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AN INVESTIGATION INTO THE IMPACT OF QUALITY
MANAGEMENT SYSTEMS ON GENERAL MOTORS
SUPPLIERS
BY
L. R. TWALA
Submitted in partial fulfilment of the requirements for
the degree of Magister in Business Administration at the
Nelson Mandela Metropolitan University
Research supervisor: Prof. JJ Pieterse
Date of submission: December 2012
brought to you by COREView metadata, citation and similar papers at core.ac.uk
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ii
DECLARATION
This work has not been previously accepted in substance for any degree and is
not being submitted in candidature for any degree.
Signed ………………
Date …………………
STATEMENT 1
This treatise is being submitted in partial fulfilment of the requirements for the
degree of Master in Business Administration.
Signed ………………
Date …………………
STATEMENT 2
This treatise is the result of my own independent work / investigation, except
where otherwise stated. Other sources are acknowledged by text references.
A reference list is appended.
Signed ……………….
Date ………………….
STATEMENT 3
I hereby give consent for my treatise, if accepted, to be available for
photocopying and for interlibrary loan, and for the title summary to be made
available to outside organisations.
Signed ………………..
Date …………………..
iii
ACKNOWLEDGEMENTS
The completion of this research study would not have been possible without the
support, guidance and encouragement of certain individuals.
I would like to express my sincere gratitude and appreciation to the following:
To our Lord and Father for giving me the strength and perseverance to
complete this work.
My wife, Imkhitha Twala for her unwavering love, support and
encouragement in the past three years.
My Mother and Grandmother for their unquestionable belief in me through
the toughest of times.
My research supervisor, for his indefatigable directions, clarifications,
guidance and encouragement.
My friend, student, teacher, group member, Sareesha Poonoosamy; for
countless discussions and explanations.
All the NMMU lecturers, who helped forged the person I am today.
My mentor, friend and colleague, Mr. Celestin Ndhlovu, for acting as my
guide and counsellor.
To my family, friends and syndicate group members, without whom I would
not have finished studies.
To anyone not mentioned above who had assisted in any way, a sincere
gratitude is given.
iv
ABSTRACT
Acceptable product quality is one of the central pillars of customer satisfaction,
which is key to customer retention and business success. The quest to improve
and maintain good product quality is as old as mankind himself. In the beginning
of time, quality involved selecting edible plants, to craftsmanship then later to
mass production.
As time went on, various individuals and institutions made valuable contributions
to quality control methods, tools and techniques as we know them today. The
International Organisation for Standardisation initiated quality management
standards, provide requirements, specifications and guidelines that can be used
to ensure materials and products meet a certain quality level.
These quality management systems were adopted by the global automotive
organisations, adapted and tailored to suit their requirements. The result was the
development of ISO/TS 16949, which is a requirement for all direct
manufacturing suppliers to the automotive original equipment manufacturers
(OEMs), like BMW, TOYOTA and GM.
Some OEMs specify additional requirements their supplier base, in case of
General Motors, Quality Systems Basics (QSB) is a mandatory quality
management systems requirement. QSB is designed by GM to help suppliers
reduce product defects, improve internal efficiencies and improve supply chain
processes.
A quantitative approach was chosen, which utilised an explorative and
descriptive survey questionnaire in order to complete the research study. The
study will show that the majority of the respondents believed that the
implementation of QSB has resulted in positive implications in their
manufacturing process and supply value chain.
v
CONTENTS
CHAPTER 1 ............................................................................................................. 1
1.1 INTRODUCTION ........................................................................................ 1
1.2 PROBLEM STATEMENT ........................................................................... 2
1.3 SIGNIFICANCE OF THE RESEARCH ...................................................... 3
1.4 DELIMITATION OF THE RESEARCH....................................................... 3
1.4.1 Quality Management System researched .......................................... 4
1.4.2 Academic sources ............................................................................... 4
1.4.3 Geographical demarcation .................................................................. 4
1.4.4 Respondents’ level in organisation ..................................................... 4
1.4.5 Respondents’ bias ............................................................................... 4
1.5 RESEARCH METHODOLOGY .................................................................. 5
1.5.1 Method of data collection .................................................................... 5
1.5.2 The target population and sampling ................................................... 5
1.5.3 Method of data analysis ...................................................................... 6
1.6 CHAPTER OUTLINE .................................................................................. 6
1.7 SUMMARY .................................................................................................. 7
CHAPTER 2 ............................................................................................................. 8
2.1 INTRODUCTION ........................................................................................ 8
2.2 ORIGINS OF QUALITY MANAGEMENT SYSTEMS .............................. 11
2.2.1 ISO 9000 ........................................................................................... 11
2.2.2 ISO/TS 16949 .................................................................................... 17
2.2.3 Quality Systems Basics ..................................................................... 21
2.3 QUALITY MANAGEMENT SYSTEMS IMPLEMENTATION
PROCEDURES......................................................................................... 27
2.3.1 ISO 9000 implementation procedure ................................................ 27
2.3.2 ISO/TS 16949 implementation procedure ........................................ 29
2.3.3 Quality Systems Basics (QSB) implementation procedure.............. 31
2.4 MOTIVATION FOR QUALITY MANAGEMENT SYSTEM IMPLEMENTATION .................................................................................. 32
2.5 BENEFITS ASSOCIATED WITH QUALITY MANAGEMENT SYSTEM CERTIFICATION ...................................................................................... 34
2.6 CHALLENGES TO THE IMPLEMENTATION OF QUALITY MANAGEMENT SYSTEMS ..................................................................... 37
2.7 SUMMARY ................................................................................................ 38
vi
CHAPTER 3 ........................................................................................................... 40
3.1 INTRODUCTION ...................................................................................... 40
3.3 THE RESEARCH PROCESS................................................................... 41
3.4 RESEARCH DESIGN ............................................................................... 42
3.5 RESEARCH METHODOLOGY ................................................................ 42
3.5.1 The Research Problem ..................................................................... 43
3.5.2 Secondary questions ......................................................................... 43
3.6 DELIMITATION OF THE RESEARCH..................................................... 44
3.7 RESEARCH APPROACH ........................................................................ 45
3.7.1 Positivism ........................................................................................... 45
3.7.2 Interpretivism ..................................................................................... 45
3.8 RESEARCH METHOD ............................................................................. 46
3.9 THE QUESTIONNAIRE............................................................................ 48
3.10 RESEARCH SAMPLE .............................................................................. 50
3.10.1 Sampling frame .............................................................................. 52
3.10.2 Research duration .......................................................................... 52
3.11 VALIDITY AND RELIABILITY .................................................................. 52
3.12 SUMMARY ................................................................................................ 54
CHAPTER 4 ........................................................................................................... 55
4.1 INTRODUCTION ...................................................................................... 55
4.2 SECTION A ............................................................................................... 55
4.2.1 Supplier demographics...................................................................... 55
4.2.2 Supplier response rate ...................................................................... 55
4.2.3 Respondents’ position ....................................................................... 56
4.2.4 Respondents’ qualifications .............................................................. 56
4.2.5 Time in position of the respondents .................................................. 57
4.2.6 QSB certification status ..................................................................... 58
4.2.7 Other Quality Management Systems certification ............................ 61
4.2.8 Respondent company size ................................................................ 62
4.3 SECTION B ............................................................................................... 63
4.3.1 Reduction in product defects............................................................. 64
4.3.2 Reduction in variation and waste ...................................................... 71
4.2.4 Summary of results............................................................................ 75
CHAPTER 5 ........................................................................................................... 78
vii
5.1 INTRODUCTION ...................................................................................... 78
5.2 SYNOPSIS OF THE STUDY.................................................................... 78
5.3 CONCLUSIONS AND RECOMMENDATIONS ....................................... 79
5.3.1 Reduction of product defects ............................................................ 79
5.3.2 Reduction of variation and waste ...................................................... 80
REFERENCES ...................................................................................................... 81
LIST OF FIGURES
Figure 2.1: ISO 9001:2000 Process-Based QMS 22
Figure 2.2: Components of ISO/TS 16949 27
Figure 3.1: Model of research problem 51
Figure 4.1 Position of respondents 63
Figure 4.2 Level of education of the respondents 64
Figure 4.3 Time in position of respondents 65
Figure 4.4 Respondent’s company QSB Certification status 66
Figure 4.5 Respondent companies’ use of QSB strategies 67
Figure 4.6 Length of QSB certification 68
Figure 4.7 Other quality management systems certification 69
Figure 4.8 Size of respondent companies 70
Figure 4.9 Fast response contributes towards defect reduction 71
Figure 4.10 Improved documentation of quality issues 72
Figure 4.11 No recurring quality problems since QSB implementation 73
Figure 4.12 Verification station in manufacturing process 74
Figure 4.13 Highest ranking official participates in defect prevention 74
Figure 4.14 Increased awareness of quality problems 75
Figure 4.15 Value gained through use of defect prevention tools 76
Figure 4.16 Fewer defects recorded since QSB implementation 77
Figure 4.17 Fewer customer complaints since QSB implementation 77
Figure 4.18 Less process scrap since QSB implementation 78
viii
Figure 4.19 Improved delivery performance 79
Figure 4.20 QSB Implementation yields costs savings 79
Figure 4.21 More emphasis on managing supplier performance 80
Figure 4.22 Improved management of engineering changes 81
Figure 4.23 Companies would volunteer to implement QSB 81
Figure 4.24 Summary of defect reduction results 82
Figure 4.25 Summary of variation and waste reduction results 83
LIST OF TABLES
TABLE 2.1 ISO 9000:1987-2008 Standards 23
TABLE 2.2 Summary of the relationship between QSB elements, ISO 9001 and ISO/TS 16949 elements 33
TABLE 4.1 Respondent’s company planning QSB certification 66
TABLE 4.2 Respondent’s company ready for QSB certification audit 67
LIST OF APPENDICES APPENDIX A: Research Questionnaire
LIST OF COMMONLY USED ACRONYMS
OEM: Original Equipment Manufacturer
GM: General Motors
GMSA: General Motors South Africa
QMS: Quality Management Systems
QSB: Quality Systems Basics
CHAPTER 1
INTRODUCTION, PROBLEM STATEMENT AND OVERVIEW OF
THE STUDY
1.1 INTRODUCTION
Various studies have been carried out in the past to evaluate the impact of
Quality Management Systems in the performance of organisations (Sampaio,
Saraiva and Rodrigues, 2011). Automotive Original Equipment Manufacturers
(OEMs) such as Ford, BMW, General Motors and others have their own industry
specific Quality Management Systems requirement for their direct manufacturing
supply organisations, known as the ISO/TS 16949 (Anonymous, 2010).
General Motors states that the goal of ISO/TS 16949 specification is to develop
Quality Management Systems that provide for continual improvement, focus on
the prevention of defects and reduce variation and waste in the supply chain
(Anonymous, 2010).
The ISO/TS 16949 as a technical specification (hence TS) was formed under the
auspices of the International Standards Organisation with the view to unify
individual company and country/regional Quality Management Systems
requirements in direct supply organisations, and avoid multiple audits on
companies that supply more than one OEM or export into more than one
country/region (Maguad, 2006).
ISO/TS 16949 broadly consists of ISO 9001, automotive-specific tools and
customer-specific requirements (Ostadi, Aghdasi, and Kazemzadeh, 2012). The
automotive-specific tools include manuals for Advanced Product Quality Planning
(APQP), Production Part Approval Process (PPAP), Measurement System
2
Analysis (MSA), Statistical Process Control (SPC) and the Failure Mode and
Effect Analysis (FMEA) (Yeh, Pai and Huang, 2012) .
For General Motors, one of the customer-specific requirements for their direct
suppliers is the implementation of a shop-floor level Quality Management System
known as Quality Systems Basics (QSB) (Anonymous, 2011).
While ISO/TS 16949 evaluates and certifies that the supplier’s Quality
Management Systems meet the ISO/TS 16949 requirements, QSB is concerned
with how the Quality Management Systems are implemented in the factory
production areas and provides examples of General Motors’ expectations for
certain elements of the Quality Management Systems (Anonymous, 2011).
According to General Motors, one of the objectives of Quality Systems Basics’
deployment to their direct suppliers is to improve the internal and external quality
performance of the supplier organisations. This would ensure internal efficiencies
at the supplier, as well as ensure that General Motors receives good quality
products from their suppliers (Anonymous, 2011).
1.2 PROBLEM STATEMENT
The main problem of this research study is:
“Does QSB implementation improve internal and external quality performance of
GM supplier organisations?”
In order to solve the main problem, the following sub-problems had to be
investigated:
Does QSB implementation result in reduced defects on manufactured
products?
Does QSB implementation result in reduced variation and waste in both
the production areas and in the supply chain?
3
1.3 SIGNIFICANCE OF THE RESEARCH
The automotive sector is one of the leading manufacturing sectors in South Africa
in terms of employment as well as its contribution to the GDP of the country. It
contributes over 7% of South Africa’s Gross Domestic Product, and employed
over 120 000 workers. International competition for markets has placed
unprecedented pressure on organisations in South Africa to produce goods and
services more efficiently in order to become competitive (Barnes & Morris, March
2008).
Supplier organisations to Automotive Original Equipment Manufacturers are
faced with additional financial challenges of Quality Management Systems
certification, in order for them to continue conducting business within the industry.
ISO/TS 16949 is one such Quality Management System. For General Motors ’
direct suppliers, an additional mandatory system is required to be implemented,
namely Quality Systems Basics.
It is important for supplier organisations to generate increased benefit out of the
implementation of the aforementioned systems, compared to what it would cost
them to implement the systems. Failure to achieve that would mean the systems
become an operational and a financial burden to the suppliers. This study aims to
evaluate whether General Motors South Africa suppliers view the implementation
of QSB as beneficial to them as envisaged by General Motors, or not.
1.4 DELIMITATION OF THE RESEARCH
Delimiting the research ensures that the research is not too broad, which makes
the information more manageable.
4
1.4.1 Quality Management System researched
The Quality Management System researched was limited to the GM-specific
system known as Quality Systems Basics (QSB), which meant that only
organisations which are first-tier suppliers to GM were considered for the
research.
1.4.2 Academic sources
Since QSB is a company-specific Quality Management System, and is relatively
new, no academic sources were found pertaining to the system. All the
information used in this study was sourced from General Motors’ technical
documents.
1.4.3 Geographical demarcation
The companies surveyed in this study have manufacturing locations throughout
South Africa.
1.4.4 Respondents’ level in organisation
The study was limited to responses from employees at senior and middle
management levels and/or delegated to their staff members.
1.4.5 Respondents’ bias
Since the author was a General Motors employee at the time the study was
conducted, who occupied a position of influence in awarding future business to
direct suppliers, the suppliers may have been reluctant to disclose information or
opinions which they feared may project them negatively.
5
1.5 RESEARCH METHODOLOGY
An extensive literature study will form the foundation for the research study. The
literature study chapter discusses the origins, evolution and the implementation
of the most important Quality Management Systems available today. The chapter
also covered topics on the motivation, benefits and challenges of implementing
the Quality Management Systems. Most importantly, the literature review chapter
also covered the links between the various Quality Management Systems
culminating with the development of General Motors’ own QMS for their supplier
organisations.
A quantitative approach was chosen, which utilised an explorative and
descriptive survey questionnaire in order to complete the research study. The
purpose of the questionnaire was to acquire the relevant information from the
survey respondents regarding the problem in question. The questionnaire was
chosen as a data collection method because it provides a simple and an effective
way for the survey respondents to provide the required information which was
analysed in relation to the topic.
1.5.1 Method of data collection
A pilot study was conducted to assess the validity and efficiency of the chosen
data collection instrument of this research study.
1.5.2 The target population and sampling
Due to the size of the target population, all members of the population were
considered as respondents. Therefore a convenience sampling method was used
to collect research data. The data collection instrument used for the survey was a
questionnaire designed to extract responses to provide relevant information for
the study.
6
The questionnaire was emailed to all respondents to complete anonymously, and
they were provided with a deadline by which to submit the completed document.
A pilot study was conducted to test the efficiency of the data collection
instrument. The pilot study was designed to give an indication of whether the
respondents found the questionnaire clear and easy to understand.
1.5.3 Method of data analysis
Statistical analysis of the data was done with the assistance of Dr. Jacques
Pietersen using STATISTICA software, which is a common tool used to analyse
research results. Data interpretation and presentation was also completed to
highlight the findings of the study.
1.6 CHAPTER OUTLINE
The treatise will be divided into five chapters which are as follows:
Chapter 1 presents an introduction to the research study. The problem
statement, main and sub-problems, the significance and the delimitation of the
research and key concepts are presented.
Chapter 2 consists of a literature review about Quality Management Systems.
The origins and the evolution of each of the Quality Management Systems under
consideration are discussed. Procedures for implementation, motivation, benefits
and challenges of Quality Management Systems implementation are also
discussed.
Chapter 3 illustrates the research methodology used to complete the study. The
data collection tool is also discussed as well as the survey questionnaire.
7
Chapter 4 contains the results of the empirical study and the interpretation of the
results.
Chapter 5 is the final chapter which includes a brief summary of the research,
conclusions and recommendations as well as areas for further research.
1.7 SUMMARY
The research topic was discussed in this chapter in order to introduce the study
undertaken. The main problem and sub-problems have been defined. The
delimitations of the study have been explained. The significance of this study has
been illustrated to explain the importance of the topic. Lastly, the research
methodology used during the research study has been outlined.
8
CHAPTER 2
QUALITY MANAGEMENT SYSTEMS
2.1 INTRODUCTION
Maguad (2006) states that the pursuit of quality is an age-old endeavour that
started back to the beginning of civilization. He further states that human beings
have always had problems pertaining to quality, although the approaches
employed to manage it have differed from era to era. The twentieth century saw
the emergence of massive forces, which demanded a quality revolution.
Since prehistoric times, ancient food-gatherers had to learn which food could be
eaten and which could not. Hunters had to learn which tools worked best for
various purposes. The better the tools were, the higher their chances of survival.
Determining quality for these ancient people was relatively easy because they
were the suppliers, producers and customers of their own work (Kirkham, 1992;
Lewis & Smith, 1994:38).
The family was the basic organisational unit of society in ancient times, and
families had to provide largely for their own basic needs. As the families grew,
villages were formed, which meant trade flourished within and between villages.
Craftsmen of all sorts emerged and through doing the same work repetitively,
they gained a thorough grasp of their respective production processes and
materials. This shifted the quality focus away from the family unit and to the
buyer – seller interface, where buyers had to be vigilant of the quality of the
product they were buying (Maguad, 2006).
As villages grew into towns, regional trade widened and it became difficult for a
producer and consumer to meet face-to-face in the market place. A new form of
quality assurance emerged in the form of quality warranties and quality
9
specifications, where the producer undertakes responsibility for relief or
compensation should the product fail to meet the expectations within a specific
time frame (Maguad, 2006).
The industrial revolution of the 1700’s introduced a new dimension to the quest
for quality, since the introduction of machinery and the factory system enhanced
production and distribution in a manner that the craft system could not. During
this period, the principle of specialisation and division of labour was employed, as
opposed to the craft system where the craftsman performed all the production
steps.
However, the mass production of components which were previously scarce
meant the demand for them increased astronomically and the quality of the
product was of marginal importance. Over time, certain factory quality problems
necessitated quality improvements and this led to the system of scientific quality
management which forms the bedrock of modern Quality Management Systems
(Maguad, 2006).
Frederick W. Taylor was the first pioneer of scientific management in the late
nineteenth century. He explored ways in which productivity could be improved
and sought to create the model factory of the future (Lewis & Smith, 1994). He
developed a series of concepts that laid the foundation for work improvement,
and favoured the reduction of each job into its smallest, specialised tasks with
each task done by a different individual (Tenner & De Toro, 1992). Taylor
succeeded in raising productivity, but his system neglected the human relations
factor and product quality. Managers simply created inspection departments to
monitor the quality of the finished product (Maguad, 2006).
The pre-World War II years saw the introduction of statistical process control,
which focused on installing inspection in production system to assure uniform
quality in products going to consumers. Inspectors were to examine, weigh,
10
measure and test every product before its exit from the factory (Sims & Sims,
1995). In 1924 Shewhart developed the control chart in order to deal with
variation, shifting the focus from expensive correction of problems to preventing
of problems and improvement of processes (Rinehart, 1993).
The post World War II years witnessed Japan seeking to rebuild their economy
with the formation of the Union of Japanese Scientists and Engineers (JUSE)
with the mandate to improve the quality of Japan’s export goods. To this end,
Japan invited individuals from the west, to assist in achieving their mandate and
a number of these individuals played a significant role in shaping the Quality
Management Systems as they are known today (Maguad, 2006).
W. Edward Deming’s contribution (amongst others) was to stress the
responsibility of top management to exercise leadership for the comprehensive
and constant improvement of the system and the continuous development of
people as individuals and as team mates. Additionally, Joseph M. Juran’s
greatest contribution was to drive the subject of quality beyond the technical
aspects of quality control into the management arena (Maguad, 2006).
According to Tenner and De Toro (1992), Armand Feigenbaum promoted the
concept that quality is every function’s or person’s responsibility within the
organisation, and he is credited with originating the concept of “cost of quality”;
while Phillip Crosby’s philosophy captured the four quality management
essentials, namely: Quality is conformance to requirements; the system of quality
is prevention not inspection; the performance standard is zero defects, not “close
enough”; the measurement of quality is the price of non-conformance and not
quality indices (Tenner & De Toro, 1992).
A lot of other quality “gurus” provided nuggets which contributed towards Quality
System Management and their collective teachings or concepts are summarised
by Macdonald and Piggott (1993) as follows:
11
Top management to lead change process;
Cultural transformation is a key requirement of the change process;
Quality is not a separate function, but part of the entire business function;
People, not machines, are chief drivers behind quality;
Everyone in the organisation must participate towards quality;
Motivation alone, although important, does not engender change;
Organisation-wide education and training is essential for long-term
improvement;
Continuous improvement requires total commitment and unity of purpose
from top management.
These concepts mentioned above, encapsulate some of the essential principles
for Quality Management Systems as espoused by the International Organisation
for Standardisation as will be shown in this chapter. The rest of the chapter
explores the literature regarding the origins of the various Quality Management
Systems (QMS), the implementation procedures for the various QMS, the
motivation for seeking QMS certification by organisations, the benefits of QMS
certification and the challenges faced by companies seeking certification.
2.2 ORIGINS OF QUALITY MANAGEMENT SYSTEMS
2.2.1 ISO 9000
2.2.1.1 Origins of ISO 9000
The International Organisation for Standardisation (ISO) was formed from the
merging of two organisations – the International Federation of the National
Standardising Associations (ISA) and the United Nations Standards Coordinating
Committee (UNSCC) in February 1947 (Anonymous, 2011a).
12
The acronym ISO is based on the Greek word isos, which means “equal”. This
was done to ensure that the acronym for the International Organisation for
Standardisation does not change irrespective of the country or language in which
it is used. Today, the ISO is the largest standards developing organisation in the
world (Anonymous, 2011a).
ISO standards are developed by technical committees made up of national
delegations of experts from government, business and other relevant
organisations. In 1979, a new technical committee was approved and was known
as: ISO/TC 176, quality management and quality assurance. ISO/TC 176
published its first standard in 1987 (Anonymous, 2011b).
ISO standards are usually automatically given a catalogue number, and when
ISO/TC 176’s first publication was published, ISO had already achieved a total of
9000 published standards. Therefore the new standard was named ISO
9000:1987 with the year signifying the year of publication or revision level
(Anonymous, 2011b).
The first ISO 9000 standard was based on the United States military standards
(1960’s –MIL-Q-9858A and MIL-I-45208A) and British standards (BS 5750) and
various other existing standards (Bendell, 2000; Naveh & Marcus, 2004; Van der
Wiele, Van Iwaarden, Williams and Dale, 2005).
As a management system standard, ISO 9000 provides organisations with a
generalised model through which they can establish and operate their quality
systems. The generic nature of the standard implies that the same standard can
be implemented in any organisation regardless of size, product line and
economic sector (Briscoe, Fawcett and Todd, 2005).
Today, the ISO 9000 family of international quality management standards is the
de facto worldwide standard for establishing effective and efficient Quality
13
Management Systems (Briscoe, et al., 2005; Anonymous, 2011a). By 2009, over
one million companies had achieved certification under ISO 9001:2008 (Llach,
Marimon and Bernado, 2011). ISO 9001 can be used for certification purposes by
organisations seeking recognition of their Quality Management Systems
(Anonymous, 2011a).
2.2.1.2 The structure and evolution of ISO 9000
Since the first publication, the ISO 9000 family of standards have undergone a
number of revisions, namely: ISO 9000:1994; ISO 9000:2000 and ISO
9000:2008.
According to Al-Najjar and Jawad (2011) ISO 9000:1987 family of standards
consisted of five standards from which an organisation could select, namely:
ISO 9001 which was a model for quality assurance in an organisation, the
processes of which included design, development, production, installation
and servicing.
ISO 9002 was a model for selection by organisations whose processes
were the same as that of ISO 9001, but exclude design and development.
ISO 9003 was for organisations whose processes used final inspection
and testing to meet product and service quality requirements.
ISO 9004 was the quality management and quality system element
guidelines.
ISO 8402 covered the vocabulary and terminology used in the ISO
9000:1987 family of standards.
ISO 9000:1994 was structurally the same as the earlier revision except that in
this system, the focus was on quality assurance through preventive actions as
opposed to simply checking the final product (Anonymous, 2010a; Al-Najjar &
Jawad, 2011).
14
The year 2000 revision of ISO 9000 (ISO 9000:2000), combined the three
standards 9001, 9002, 9003 into one, known as ISO 9001. The 2000 version
introduced a fundamental change in philosophy by placing process management
at the forefront of the new standard (Anonymous, 2010a; Al-Najjar & Jawad,
2011).
The “new” process-based Quality Management System uses the PDCA (Plan-Do
-Check-Act) improvement circle (Figure 2.1), to represent the four blocks of
management responsibilities: resource management, process management and
measurement, analysis and improvement.
Plan. Management establishes objectives and processes necessary to
deliver in accordance with customer requirements.
Do. Implement the processes in order to produce the product.
Check. Measure and monitor processes and products against set
processes and objectives.
Act. Take action in order to institutionalise process improvement activities
(Magd, 2008).
15
Figure 2.1: ISO 9001:2000 Process-Based Quality Management System
Source: Magd (2008)
According to Al-Najjar and Jawad (2011), under the year 2000 revision:
ISO 9000 provides Quality Management Systems fundamentals and vocabulary;
ISO 9001 provides the Quality Management Systems requirements, and lastly,
ISO 9004 provides the Quality Management Systems for performance
improvement.
ISO 9000:2000 and 2008 revisions are based on the following principles;
Customer focus; Leadership commitment; Involvement of people; Process
approach; System approach to management; Continual improvement; Factual
approach to decision making; Mutually beneficial supplier relationships
(Anonymous, 2011c).
ISO 9000:2008 introduces no new requirements from the year 2000 revision. It
only introduces clarifications to existing requirements of ISO 9000:2000 and it
16
also introduces changes meant to improve consistency with ISO 14000:2004
(Psomal & Fotopoulos, 2009; Al-Najjar & Jawad, 2011).
Refer to Table 2.1 for the summary of the evolution of ISO 9000:1987-2008.
Table 2.1: ISO 9000:1987-2008 Standards
ISO 1987
ISO 9000 Quality management and assurance standards for selection and use.
ISO 9001 Quality systems model for quality assurance in organizations which processes include design, development, production,
installation and servicing.
ISO 9002 Quality systems model for quality assurance in organizations which processes include production and installation, but not design and development.
ISO 9003 Quality systems model for quality assurance in organizations which processes use final inspection and testing to meet
product and service quality requirements.
ISO 9004 Quality management and quality system element guidelines.
ISO 8402 Vocabulary and Terminology.
ISO 1994
ISO 9000, 9001, 9002, 9003, 9004, and 8402
The focus is on quality assurance through preventive actions.
ISO 2000
ISO 9000 Quality Management System fundamentals and vocabulary- defines terminology and standards.
ISO 9001 Quality Management Systems requirements - used to assess compliance with requirements (combines ISO 9001/9002/9003 into one standard).
ISO 9004 Quality Management Systems guidelines for performance improvement - offers guidance for continual management
system improvement.
ISO 2008
Introduced some classifications to the existing requirements of the previous issue to improve its consistency with ISO 14001:2004
Source: Al-Najjar & Jawad (2011)
In the ISO 9000:2008 family of standards, ISO 9001:2008 is the standard against
which certification by an external body can be sought. There are five sections in
17
the standard, which specify activities that need considered when an organisation
implements its Quality Management Systems:
Global requirements for the Quality Management System and
documentation;
Management responsibility, focus, policy, planning and objectives;
Resource management and allocation;
*Product realisation and process management;
Measurement, monitoring, analysis and improvement.
*All the sections mentioned above apply to all organisations irrespective of
economic sector except for resource realisation, which would have to be tailored
specifically for the product or service which the organisation produces or provides
(Anonymous, 2011c).
ISO 9000 forms the foundation on which the automotive industry Quality
Management System, ISO/TS 16949 is based (Anonymous, unknown).
2.2.2 ISO/TS 16949
2.2.2.1 Origins of ISO/TS 16949
ISO/TS 16949 is a set of commonly accepted worldwide technical standards
developed in agreement with the experiences and principles of the automobile
industries in America, Europe and Japan (Yeh, et al., 2012). It specifies quality
management requirements for suppliers in the automotive sector (Maguad, 2006;
Ostadi, et al., 2010; Bevilacqua, Ciarapica, Giacchetta and Marchetti, 2011).
It is a technical specification (hence TS) which, in conjunction with ISO 9001,
defines the Quality Management System requirements for the design and
development, production, installation and service of automotive related products
(Ostadi, et al., 2010).
18
The International Automotive Task Force which comprises of the Original
Equipment Manufacturers (OEM) such as the BMW Group, Chrysler Group,
Daimler AG, Fiat Group Automobile, Ford Motor Company, General Motors
Company, PSA Peugeot Citroen, Renault SA, Volkswagen Group and the vehicle
manufacturers corresponding trade associations - AIAG (U.S), ANFIA (Italy),
FIEV (France), SMMT (UK) and VDA (Germany), joined forces with the ISO to
align their respective Quality Management Systems in order to form a commonly
accepted set of standards for the automotive industry (Anonymous, 2012).
The various industry quality management standards available prior to the
development and adoption of ISO/TS 16949 include QS 9000 (US), VDA 6.1
(Germany), EAQF (France) and AVSQ (Italy) (Kartha, 2004). The result of the
ISO and the IATF work was the publication of the first ever version of ISO/TS
16949:1999 (Anonymous, 2012).
The purpose of ISO/TS 16949 is to assist supplier organisations in the
automotive sector to operate systems that not only ensure that the products and
services they supply meet customer requirements, but also provide continual
improvement, emphasise defect prevention and reduce variation and waste in the
supply chain. This view is supported by (Kartha, 2004; Hoyle, 2005).
2.2.2.2 The structure and evolution of ISO/TS 16949
The ISO/TS 16949 standard was moulded on the basis of ISO 9001, with the
same process-based philosophy. Coupled with ISO 9001, a number of
automotive industry tools have been added:
APQP - Advanced product quality planning;
FMEA - Failure mode and effect analysis;
PPAP - Production part approval process;
SPC - Statistical process control;
19
MSA - Measurement system analysis.
Lastly, each OEM may include their own specific requirements (known as
customer-specific requirements) as part of the package of requirements on their
supplier organisations (Anonymous,2006; Yeh, et al., 2012).
2.2.2.2.1 ISO/TS 16949:1999 (First Version)
The foundation of this standard was the particular requirement of ISO 9001:1994
implementation by the supplier base, and the inclusion of the automotive-specific
tools. The specification was developed with contributions from four established
automotive standards - QS 9000 (US), VDA 6.1 (Germany), EAQF (France) and
AVSQ (Italy) (Anonymous, 2010a).
20
Figure 2.2: Components of ISO/TS 16949
Source: Author’s own construct
2.2.2.2.2 ISO/TS 16949:2002
Since, the ISO/TS 16949:1999 version was based on ISO 9001:1994, the 2002
version was also based on ISO 9001:2000 in order to emphasize continuous
improvement in the supplier base. The new ISO/TS 16949:2002 Quality
Management Systems successfully harmonises the supplier quality system
requirements of the automakers of US, Germany, Italy, France, Japan, Korea
and Malaysia. It also stresses the fundamental, sector-specific quality
requirements, which supports and sustains continuous improvement, stresses
defect prevention while simultaneously reduces variation and waste in the supply
chain and inspires improvement in customer satisfaction (Anonymous, 2010a).
ISO/TS 16949
ISO 9001
Automotive-specific tools
OEM
Customer-specifics
21
Some of the key additional requirements include the need for:
Focus on top management involvement and linking the business plan to
clearly defined measurable quality objectives.
Focus on Human Resource management, with particular emphasis on
processes for defining competency requirements, providing training, and
verifying the effectiveness of actions taken.
Processes to motivate employees to reach quality objectives, achieve
continuous improvement, and create an environment to promote
innovation.
A process to measure the extent of the employee awareness of the
relevance and importance of their activities and how they contribute to the
achievement of quality objectives.
Focus on product and process design.
A process to measure customer satisfaction by conducting effective
system, process and product audits.
Effective analysis of data to drive continuous improvement.
ISO/TS 16949 have thence achieved universality in the automotive industry
worldwide (Anonymous, 2012; Yeh, et al., 2012), and it is the Quality
Management System upon which General Motors have based their own
customer-specific Quality Management System requirement for their suppliers.
This requirement is known as Quality Systems Basics (Anonymous, 2011).
2.2.3 Quality Systems Basics
No academic sources containing information on QSB were found at academic
institutions or at the General Motors archives. It is the author’s view that the
reason for this is that QSB is relatively new, and that it is a customer-specific
requirement. Technical documents were used as sources for this section.
22
QSB is a General Motors - specific requirement to their supplier base. It is meant
to enhance the effectiveness of ISO/TS 16949 at the supplier base and it is also
based on ISO/TS 16949. QSB was originally developed to enhance the QS 9000
system, which was found to have a number of systemic deficiencies. The system
was first piloted on GM Power Train delinquent suppliers as a strategy for driving
quality improvements in their processes. The result was a drastic reduction in
customer complaints and a significant improvement in the suppliers’ operational
metrics. As a result the system was made a GM mandatory requirement to all
GM suppliers by 2006.
The main difference between ISO/TS 16949 and QSB is that ISO/TS 16949
evaluates and certifies that the supplier’s Quality Management Systems meet the
ISO/TS 16949 requirements, while QSB is concerned with how the Quality
Management Systems are implemented in the factory production areas and gives
examples of GM’s expectations for certain elements of the management systems
(Anonymous, 2011).
A QSB certification audit is conducted by a GM Supplier Quality Engineer or a 3rd
party provider, while the ISO/TS 16949 certification audit may only be carried out
by an accredited 3rd party provider. QSB certification lays a foundation upon
which the benefits of ISO/TS 16949 can be leveraged (Anonymous, 2011).
Another objective of QSB’s application throughout the GM supplier base is to
ensure that all GM suppliers globally, focus on common quality management
principles, implement common methods and place emphasis on common
processes (Anonymous, 2011).
According to General Motors (Anonymous, 2011), QSB consists of eleven
elements, the implementation of which forms strategies for implementing the
basics of Quality Management Systems on the shop floor, namely:
23
Fast Response
In this process, the production or quality departments gather information on
significant problems that occurred in the past 24 hours. These are
communicated in the daily meeting (which is not longer than 15 minutes)
which comprises of cross-functional teams consisting of management down to
operator level. These problems are assigned owners and are written on the
fast response board that is situated on the shop floor and reviewed daily.
The problem resolution remains on the board until it is successfully solved
and corrected. Once closed, the problem should be logged in the company’s
“lessons learned” database for periodic review for training purposes. This
strategy can be linked to management responsibility, resource allocation and
continual improvement sections of the process-approach of ISO 9001 and to
the defect prevention element of ISO/TS 16949.
Control of Non-Conforming Product
The purpose of this strategy is to ensure that a product which does not meet
customer requirements is not unintentionally supplied to the customer, is
contained or segregated from other good products and is properly disposed
of. It also provides a communication and containment strategy in the event
the product unintentionally gets supplied to the customer. This strategy can
be linked to the variation and waste reduction in the supply chain element of
ISO TS 16949.
Verification Station
The verification station is a check-point that is applied in the manufacturing
areas, assembly areas and where 100% visual inspection is required. It is a
check-point that is meant to verify the effectiveness of the process, alert the
organisation if there are any changes in the “upstream” process(es). The data
from this station can be used to make process adjustments in order to
improve first time quality and take operational decisions in respect of
24
monitoring corrective action effectiveness. This strategy can be linked to the
continual improvement elements of ISO 9001.
Standardized Operations
Standardised operations apply to the scope of work to be performed by the
operators as well as the work instructions to be followed by the operators
while doing the work. The aim of this strategy is to ensure a repeatable,
predictable baseline for continuous improvement involving the operator.
Standardized Operator Training
The aim of this strategy is to ensure that operators are properly trained to
perform their work in order to produce a product that meets and exceeds
customer requirements. This and the previous elements can be linked to the
Human Resources management aspect of resource management.
Error Proofing Verification
Where possible, error proofing verification is used to ensure that a non-
conforming product is not built or if so it is detected, thereby ensuring that it is
not passed to the next process step. This can be linked to defect prevention
and waste reduction elements of ISO/TS 16949.
Layered Process Audits
Layered Process Audits are used to verify the effectiveness of both the
standardised operations and standardised operator training, where various
layers of management audit the operators with reference to the work
instruction or the job element sheets. Layered Process Audits can be applied
to all manufacturing and support operations within an organization and can be
linked to the resource management and continual improvement elements of
ISO 9001.
25
RPN Risk Reduction (Reverse PFMEA)
The aim of the risk reduction strategies is to reduce chances of initial failures
of a new product, to error proof past quality defects and to ensure that failure
modes have proper controls (detection/prevention). This strategy chiefly uses
quality planning tools like the Failure Mode and Effect Analysis (FMEA) and
the related Control Plans. This strategy can be linked to continual
improvement and defect prevention.
Contamination Control
The aim is to improve part cleanliness over time via measurement, control
and process improvements or handling improvements; and to utilize a
standardized, systematic and a structured approach to monitor and control
contamination sources such as sediment, extra parts in assemblies, paint and
painted parts contamination. This strategy does not apply to all components,
but to those that are prone to contamination failures like paint and power-train
components. This strategy can also be linked to the defect prevention
element of ISO/TS 16949.
Managing Change
The objective is to ensure that the supplier have a system to manage all plant
process changes including planned changes and unplanned changes
(emergency) by establishing a common Trial Run process with standardized
communication, readiness reviews and quality reviews; defining minimum
requirements for bypassing existing production processes and implementing a
controlled stock/inventory banking process. This strategy links up with APQP,
PPAP and variation and waste reduction in the supply chain, element of
ISO/TS 16949.
Supply Chain Management
In this strategy, the aim is to provide a standard process for managing all of
the supplier tiers in the supply chain, in order to ensure all tiers of the supply
26
chain have systems and processes to evaluate, select, communicate
expectations and requirements, measure performance, and develop their
suppliers. A further aim is to provide the final customer with high stability, high
quality parts and service from initial Tier 1 through the entire supplier chain.
This strategy links up with the variation and waste reduction elements of
ISO/TS 16949.
The objective of the study is to investigate the effectiveness of QSB strategies
with respect to the elements described above. This will be done from a supplier’s
perspective, as opposed to GM’s perspective.
Table 2.2: Summary of the relationship between QSB elements, ISO 9001
and ISO/TS 16949 elements
Fast Response Management responsibility, resource allocation and continual improvement sections of the process-approach of ISO 9001 and to defect prevention
element of ISO/TS 16949.
Control of non-conforming product
Variation and waste reduction in the supply chain element of ISO TS 16949.
Verification Station Continual improvement elements of ISO 9001.
Standardised
Operations
Human Resources management aspect of resource
management.
Standardised
Operator Training
Human Resources management aspect of resource
management.
Error Proofing
Verification
Defect prevention and waste reduction elements of
ISO/TS 16949.
Layered Process
Audits
Resource management and continual improvement
elements of ISO 9001.
RPN Risk Reduction Continual improvement and defect prevention.
Contamination
Control
Defect prevention element of ISO/TS 16949.
Managing Change APQP, PPAP and variation and waste reduction in
the supply chain, element of ISO/TS 16949.
Supply Chain
Management
Variation and waste reduction elements of ISO/TS
16949.
Source: Author’s own construct.
27
2.3 QUALITY MANAGEMENT SYSTEMS IMPLEMENTATION
PROCEDURES
2.3.1 ISO 9000 implementation procedure
One can make the deduction that the decision to seek ISO 9000 certification by
an organisation is voluntary judging by the studies on motivation for seeking
Quality Management Systems certification (Kartha, 2004; Feng, Terziovski and
Samson, 2008; Sampaio, et al., 2009).
The International Organisation for Standardisation outlines the steps to be taken
if an organisation wishes to implement and maintain a Quality Management
Systems based on ISO 9001, to be as follows:
Step 1:
Top management to be fully engaged.
This is so that they may define the motivation for implementing ISO 9001; define
the quality policy in conjunction with the organisation’s mission, vision and
values; and align the organisational objectives with related product or service
objectives.
Step 2:
Key processes and the interactions need to meet quality objectives to be
identified.
Step 3
Implement and manage the Quality Management System and its processes using
the process management techniques.
Step 4
Build ISO 9001-based Quality Management Systems.
28
This can be achieved by identifying the ISO 9001 requirements, then mapping
the ISO 9001 requirements with the organisation’s implemented Quality
Management Systems. A gap analysis is then conducted in order to identify
where the existing systems fulfil the ISO 9001 requirements and where they do
not. Finally activities, procedures and controls needed, are to be included in the
organisation’s Quality Management Systems.
Step 5
Implement the system, train company staff and verify effectiveness of
organisation’s processes.
Step 6
Manage the Quality Management Systems.
Organisations should place emphasis on customer satisfaction, strive for
continual improvement and consider implementing business excellence models
in company operations (Anonymous, 2011a).
Once the Quality Management System is implemented according to the ISO
9001 requirements, organisations may seek to be “certified” to be regarded as to
be conforming to ISO 9001. According to the ISO, certification is not any of ISO’s
management system standard’s requirements, however organisations may
choose to be certified.
Certification is defined by ISO as an issuance of written assurance (certificate) by
an independent external body, that it had audited the organisation’s Quality
Management Systems and verified that it conforms to the requirements specified
in a particular standard (Anonymous, 2011a).
29
2.3.2 ISO/TS 16949 implementation procedure
For ISO/TS 16949, as in the section above, a number of steps have to be
undertaken in order for an organisation to be ready to implement Quality
Management Systems according to ISO/TS 16949.
Step 1
Create a process map and understand customer requirements
The first step includes studying one’s organisation in order to create a detailed
process map. The developed process map should take into account activities
from product development through to shipping the product to the customer. At
this stage it is critical to understand the needs and expectations of the
organisation’s customers, in order to align the processes with meeting these.
Step 2
Conduct a gap analysis
The organisation would need to conduct a gap analysis of the existing system,
including the examination of the documentation structure behind the
organisation’s Quality Management Systems. Using ISO/TS 16949 and ISO 9001
should provide the organisation with the correct criteria against which to measure
their Quality Management Systems.
Step 3
Implement a Business Operating System (BOS)
This section includes identifying, grouping and rating customer and interested-
party expectations with the view of aligning them with the organisation’s
processes and metrics. Various tools can be used to link expectations to key
processes and processes measurable that have to be measured and monitored
in order to satisfy the requirements of ISO 9001. Business operating systems are
also a good tool to use in order to achieve good Quality Management System
planning.
30
Step 4
Implement Process Review Methodology (PRM)
Process review methodology is used to document and control Quality
Management System processes. It uses the process map and the organisation’s
documentation and applies process flows, process failure mode and effects
analyses, and control plans to ensure that the documentation is effective and that
the organisation’s Quality Management System processes are under control.
Not all the organisation’s processes need to be documented using process flows,
but only those that require documentation to ensure the effective planning,
operation and control of its processes. On the other hand, each process uses a
process failure mode and effect analysis to document potential problems or
failure modes and recommend actions to be taken.
A control plan is used at the process level for planning the kinds of controls
needed to ensure that a process’s outputs meet the intended outcome of that
process.
Lastly, the organisation would be required to implement ISO/TS 16949 with
particular emphasis on customer satisfaction and the organisation’s processes.
Business operating systems become an important method to use for
organisations needing to be customer-focused (Kymal & Watkins, 2001).
The certification of an organisation to assure conformance of their Quality
Management Systems to ISO/TS 16949 takes place via an external, accredited
body (Anonymous, 2011). Typically, the initial certification is a two-stage process.
The first stage, which is also known as a readiness review, is to confirm the
organisation’s readiness for a certification audit or a second stage audit.
The assessor would typically review internal audit and management review
records for the preceding 12 months against the ISO/TS 16949 requirements (at
31
least one full audit to comply with ISO/TS 16949 requirements). They would also
review the customer and operational performance trends for the same time
period. If the fundamental requirements have been met, then the assessor will
confirm that the company is ready and confirm a date for a stage two assessment
visit.
This audit’s aim is to confirm that the management system fully conforms to the
requirements of ISO/TS 16949 in practice, and it is carried out within 90 days of
the stage one review. If the assessor finds that the quality system conforms to
ISO/TS 16949 requirements, then the organisation will be confirmed as ISO/TS
16949 certified (Anonymous, unknown).
2.3.3 Quality Systems Basics (QSB) implementation procedure
QSB is a mandatory, General Motors (GM) Quality Management System
applicable to all GM suppliers world-wide. In case of a supplier who has never
implemented QSB before, the following process is followed for initial QSB
implementation.
The supplier acclimatises with QSB objectives, elements and requirements
through the QSB training manual that is available electronically to both GM
suppliers as well as GM employees. Then the supplier would be required to self -
audit their processes using the QSB audit procedures which are also available
electronically to both suppliers and GM employees.
The completed supplier process audit report should be sent to a responsible GM
supplier quality engineer (SQE), who will evaluate it and schedule a customer-
monitored audit. The GM SQE conducts the QSB audit at the supplier premises
then allows the supplier time to correct any non-conformances, after which a final
certification is scheduled and conducted.
32
The final audit, if successful, will lead to QSB certification. The certification is
valid for three years and it is punctuated with yearly supplier self-audits, the
reports of which are to be forwarded to the responsible GM SQE.
The stated objective of QSB is to assist suppliers to provide products of world-
class quality standards through preventing major quality disruptions of the
customer’s operations due to supplier fault, improving supplier delivery quality
and reducing customer complaints. Additionally, QSB provides a system to
communicate and document quality issues while instilling discipline in containing
and solving quality issues (Anonymous, 2011).
The following section investigates the factors that influence organisations to
embark on a process of certifying their Quality Management Systems.
2.4 MOTIVATION FOR QUALITY MANAGEMENT SYSTEM
IMPLEMENTATION
The author recognises that this section deals specifically with the motivation of
organisations seeking ISO 9000 certification, and due to the three Quality
Management Systems discussed in this paper, ISO 9000 is the only voluntary
system. ISO/TS 16949 and QSB are both industry and company requirements,
and as such, automotive suppliers and/or GM suppliers are mandated to seek
certification.
However, the author has decided to include this section since the benefits of
Quality Management System certification will be discussed later in this chapter,
and the literature has shown a link between the motivation for certification and
the benefits reaped from achieving certification (Sampaio, et al., 2009).
33
Motivation for or reasons why organisations decide to seek certification for their
quality management can be classified into two groups: external motivation and
internal motivation (van der Wiele, et al., 2005; Jang & Lin, 2008).
External motivation is described as those reasons originating from the external
environment, such as government regulations, marketing advantages, customer
expectations, competitive pressure, etc. Internal motivation, on the other hand, is
described as those reasons that originate from within the organisation, such as
operational improvements, product quality improvements, productivity
improvements and customer satisfaction (Singels, Ruel and Van de Water, 2001;
van der Wiele, et al., 2005; Sampaio, et al., 2009).
Sampaio, et al. (2009), in their review of existing literature suggest that a
consensual opinion exists that companies which are driven by internal motivation
to seek ISO 9000 certification, enjoy more benefits that those driven by external
motivation. This view is supported by a number of other authors (van der Wiele,
et al., 2005; Jang & Lin, 2008; Magd, 2008; Psomal & Fotopoulos, 2009).
This view is confirmed by Singels, et al. (2001) who suggest that organisations
which seek ISO 9000 certification due to external motivation are unlikely to
achieve the intended benefits. Additionally, Jang and Lin (2008) showed that
internal motivation leads to deeper QMS implementation, which ultimately leads
to improved business performance. External motivation was shown not to lead to
deeper QMS implementation and by extension not to improved business
performance.
Given the relationship of the motivation of ISO 9001 certification, with respect to
the certification benefits, the next section investigates the benefits of Quality
Management System certification to organisations.
34
2.5 BENEFITS ASSOCIATED WITH QUALITY MANAGEMENT SYSTEM
CERTIFICATION
In the preceding section, a clear link has been established between the
motivation for certification and the benefits derived from certification. A
consensual opinion was put forward that those organisations driven by internal
motivation tend to derive higher benefits than those driven by external factors.
Terziovski and Power (2007) elaborate that organisations that seek ISO 9000
certification with a proactive approach, driven by a strategy of continuous
improvement have a higher likelihood of deriving significant benefits as a result.
In support of the above opinion, (Singels, et al., 2001) had found that ISO 9000
certification alone does not result in improvement of the performance of
organisations. They suggest that the claims that certification yields organisational
improvement needs to be adjusted, to show that the type of motivation of an
organisation plays a significant role in explaining the level of performance of an
organisation.
Another factor that affects the type of benefits an organisation can derive from
certification, is the level of assimilation and adoption of ISO 9000 practises after
certification. Therefore, the higher the degree to which the practice makes its way
into various aspects of organisational life, and the higher the degree to which the
organisation goes beyond the minimum requirements of the practice, then the
higher the benefits the organisation will reap from the system (Naveh & Marcus,
2004).
The implementation of a Quality Management System does not only yield
benefits at a company level, but can have benefits at a macro level. In Romania,
before 1989, the automotive industry supplier sector was characterised by old
technologies and non-existent Quality Management Systems. The entry of
multinational automotive companies like Renault meant that the industry had to
35
reposition itself in order to compete effectively. One of the strategies was to
develop the quality infrastructure within the supplier and upstream industries. A
target was set that from 2005 to 2009, over 4000 companies had to achieve SR
EN ISO 90001:2001 certification or other quality assurance or standardisation
systems. This would contribute towards specific objectives such as institutional
development of a national standardisation body in Romania and the development
of testing laboratories of world-class standards in order to measure the
characteristic features or the performance of the produced/exported products and
materials (Isac, 2008).
These efforts would not only affect the automotive supplier industry such as steel
component press shops, but also the steel manufacturing companies as stated in
the paragraphs above. This shows the Quality Management System’s ability to
influence and/or benefit entire economies as opposed to individual organisations
only.
Quality Management System implementation can also benefit a particular
business or industrial sector. In the section about the origins of ISO/TS 16949, it
was stated that suppliers in various regions around the world were required to
conform to their respective regional automotive quality standards, such as VDA in
Germany and QS 9000 in North America.
If a supplier supplied more than one OEM in various geographical areas, then
they would be required to conform to more than one regional automotive
standard, which would be a drain of both human and operational/financial
resources and result in possible duplication and redundancies (Ostadi, et al.,
2012).
The development and acceptance of ISO/TS 16949 across the majority of the
world’s OEMs as a replacement of the various geographical standards, has
meant that these redundancies are eliminated, and the cost and administrative
36
burdens imposed by multiple standard formerly mandated in various geographic
regions are also avoided (Bayati & Taghavi, 2007).
Many studies have been conducted on the benefits of Quality Management
System implementation at a company level. The following are the most common
benefits identified in the literature:
Studies have shown that the implementation of Quality Management Systems
resulted in improved documentation procedures within the organisation, improved
efficiency of the quality systems and increased quality awareness (Casadesus &
Karapetrovic, 2005; Magd, 2006; Maguad, 2006; Magd, 2008; Psomal &
Fotopoulos, 2009).
Further studies have found that companies that implement the ISO 9001 system,
benefit through the establishment of a formal process management system,
coupled with the systematic recording of process performance data and systems
for monitoring of internal indicators related to customer satisfaction (Gotzamani,
Tsiotras, Nicolaou and Nicolaides, 2007).
Some authors argue that Quality Management System certification directly and
positively influences an organisation’s operational performance and indirectly
affects market performance, which ultimately has a positive influence on
business performance (Feng, et al., 2007; Lin & Jang, 2008).
However, some authors have found that not all benefits of quality management
certification are positive. Martinez-Costa and Martinez-Lorente (2007), in their
analysis of the performance of certified and non-certified companies, found that
certified companies exhibited an increase in operating costs that were not
compensated for by the increase in sales turnover and profitability.
37
In a comparative study of the financial performance of ISO 9001 of Portuguese
certified and non-certified companies by (Sampaio, et al., 2011), it was shown
that non-certified companies performed better than certified companies in terms
of sales growth and the portion of operational results over assets.
Most of the reviewed literature revealed a broad consensus that Quality
Management System certification can bring benefits to the organisations in which
they are implemented.
2.6 CHALLENGES TO THE IMPLEMENTATION OF QUALITY
MANAGEMENT SYSTEMS
Literature has shown that a number of impediments to successful implementation
of Quality Management Systems exist, and the list below highlights the most
common reasons:
The reasons most often cited as a barrier to QMS implementation is the lack of
top management involvement and commitment to the implementation process
(Lin & Jang, 2008; Magd, 2008; Sampaio, et al., 2009).
Certification can be time-consuming and costly, depending on the organisation’s
state of readiness, as certification may take thousands of employee hours and
can be financially costly as well. These high implementation and maintenance
costs particularly for smaller companies are a major barrier towards realising the
full benefits of certification (Briscoe, et al., 2005; Sampaio, et al., 2009).
In a study conducted amongst Egyptian companies, lack of qualified personnel,
insufficient quality education and training and lack of financial resources were
listed as the top barriers to effective implementation of QMS (Magd, 2008).
38
2.7 SUMMARY
It has been established in literature that the concept of quality is as old as
humankind. The evolution of the manufacturing processes has contributed to the
evolution of quality systems and quality management, and various prominent
individuals have contributed in the evolution of Quality Management Systems as
we know them today.
The most well-known and widely-used Quality Management System is the ISO
9001. It is a generic system that can be implemented in any industrial sector and
for any product line. It also forms the basis for the automotive industry specific
Quality Management System, ISO/TS 16949.
ISO/TS 16949 combines the previous regional quality standards, ISO 9001 and
OEM customer-specific requirements into one baseline, internationally accepted
standard applicable to all suppliers to the OEMs. Various OEMs have different
aspects of the ISO/TS 16949 system that they would like to emphasise, hence
the allowance within the system, for customer-specific requirements.
General Motors’s customer-specific quality system requirement is known as
Quality Systems Basics (QSB). QSB focuses on shop-floor implementation of the
ISO/TS 16949 requirements and its focus is from the shop floor level employees
up to top management, as opposed to ISO/TS 16949 which is driven down from
top management.
The motivation for seeking Quality Management Systems certification can either
be internal or external. The motivation for certification has an influence on the
kind of benefits the company enjoys due to certification. The Quality
Management Systems can deliver benefits to economies at a macro level, at a
sector level as well as at micro or company level, although some studies have
shown that not all benefits are positive. Effective Quality Management System
39
implementation can be impeded by factors such as the lack of top management
commitment, lack of properly trained personnel and high implementation costs.
In this chapter the origins, evolution and implementation procedures of the
selected Quality Management Systems were discussed. Additionally, the
motivation for seeking quality certification, benefits and challenges for
implementation were also discussed. The next chapter will focus on the research
methodology for the study.
40
CHAPTER 3
RESEARCH METHODOLOGY
3.1 INTRODUCTION
As much as the study evaluates the impact of Quality Management Systems on
GM suppliers, the study is focused specifically on the GM-specific, Quality
Management System which is known as Quality Systems Basics. The literature
identified a number of benefits of Quality Management Systems, and QSB
specifically. This chapter focuses on the broad methodology followed in
conducting the empirical part of the study.
In this chapter, specific aspects to be dealt with include:
Research design and methodology;
Research approach;
Sample selection method;
Data collection technique;
Validity of the results;
Reliability of the results.
3.2 WHAT IS RESEARCH
Collis and Hussey (2009) describe research as a systematic and methodical
process of enquiry and investigation with the objective of increasing knowledge.
Similarly, Leedy and Ormrod (2005) suggest that research is a systematic
process of collecting and analysing information in order to increase the
understanding of the subject which is being investigated.
Research allows the researcher the opportunity to apply theory to or to otherwise
analyse a real problem, or to investigate and analyse more general issues (Collis
& Hussy, 2009). The authors summarise the objectives of research as follows:
41
To review and synthesize existing knowledge;
To examine some existing situation or problem;
To provide solutions to a problem;
To explore and analyse more general issues;
To construct and formulate a new procedure or system;
To explain a new phenomenon;
To generate new knowledge;
Or a combination of the above.
3.3 THE RESEARCH PROCESS
Collis and Hussey (2009) suggest that several fundamental stages in the
research process are common to all scientifically based investigations,
irrespective of the research approach followed. According to the authors, the
research process follows the following steps:
The research topic, which is the starting point of a research study. This
stage involves choosing a topic or an area in which the research study will
be grounded.
Once the topic has been chosen, the existing literature has to be studied
to gain more understanding on the chosen topic and help focus the
researcher’s ideas on a particular research problem.
The main product of the stage above is the formulation or the definition of
the research problem and this leads to formulating the research
question(s) or hypotheses.
The research problem definition stage is followed by the research design
stage. The starting point for this stage is the determination of the research
paradigm, which is the framework that guides how the research should be
conducted. The overall approach to the research study process is known
as the research methodology.
42
Once the research design is completed, research data may be collected.
The various methods of collecting data will be discussed later in this
chapter.
The collected data would then be analysed and interpreted. The main
methods of data analysis employed are determined by the research
paradigm and whether qualitative or quantitative data was collected.
Conclusions, recommendations and the write-up stage follows, which is
the final stage of the research process.
3.4 RESEARCH DESIGN
Hussey and Hussey (1997) define research as a process of enquiry and
investigation, in conjunction with a systematic and methodical process using
appropriate methods to collect and analyse data. They reason that research must
address a specific issue or problem, and set a definable objective for the
research activity. Research design can be defined as a logical sequence that
links the empirical data to a study’s initial research question and finally, to its
conclusions (Yin, 1994).
3.5 RESEARCH METHODOLOGY
Hussey and Hussey (1997) assert that methodology refers to the overall
approach to the research process, from the theoretical foundations to the
collection and analysis of data.
Research methods can be viewed as a mode and a framework for engaging in
empirical material (Alveeson & Deetz, 2000). The authors define method as how
one develops research questions, how one attends to social reality, and what
vocabularies are used in clarifying and interpreting what emerges from the
participants of the research.
43
To ensure the logical solution of the stated problem, a literature study and an
empirical study were conducted. The literature study was conducted in order to
facilitate the understanding of the Quality Management Systems and the benefits
of implementing them. The empirical study involved a questionnaire, a sample
and statistical analysis adapted to solve the stated problem of the study.
3.5.1 The Research Problem
As an Automotive Quality Management System, ISO/TS 16949 was established
in order to assist supplier organisations to operate systems with products and
services they supply, meet customer requirements, and also provide continual
improvement, prevent defects and reduce variation and waste in the supply
chain.
General Motors Company sought to enhance the effectiveness of ISO/TS 16949
by introducing a GM-specific and a mandatory Quality Management System
known as Quality Systems Basics (QSB) to their supplier organisations. The
objectives of QSB are to improve internal and external quality performance of the
supplier organisations, thereby ensuring that GM manufacturing plants will be
assured of good quality products and services.
This lead to the research question: Does QSB implementation improve internal
and external quality performance of GM supplier organisations?
3.5.2 Secondary questions
In order to resolve the main problem, the following questions were identified.
Does QSB implementation result in reduced defects on manufactured
products?
Does QSB implementation result in reduced variation and waste in both
the production areas and in the supply chain?
44
Figure 3.1: Model of research problem
Source: Author’s own construct.
In an attempt to solve these problems, it was necessary to collect empirical
information regarding the current situation from GM’s supplier base, and compare
this to the results of the literature study.
3.6 DELIMITATION OF THE RESEARCH
In order to ensure that the research conducted was manageable, the following
demarcations were established:
Quality Management System researched
The Quality Management System researched was limited only to the GM-
specific system known as Quality Systems Basics (QSB), which means
only organisations that are first-tier suppliers to GM were considered for
the research.
Improved quality
performance
Defect prevention
Waste and variation reduction
45
Geographical Demarcation
The companies surveyed have manufacturing locations throughout South
Africa.
Organisation Level
The study was limited to responses from employees at senior and middle
management levels and staff members.
3.7 RESEARCH APPROACH
The researcher must select the most appropriate research design and
methodology for the research study. According to Collis and Hussey (2009) the
starting point for research design in a research study is to determine the research
paradigm. A research paradigm is the framework that guides how the research
study should be conducted (Collis & Hussey, 2009). According to the authors,
there are two main research paradigms, namely, Positivism and Interpretivsm.
3.7.1 Positivism
Positivism is the approach that originates from natural sciences, and is founded
on the assumptions that social reality is singular and objective and is not affected
by the act of investigating it (Collis & Hussey, 2009. They further suggest that the
positivist approach rests on the belief that society is organised according to
scientific observations and experiments. With this paradigm, it is always possible
to establish cause and effect relationships between variables, systematically and
statistically. The positivist paradigm is likely to implement quantitative research
approach (Gummesson, 1991).
3.7.2 Interpretivism
46
The interpretivism paradigm arose in response to the shortcomings of positivism.
It is founded on the assumption that social reality is subjective and multiple, and
therefore affected by the act of investigating it (Collis & Hussey, 2009:57).
According to interpretivism, it is suggested that it may not always be possible to
establish cause and effect relationships between variables and social sciences.
Interpretivism represents a reaction against unselective application of positivism
in social sciences (Neuman, 1997).
This research paradigm involves an inductive process with an objective of
providing interpretive understanding of social phenomena within a particular
context. The interpretivism paradigm would most likely be a qualitative research
approach (Collis & Hussey, 2009).The selected paradigm for this research study
is positivism, which means that the quantitative research approach was used.
3.8 RESEARCH METHOD
Primary data and secondary data types are the two main types of data involved
with research. Primary data refers to original data that will be collected for the
research study, while secondary data refers to data available from existing
sources or sources other than the current research project (Leedy & Ormrod,
2005; Collis & Hussey, 2009).
Leedy and Ormrod (2005) suggest that researchers might use observation,
interviews, questionnaires, objects, written documents, audio visuals, electronic
documents (e.g. websites) and anything else that might help them answer the
research questions. The primary data can be collected by the following methods:
Interviews: where a sample of interviewees are asked questions to
discover what they think or feel about a specific topic. There are two types
of interviews, namely, personal and telephonic interviews.
Observation: these tend to be structured in quantitative research, while
they tend to be unstructured and free-flowing in qualitative research
47
(Leedy & Ormrod, 2005). When the observation method is implemented,
data is collected by noting people’s behaviour, objects and occurrences.
The major advantage of this method is that the accuracy of the
researcher’s data is independent of the willingness and the ability of the
respondents.
Survey Questionnaire: this method allows the respondents complete
anonymity, while answering closed questions with the option of adding
additional information.
In this research study, a survey methodology was used to collect primary data
from the research respondents. According to Collis and Hussey (2009) in a
positivist study, a survey methodology is designed to collect primary or
secondary data from a sample, with the objective of analysing them statistically
and generalising the results to the population.
In order to promote a logical and formalised approach to the research when
addressing the primary and the secondary research questions, the following
steps were followed:
In chapter 2, the literature study was conducted on the origins, evolution,
motivation, implementation procedures, benefits and challenges of implementing
the Quality Management Systems. The link between QSB and other Quality
Management Systems was shown, and ultimately the primary research question
and its sub-questions were developed.
Empirical data was collected by means of self-completed questionnaires that
were distributed to the target population in the demarcated area. The
investigation had the following characteristics:
The sample comprised of only middle and senior managers as detailed in
the delimitations of the research.
48
The questionnaire was based on the information found during the literature
study.
The questionnaire was made up of two main sections. Section A
established the biographical details of the respondent, the company
background and the Quality Management Systems certification status.
Section B evaluated the impact of QSB implementation on shop-floor
operations. The first sub-sections evaluated the impact of QSB
implementation reducing product defects; the second sub-section
evaluated whether QSB implementation enhances continual improvement;
the third sub-section evaluated whether QSB implementation assists
organisations to standardise their operations; while the fourth sub-section
evaluated whether QSB implementation assists organisations to reduce
variation and waste in both the product and supply-chain.
Lastly, the results gained from the survey was analysed to establish
whether the implementation of QSB results in improved internal and
external quality performance.
3.9 THE QUESTIONNAIRE
Lancaster (2005) suggests that questionnaires are the most widely used method
of data collection and depending on their design, can vary greatly according to
their structure, purpose, how they are administered and the method of their
analysis and interpretation. Collis and Hussey (2009) describe a questionnaire as
a mode of collecting primary data in which a sample of respondents are asked a
list of carefully structured questions that are selected after thorough testing, with
a view of extracting reliable responses. Important aspects to be considered by
researchers pertaining to the questionnaire design are as follows:
The range and scope of questions to be included;
Question types (e.g. open ended or closed);
Content of individual questions;
Question structure;
49
Question wording.
Angloher (2010) suggests some of the advantages of using questionnaires to
include the following:
It is usually the lowest cost method;
It allows enough time to think about questions;
The questionnaire is the only means of communication between the
researcher and all the respondents, therefore the stimulus is the same for
all respondents;
Respondents perceive this method to be anonymous;
Information can be obtained relatively quickly.
On the other hand, Angloher (2010) also suggests the disadvantages of using a
questionnaire to include:
The major disadvantage could be the low response rate, with the possible
result of introducing bias due to the poor response rate;
It is not possible for the respondents to qualify or discuss their responses;
The researcher has no control over how the respondents complete the
questionnaire;
There is a negative attitude towards questionnaires. People receive many
forms and questionnaires via the post, and as a consequence, many
people tend to ignore questionnaires.
There are three types of questions that can be used in questionnaires, namely,
open-ended questions, multiple choice questions and scaled response questions.
Typically, scaled response questions are used to gather data on attitudes.
Struwig and Stead (2001) propose the following general guidelines when
designing a questionnaire:
Provide clear and precise instructions on how to answer the questionnaire;
Divide questions into logical sections by subject;
Proceed from general to specific questions;
50
Start with questions that are easy to answer;
Avoid technical jargon;
Minimise the number of questions to avoid respondent weariness;
Ask sensitive questions last.
The questionnaire is shown in Addendum A and is the primary source of data
collection for this research. The questions were prepared with the objective to
determine the most relevant information in order to complete the research. A
cover letter was drafted that explained the reason for the research, in line with
the suggestions by Frazer and Lawley (2000), that a cover letter should
accompany each questionnaire to act as an introduction to the survey and
attempt to motivate people to respond.
A draft questionnaire was tested in a pilot study to ensure clarity and user-
friendliness of the document. The pilot group consisted of three quality managers
from different first-tier suppliers to GMSA and all were based in the Port Elizabeth
geographical area. The affected factories are: Principle Plastics, De Jager
Plastics and Extrusions, and Venture Uitenhage. This was done in accordance
with the assertion by Fink (2006) that a questionnaire must be pilot tested in
order to determine whether it is user-friendly and will produce the intended
results. See Addendum A for the formal survey questionnaire used for the study.
3.10 RESEARCH SAMPLE
There are two categories of sampling methods, namely, random or probability
sampling and non-random or non-probability sampling. All types of sampling
techniques will fall into one of the two categories (Leedy, 2001; Collis & Hussey,
2009).
a) Probability Sampling
51
Random or probability sampling is described as a sampling method where
each member of the population has an opportunity to be chosen. These
sampling types are outlined below:
Simple Random Sampling: This sample is taken randomly, with
each member of the population standing an equal chance of being
chosen.
Stratified Random Sampling: This sample is taken randomly from
different levels or strata of the population.
Proportional Random Sampling: This sample is taken randomly
from different levels or strata of the population that differ in size.
Cluster Sampling: This sample is taken randomly from groups of
units in a population rather than from individual units of the
population.
Systemic Sampling: This sample is taken by suing a predetermined
sequence.
b) Non-Probability Sampling
These sampling methods describe techniques which do not guarantee that
each element of the population has an equal opportunity of being selected.
These techniques are outlined below:
Convenience Sampling: This sampling type does not pretend that the
sample is representative of the population. The sample is taken from
people or objects that are readily available.
Quota Sampling: This sampling method is the same as convenience
sampling, except that the ratio of the different strata coincides with the
population.
Purpose Sampling: The sample is taken from people or units for a
particular purpose.
For the purpose of this research, a convenience sample was used because of the
convenience with respect of time and expense. Respondents were first-tier
52
supplier organisations currently transacting with GM South Africa, and it was
relatively easy to access and contact them directly.
3.10.1 Sampling frame
A total of 73 self-completion questionnaires were distributed electronically to all
current first-tier supplier organisations as they appear on GMSA bidlist.
Production or quality managers were requested to complete the questionnaire as
they are most intimately involved with manufacturing/quality systems in their
respective organisations.
3.10.2 Research duration
The research project was planned to be completed within one and a half months.
The questionnaires were sent and responses were collated after two weeks, the
last month was used for analysing data, interpreting the results and writing up the
results chapter.
3.11 VALIDITY AND RELIABILITY
Collis and Hussey (2009) state that two measures exist to describe the credibility
of research findings, namely, reliability and validity. They describe reliability as
the absence of differences or variance in the results if the research were to be
repeated; while they describe validity as the extent to which the research findings
accurately mirror the phenomena under study. Leedy and Ormrod (2005) argue
that validity and reliability of research results take various forms, depending on
the nature of the research problem, the general research methodology and the
nature of the data collected. The authors argue that reliability is the consistency
with which a measuring instrument yields a certain result when the subject being
measured has not changed.
53
They further argue that a test score’s validity is dependent on the reliabi lity of the
score, because if the reliability is inadequate, then validity will also be poor.
Hence the importance of testing reliability before validity is examined.
The following are methods of determining the reliability of a score (Leedy &
Ormrod, 2005; Collis & Hussey, 2009).
Test-retest reliability; is the extent to which the same measuring
instrument yields the same results on two different occasions.
Internal consistency reliability; is the extent to which all participants in
within a single experiment produce similar results.
Equivalent forms reliability; is the extent to which two different versions of
the same instrument shows similar results.
Interrater reliability; is the extent to which the results of two or more
independent analysts agree or harmonise.
Validity can influence the research process since it determines the extent to
which the instrument measures what it is supposed to measure (Leedy and
Ormrod, 2005).
Below, several of the more common validity types are outlined as suggested by
Struwig and Stead (2001) and Leedy and Ormrod (2005):
Face validity – relies upon the judgement of the researcher.
Criterion related validity – is established when the measure differentiates
individuals on a criterion it is expected to predict. This can be achieved by
establishing concurrent validity or predictive validity. Concurrent validity is
established when the scale distinguishes individuals who are known to be
different. Predictive validity refers to the instrument’s ability to differentiate
among individuals on a future criterion.
Content validity – refers to how representative the scale or instrument is of
the universe of the content of the characteristic that is being measured. It
54
is the precision with which it measures the factors or situations under
study.
Construct validity – refers to how well the results obtained from the use of
the instrument fits the theories around which it was designed. Construct
validity consists of three sub-categories, namely, convergent validity,
discriminant validity and nomological validity. Convergent validity is
established when the scores of two different instruments measuring the
same concept are highly correlated. Discriminant validity is established
when two variables, based on theory, are thought to be uncorrelated, and
the scores obtained are found to empirically confirm that. Nomological
validity involves relating measurements to a theoretical model that leads to
further deductions, interpretations and tests that allows constructs to be
systematically interrelated.
Internal validity is the freedom from bias in forming conclusions in view of
the data.
External validity is concerned with the ability of the conclusions to be
generalised from a sample to the entire population and not merely to the
sample that was studied.
3.12 SUMMARY
This chapter provided a discussion of the research process, research
methodology and the delimitations of this research study. The use of the
questionnaire, the sampling methods, the reliability and validity of research data
were also discussed. In chapter 4, the results of the survey will be analysed and
presented.
55
CHAPTER 4
RESULTS AND ANALYSIS
4.1 INTRODUCTION
This chapter explores and interprets the results and findings of the study. The
completed questionnaires received from General Motors direct, first-tier suppliers
will be analysed and the results presented. Data will be presented in graphical
form for better understanding and interpretation.
The survey questionnaire was divided into two sections, namely, Section A and
B. Section A dealt with the biographical details of the respondents, their
organisations and their position on QSB certification. Section B dealt with the
impact of QSB certification on the organisation’s internal and external quality
performance.
4.2 SECTION A
4.2.1 Supplier demographics
The population consisted of 73 first-tier suppliers to General Motors at the time of
conducting the research study. The respondents to the questionnaire totalled 28
first-tier suppliers.
4.2.2 Supplier response rate
An overall response rate of 38% was achieved for the research study, which is
acceptable as the response rates for survey questionnaires can be as low as
10% (Collis & Hussey, 2009).
56
4.2.3 Respondents’ position
Figure 4.1 shows the summary of the titles of the respondents. More than 90% of
the respondents were either Quality managers or staff members within the quality
department. The magnitude of the bar in the chart represents the percentage of
each of the corresponding title as labelled on the chart.
Figure 4.1: Position of respondents
Source: Author’s own construct
4.2.4 Respondents’ qualifications
Figure 4.2 shows the respondents’ level of education. This has a reinforcing
effect on the reliability of the responses as the higher the education levels, the
higher the likelihood that the questionnaire will properly understood.
0.00
10.00
20.00
30.00
40.00
50.00
60.00
Production manager Quality manager Other
Pro
po
rtio
n o
f R
esp
on
den
ts (
%)
Position of Respondents
57
The survey results show that the lowest level of education the respondents have
is Matric, while over 60% of the respondents possess a National Diploma or
higher. This means that the researcher can be confident that the questionnaire
has been properly understood.
Figure 4.2: Level of education of the respondents
Source: Author’s own construct
4.2.5 Time in position of the respondents
Figure 4.3 illustrates the length of service of respondents in their respective
companies. The results show that only about 26% of the respondents had been
employed in their respective companies for five years or less. This ensures that
the vast majority of the respondents are familiar with the company systems and
that they may have a good idea of the changes that may have resulted since the
implementation of the QSB system.
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
Matric N/Diploma B Degree Post-Grad
Pro
po
rtio
n o
f R
esp
on
den
ts' E
du
cati
on
(%)
Respondents' Level of Education
58
Figure 4.3: Time in position of respondents
Source: Author’s own construct
4.2.6 QSB certification status
Figure 4.4 shows that over 85% of respondents were from organisations that had
already implemented QSB strategies as evidenced by their certification for QSB.
The four companies that were not certified yet had indicated that they were ready
for QSB certification, which means that they were already implementing QSB
strategies. This means that the survey questions were not unfamiliar to the
respondents at the time of completion of the questionnaire.
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
0-5 years 6-10 years 11-15 years 16-20 years >20 years
Pro
po
rtio
n o
f re
spo
nd
ents
' tim
e in
po
siti
on
(%)
Time in position
59
Figure 4.4: Respondent’s company QSB Certification status
Source: Author’s own construct
Figure 4.4 illustrates the positive response to whether those companies that were
not yet certified, were planning to certify. The same companies also indicated
that they were in fact ready for QSB certification audit at the time that they
completed the survey questionnaire as shown in Table 4.2. All respondents have
indicated that they had either totally internalised QSB strategies in their day-to-
day activities, or that they were mostly using the QSB strategies in their day-to-
day activities as shown in Figure 4.5.
Table 4.1: Respondent’s company planning QSB certification
Planning QSB Certification Percentage
Yes 100.00
Source: Author’s own construct
1
Yes 85.19
No 14.81
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
Pro
po
rtio
n o
f Q
SB c
ert
ific
atio
n (%
) Respondent Companies' QSB Certification
60
Table 4.2: Respondent’s company ready for QSB certification audit
Readiness QSB cert audit Percentage
Ready 100.00
Source: Author’s own construct
Figure 4.5: Respondent companies’ use of QSB strategies
Source: Author’s own construct
Figure 4.6 shows that over half the respondents’ organisations have had QSB
certification for over five years. This means that the majority of the respondent
organisations are familiar with QSB strategies and this gives more credibility to
the responses provided.
46.00
47.00
48.00
49.00
50.00
51.00
52.00
53.00
1
Pro
po
rtio
n o
f Q
SB im
ple
men
tati
on
(%)
Respondent Companies' Use of QSB Strategies
Totally internalised Mostly
61
Figure 4.6: Length of QSB certification
Source: Author’s own construct
4.2.7 Other Quality Management Systems certification
All the respondents have ISO/TS 16949 Quality Management Certification,
except for one. This is in line with the automotive industry requirement that direct
manufacturing suppliers to Original Equipment Manufacturers to acquire ISO/TS
16949 certification. About two thirds of the respondents’ organisations have more
ISO/TS 16949 certification, plus additional Quality Management Systems
certifications. Figure 4.7 illustrates the spread of the respondents’ Quality
Management Systems certification status.
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
0-3 years 4-6 years >6 years
Pro
po
rtio
n o
f le
ngt
h o
f Q
SB c
ert
ific
atio
n (%
) Length of QSB Certification
62
Figure 4.7: Other Quality Management Systems Certification
Source: Author’s own construct
4.2.8 Respondent company size
Over 60% of the respondent organisations had 76 or more employees. This
shows that QSB deployment by General Motors was not limited to organisations
of a specific size, and it will be interesting to note whether the responses to the
survey questions differ by size category or not. Figure 4.9 shows the respondent
companies’ spread according to size, which is measured in terms of the number
of employees in this study.
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
TS 16949 ISO 9001&TS16949
TS 16949 & other ISO 9001&TS16949 &
Other
Other
Pro
po
rtio
n o
f Q
MS
cert
ific
atio
n (%
) Respondents' QMS Certification
63
Figure 4.8: Size of respondent companies
Source: Author’s own construct
4.3 SECTION B
This section deals with the analysis and presentation of the results of the
investigation regarding the impact of QSB certification on respondent
organisations’ internal and external quality performance.
All the questions were ranked according to the Liekert scale ranging from 1-5.
One represented strongly disagree and five represented strongly agree. Since
the main research problem was to investigate whether QSB implementation at
the General Motors direct supplier base, resulted in improvements in internal and
external quality performance; two questions were asked:
Has QSB implementation resulted in reduction of defects in the
manufacturing process?
Has QSB implementation resulted in reduction of variation and waste
within the manufacturing process as well as in the supply chain?
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
1-25 26 - 50 51 - 75 76 - 100 > 100
Pro
po
rtio
n o
f co
mp
any
size
(%
) Respondent Company Size
(Number of Employees)
64
All the questions in this section had a 100% response rate.
4.3.1 Reduction in product defects
The first question asked was whether the information communicated daily in the
fast response meetings contributed significantly towards the reduction in defects.
Figure 4.10 shows that over three quarters of the respondents agreed that fast
response meetings contribute significantly towards defect reduction.
Figure 4.9: Fast response contributes towards defect reduction
Source: Author’s own construct
The second question asked was whether the discipline of documenting internal
and external quality problems had increased since QSB implementation. Over
60% of respondents either agreed or strongly agreed with the above opinion,
while over 30% had no opinion either way, as shown in Figure 4.11.
Disagree Neutral Agree Strongly agree
Count 1 5 10 12
Percentage 3.57 17.86 35.71 42.86
0
5
10
15
20
25
30
35
40
45
Pro
po
rtio
n o
f Fa
st R
esp
on
se C
on
trib
uti
on
Fast Response
65
Figure 4.10: Improved documentation of quality issues
Source: Author’s own construct
The third question asked was whether any quality problems had occurred more
than once since QSB implementation. Figure 4.12 shows that over 50% of
respondents either are neutral or disagree with the above statement.
Disagree Neutral Agree Strongly agree
Count 1 10 14 3
Percentage 3.57 35.71 50.00 10.71
0
10
20
30
40
50
60
Pro
po
rtio
n o
f Q
SB c
on
trib
uti
on
to D
ocu
me
nta
tio
n
Improved Documentation of Quality Issues
66
Figure 4.11: No recurring quality problems since QSB implementation
Source: Author’s own construct
Question four asked whether in the respondent’s manufacturing process, exists
at least one verification station to ensure the integrity of the product. Over 90% of
the respondents either agree or strongly agree with the above opinion as
depicted in Figure 4.13.
0
5
10
15
20
25
30
35
40
45
Disagree Neutral Agree Strongly agree
Pro
po
rtio
n o
f Q
SB t
o R
ecu
rrin
g Q
ual
ity
Pro
ble
ms
No Recurring Quality Problems
Count Percent
67
Figure 4.12: Verification Station in Manufacturing Process
Source: Author’s own construct
The fifth question sought to establish whether the highest ranking person in the
company participates regularly in defect prevention activities. Figure 4.14 shows
that over 70% of the respondents agree with above opinion.
Figure 4.13: Highest Ranking Official Participates in Defect Prevention
Source: Author’s own construct
0
10
20
30
40
50
60
Disagree Neutral Agree Strongly agreeRes
po
nd
ents
Ve
rfic
atio
n S
tati
on
Im
ple
men
tati
on
Verification Station in Manufacturing
Process
Count Percent
0
10
20
30
40
50
60
Strongly disagree Disagree Neutral Agree Strongly agree
Sen
ior
Man
agem
en
t In
volv
emen
t
Highest Ranking Official Participates in Defect Prevention
Count Percent
68
Figure 4.15 shows that there was strong agreement to the question whether both
operators and managers had become more aware of quality problems since QSB
implementation.
Figure 4.14: Increased awareness of quality problems
Source: Author’s own construct
There was over 70% agreement to the seventh question, which gauged whether
significant value had been derived from defect prevention through the use of
defect prevention tools, since QSB implementation as shown in Figure 4.16.
0
10
20
30
40
50
60
70
Disagree Neutral Agree Strongly agree
Incr
ea
sed
Qu
ali
ty A
wa
rem
ess
Awareness of Quality Problems Increased
Count Percent
69
Figure 4.15: Value gained through use of defect prevention tools
Source: Author’s own construct
The eighth question asked whether fewer defects were produced in the
manufacturing process since the implementation of QSB. The majority of the
respondents either agreed or were neutral on this question, as Figure 4.17
exhibits.
0
10
20
30
40
50
60
Disagree Neutral Agree Strongly agree
Co
ntr
ibu
tio
n to
De
fect
Pre
ven
tio
n
Value Gained Through Use of Defect Prevention Tools
Count Percent
70
Figure 4.16: Fewer Defects Recorded Since QSB Implementation
Source: Author’s own construct
The last question dealt with whether fewer customer complaints (from General
Motors) were received since QSB implementation. Again, the majority of the
respondents agreed with this opinion. See Figure 4.18.
Figure 4.17: Fewer Customer Complaints Since QSB Implementation
Source: Author’s own construct
0
5
10
15
20
25
30
35
40
45
Disagree Neutral Agree Strongly agreeCo
ntr
ibu
tio
n to
De
fect
Re
cord
ing
Fewer Defects Recorded Since QSB Implementation
Count Percent
0
10
20
30
40
50
60
Disagree Neutral Agree Strongly agree
Co
ntr
ibu
tio
n t
o C
om
pla
ints
Re
du
ctio
n
Fewer Customer Complaints Since QSB Implementation
Count Percent
71
4.3.2 Reduction in variation and waste
The first question in this section dealt with whether QSB implementation had
resulted in less scrap being produced in the company’s manufacturing process.
The majority of the respondents either agreed or strongly agreed, while a
significant number remained neutral, as shown in Figure 4.19.
Figure 4.18: Less Process Scrap since QSB Implementation
Source: Author’s own construct
The second question delved into whether QSB implementation has resulted in
improved on-time deliveries. Figure 4.20 shows that as much as 45% of the
respondents either agreed or strongly agreed with this statement, even more
respondents were either neutral or disagreed with it.
0
10
20
30
40
50
60
Disagree Neutral Agree Strongly agree
Co
ntr
ibu
tio
n to
Scr
ap
Red
uct
ion
Less Process Scrap
Count Percent
72
Figure 4.19: Improved Delivery Performance
Source: Author’s own construct
The third question dealt with whether the respondents felt that QSB
implementation yielded more cost savings instead of increasing operator costs.
Figure 4.21 shows that the majority of the respondents are either neutral or
disagree with this opinion.
Figure 4.20: QSB Implementation yields costs savings
Source: Author’s own construct
0
5
10
15
20
25
30
35
40
Disagree Neutral Agree Strongly agreeCo
ntr
ibu
tio
n to
De
live
ry P
erf
orm
ance
More On-Time Deliveries
Count Percent
0
20
40
60
Disagree Neutral Agree Strongly agreeCo
ntr
ibu
tio
n to
Op
erat
ing
Co
sts
Costs Savings Instead of Increased Operating Costs
Count Percent
73
The fourth question enquired whether QSB implementation resulted in
organisations placing more focus on the performance of their suppliers. The
majority of the respondents were in agreement with this opinion, while a
significant amount was either neutral or disagreed as depicted in Figure 4.22.
Figure 4.21: More emphasis on managing supplier performance
Source: Author’s own construct
Question five dealt with whether QSB implementation improved the management
of technical/engineering changes within the company. Again, the majority of the
respondents were in agreement with this opinion, while a significant amount was
either neutral or disagreed as depicted in Figure 4.23.
0
5
10
15
20
25
30
35
40
45
Disagree Neutral Agree Strongly agreeCo
ntr
ibu
tio
n to
Su
pp
lier
Per
form
ance
More Emphasis on Supplier Performance
Count Percent
74
Figure 4.22: Improved management of engineering changes
Source: Author’s own construct
In chapter two it was shown that QSB is based on specific elements that are
drawn from both ISO 9001 and ISO/TS 16949. Question six asked if given a
choice, the respondents would voluntarily implement QSB. The majority felt that
they would. Refer to Figure 4.24.
Figure 4.23: Companies would volunteer to implement QSB
Source: Author’s own construct
0
10
20
30
40
50
60
Disagree Neutral Agree Strongly agree
Co
ntr
ibu
tio
n to
Ch
ange
Man
age
me
nt
Improved Change Management
Count Percent
0
10
20
30
40
50
Disagree Neutral Agree Strongly agree
Pro
po
rtio
n o
f V
olu
nta
ry Q
SB
Imp
lem
enta
tio
n
QSB Implementation by Choice
Count Percent
75
4.2.4 Summary of results
4.2.4.1 Reduction in product defects
The data shows clearly that the respondents agree that QSB implementation
results in reduction of product defects. While there is very strong agreement that
the information communicated daily, the existence of the process verification
station and increased awareness of quality problems contributed most
significantly towards reduction in product defects; there is sufficient statistical
evidence to summarise that the majority of the respondents felt that QSB
implementation has indeed resulted in the reduction of product defects as shown
in Figure 4.25.
Figure 4.24: Summary of Defect Reduction Results
Source: Author’s own construct
RD1 RD2 RD3 RD4 RD5 RD6 RD7 RD8 RD9
Valid N 28 28 28 28 28 28 28 28 28
Mean 4.18 3.68 3.18 4.43 3.71 4.04 3.89 3.61 3.96
Std.Dev. 0.86 0.72 0.90 0.74 1.15 0.74 0.79 0.83 0.79
0
5
10
15
20
25
30
Pro
po
rtio
n o
f R
esp
on
ses
Summary of Defect Reduction Results
76
4.2.4.2 Reduction in variation and waste
While the majority of the respondents agree that QSB implementation yields
reductions in variation and waste both in the manufacturing areas as well as in
the supply chain, the respondents were less agreeable than on the previous
question. This is exhibited in Figure 4.26.
Figure 4.25: Summary of Variation and Waste Reduction Results
Source: Author’s own construct
4.2.4.3 Internal reliability
(Collis & Hussey, 2009) refer to reliability as the absence of differences in the
results were the research study to be repeated. Cronbach alpha was used as an
internal reliability measure for the two independent variables, namely, product
defect reduction and reduction in variation and waste. The Cronbach coefficient
was found to be acceptable on both variables as it was 0.83 and 0.8 respectively.
The measure for acceptability of the Cronbach alpha is if the coefficient is greater
than or equal to 0.7 (Feng, et al., 2008).
RVW1 RVW2 RVW3 RVW4 RVW5 RVW6
Valid N 28 28 28 28 28 28
Mean 3.79 3.50 3.36 3.57 3.43 3.79
Std.Dev. 0.74 1.04 0.83 0.92 0.79 0.99
0
5
10
15
20
25
30
Pro
po
rtio
n o
f R
esp
on
ses
Summary of Variation and Waste Reduction Results
77
4.3 SUMMARY
In this chapter, the results of the empirical study were analysed and presented.
Bar graphs and tables were used to illustrate the data obtained from the
completed questionnaires. In the last chapter, the summary, conclusions and
recommendations are made.
78
CHAPTER 5
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 INTRODUCTION
The main objective of this study was to investigate the impact of QSB
implementation on the external and internal quality performance of General
Motors’ suppliers. In chapter 4, the results of the research were interpreted and
the findings of the study were presented. In this chapter, the conclusion and
recommendations drawn from all the information gathered in the previous
chapters are presented. Based on the findings, a number of conclusions are
made, with specific recommendations made for each conclusion.
5.2 SYNOPSIS OF THE STUDY
The first chapter began with a brief introduction of the research topic of the
treatise. The research problems were presented, which consisted of the main
problem and two sub-problems. The significance of the study and the research
methodology were introduced.
Chapter 2 consisted of a literature review of the Quality Management Systems,
their origins, evolution and implementation procedures. The motivation for
acquiring quality certifications, benefits and challenges for implementation were
also discussed.
The third chapter dealt with the research methodology used to complete the
study, the data collection tool as well as the survey questionnaire used.
In chapter 4, the results of the empirical study were presented and analysed.
79
This chapter includes the description of the results and the empirical findings of
the study.
5.3 CONCLUSIONS AND RECOMMENDATIONS
From the literature review it was stated that the objectives of QSB
implementation were in line with ISO/TS 16949 objectives, product defect
reduction and the reduction of variation and waste. The results of the study
clearly showed that the majority of the respondents believed that the
implementation of QSB has resulted in the reduction of defects in their products
and the reduction of variation and waste in their manufacturing process and
supply chain.
5.3.1 Reduction of product defects
The majority of the surveyed suppliers expressed an overwhelming agreement
that the defect prevention strategies that QSB implementation encourages,
yielded the desired effect. The awareness created through daily communication
of quality issues, the discipline in documenting quality concerns and the
involvement of all levels of personnel in defect prevention activities all served to
lower the number of defects produced.
This is evidenced by the fact that the majority of the respondents indicated that
the number of customer complaints have decreased since QSB implementation.
However, it must be stressed that the potential for respondent’s bias was greater
on this question, since responding in the negative on this question may be an
admission of poor process or quality management; and this is one of the
important considerations when new business is placed by General Motors at a
supplier. Additionally, experience instructs that some (very few of the
respondents) of the supplier’s quality performance were actually worse than
stated on the survey response.
80
It is recommended that a more detailed study be conducted on the above topic,
conducted by an independent entity and more objective evidence be requested
to support claims of quality performance. The author may be in a better position
to do so since he is no longer employed by General Motors.
5.3.2 Reduction of variation and waste
The study revealed that QSB implementation resulted in supplier organisations
producing less production scrap, which translated to less waste. The reduced
scrap should translate to financial savings for the company, however more than
half of the respondents expressed a neutral opinion on whether QSB
implementation contributes more cost savings.
This means that as much as QSB helps in producing a good quality product with
less scrap produced, organisations are still not convinced of the financial gains
that flow from QSB implementation. This is not unique to South Africa as the
literature revealed contrasting opinions on whether Quality Management Systems
implementation results in better financial performance for organisations (Lin &
Jang, 2008).
The study also revealed that QSB implementation improved the on-time delivery
performance of supplier organisations. This is further confirmation of operational
efficiencies brought by Quality Management Systems implementation. Therefore,
the objectives of reducing variation and waste in the process and supply chain
have been confirmed by the study.
However, requirements for more detailed studies of the impact of Quality
Management Systems on supply chain performance and on operational and
financial performance have become apparent; particularly in the South African
context.
81
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ADDENDUM A
Dear Sir / Madam
I am a General Motors South Africa employee and an MBA student. In partial fulfilment
of the requirements for the Master’s Degree in Business Administration (MBA), at the
Nelson Mandela Metropolitan University (NMMU), I am required to complete a research
dissertation on a topic of my choice. The topic I have chosen is an evaluation of the
impact of Quality Management Systems at General Motors suppliers. The Quality
Management Systems under study is General Motors’ Quality Systems Basics (QSB).
I would like to investigate the impact QSB certification or compliance has had in your
organisation, particularly your organisation’s shop floor activities. The findings of my
survey will be compared to those of other studies and literature on this topic. Based on
this, a report will be collated that we are hoping will make a valuable contribution to the
body of knowledge in the operations management discipline.
You are part of our selected sample of respondents whose views we seek on the
above-mentioned matter. We would therefore appreciate it if you could answer a few
questions that should not take more than fifteen minutes of your time.
Please note for this survey, anonymity is assured and individual questionnaires will only
be seen by the researcher.
Thank you in advance for your participation and support.
Luphumlo R. Twala Professor Koot Pieterse
Researcher Research Supervisor
91
SECTION A: DEMOGRAPHIC INFORMATION
Indicate your choice by marking the appropriate block with an (X).
1. My organisation’s name is:
2. I am currently employed as:
A Production Manager
A Quality Manager
Other (please specify)
3. My highest qualification is:
A Senior Certificate (Matric)
National Diploma/ Degree
Bachelor’s Degree
Post-Grad. (Please Specify)
4. I have been employed with the company between (how many years)?
0 - 5 years
6 - 10 years
11 - 15 years
16 - 20 years
>20 years
5. Is your company QSB certified?
Yes
No
6. If not, is your company planning to implement QSB?
Yes
No
92
7. If your company is not QSB certified, and is planning to implement QSB, how ready is
it for the certification audit?
Not ready at all Some progress made,
but more work required
Ready for certification
audit
8. How long has your company been QSB certified for?
0 – 3 years
4 – 6 years
> 6 years
9. How seriously is QSB implemented in your company’s daily operations?
Totally internalised (implemented seriously)
Mostly but not always
Not routinely implemented
Not at all
10. What is the workforce size of your company (total number of employees including
management)?
1 – 25 employees
26 – 50 employees
51 – 75 employees
76 – 100 employees
> 100 employees
11. Is your company certified to any of the following Quality Management Systems?
YES NO
ISO 9001
ISO/TS 16949
Other (please specify)
93
SECTION B: IMPACT OF QSB CERTIFICATION
Please indicate with an X the extent to which you agree or disagree with each of the
statements below:
Reduced Product Defects Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
R
D
1
The information communicated on daily fast
response meetings regarding quality problems
contributes significantly to reduction of defects.
R
D
2
Discipline in documentation of internal and external
quality problems have increased significantly since
QSB implementation.
R
D
3
There have been no recurring customer quality
complaints (same quality problem reported more
than once) to your company since QSB
implementation.
R
D
4
In your manufacturing process at least one
verification station exist to ensure that the process
produces good quality components.
R
D
5
Since the implementation of QSB, the highest
ranking person (MD or CEO, etc) in your company
participates in defect prevention activities [such as
Layered Audit Process (LPA)] at regular intervals.
R
D
6
Operators and management alike, have become
more aware of quality problems since the
implementation of QSB.
R
D
7
Significant value has been gained towards defect
prevention and waste elimination from increased
use of tools such LPA and reverse PFMEA, since
your company implemented QSB.
R
D
8
Fewer defects were produced in your
manufacturing process since the implementation of
QSB.
R
D
9
Significantly fewer customer complaints (PR&Rs)
were received by your company, from GM since the
implementation of QSB
94
Reduction in Variation and Waste
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
RVW1 QSB implementation has contributed
significantly to scrap reduction in your
manufacturing process.
RVW2 QSB implementation has contributed
significantly to on-time delivery to your
customers.
RVW3 QSB implementation has resulted in costs
savings rather than adding to operating costs.
RVW4
QSB implementation in your company has
resulted in your company placing more
emphasis / focus on the performance of your
suppliers.
RVW5 A significant improvement in managing
engineering/technical changes was achieved
since the implementation of QSB.
RVW6 Given an option, you would voluntarily
implement QSB in your company because it
presents additional benefits over and above
those derived from TS 16949 implementation.
Thank you for taking the time to complete this questionnaire.
