Interpretations:..........................................
References:................................................................................................................................
1
List of figures
2
1. CHAPTER 1: INTRODUCTION
1.1 Introduction:
TQM can assist businesses in meeting or even exceeding the customer’s needs for
high quality products/services (Wadsworth, 2002) .Six core principle i.e. “leadership,
knowledge & process management, training and education, supplier quality management,
customer focus, and strategic quality planning”, form the foundation of the management
philosophy, known as TQM. The premise that total quality could only be accomplished if
the idea of quality is utilized to all business operations from procurement through
servicing for post manufactured items is crucial (Martínez-Costa, 2009). Focusing on
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complete quality management gives businesses the best potential to drastically boost their
performance and take a leading place in the market. The core ideas of comprehensive
quality are a constant focus on the needs of the consumer, and integration all functions of
the businesses. As a result, companies must follow defined guidelines to implement
quality management effectively. (Honarpour, 2012).
Operational performance:
4
"Process Control and Process Management" is a key component of the TQM
approach for improvement (Porter, 1993). Processes are particular arrangements of
production related machinery, materials, labor techniques, and HR (human resources)
(Chua, 2006). The goal of process management and control is to make sure that the
manufacturing process goes as planned and meets the goals. Process management must
include the capabilities and maintenance of the process to meet production needs.
Equipment upkeep is a component of process management that makes sure the variance
is within the permissible range, enabling the manufacturing process to run smoothly.
Excellent process management should contain thorough work instructions for operating
machinery and equipment, as well as every process step that needs to be adequately
recorded to lower the chance of operator errors. Several processes, including quality
control tools. The PDCA cycle (Arian, 2016), SPC, (Thor, 2007) inspection & sampling
are particularly helpful for process improvement (Thelin, 2004).
Deming (1986) emphasized the significance of education & training to preserve and
advance workers' skills for ongoing development. Numerous research findings indicate
that training & education are the most crucial factors in the efficacious employment of
TQM (Mann, 1992). This paper will confirm what the majority of organizations already
believe namely that a TQ management plan must include education & training as a
critical and essential component (Palo, 2003). The success of TQM depends on spending
money on training & education. Employees should be considered to be great long-term
resource who demand ongoing education & training throughout their careers. All
management professionals, managers, and employees should accept quality education
(Palo, 2003).
Leadership:
5
"soft issues" like providing vision and direction and, in particular, the capacity for
sharing inspiring commitment with others and fostering levels of synergy, consent,
analogy, and insight are more closely related to strong leadership. Situational and
transformative metrics must be used to assess strong leadership. (Zairi, 1994). It involves
handling challenging circumstances with prudence, bravery, and objectivity, as well as
having vision, taking risks, and pursuing achievement and growth. Style is consequently
dynamic and adapts to the environment. (Zairi, 1994).“The kind of leadership needed in
times of crisis is very different from what is needed in times of stability, peace and
prosperity” (Dimma, 1989).
By establishing long term relationships with the fewest number of suppliers possible to
obtain high quality goods and services, supplier quality can be managed more effectively.
Maintaining connections with as few suppliers as possible can improve the quality of
supplies and boost buyer productivity by strengthening the supplier's dedication to
quality. Successful supplier partnerships provide them the chance to take part in product
or service design, giving them the chance to suggest component simplification. They may
help customers choose the most affordable products and supplies as well (Trent, 1999;
Ansari, 1990; Burt, 1989). Managing the quality of suppliers is a key component of TQM
because materials & purchased parts are typically the root of quality issues. Companies
that produce the highest quality goods have purchasing divisions that put quality before
cost. In contrast, the primary objective of the purchasing department in businesses is to
buy the parts that are technically sound and suited for producing high quality products at
the lowest cost (Trent, 1999; Ansari, 1990; Burt, 1989). When a supplier supplies low
quality goods or parts, the buyer incurs extra costs. For instance, 75% of guarantee claims
for one appliance producer were found to be related to components bought from a
supplier (Chua, 2006).
Customer focus:
The single TQM factor that meaningfully and directly improves customer results
is customer focus. Customer attention has been demonstrated to be positively correlated
with operational effectiveness. A company may generate high-quality, dependable, and
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timely supplied products /services if it regularly communicates with and receives
feedback from its consumers in order to precisely and promptly understand the desires &
expectations of the customers. Client satisfaction can be raised by methodically
measuring customer input and using it to enhance products, services, or business
procedures. A company can invest in profitable areas and increase its sales, market share,
and overall profitability when it precisely and promptly understands the requirements,
expectations, and complaints of its consumers, both now and in the future (Sadikoglu, E.,
& Olcay, H, 2014).
1.2 Background:
Every business wants to grow and expand in the modern environment of
commercial rivalry and effective planning and complete quality management can help
with this (Gherbal, 2012). TQM strives to continuously improve as a customer centered
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strategy to meet customer needs and achieve customer happiness (Koval, 2018). Deming
said that teamwork is preferable to working alone if an organization wants to improve
quality and foresee production challenges. Sales and time will be lost if all departmental
units do not collaborate from the beginning to accomplish a unified aim (Hackman,
1995). When everyone collaborates to achieve a common objective, sub-optimization is
avoided. Sub optimization aims to enhance a single department inside a business rather
than the entire business (Dean Jr, J. W, 1994). Non managerial personnel can make a
substantial contribution to the performance of the organization if they are authorized and
supported in a TQM environment (Dean Jr, J. W, 1994).
Numerous businesses have expended significant sums designing and
implementing TQM procedures in order to address the difficulties of global competition.
TQM is viewed as a strategy to gain a competitive advantage (Hackman, 1995; Douglas,
2001; Powel, 1995). Customer dissatisfaction increases as a result of poor service quality,
which becomes a key cause of business failure (Woodside, 1989). Because of competitive
changes that have heightened expectations, consumers or customers are increasingly
aware of higher requirements for product or service quality (Oh, H., & Kim, K, 2017) .
The organization's common goal can be accomplished by planning and coordinating
employees' efforts when top management is committed to TQM implementation. The
vision is established by top management, which also ensures its implementation. The
organization's top management may lay the groundwork and guide its long term vision.
TQM can be successful if there is top management dedication to customer satisfaction
leadership with a clear objective, team communication, and teamwork (Dubey, 2018)
Studies in the past have shown a strong correlation between TQM practices and a
company's operational performance (Chowdhury, M., Paul, H., & Das, A, 2007).
1.3 Objectives:
This study is implicated to find the effect of elements on the operational performance of a
firm. The elements are given under,
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Training & education
Leadership
Supplier quality management
Strategic quality planning
Customer focus
1.4 Significance:
• Policymakers and management at FCEPL Limited can use the paper's findings to
better understand the effects of TQM practices and create plans that will improve
the organization's operational performance.
By involving all employees in focusing on TQ and continuous development, the
company may create and retain cultural norms that promote long term
achievements for both clients and the firm.
It can contribute to the body of literature by empirically investigating the
relationship between a corporation's TQ management practice operational
performance of an organization.
9
1.6 Research model:
10
"precursor" from this perspective. The drive for "zero faults" that was spearheaded by
Philip B. Crosby paved the way for quality improvement in a number of other companies.
In the year 1968, the Japanese labelled their technique for ensuring total quality
"Companywide quality control,". During this time period, the idea that was synthesized
by Kaoru Ishikawa and referred to as "quality management systems" contributed in
Japan's ascent to prominence so that it might become a quality leader (Pyzdek, 2013).
TQM is an abbreviation for “total quality management”, which refers to the concept
of an all-encompassing and systematic process for controlling organizational quality. To
understand the TQM's guiding principles and processes, quality standards (such as the
ISO 9000 series) establish the concepts and procedures that serve as the TQM's guiding
principles (Pyzdek, 2013). Now, total quality management (TQ management) is defined
as an idea that is founded on the notion that by encouraging participation from each of its
workers, a company may increase its chances of achieving sustained success by focusing
on increasing the quality, and providing customer satisfaction as a result (Prattx, Mary
K., 2022). Both increased levels of competition and heightened expectations on the part
of consumers were two of the driving forces behind the gradual but steady adoption of
TQ management in businesses. A push-only strategy (that gave away to a “pull”
approach) to mass production placed a greater emphasis on the customer and the market.
The focus of TQM gradually shifted from "what" is created to "how" it is created in order
to satisfy the requirements of the "quality-cost-time triangle." This expansion of TQ
management's scope occurred gradually over the course of several decades. The
increasing globalization of today's economy has led to an increase in the complexity of
organizations as well as the complexity of their relationships both internally and with
their external environments (Weckenmann, A., Akkasoglu, G., & Werner, T,
2015).Manufacturers pay failure costs for bad items & improving quality reduces "failure
cost. To reduce "failure costs," a progamme that prevents poor items from being made is
needed (Dahlgaard, 2008). "Customer Satisfaction" underpins TQM. "People" as
customers—have unquenchable needs that cannot be satiated easily. Thus, consumer
satisfaction must be sustained. The TQM scheme should contain a "continual
improvement" mentality to help the company achieve customer expectations. Defect-free
items satisfy customers. TQM helps firms discover and eliminate production of faulty
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product, preventing damaged or faulty goods from being sold to customers (Walsh,
2002).
12
efficacy and efficiency of the business. (Bahri S., 2012).TQM benefits both “business”
and its “consumers”, making it a competitive tool. However, how well the organization
understands the TQM process and techniques determines its implementation success.
TQM requires management to lead a company-wide process that incorporates all
employees and divisions (Schuurman.H, 1997).
Any “quality” method needs process management (Porter, 1993). Connecting
processes with corporate strategic goals requires creating and applying process designs,
generating process measurement tools that provide backing to organizational goals,
coordinating and teaching managers to assure effective process management (Appian,
2022). Process management ensures error-free manufacturing & involves maintaining the
process's capability to meet production needs. Process management helps keep the
processes running smoothly and within acceptable limits (Zhang, 2013). (Saleh, R. A.,
Sweis, R. J., & Saleh, F. I. M, 2018) examined how TQM approaches affect operational
performance measures in manufacturing firms (in Jordan). Random sample from 40
industrial organizations was collected using a questionnaire (structured). The target firms
were ISO 9001-certified and had stringent TQ management practices. Linear regression
showed that TQM practice (Process control & management) is essential to operational
performance.
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management training on the effectiveness of the service delivery system was the subject
of an investigation that was carried out by (Mackelprang, 2012) They analyzed the survey
responses from 281 different service providers located in China. The objective of this
study was to investigate the differences between TQM training and job-limited training,
specifically with regard to how each of these types of training influences the capacities of
employees and the overall performance of service organizations. According to the
findings, training that is focused on TQM is more likely to have a beneficial effect on a
service company than training that is solely focused on job-related topics.
1.4 Leadership:
Leaders in TQM "motivate people so that they are driven to obey them in the
realization of organizational goals through permissible means" (Darling, 1992). In "The
management & control of quality,"(Evans, 2002) claimed leaders provide opportunities
and energy for continuing corporate excellence. This article focuses on "executive
leadership or top management" even though leadership applies to everyone in the
organization. Leadership creates an organization's objectives and goals, and if they lack
"Quality," quality projects will fail. They can shape organizational culture to achieve
long-term goals through quality work. Senior leaders must inspire creativity in all staff.
TQM leaders should lead improvement efforts and demonstrate the values. (Das, 2011)
studied how leadership traits affected TQM implementation and results in "Thai"
manufacturing firms. Quantitative data from 265 firms (having ISO-9000 certificate) was
collected to analyze and the findings supported senior management as a TQM catalyst.
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quality (1997). Garvin (1983) claims that high-quality manufacturers have purchase
divisions that priorities quality over cost. He learned that a company's purchasing
department's main goal was to buy high-quality, technically sound parts at the lowest
price. Poor-quality products/components from suppliers increase buyer prices. For
example, one appliance maker found that 75% of warranty claims came from supplier
components (Chua, 2006). Previous research carried out by (Hafeez, 2018) demonstrates
that there is a favorable association between "supplier quality management and the
performance of a company. (Salimian, 2021) conducted research regarding the
relationship between SQM and internal quality. It was decided to conduct a survey in
order to collect data from various industrial businesses (518 corporations from UK). The
findings of the study's analysis revealed that SQ M has the potential to significantly raise
an organization's overall performance.
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to customers will result in increased customer loyalty, which will ultimately lead to
increased profitability (Bruhn, 2000). (Anderson, 2000) claimed that customer happiness
reduces the likelihood of customers leaving due to poor quality. (Agus, 2000) claimed
that TQM improves customer satisfaction and financial success. According to (Bauer,
2005) business strategy planning would focus on customer satisfaction throughout the
next decade.
Hypothesis:
I was able to construct several hypotheses as a result of the literature review, and they are
shown here.
H1: Process & knowledge management significantly effects company's
operational performance.
H2: Training & education significantly effects company's operational
performance.
H3: Leadership effects company's operational performance.
H4: SQM significantly impact on firm’s operational performance.
H5: Customer focus significantly impact on firm’s operational performance.
H6: SQP significantly impact on firm’s operational performance.
3. CHAPTER 3: METHODOLOGY
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1.8 Type of research:
This study will reveal a causal relationship between the firm's "operational
performance" and its "TQM practices " It is explanatory research because it will explain
how IV affects DV (whether there is a positive or negative link between IV variables and
DV). Quantitative data will form the foundation of our study. The study will employ a
cross sectional approach for data collection. A "cross sectional" study design is one that
collects information from several participants at once. In this design, variables will be
observed without being affected.
1.12 Subjects/participants:
My target population will the SCM department employees from FCEPL (Sahiwal).
The unit of analysis in the SCM department will be "Supply chain Officers "
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Convenience sampling will be used to choose the 175-person sample size. Due to time
and financial constraints, “convenience sampling” (a non-probability sampling approach)
will be adopted in this case. Additionally, due to employee confidentiality firm’s officials
are hesitant to disclose a comprehensive list of supply chain officers. They only disclosed
the number of SC officers stationed in the plant which prevented the use of "probability
sampling techniques " At the plant site there are 270 SC officers in total.
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