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10120140401029 2


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10120140401029 2

  1. 1. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online), Volume 4, Issue 1, January- February (2013) 266 CRITICAL SUCCESS FACTORS OF TQM: A STUDY Ms. P. Rupha Rani Research Scholar (Full Time), Department of Management Studies school of Management, Pondicherry University ABSTRACT This paper represents a review of the literature on critical success factors (CSFs) of Total Quality Management (TQM) and supported by various philosophies of TQM. Such factors are considered as conducive to the success of TQM implementation. Critical Success Factors (CSFs) are internal or external factors that can seriously affect the firm for better or worse. They provide an early warning system for management and a way to avoid surprises or missed opportunities. In the context of TQM, it is essential that the organizations identify a few key critical success factors, which should be given special attention for ensuring successful implementation of TQM program. The present study will guide the researchers in selecting the reliable set of CSFs for empirical studies. Industries can benefit by adopting the results of this study for effective implementation of TQM. Keywords: TQM; CSF; Implementation; Empirical. 1.0 INTRODUCTION Today, quality management has become one of the important forces leading to organizational growth and a company’s success in national and international markets. To be successful in the marketplace, each part of the organization must work properly together towards the same goals, recognizing that each person and each activity affects and in turn is affected by others. To improve competitiveness, organizations are looking for a higher level of effectiveness across all functions and processes and are choosing TQM as a strategy to stay in business. The increased awareness of senior executives, who have recognized that quality is an important strategic issue, is reflected as an important focus for all levels of the INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) Volume 4, Issue 1, January- February (2013), pp. 266-275 © IAEME: Journal Impact Factor (2013): 6.9071 (Calculated by GISI) IJM © I A E M E
  2. 2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online), Volume 4, Issue 1, January- February (2013) 267 organization. This requires defining and implementing several factors (identified as critical factors in this paper). Many companies are frustrated in their effort to improve quality through TQM because these companies have exclusively focused on financial measures instead of quality measures. Other studies, in the recent past also observed the failure of TQM. These failures are due to the too much- too soon effort without proper foundation and focus. Manufacturing firms, therefore, need to understand the TQM CSFs for the successful implementation of TQM. Therefore, there is a pressing need to establish TQM CSFs for manufacturing firms. This paper examines the TQM frameworks developed by scholars and businesses and develops the TQM CSFs for manufacturing firms. 1.1 Understanding Total Quality Management (TQM) Total Quality Management has many definitions. Gurus of the total quality management discipline like Deming, Juran, Crosby, Ishikawa and Feigenbaum defined the concept in different ways but still the essence and spirit remained the same. According to Deming, quality is a continuous quality improvement process towards predictable degree of uniformity and dependability. Deming also identified 14 principles of quality management to improve productivity and performance of the organization. Juran defined quality as “fitness for use.” According to him, every person in the organization must be involved in the effort to make products or services that are fit for use. Crosby defines quality as conformance to requirements. His focus has been on zero defects and doing it right the first time. Ishikawa also emphasized importance of total quality control to improve organizational performance. According to him quality does not only mean the quality of product, but also of after sales service, quality of management, the company itself and the human life. Feigenbaum defined total quality as a continuous work processes, starting with customer requirements and ending with customer’s satisfaction. Definitions of quality have changed with the passage of time with changing customer’s needs and requirements. But the essence has more or less been to develop an approach to problem solving, conformation to standards for customer satisfaction. With management functions getting complex, approaches to managing quality in functional areas are becoming difficult. Organizations, which have successfully use TQM principles, have customer and quality embedded in their corporate strategy. Any organization is a system of interrelated units. For TQM to succeed, all of the components within the organization must be collectively involved. Initially, organizations implemented TQM in the hope that improvement in the shop-floor activities would solve all existing productivity and quality problems. Later, they have realized that TQM is much more than just shop-floor improvements. The definitions of quality incorporate factors like top management commitment, leadership, team work, training and development, rewards and recognition, involvement and empowerment of employees etc. These critical factors are the foundation for transformational orientation to create a sustainable improvement culture for competitive advantage on a continuous basis. According to Selladurai Raj, TQM interventions or activities must be guided by four change principles, namely work processes, variability, analysis, and continuous improvement. Product design and production processes must be improved; variance must be controlled to ensure high quality; data must be systematically collected and analyzed in a problem-solving cycle; and commitment made to continuous learning by the employees about their work.
  3. 3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online), Volume 4, Issue 1, January- February (2013) 268 2.0 SELECTION AND ANALYSIS OF TQM FRAMEWORKS An extensive literature survey has been carried out to select TQM frameworks for this study. The relevant literature has revealed that different countries have adopted similar TQM frameworks in the form of quality awards with a different title. Today, there are more than a hundred quality awards existing in different countries. However, all these quality awards are basically derived from three basic and prestigious awards: the Malcolm Baldrige National Quality Award (MBNQA), the European Quality Award (EQA) and the Deming Prize. This study, therefore, includes only these three basic awards as TQM frameworks along with other frameworks developed by scholars. Furthermore, through the study of TQM literature, eleven TQM frameworks developed by researchers have been selected. In total, fourteen important TQM frameworks viz. Deming prize, MBNQA, EQA, Saraph et al., Oakland, Flynn et al., Babbar and Aspelin, Ahire et al., Black and Porter, Pheng and Teo, Ang et al., Zhang et al., Nwabueze and Thiagarajan et al., were chosen from the TQM literature for the purpose of establishing TQM CSFs for the construction industry. A detailed analysis of the frameworks with respect to CSFs is carried out and presented in Table 1 Based on the frequency analysis, the CSFs are prioritised as shown in Table 2. Table 1: List of CSFs as recommended by various authors Source: Wali, Deshmukh and Gupta, 2003 Table 1: Analysis of TQM Frameworks Juran Ishikawa Crosby Feigen- Deming Garvin Saraph Lu & Porter Motwani Powel Black Total 1974 1976 1979 Baum 1986 1987 et. al. Sohal &Parker et. al. 1995 & 1983 1989 1993 1993 Porter 1995 1 x x x x x x x x x x x x 12 2 x x x x x x x x x x 10 3 x x x x x x x x x x 10 4 x x x x x x x x x x 10 5 x x x x x x x x x x 10 6 x x x x x x x x 8 7 x x x x x x x 7 8 x x x x x x x 7 9 x x x x x x x 7 10 x x x x 4 11 x x x 3 12 x x x 3 13 x x x 3 14 x x 2 15 x 1 16 x 1
  4. 4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online), Volume 4, Issue 1, January- February (2013) 269 *Note: 1 - Top management commitment; 2 - Strategic quality management; 3 - Process quality management; 4 management; 5 - Education and Training; 6 - Supplier quality management; 7 - Customer satisfaction; 8 - Emplo and involvement; 9 - Business results; 10 - Information and Analysis; 11 - Benchmarking; 12 - Resources; 13 - I environment; 14 - Statistical process control; 15 - Culture. Table 2: Most commonly extracted factors across the 76 studies and the 23 countries Source: Sila and Ebrahimpour, 2003 Prioritisation of CSFs Sr. No. Critical Success Factors No. of studies in which the factor was No. of country categories in which the factor is present 1 Top management commitment and Leadership 67 23 2 Customer focus 53 21 3 Information and analysis 53 17 4 Training 50 19 5 Supplier management 47 17 6 Strategic Planning 38 16 7 Employee Involvement 32 18 8 Human Resource Management 26 16 9 Process management 26 13 10 Teamwork 22 9 11 Product & Service Design 21 11 12 Process Control 21 8 13 Benchmarking 16 12 14 Continuous improvement 16 10 15 Employee empowerment 16 6 16 Quality assurance 15 12 17 Social responsibility 10 9 18 Employee satisfaction 9 6
  5. 5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online), Volume 4, Issue 1, January- February (2013) 270 Table 3: Broad categories for the Deming Application Prize Source: Total Quality: Management, Organization & Strategy (1999), Evans & Dean The basic concerns & issues for the Deming Prize is given in Table 3 as below: 1. Policy 2. Organization and its Management 3. Education and Dissemination 4. Collection, Dissemination and use of Information on Quality 5. Analysis of Data 6. Standardization 7. Control 8. Quality assurance 9. Results 10. Planning for the future In an attempt to establish empirically validated factors that influence successful implementation of TQM, Black and Porter (1996) have identified ten factors which affect successful implementation of TQM. They are: (i) Corporate quality culture (ii) Strategic quality management (iii) Quality improvement measurement system (iv) People and customer management (v) Operational quality planning (vi) External interface management (vii) Supplier’s partnerships (viii) Teamwork structures (ix) Customer satisfaction orientation (x) Communication of improvement information An early exploratory attempt to arrive at CSF in the Indian context was made by Motwani, Mahmoud and Rice (1994) wherein they arrived at nine critical factors for effective management of quality in Indian manufacturing industry. As the TQM literature in India moved from introductory level discussion on TQM (Lakhe & Mohanty 1994) to more robust research work, the emphasis also shifted from a mere duplicating of western models of quality to trying to develop indigenous models. Wali, Deshmukh and Gupta (2003) made a review of various critical success factors which different authors including the founding
  6. 6. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online), Volume 4, Issue 1, January- February (2013) 271 fathers of TQM like Deming, Juran, Ishikawa, Crosby, Feigenbaum, and Garvin had recommended. Wali, Deshmukh and Gupta started from the early work of identification of the critical success factors (CSF) by Saraph, Benson and Schroeder (1989) to the more recent one by Ahire, Golhar and Waller (1996). From there, they attempted to identify the critical success factors (CSF) for adoption of TQM in the Indian context. Their study claims that these, CSFs are derived based on actual practices followed by Indian organizations and it was based on a statistically validated instrument and factor analysis. It was not based on constructing a priori set of pre-defined CSFs and then matching it with actual practice (Wali, Deshmukh & Gupta 2003, p. 12). The study by Wali, Deshmukh and Gupta (2003) is perhaps the first comprehensive empirical study of quality practices in the Indian context. Thus it is worthwhile to look in detail at the twelve factors identified by them. They are listed below in decreasing order of importance. 3.0 ESTABLISHMENT OF CRITICAL SUCCESS FACTORS The frequency analysis shown in Tables 1. and 2. revealed that 13 out of the 14 frameworks have three CSFs in common: process management, education and training, and customer satisfaction. The analysis further revealed that 11 out of the 14 frameworks have four CSFs in common, viz., top management commitment, supplier quality management, employee empowerment and involvement and information and analysis. The strategic quality management and design quality management CSFs have their presence in nine and eight frameworks respectively. Quality culture, CSF, however, occurs only in the Black and Porter framework (Black and Porter, 1996). However there is ample evidence from the literature on the culture and success of quality initiatives. For instance, these researchers, Ahire and Ravichandran (2001), Ambroz (2004), Butch and Rivers (2001), Chan and Tse (2003), Jabnoun and Anwar (2002), Jenner et al. (1998), Laszlo (1998), Lewis (1996), Manley (1998), Perry (1997), Roney (1997), Sinclair and Collins (1994), Waldman and Gopalakrishnan (1996), and Youssef and Zairi (1995) have all emphasised the importance of organizational culture for the implementation of quality initiatives in their studies. Culture is more powerful than anything else in the organization. Culture, ``how we do things around here in order to succeed,'' is an organization's way of behaving, identity, pattern of dynamic relationships, ``reality,'' or genetic code (Schneider, 1994). It has everything to do with implementation and how success is actually achieved. No management idea, no matter how good, will work in practice if it does not fit the culture. Therefore, quality culture is considered as one of the important CSFs of TQM. Thus, the examination of TQM frameworks has revealed that not all the frameworks are comprehensive, but in many respects these frameworks complement one another. Therefore, a blending salient feature of these frameworks is the best approach for the establishment of critical factors for construction quality management. Therefore, the following ten CSFs have emerged out of the above analysis: 1. Top management commitment 2. Quality culture 3. Strategic quality management
  7. 7. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online), Volume 4, Issue 1, January- February (2013) 272 4. Design quality management 5. Process management 6. Supplier quality management 7. Education and training 8. Empowerment and involvement 9. Information and analysis 10. Customer satisfaction. (i) Leadership, Creativity and quality strategy: Successful quality performance requires that the leadership is dedicated to quality. It must also provide initiative and resource support. It must enable creativity to be nurtured and accordingly chalk out the strategy. Given the importance of leadership, it is not surprising to find that, in all quality awards, leadership issues are placed at the top of the list of criteria. Such leadership will drive quality strategy in an organisation and nurture creativity. (ii) Worker – Manager interaction: This means that healthy interaction between worker and manager is important from quality point of view. The manager provides the direction for improvement and accordingly, workers are motivated to take initiative. In case of any difficulty, the worker interacts with the manager to improve the situation. (iii) Results and Recognition: Crosby (1979) considers recognition as one of the most important steps of the quality improvement process. The organisation should reward their employees for their contribution to quality. There should be a quick recognition system for outstanding performance by the employees. These rewards may not be purely financial. (iv) Work culture: The work culture must be very conducive. There should be an active interaction amongst the peers and support from supervisors. The critical importance of the employee’s involvement in the quality process of an organisation should be based on the belief that the best process innovation idea comes from the people actually doing the job. (v) Information and Data management: Information is the critical enabler of TQM. This factor emphasises that the key processes are regulary measured and quantified. There should be focus on benchmarking which provides a stimilus for improvement. The facts and information should be made available to all. This is mainly relevant for managing quality costs. (vi) Customer Focus: Quality should be customer driven. …. Employees should be well aware of the concept of internal and external customers. They should care about meeting and exceeding the customer expectations. There must be a focus on customer feedback and accordingly the process should be driven. (vii) Value and ethics: It is important for the people in an organisation to live up to the highest ethical standards. There should be perception of fair treatment to all. The organization must be guided by the value and ethical standards.
  8. 8. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online), Volume 4, Issue 1, January- February (2013) 273 (viii) Communication across the organization: Effective communication channels must exist in the organization between various work units. With the help of information technology, communication can be made effective. Effective communication is vital in aligning the workforce towards corporate expectations. (ix) Team working: According to Crosby (1979), team work is a critical element of TQM. Teamwork delivers synergistic enhancement of quality efforts. Employees must demonstrate cooperative behaviour and positive attitude towards working in a team. (x) Congenial inter – personal relations: The atmposphere in the organisation must be highly congenial to promote active interaction. There must be mutual respect and faith among employees. (xi) Delegation and empowerment: In a TQM setting, both delegation and empowerment are required. People must share responsibility for the success or failure of their work. (xii) Process improvement: Employees must identify opportunities for continuous improvement. If employee involvement is key to the attainment of customer satisfaction, managing the process is key to engaging an organisation’s employees to take responsibilities for what they are doing in relation to satisfying the customers. 4.0 CONCLUSION The analysis of fourteen of the most prominent TQM frameworks has revealed that out of fifteen CSFs, nine CSFs, are common in most of the frameworks. The analysis further pointed out that none of the frameworks are comprehensive. Apart from the Black and Porter framework, quality culture CSF does not exist in other frameworks even though there is ample evidence in the literature on the culture and success of quality initiatives. Using the nine common CSFs and the quality culture CSF, ten TQM CSFs are proposed for construction firms, namely, top management commitment, quality culture, strategic quality management, design quality management, process management, supplier quality management, education and training, empowerment and involvement, information and analysis, and customer satisfaction. These CSFs presented act as a guide for construction organizations contemplating a TQM initiative. REFERENCES 1. Ambroz, M. (2004). Total quality system as a product of the empowered corporate culture. The TQM Magazine, Vol. 16. No. 2, pp. 93-104. 2. Ang, C. L., Davies, M. and Finlay, P N.( 2000). Measures to assess the impact of information technology on quality management, International Journal of Quality and Reliability Management, Vol. 17, No. 1, pp. 42-65. 3. Babbar, S. and Aspelin, D. (1994). J. TQM it is as easy as ABC. The TQM magazine, Vol. 6, No. 3, pp. 32-38. 4. Black, S. And Porter, L. (1996). Identification of critical factors of TQM.Decision Sciences, Vol. 27, No. 1, pp. 1-21.
  9. 9. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online), Volume 4, Issue 1, January- February (2013) 274 5. Brah, S.A.; Tee, S.S.L. and Rao, B. M.(2002), “Relationship between TQM and performance of Singapore companies”, International Journal of Quality and Reliability Management, Vol. 19 No. 4, pp. 356-379. 6. Culp, G., Smith, A., and Abbott, J. (1993). “Implementing TQM in consulting engineering firm.” J. Management in Engineering, Vol.9, No. 4, pp. 340-356. 7. Flynn, B., Schoeder, R. and Sakibaba, S. S. (1994). A framework for quality management research and associated measurement instrument. Journal of Operations Management, Vol. 11, No. 3, pp. 339-366.7. 8. Harjeev, K., Sharma, D.D. and Sharma, R.(2007). Critical Success Factors for Implementation of TQM in the Indian Manufacturing Industry. The Icfai Journal of Operation Management, Vol.6, No. 3, pp. 46-58. 9. Jha, U.C., (2009) “Competitiveness of Indian Manufacturing Industry: An Empirical Analysis” in Manufacturing Technology Today (under Publication). 10. Jha, U.C. and Sunand Kumar (2008), “Impact of TQM on firm’s performance: An Empirical Analysis of Indian Manufacturing Industry” at 12th International SOM Conference , Indian Institute of Technology , Kanpur. 11. Jha, U.C., (2006) “Measuring the Competitiveness of Indian Manufacturing Industry” at Summit on Indian Manufacturing Competitiveness , Indian School of Business , Hyderabad 12. Jha, U.C., (2004) “World Class Manufacturing – An Indian Perspective” at National Conference of Mechanical Engg. (COMET), Institute of Technology, BHU (India) 13. Kaynak, H. (2003), “The relationship between total quality management practices and their effects on firm performance”, Journal of Operations Management, Vol. 21, pp. 405–435. 14. Elvin B. Hendricks and V. R. Singhal (2001a), “Firm characteristics, total quality management, and financial performance” Journal of Operations Management, Vol. 19 No.3, pp 269-285. 15. Irfan Gulbarga, Dr.Soam V Chetty and Dr. Jagadeesh P Ganjigatti, “Nn/Brt Based Model For Evaluating Impact of TQM on Higher Technical Education” International Journal of Mechanical Engineering & Technology (IJMET), Volume 3, Issue 2, 2012, pp. 518 - 531, ISSN Print: 0976 – 6340, ISSN Online: 0976 – 6359. 16. Varsha H. Patil and Snehal M. Kamalapur, “A Conceptual Thinking of Total Quality Management in Engineering Education”, International Journal of Management (IJM), Volume 3, Issue 1, 2012, pp. 169 - 174, ISSN Print: 0976-6502, ISSN Online: 0976-6510. 17. Laszlo, G. P.(1998). Implementing a quality management program-3 Cs of success: commitment, culture, cost. The TQM Magazine, Vol. 10, No. 4, pp.281-287. 18. T.Suganthalakshmi and Dr.C.Muthuvelautham, “Grouping of Critical Success Factors for ERP Implementations”, International Journal of Management (IJM), Volume 2, Issue 2, 2011, pp. 125 - 133, ISSN Print: 0976-6502, ISSN Online: 0976-6510. 19. Lewis, D. (1996). The organizational culture saga - from OD to TQM: a critical review of the literature. Part 2 - applications. J. Leadership and Organization Development, Vol. 17, No. 2, pp. 9-16. 20. Motwani, J., Ashok K., Mohamed, A.Y. and Essam M. (1997), “Forecasting quality of Indian manufacturing organizations: An exploratory analysis”, Total Quality Management, Vol. 8 No.6, pp. 361-374.
  10. 10. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 – 6510(Online), Volume 4, Issue 1, January- February (2013) 275 21. Oakland, J.S. (1993). Total Quality Management: The Route to Improving Performance. Butterworth-Hienman Limited, Oxford, pp. 128 – 157. 22. Rao, S.S., Raghu-Nathan, T.S. and Solis, L.E. (1997), “A comparative study of quality practices and results in India, China and Mexico”, Journal of Quality Management, Vol. 2, pp. 235-250. 23. Rao, S.S., Solis, L.E. and Raghunathan, T.S. (1999), “A framework for international quality management research: development and validation of a measurement instrument”, Total Quality Management, Vol. 10 No. 7, pp. 1047-1075. 24. Samson, D. and Terziovski, M. (1999), “The relationship between total quality management practices and operational performance”, Journal of Operations Management, Vol. 17, pp. 393-409. 25. Saraph, J. V., George Benson, P., and Shroeder, R. G. (1989). An instrument for measuring the critical factors of quality management. Decision sciences, Vol. 20, No.4, pp. 811-829. 26. Thiagarajan, T., Zairi, M. and Dale, B.G. (2001). A proposed model of TQM implementation based on an empirical study of Malaysian industry. International Journal of Quality and Reliability Management, Vol. 18, No. 3, pp. 289-306.