A study on the impact of implementation of (2)

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A study on the impact of implementation of (2)

  1. 1. A study on the impact of implementation of TQM in Malaysia Engineering Firm. Chan Chee Mang TP021569 BM040-3-2-RESM Lecturer: Benjamin Chan Yin Fah13/10/2011 1
  2. 2. IntroductionSubject• Starting from 1980s, TQM (Total Quality Management)- a new concept evolved and was strongly influenced by Japanese manufacturers.• TQM has positive effects on a firm’s performance and productivity through the involvement of all levels of the organisation.• For past 20 years, quite number of authors focused on the TQM soft factors and its dimension.• TQM is not only a program but a way of business management-comprehensive management philosophy which provides continuous improvement to all organisation’s functions. 13/10/2011 2
  3. 3. Introduction Cont. Object • Critical success of implementation of TQM soft factors in an engineering firm-process improvement, zero defect mentality, employee empowerment, open organisation, increased training, benchmarking, closer supplier relationship, closer customer relationship, adoption and communication, committed leadership.13/10/2011 (Powell, 1995) 3
  4. 4. Introduction Cont.Linkage• Examine a comprehensive framework for TQM soft factors. The proposed TQM model for an engineering firm located in Malaysia.• Explore the positive correlation between the degree of implementation of TQM basing on quality practices that implemented and corresponding productivity index.• Introduction of soft factor elements which affect the TQM implementation whereby to prioritise the factors with interrelationships. 13/10/2011 4
  5. 5. Problem StatementTQM as a managerial philosophy thatbecome a need for any organisation tooutperform over competitors.Is the implementation of TQM has apositive effects on engineering firm’sproductivity? 13/10/2011 5
  6. 6. Research Objectives• To examine the feasibility of implementing TQM in an organisation.• To determine the level of soft factors.• To identify the positivity or negativity correlation of the 10 Soft factors with the Respondent demographic factors.• To identify the Top 3 implemented Soft Factors and the least 3. 13/10/2011 6
  7. 7. Research HypothesisH1. Process Improvement has a positive correlation on firm’s productivity.H2. Zero Defect Mentality has a positive correlation on firm’s productivity.H3. Employee Empowerment has a positive correlation on firm’s productivity.H4. Open Organisation has a positive correlation on firm’s productivity.H5. Increased Training has a positive correlation on firm’s productivity.H6. Benchmarking has a positive correlation on firm’s productivity.H7. Closer Supplier Relationship has a positive correlation on firm’s productivity.H8. Closer Customer Relationship has a positive correlation on firm’s productivity.H9. Adoption and Communication has a positive correlation on firm’s productivity.H10. Committed Leadership has a positive correlation on firm’s productivity. 13/10/2011 7
  8. 8. Significance of study• Clearly showing the correlation of soft factors implemented in firm.• The imply of the soft factors.• Training is not much correlated to other factors.• Leadership has the highest value among the soft factors.• The addressed factors have been designed and distributed in organisation as the enablers of improving effectiveness of TQM. 13/10/2011 8
  9. 9. Limitation of StudyThe proposed framework is• Costly and• Time consuming due to large number of questions hold.• Possibility in which these subdivisions do not have the same relative importance weight.• Limits to one company only. (findings should not be generalised) 13/10/2011 9
  10. 10. Terminology Definition Terms Conceptual OperationalCommitted Leadership Successful implementation of TQM requires effective changes in an organisation’s culture and it is somehow impossible without management leadership (Ho et al., 1999).Adoption and Communication plays a vital role in efficient producing high qualityCommunication products (Schloss, 2003).Closer Customer For continuous improvement, customer requirements must be consistentlyRelationship measured and satisfied. The firm should be organised to obtain the needed customer database, and reliable comments on product or service quality levels (Forza & Filippini, 1998).Benchmarking Benchmarking is a continuous process of comparing an organisation’s products, services, and processes against those of its best competitors or industry leaders (Ghobadian & Woo, 1996).Increased Training Training of employees is crucial for building the human capital of the organisation (Black and Porter, 1996)Open Organisation Also known as teamwork. Teams should have authority to implement the changes and motivate employees to involve in the processes (Gonzalez- 13/10/2011 Benito & Martin-Lorente, 1999) 10
  11. 11. Terminology Definition Cont. Terms Conceptual OperationalEmployee Empowerment is an integral part of any successfulEmpowerment quality improvement process which helps employees to make decisions about their own work and environment (McQuater et al., 1995)Zero-Defect Quality programs should measure the percentage orMentality the number of parts that deviate from acceptable items in order to prevent the recurrence of a defect (Motwani, 2001).Process The key aspect in TQM programs (Sinclair & Zairi,Improvement 1995). The reduction or elimination of variance (Deming, 1986). 13/10/2011 11
  12. 12. Research FrameworkRespondent ProfileAgeTenure in present 10 Soft Factorsoccupation Process ImprovementEducation level Zero Defect MentalityGender Employee EmpowermentSpecialisation Field Open Organisation Company annualManager Status Increased Training report 2010 Benchmarking Ratio of total annual Closer SupplierCompany Profile output out of total RelationshipHistory & annual cost. Adoption andBackground CommunicationInvolvement of Closer CustomerIndustry RelationshipMarket Scope/Work Committed Leadershipscope (PESTLE) Input Throughput Output13/10/2011 12
  13. 13. Organisation of study • Chapter 1 Description of the various contents in which the problem statement and objective. • Chapter2 Literature review Independent Variables and Dependent Variables. • Chapter3 Research design and data analysis • Chapter 4 Result of the study. • Chapter5 Conclusion, implications, limitations and recommendations.13/10/2011 13
  14. 14. Thank you for listening.13/10/2011 14

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