Perception of TQM Implementation and Perceived Cost of Poor Quality: A Case Study of Local Automotive Company’s Supplier

Authors: Fakhruddin Esa, Yusri Yusof

Abstract:

The confirmatory of Total Quality Management (TQM) implementation is most vital in quality management. This paper focuses on employees' perceptions towards TQM implementation in a local automotive company supplier. The objectives of this study are first and foremost to determine the perception of TQM implementation among the staff, and secondly to ascertain the correlation between the variables, and lastly to identify the relative influence of the 10 TQM variables on the cost of poor quality (COPQ). The TQM implementation is perceived to be moderate. All correlation is found to be significant and five variables having positively moderate to high correlation. Out of 10 variables, quality system improvement, reward and recognition and customer focus influence the perceived COPQ. This study extended a discussion on these three variables contribution to TQM in general and the human resource development in the organization. A significant recommendation to lowering costs of internal error, such as trouble shooting and scraps are also discussed. Certain components of further research that would add value to this study have also been suggested and perhaps could be implemented at policy-level initiatives.

Keywords: Cost of poor quality, correlation, total quality management, variables.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1129055

References:

[1] Baidoo, F., Odum-Awuakye, G.A, and Oduro-Okyireh, T. (2015) Influence of Service Quality Delivery in the SMEs of the Motor Vehicle Repair Service Industry in Ghana. In: Mojekwu, J.N., Ogunsumi, L.O., Ojigi, L. M., Atepor, L., Thwala, D.W., Sackey, S. Awere E., and Bamfo-Agyei, E. (Eds) African Journal of Applied Research. (AJAR) Journal, Vol.1, No.1 ISSN 2408-7920 January 2015, Cape Coast, Ghana. 444-456
[2] Esa, F.,and Yusof, Y. (2016), “Implementing Overall Equipment Effectiveness (OEE) and sustainable competitive advantage: A case study of Hicom Diecastings Sdn. Bhd. (HDSB)”, Vol. 11, No. 1, pp. 199-203.
[3] Besterfield D.H. (1995), Total Quality Management. New Jersey: Prentice Hall.
[4] Tari', J. (2005). Components of successful total quality management. The TQM Magazine. 17(2), pp. 182-194.
[5] Juran, J.M. (1986), The Quality Triology, Quality Progress. 9(8), pp.19- 24.
[6] Feigenbaum A.V. (1991), Total Quality Control, 3rd edition. New York: McGraw-Hill.
[7] Ishikawa K. (1985), What Is Total Quality Control? The Japanese Way. Engelwood Cliffs, NJl: Prentice Hall.
[8] Dean, M.B. and Helms, M.M. (1996),” The implementation of total quality management into public sector agencies: a case study of the Tennessee Valley Authority,” Benchmarking for Quality Management and Technology, Vol 3, No 1, pp. 50 – 64.
[9] Douglas, T.J. and Judge W.Q. (2001), “Total quality management implementation and competitive advantage: the role of structural control and exploration”, The Academy of Management Journal, Vol. 44, No. 1, pp. 158-169.
[10] Hansonn, J and Klefsjo, B. (2003), “A core value model for implementing total quality management in small organizations,” The TQM Magazine, Vol. 15, No. 2, pp. 71-81.
[11] Chandler, G.N. and McEvoy G. M. (2000),” Human Resource Management, TQM and firm performance in small and medium-size enterprises”, Entrepreneurship: Theory and Practice, Vol. 25, No.1, pp. 20-35.
[12] Tentime, Z. T. and Soloman G.H. (2002), “Total quality management and the planning behaviour of SMEs in developing economies”, The TQM Magazine, Vol. 14, No. 3, pp. 181-191.
[13] Norman D (1991) Cognitive Artifacts in J.M Carroll ed. Designing Interaction: Psychology at the Human-Computer Interface. 8 (1), pp.17-38.
[14] Emulti, Dean and Taisier F. AlBiab (1995), Improving Quality and Organizational Effectiveness Go Hand in Hand Through Deming’s Management System, Journal of Business Strategies, 12 (1), pp. 86-98.
[15] Quiros, G.M. (1994), "Integrated performance measurement". Unpublished MBA dissertation. University of Bradford.
[16] Sohal, A.S. (1998). Assessing manufacturing/quality culture and practices in Asian companies. International Journal of Quality & Reliability Management, 15(8/9), pp. 920-930.
[17] Dreyfus, P., Gulbro, D.R., Shonesy, L. (1999), "Quality in manufacturing: does size really make a difference?" Journal of Business and Entrepreneurship, Vol. 11, No. 1, March, pp. 75-84.
[18] Hacksever, C. (1996),” Total quality management in the small business environment”, Business Horizons, Vol. 39, Issue 2, pp. 33-40.
[19] Ahire, S. L., Gohlar, D.Y. and Walker, M.A.l (1996), “Development and validation of TQM implementation constructs”, Decision Sciences, Vol. 27, No. 1, pp 23-56
[20] Abdullah, M.A. and T. Beal. (2003). The Strategic Contributions of Small and Medium Enterprises to the Economies of Japan and Malaysia: Some Comparative Lessons for Malaysian SME(s). Proceedings of the 7th International Conference on Global Business and Economic Development, 8th – 11th January, Bangkok, Thailand.
[21] Chee, P. L. (1986). Small and Medium Industries in Malaysia. Kuala Lumpur: Forum Press.
[22] Ozawa Masayoshi, “Total Quality Control and Management: The Japanese Approach,” JUSE Press, 1993.
[23] Tamimi, N., and R. Sebastianelli. (1998). The barriers to total quality management. Quality Progress 3(1), pp. 57-60.
[24] Lau, H.C. and Idris, M.A. (2001), The soft foundation of the critical success factors on TQM implementation in Malaysia, The TQM Magazine, 13 (1), pp. 51-60.
[25] Eng. Q. E. and Yusoff S.M. (2003),” A survey of TQM practices in the Malaysian electrical and electronic industry”, Total Quality Management, Vol. 14, No. 1, pp. 63-77.
[26] Idris, M.A., McEwan, W. and Belavendram, N. (1996),” The adoption of ISO 9000 and total quality management in Malaysia, The TQM Magazine, Vol. 8, No 5, pp 65-68
[27] Zhang, Z., (2001), Implementation of TQM in manufacturing companies in China. Unpublished PhD. Thesis. University of Groningen
[28] Harrington, H. James (1987), Poor-Quality Cost, American Society for Quality.
[29] Zhang, Z., (2001), Developing an Instrument for Measuring TQM implementation in a Chinese Context. Thesis. University of Groningen
[30] Cohen, J. (1968). Multiple regression as a general data-analytic system. Psychological Bulletin, Vol.70, pp. 426-443.
[31] Malcolm Baldrige National Quality Award (1997), Criteria for performance excellence, National Institute of Standards and Technology, United States Department of Commerce, Gaithersburg, MA.
[32] Garvin, D.A. (1983), “Quality on the line”, Harvard Business Review, Vol. 61, pp.64-75.
[33] Juran, J.M. and Gryna, F.M. (1993), Quality Planning and Analysis, 3rd edition. New York: McGraw-Hill.