This document summarizes a study that aimed to identify and prioritize the key total quality management (TQM) indicators in the Iranian pharmaceutical industry using the fuzzy analytical network process (ANP). The researchers identified 7 key TQM factors (employees, top managers, customers, distributors, suppliers, education, and teamwork) based on expert input and literature. They then developed pairwise comparison matrices to prioritize these factors based on 3 key performance indicators (customer satisfaction, employee satisfaction, societal impact). The results showed that top managers and employees had the highest priority to achieve an appropriate quality level in the pharmaceutical industry.

1. *Corresponding author: Hossein Kazemzade
Department of Industrial Management, Mehr-e Alborz University
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IDENTIFICATION AND PRIORITIZATION OF THE TQM INDICATORS IN THE
PHARMACEUTICAL INDUSTRY IN IRAN USING THE FUZZY ANP
Hossein Kazemzade,Mohammad Saber Ghaemmaghami,Kamyar Ghafoorian ,Mohammad
Hadizadeh Andevari
1,2Industrial Management, Mehr-e Alborz University
Technology Management, Allameh Tabatabaee University
Industrial Management,Allameh Tabatabaee University Iran
A R T I C L E I N F O A B S T R A C T
Article History:
Received 11th
, May, 2014
Received in revised form 22th
, May, 2014
Accepted 12th
, June, 2014
Published online 20th, June, 2014
The pharmaceutical industry as an essential part must be disciplined, the reason
for which is obvious; errors in design and production can have dangerous and
irretrievable effects on the patients. Therefore, despite the existence of some
systems, such as GMP, to guarantee quality issued by the World Health
Organization (WHO) for pharmaceutical companies, we have decided to use the
Total Quality Management (TQM) to improve and achieve competitive advantage
in this industry. As the result, 14 GMP principles along with factors of the Total
Quality Management, with the help of experts, were used to determine seven
factors, namely employees, top managers, customers, distributors, suppliers,
education and team work. We have also compared and prioritized using three Key
Performance Indicators, which include customer satisfaction, employee
satisfaction and the effects on society by the fuzzy ANP due to its their bilateral
relationships. The conclusion clarifies the point that there must be a special
attention paid to the top managers and then to the employees in order to reach the
appropriate level of quality.
© Copy Right, IJRSR, 2014, Academic Journals. All rights reserved.
Key words:
Total Quality Management (TQM), Key
Performance Indicators (KPI), pharmaceutical
industry, Analytical Network Process (ANP),
Good Manufacture Practice (GMP)
INTRODUCTION
The pharmaceutical industry as an essential part in the
health care system, has dealt with researching, producing
and marketing medicine, biological products and medical
equipment, which prove that low quality of the medicine
cannot be considered just as a threat to the health but it
also results in economic loss for both government and
customers. Therefore maintaining the quality along with a
continual progress in improving the facilities and
equipment in this industry is of utmost importance. In the
concept provided by the TQM approach, we must try to
prevent an error rather than attempt to discover it.
Apart from the safety issues, the pharmaceutical industry
must be disciplined, the reason for which is very obvious;
an error in design and production can have dangerous and
retrievable effects on the patients. This importance made
us decide to use the Total Quality Management in order to
improve quality and achieve competitive advantage in this
industry, despite the fact that there are some systems,
issued by the World Health Organization (WHO) for the
drug companies, guaranteeing the quality, such as (1)
Good Manufacture Practice (GMP), (2) Good Laboratory
Practice (GLP), (3) Good Clinical Practice (GCP) and (4)
Standard Operating Procedure (SOP).
In the last three decades, quality has been one of the main
aspects in producing and providing services in the
competitive fields. With the role the health plays for each
member of the society, having higher quality and
performance in the pharmaceutical industry is very
important. Furthermore, with sanctions against our country
and the problems in importing the raw materials, paying
attention to the priorities in the TQM indicators, including
the following main purposes, can help us achieve a
competitive advantage;
1. Customer satisfaction with the lowest cost
2. Employees’ participation with the aim of removing
errors and preventing damages, and as the result, their
better motivation
3. Design and selection of the appropriate technology
and productive procedures
4. Quality preservation and continual improvement
5. Education of the personnel to improve their abilities
6. System and procedure development, etc.
In order to do it, the TQM indicators must be prioritized
after they are identified, based on the Key Performance
Indicator (KPI), using the Analytical Network Process
(ANP) in an innovative way.
As it has already been clarified, the pharmaceutical
industry is among the most essential industries, dealing
International Journal of Current Life Sciences - Vol.4, Issue, 6, pp.2227-2231, June, 2014
INTERNATIONAL JOURNAL OF CURRENT LIFE SCIENCES
RESEARCH ARTICLE

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directly with people’s lives and health. And the tiniest
error in production or environmental cleaning methods will
cause direct or indirect irretrievable damages to the social
or personal health. Hence, although there are several
standards issued by different organizations in this field, we
have decided to use the Total Quality Management as a
critical approach to this industry so that we would be able
to take a small step towards better quality and health
throughout the society.
Related works
Many researchers have been conducted concerning the
TQM and its effects on the performance of organizations.
By performance, we mean their financial performance,
quality of their products, the satisfaction of both employees
and customers, performance of the market, results and the
reduction of costs.
In an international quality search (IQS), conducted by
Ernst and Young, it is concluded that quality is considered
as an important factor in large American, German,
Japanese and Canadian corporations. There have also been
some studies about the relationship between the quality
and trade benefits of the organizations (Sohal & Eddy).
Kim (1997) researched on the strategies concerned with
quality and development plans in western manufacturing
companies and concluded that most successful companies
had used step by step method and had achieved the
competitive advantage through it. These steps include;
holding sessions (conferences), reliability, functionality
and custom-manufacturing.
In 2004 and 2005, several studies were conducted on the
relationship between the Total Quality Management and its
effects on the performance of organizations. It was
concluded that there was a positive relationship between
applying the quality management and the organizational
performance (Lassaad lakhal).
Calvin London conducted a research about the application
of quality policies in the pharmaceutical companies in
2005. He defined the limits of the study and discovered
that both middle and top management had significant roles
in the success of the organizational quality policies.
One of these studies was a research about the effects of the
Total Quality Management on the performance of Indian
pharmaceutical industry, as the result of which a series of
effective factors on the TQM were identified (Dr. R. S.
Dhalla, 2010).
Brown (2011) has provides an attitude towards the TQM as
a useful tool in integration, which clarifies the relationship
between main departments of an organization, namely
financial department, designing, marketing, production,
purchase, engineering and the human recourses in order to
result in both customer satisfaction and organizational
goals.
Many studies have been done on the TQM, all of which
insist on the critical factors of success, equipment and
different methodologies in order to execute a successful
application.
On the other hand, various methods are available for
decision-making such as Data Envelopment Analysis
(DEA), Analytic Hierarchy Process (AHP) and fuzzy
methods, etc.
Saati (1994 – 1996) used AHP,considered as one of the
most frequently used methods in decision-making with
multiple factors, to deal with complicated functional
problems. This method uses both quantitative and
qualitative data for analysis (Rowan, 2007). It is possible
to posit a balance and prioritization considering the main
factors and sub-factors in order to reach an effective
decision (Chin 2002).
Saati defines two types of fuzziness; one is in
understanding the phenomena and the other one exists in
meaning, which is related to the performance of the
phenomena. To calculate the phase AHP along with
several DM, two other researchers (Laerhon and Pedirsiz)
used the least squared logarithms for measuring the values,
and found the relations using the fuzzy triangle method.
The other method is known as buckley Method which is
famous as the fuzzy trapezium method.
One of the most common methodologies in multi-factor
decision-making is the Analytic Network Process (ANP),
which is in fact an improvement to the AHP. Actually it
was Saati who suggested ANP in order to extend his theory
about the AHP, in which there are interactions,
dependencies, both inside (inside a group) and outside
(between indicators of different kinds), among the
elements and clusters. There are also dependencies
between options and parameters as well. This will help us
choose the real-like optimal option.
This study attempts to use the combination of different
experts’ ideas in identifying important factors and use
fuzzy ANP to prioritize the effective factors on the TQM
(related to the Iranian pharmaceutical industry).
Research Main Goals
Major goal
Determining the existing priority among the TQM
influential indicators in the pharmaceutical industry in
order to reach a higher quality, and as the result, the health
of the patients and society
Minor goals
 Determining the paired comparison matrix among the
Key Performance Indicators
 Determining the paired comparison matrix between
the Key Performance Indicators and influential
indicators on the Total Quality Management
 Determining the super-matrix
 Determining the existing priorities among the TQM
indicators in the Iranian pharmaceutical industry
Research questions
 What are the Key Performance Indicators in the
Iranian pharmaceutical industry?
 What is the existing priority among the influential
indicators on the TQM, considering the key
indicators?
The Result
This study was conducted in order to improve the quality.
Its results would make the pharmaceutical manufacturers,

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2229 | P a g e
especially the top managers, concentrate more on the key
points in their production so that, considering the
prioritization resulting from this study, they can overcome
the problems on the way of optimal production to reach a
higher organizational quality and social health.
METHODOLOGY
This study deals with two types of data; one type is the
initial data which is the Key Performance Indicator (KPI)
and the other one is the secondary data which includes the
influential indicators on the TQM and which was related to
the national pharmaceutical industry. In order to
distinguish these data, we have combined the experts’
ideas in this field and the previous studies.
1. The main data (Key Performance Indicators) include
customer satisfaction, employee satisfaction and the
effects on society
2. The secondary data (the influential indicators on the
TQM) consist of the top managers, employees,
customers, suppliers, distributors, education and the
team work.
The graph 1 represents the indicators and their
relationships.
The figure 1 identifies the indicators and the type of
relationships among them in the Super Decisions software.
Data Collection
The following methods and tools were used for gathering
data for this study;
 The library and the Internet, including books, papers
and case studies, were used to provide theoretical
background.
 The experts’ ideas were used in determining the Key
Performance Indicators (initial data).
 The experts’ ideas and 13 GMP principles were
combined in order to determine the secondary data,
including the influential indicators on the TQM and
the indicators related to the national pharmaceutical
industry.
Sampling Population
The sampling population, in order to determine the
appropriate indicators and the values related to the initial
data, includes the middle managers of the pharmaceutical
companies of the country.
Sampling Method
We have applied the non-accidental access method in
which we have used the list of the pharmaceutical
companies in Tehran. We selected some of them and
distributed the questionnaires among their middle
managers
Paired comparisons and problem solution using the
Super Decisions software
The paired comparisons are conducted considering the
following 9 spectra;
The paired comparison tables were defined as the
following, after being completed by the experts and having
the date entered into the software;
Comparison
status
Equal
importance
Almost more
important
More
important
Much more
important
Extremely
important
Preferred value 1 3 5 7 9
Table 1 paired comparison for the key performance
indicators
Key
Performance
Indicators
Customer
satisfaction
Employee
satisfaction
Effects
on
society
Customer
satisfaction
1.000000 7.000000 8.000000
Employee
satisfaction
1.142860 1.000000 4.000000
Effects on
society
0.125000 0.250000 1.000000
Table 2 paired comparison for the influential indicators on the TQM considering the customer satisfaction
Customer
satisfaction
Customers Distributors Employees Suppliers
Team
work
Top managers Education
Customers 1.00000 8.00000 7.00000 8.00000 6.00000 4.00000 4.00000
Distributors 0.12500 1.00000 2.00000 1.00000 1.00000 0.12500 3.00000
Employees 0.14286 0.50000 1.00000 4.00000 1.00000 0.25000 4.00000
Suppliers 0.12500 1.00000 0.25000 1.00000 0.25000 0.12500 0.25000
Team work 0.16667 1.00000 1.00000 4.00000 1.00000 0.12500 1.00000
Top managers 0.25000 8.00000 4.00000 8.00000 8.00000 1.00000 7.00000
Education 0.25000 0.33333 0.25000 4.00000 1.00000 0.14286 1.00000

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As an example, the method of entering the date related to
the paired comparison is presented in the figure 2, which
can be done in three ways of graphics, matrix and verbal,
as it can be seen.
Table 3 paired comparison for the influential indicators on the TQM considering the employee satisfaction
Employee
satisfaction
Customers Distributors Employees Suppliers
Team
work
Top managers Education
Customers 1.00000 4.00000 0.25000 4.00000 1.00000 0.25000 0.25000
Distributors 0.25000 1.00000 0.14290 1.00000 0.25000 0.20000 0.25000
Employees 4.00000 6.99790 1.00000 7.00000 1.00000 0.14286 1.00000
Suppliers 0.25000 1.00000 0.14286 1.00000 0.25000 0.25000 0.12500
Team work 1.00000 4.00000 1.00000 4.00000 1.00000 0.25000 1.00000
Top managers 4.00000 5.00000 7.00010 4.00000 4.00000 1.00000 1.00000
Education 0.40000 4.00000 1.00000 8.00000 1.00000 1.00000 1.00000
Table 4 paired comparison for the influential indicators considering the effects on society
effects on society Customers Distributors Employees Suppliers Team work
Top
mana
gers
Education
Customers 1.00000 3.00000 0.25000 3.00000 0.25000 0.11111 0.25000
Distributors 0.33333 1.00000 0.16667 1.00000 0.25000 0.12500 0.14286
Employees 4.00000 5.99999 1.00000 7.00000 1.00000 0.14286 1.00000
Suppliers 0.33333 1.00000 0.14286 1.00000 0.25000 0.12500 0.14286
Team work 4.00000 4.00000 1.00000 4.00000 1.00000 1.00000 1.00000
Top managers 9.00001 8.00000 7.00001 8.00000 1.00000 1.00000 1.00000
Education 4.00000 7.00001 1.00000 7.00001 1.00000 1.00000 1.00000
Table 12 the following figure is a part of the super-
matrix calculated by the software
Table 5 paired comparison for the Key Performance
Indicators considering the customers
Customers
Customer
satisfaction
Employee
satisfaction
effects on
society
Customer
satisfaction
1.00000 7.00000 6.00000
Employee
satisfacti
on
0.14286 1.00000 1.00000
effects on the
society
0.16667 1.00000 1.00000
Table 6 paired comparison for the Key Performance
Indicators considering the distributors
Distributors
Customer
satisfaction
Employee
satisfaction
effects on
society
Customer
satisfaction
1.00000 4.00000 5.00000
Employee
satisfaction
0.25000 1.00000 5.00000
ffects on society 0.20000 0.20000 1.00000
Table 7 paired comparison for the Key Performance
Indicators considering the employees
Employees
Customer
satisfaction
Employee
satisfaction
effects on
society
Customer
satisfaction
1.00000 0.20000 4.00000
Employee
satisfaction
5.00000 1.00000 6.00000
effects on
society
0.25000 0.16667 1.00000
Table 8 paired comparison for the Key Performance
Indicators considering the suppliers
Suppliers
Customer
satisfaction
Employee
satisfaction
effects on
society
Customer
satisfaction
1.00000 0.33330 1.00000
Employee
satisfaction
3.00030 1.00000 4.00000
effects on
society
1.00000 0.25000 1.00000
Table 9 paired comparison for the Key Performance
Indicators considering the team work
Team work
Customer
satisfaction
Employee
satisfaction
effects on
society
Customer
satisfaction
1.00000 0.16670 1.00000
Employee
satisfaction
5.99880 1.00000 7.00000
effects on
society
1.00000 0.14286 1.00000
Table 10 paired comparison for the Key Performance
Indicators considering the top managers[
Top managers
Customer
satisfaction
Employee
satisfaction
effects on
society
Customer
satisfaction
1.00000 3.00000 5.00000
Employee
satisfaction
0.33333 1.00000 6.00000
effects on
society
0.20000 0.25000 1.00000
Table 11 paired comparison for the Key Performance
Indicators considering the education
Education
Customer
satisfaction
Employee
satisfaction
effects on
society
Customer
satisfaction
1.00000 0.25000 1.00000
Employee
satisfaction
4.00000 1.00000 6.00000
effects on
society
1.00000 0.16667 1.00000

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CONCLUSION
After the paired comparisons and super-matrix calculations
by the software, the existing priority among the indicators
was determined as presented in the following table
The important point to get from the above-mentioned
priorities is the fact that the organizational top managers
have the highest sensitivity, which is similar to conclusions
of the previous studies. As the result, paying more
attention to them will help us achieve the higher quality
and consequently the customer satisfaction.
Considering the resulted priorities and comparing it to the
previous studies, it can be seen that the customers are
highly important in the pharmaceutical industry, which
shows the sensitivity of the practices in that industry since
it deals with people’s health.
The other important point to pay attention to is the higher
importance which the medicine distributors give to the
suppliers who must have a better management concerning
the medicine distribution and supervision.
Sources
1. Arawati Agus .Za faran hasan (2011).Enhancing
production performance and customer performance
through total quality management (TQM).Social and
behavioral sciences 24,1650-1662
2. Asgharpour, Mohammad Javad (1390 A.H.).
Multifunctional Decision Making. Tehran; Tehran
University Publications
3. Bhaskar Mazumder (Jun- Mar 2011). Total Quality
Management in Pharmaceuticals: A Review
International Journal of Pharm Tech Research.
4. Cebeci.u.. and Runan.D.(2007). A multi-attribute
comparison of Turkish quality consults by fuzzyAHP.
International journal of information technology
&decision making.6(1).p.191-207
5. Dr.R.S.Dhalla (January 9-10.2010). Effect of Total
quality management on performance of India
Pharmaceutical Industries. International Conference
on Industrial Engineering and operations
Management Dhaka. Bangladesh.
6. Fattahi, Parviz (1388 A.H.). Quality Management and
Utilization. Tehran; Payam-e Noor University
Publications
7. Momeni Mansour (1388 A.H.). Multi-indicator
Decision-making models and software. Tehran;
SAMT Publications
Figure 2 the method for entering the date related to the paired
comparison in the software
Table 13 the final report provided by the software
Indicators Total normal ideal Ranking
Customers 0.1109 0.1789 0.6948 3
Distributors 0.0187 0.0303 0.1175 6
Employees 0.1397 0.2254 0.8755 2
Suppliers 0.0116 0.0187 0.0756 7
Team work 0.1093 0.1763 0.6847 4
Top managers 0.1596 0.2575 1.0000 1
Education 0.0699 0.1129 0.4383 5
********