IMPACT OF TQM IMPLEMENTATION ON PRODUCTIVITY AND QUALITY · PDF file · 2014-07-11IMPACT OF TQM IMPLEMENTATION ON PRODUCTIVITY AND QUALITY - A STUDY AT GENARAL MOTORS Dr. S.J.MANJUNATH*;

Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (4), April (2013) Online available at indianresearchjournals.com

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IMPACT OF TQM IMPLEMENTATION ON PRODUCTIVITY AND

QUALITY - A STUDY AT GENARAL MOTORS

Dr. S.J.MANJUNATH*; G. ARUN KUMAR**

*ASSOCIATE PROFESSOR,

MBA DEPARTMENT,

B.N.BAHADUR INSTITUTE OF MANAGEMENT SCIENCES,

MYSORE, KARNATAKA, INDIA.

**ASSISTANT PROFESSOR,

MBA DEPARTMENT,

VIJANAGARA SRI KRISHNADEVARAYA UNIVERSITY,

BELLARY, KARNATAKA, INDIA.

_____________________________________________________________________________________

ABSTRACT

TQM focuses on teamwork, increasing customer satisfaction, and lowering costs. Organizations

implement TQM by encouraging managers and employees to collaborate across functions and

departments, as well as with customers and suppliers, to identify areas for improvement. The

objective of the study is to determine whether the implementation of TQM leads to higher

productivity and quality. The study was carried out at General Motors by collecting the primary

data from the managers through structured questionnaire. The data was analyzed by descriptive

analysis and Anova technique the result revealed that there is a significant relationship between

TQM implementation and high productivity and quality.

KEYWORDS: General Motors, Productivity, Quality,. Total Quality Management

_____________________________________________________________________________________

INTRODUCTION

Total Quality Management is a method by which management and employees can become

involved in the continuous improvement of the production of goods and services. It is a

combination of quality and management tools aimed at increasing business and reducing losses

due to wasteful practices. TQM views an organization as a collection of processes. It maintains

that organizations must strive to continuously improve these processes by incorporating the

knowledge and experiences of workers. The simple objective of TQM is “Do the right things,

right the first time, every time.” TQM is infinitely variable and adaptable. Although originally

applied to manufacturing operations, and for a number of years only used in that area, TQM is

now becoming recognized as a generic management tool, just as applicable in service and public

sector organizations.


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LITERATURE REVIEW

In urbanized countries such as UK, USA and JAPAN, total quality management has been a

current issue for many years in all business sectors, mainly the manufacturing industry.

However, in a developing country like India, even though it has successfully developed

substantial manufacturing industry in the last two decades, TQM has made little impact.

In manufacturing systems, quality management focuses primarily on technical issues such as

equipment reliability, measurement of defects and statistical quality control techniques (process

control). But quality management has penetrated into other areas such as product design,

research and development, human resources practices (employee empowerment) team

work,customer relations and organizational culture . Quality management pervades through the

entire organization. Idris et al.(1996) conducted a survey of Malaysian manufacturing companies

already registered to ISO 9000, with a view to examining their status as regards TQM

implementation. Less than a third of the responding companies claimed to have RQM, but there

was a strong minority claiming to have made substantial progress towards total quality practices.

Theses authors also describes the Malaysian SIRIM model of total quality training for a

company, which is multi-step process involving the adoption of such practices as a quality

improvement process, Quality Control Circles(QCC) and TPM.

Samson and Terziovski (1999) used a larger database of 1,024 usable responses from Australian

and New Zealand manufacturing organizations to examine the relationships between TQM

practices, individually and collectively, and firm performance, the study showed that the

relationship between TQM practice and organizational performance is significantly in a cross-

sectional sense. Based on 698 usable responses from Australian and New Zealand manufacturing

organizations, Dow et al. (1999) employed confirmatory factor analysis (CFA) to identifying

nine quality practices. Nine quality practices include workforce commitment, shared vision,

customer focus, and use of teams, personnel training, co-operative supplier relations, use of

benchmarking, advances manufacturing systems, and use of just-in-time principles.

Salaheldin Ismail Salaheldin (2003) conducted a study on implementation of TQM strategy in

Egyptian manufacturing firms. The study aims to explore the critical resisting and driving forces

that inhibit or promote the implementation of total quality management (TQM) strategy in Egypt,

in an attempt to determine whether TQM can be implemented effectively in this developing

country, a force-field analysis was used for identifying the salient factors affectingTQM

implementation in Egypt. The findings indicated that forces that promote or prohibit TQM

implementation obtained in one developing country might be generalizable to another less

developed country. The investigation identified some driving forces that promote the

implementation of TQM strategy by the Egyptian manufacturing firms. G.Karuppusami and R.

Gandhinathan, (2006) identified critical success factors of total quality management by using

pareto analysis. The authors discussed even through there has been a large number of articles

published related to TQM in the last few decades, only a very few articles focused on

documenting the critical success factors (CSF’s) of TQM using statistical methods. An

examination of 37 such TQM empirical studies resulted in compilation of 56 CSFs.


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Implementation difficulties exist to operationalize such a large number of CSF’s in

organizations. The study analyzed and sorted the CSF’s descending order according to the

frequency of occurrences using the quality tool “Pareto analysis”. A few vital CSF’s were

identified and reporte. In manufacturing industries, automobile companies are more interested in

implementing TQM. There are two main reasons: first, automobile manufacturing is the largest

manufacturing activity in the world.secondly, increasing global competition over the past decade

has forced automobile companies to improve quality and efficiency. Therefore, they are more

willing to implement TQM in order to improve quality, and in turn to survive in the market.

Therefore, TQM is found to be well established in the automobile industry as compared to other

industries. Baba Md Deros, et al, (2006) conducted a study on benchmarking implementation

framework for automotive manufacturing SMEs. The researchers described the need for a

framework and its relationship with benchmarking and TQM then proposing benchmarking

implementation frameworks. The frameworks were categorized into two broad types based on

the different writer’s background and the approach on how they view the benchmarking

implementation process. The researchers suggested a conceptual framework for benchmarking

implementation guides them through from the start to end of the benchmarking process. The

framework was validated at six pilot case study companies, which gave useful comments and

suggestions regarding the usefulness and applicability within the SMEs context.

OBJECTIVE OF THE STUDY-

The objective of the study is determine the impact of TQM implementation on high productivity

and quality

RESEARCH METHODOLOGY

The relevant data for the study has been collected from both primary and secondary sources.

Simple random sampling used to collect the required information through structured

questionnaire by using five point likert scale. Descriptive analysis and anova was used in this

research to analyze the data. Samples of 20 employers were selected for the study.

HYPOTHESIS

1) Ho – There is no significant influence of TQM implementation on high productivity and

quality at General Motors

H1 - There is a significant influence of TQM implementation on high productivity and quality

General Motors


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DATA ANALYSIS AND INTERPRETATION

Descriptive Statistics

N Minimum Maximum Mean

Std.

Deviation

Top management actively participates in

quality management activities. 20 3.0 5.0 4.2500 .63870

Top management learns quality-related

concepts and skills. 20 3.00 5.00 4.1000 .64072

Top management strongly encourages

employee involvement in quality

management activities

20 3.00 5.00 4.2500 .71635

Top management empowers employees to

solve quality problems 20 3.00 5.00 4.3000 .65695

Top management arranges adequate

resources for employee education and

training.

20 3.00 5.00 4.1000 .71818

Top management discusses many quality-

related issues in top management meeting 20 3.00 5.00 4.2000 .61559

Top management focuses on product quality

rather than yields 20 3.00 5.00 4.1000 .64072

Top management pursues long-term

business success. 20 3.00 5.00 4.2500 .63867

Our firm has established long-term

cooperative relations with suppliers. 20 3.00 5.00 4.3000 .65695

Our firm regards product quality as the most

important factor in selecting suppliers 20 3.00 5.00 4.1000 .64072

Our firm always participates in supplier

activities related to quality. 20 3.00 5.00 4.1000 .71818

Our firm always gives feedback on the

performance of suppliers’ products 20 3.00 5.00 4.2500 .71635

Our firm has detailed information about

supplier performance 20 3.00 5.00 3.8000 .83351

Our firm regularly conducts supplier quality

audit. 20 3.00 5.00 4.2500 .71635

Our firm has a clear long-term vision

statement. 20 3.00 5.00 3.8000 .76777

The vision effectively encourages

employees’ commitment to quality

management.

20 3.00 5.00 3.7500 .71635


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Our firm has a clear short-term business

performance plan 20 3.00 5.00 4.2000 .61559

Our firm has a clear quality policy 20 3.00 5.00 4.0500 .60481

Our firm has a detailed quality goal. 20 3.00 5.00 4.2000 .69585

Our firm has effective quality improvement

plans 20 3.00 5.00 3.7500 .78640

Various policies and plans are well

communicated to the employees 20 3.00 5.00 3.6000 .75394

Employees from different levels are

involved in making policies and plans. 20 3.00 5.00 3.8000 .83351

Our firm regularly audits various business

strategies 20 3.00 5.00 4.1500 .58714

Benchmarking is used extensively in our

firm. 20 3.00 5.00 4.0000 .72548

Valid N (listwise) 20

The descriptive analysis reveals that the top management actively participates in quality

management activities and has a mean value of 4.2500 which gives a clear indication that most

of the managers take active participation in quality management activities.

In terms of quality related concepts and skill the above table reveals that the mean value is

4.1000 which implies that the managers consider it as one of the vital aspect of TQM and give

considerable attention to this factor.

The above table reveals that the top management strongly encourages employee’s involvement in

quality management activities as the mean value is 4.2500. Thus it can be considered as one of

the important factor in implementation of TQM.

The above results revealed that top management empowers employees to solve quality problems

with the mean value of 4.300. Hence most of the managers consider this factor as the significant

attribute for the implementation of the TQM.

Top management arranges adequate resources for employee education and training which is a

important attribute as the mean value of this attribute is 4.100 and it is deemed to be an essential

attribute for implementation of TQM.

The managers have divulged that the top management discusses many quality related issue in top

management meetings and the mean value of this trait is 4.200. it gives the clear sign that it is

considered as imperative aspect in implementation of TQM.

The results revealed that the top management focuses on product quality rather than yields’ as

the mean value of this attribute is 4.100.Hence this attribute is measured as critical in TQM

implementation.

The above results reveal that top management pursues long terms business success, a mean value

of 4.250. Hence most of the managers believe that this factor is the major attribute for the

implementation of the TQM.

GM has established long term cooperative relationship with suppliers and is an imperative

attribute as the mean value of this attribute is 4.300 and it is believed to be the essential attribute

for implementation of TQM.


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The descriptive analysis reveals that GM company regards product quality as the most important

factor in selecting suppliers with a mean value of 4.1000 it gives a clear indication that most of

the managers select the suppliers who supply them with quality products.

In terms of firms participation in supplier activities related to quality the analysis reveals that the

mean value is 4.1000 which imply that the managers consider it as one of the vital aspect of

TQM and give considerable attention to this factor.

The above analysis reveals that GM managers always give feedback on the performance of the

products supplied by suppliers and the mean value is 4.2500. Thus it can be considered as one of

the important factor in implementation of TQM.

In terms of the firm detailing information about supplier’s performance the study revealed that

the mean value is 3.800 which implies that this factor is consider as a vital aspect in TQM

implementation.

GM Company regularly conducts supplies quality audit to ensure that the suppliers supply

quality products and the mean value is 4.2500.

GM Company has the clear long term vision statement which is seen in the analysis with the

mean value of 3.800, hence GM managers clearly know what they have to achieve in the future.

The descriptive analysis reveals that the vision effectively encourages employee’s commitment

to quality management with a mean value of 3.750 which gives a clear indication that most of the

managers have to take active participation in quality management activities.

In terms of short term business performance plan the above table reveals that the mean value is

4.200 which implies that the managers consider not only the long term plans but also short term

plan as the vital aspect of TQM.

The above table reveals that GM firm has a clear quality policy with a mean value of 4.0500.

Thus it is considered as one of the important factor in implementation of TQM.

The above results reveal that top GM Company has a detailed quality goal with a mean value of

4.200. Hence most of the managers consider this factor as a significant attribute for the

implementation of the TQM.

GM Company has effective quality improvement plans with a mean value 3.750 this attribute is

deemed to be an essential attribute for implementation of TQM.

The managers have divulged that the various policies and plans are well communicated to the

employees with a mean value of 3.600 it gives a clear sign that the top management informs the

employees about the different policies and plans they need to implement.

The results revealed that the employee from different levels are involved in framing policies as

the mean value of this attribute is 3.800.Hence this attribute is measured as critical in TQM

implementation.

The above results reveal that GM Company regularly audits various business strategies with a

mean value of 4.150. Hence most of the managers believe that this factor is a major attribute for

the implementation of the TQM.

GM firm has established benchmarking in order to improve the quality aspects of the product

with a mean value of 4.000 and this attribute is believed to be an essential attribute for

implementation of TQM.


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ANOVA (High Productivity and Quality)

Sum of

Squares df

Mean

Square F Sig.

Top management

actively participates in

quality management

activities.

Between

Groups 1.163 1 1.163 4.153 .043

Within Groups 6.637 18 .369

Total 7.800 19

Top management

learns quality-related

concepts and skills.

Between

Groups 3.009 1 3.009 7.975 .011


Total 9.800 19

Top management

strongly encourages

employee involvement

in quality management

activities

Between

Groups 2.112 1 2.112 6.245 .022


Total 8.000 19

Top management

empowers employees

to solve quality

problems

Between

Groups 2.112 1 2.112 6.245 .022


Total 8.200 19

Top management

arranges adequate

resources for

employee education

and training.

Between

Groups 3.009 1 3.009 7.975 .011


Total 9.800 19

Top management

discusses many

quality-related issues

in top management

meeting

Between

Groups 1.001 1 .001 5.001 .041


Total 11.550 19

Top management

focuses on product

quality rather than

yields

Between

Groups 1.163 1 1.163 4.153 .043


Total 7.800 19

Top management

pursues long-term

business success.

Between

Groups 3.009 1 3.009 7.975 .011


Total 9.800 19


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Our firm has

established long-term

cooperative relations

with suppliers.

Between

Groups 2.112 1 2.112 6.245 .022


Total 8.000 19

Our firm regards

product quality as the

most important factor

in selecting suppliers

Between

Groups 1.163 1 1.163 4.513 .048


Total 5.800 19

Our firm always

participates in supplier

activities related to

quality.

Between

Groups 1.163 1 1.163 4.153 .043


Total 7.800 19

Our firm always gives

feedback on the

performance of

suppliers’ products

Between

Groups 1.001 1 .001 5.001 .041


Total 11.550 19

Our firm has detailed

information about

supplier performance

Between

Groups 4.255 1 4.255 8.562 .009


Total 13.200 19

Our firm regularly

conducts supplier

quality audit.

Between

Groups 1.001 1 .001 5.001 .041


Total 11.550 19

Our firm has a clear

long-term vision

statement.

Between

Groups 4.255 1 4.255 11.028 .004


Total 11.200 19

The vision effectively

encourages

employees’

commitment to quality

management.

Between

Groups 3.091 1 3.091 8.354 .010


Total 9.750 19


short-term business

performance plan

Between

Groups 1.001 1 .001 5.001 .041


Total 11.550 19


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quality policy

Between

Groups 4.255 1 4.255 8.562 .009


Total 13.200 19

Our firm has a detailed

quality goal.

Between

Groups 3.174 1 3.174 7.490 .014


Total 10.800 19

Our firm has effective

quality improvement

plans

Between

Groups 1.662 1 1.662 2.966 .102


Total 11.750 19

Various policies and

plans are well

communicated to the

employees

Between

Groups 3.174 1 3.174 7.490 .014


Total 10.800 19

Employees from

different levels are

involved in making

policies and plans.

Between

Groups 4.255 1 4.255 8.562 .009


Total 13.200 19

Our firm regularly

audits various business

strategies

Between

Groups 1.163 1 1.163 4.153 .043


Total 7.800 19

Benchmarking is used

extensively in our

firm.

Between

Groups 2.112 1 2.112 6.245 .022


Total 8.000 19

Top management actively participate in quality management activities – analysis of variance

revealed significant influence towards the high productivity and quality over top management

actively participate in quality management activities ( F=4.153; P=.043), as the P value is less

than .05 there is significant association.

Top management learns quality related concepts and skills: Significant difference was found for

this component with respect to high productivity and quality, where F value was found to be

7.975 and P value of .011. Hence it clearly indicates the significant relation between Top

management learning quality related concepts and skills and high productivity and quality.

Top management strongly encourages employee involvement in quality management activities:

ANOVA for Top management strongly encourages employee involvement in quality

management activities with high productivity and quality which revealed a significant difference


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with F value of 6.245 and P value of .022. Hence Top management strongly encourages

employee involvement in quality management activities has significant impact on high

productivity and quality.

In the aspect of top management empowering employee to solve quality problem and the

relationships between high productivity and quality. The anova method revealed a significant

difference with f value of 6.245 and the p value of .022. In the aspect of top management

arranges adequate resources for employee education and training, anova p values was .011 and

the p value was lower than 0.05.

The ANOVA summary table reveals that the association between- top management discusses

many quality related issue in top management meeting and high productivity and quality. The F-

ratio is 5.001, and the p-value was.041 which indicates that there is a significant difference.

Top management focuses on product quality rather than yields: Significant difference was found

for this component with respect to high productivity and quality, where F value was found to be

4.153 and P value of .043. This clearly indicates the significant relation between Top

management focuses on product quality rather than yields and high productivity and quality.

Top management pursues long term business success: ANOVA test revealed a significant

difference with Top management pursuing long term business success and high growth and

productivity with F value of 7.975 and P value of .011. Hence there is a positive relationship

between Top management pursuing long term business success and high productivity and

quality. Our firm has established long term cooperative relationship with suppliers also has a

significant positive relationship with high productivity and quality.

To determine whether any significant differences existed between GM with regards to product

quality as the most important factor in selecting suppliers and high productivity and quality a one

way anova test was carried out. In one way anova analysis we compared the two attributes and

the results revealed statistically significant differences with p value .048 (p < .05).

To decide whether any major differences existed between GM always participates in suppliers

activity related to quality concerning the high productivity and quality a one way anova test was

carried out. In one way anova analysis we compared GMs participation in supplier’s activity

related to quality with high productivity and quality. The results showed statistically significant

differences with p value .43 (p < .05)

GM always give feedback on the performance of supplier’s product: Significant divergence was

found for this component with respect to high productivity and quality, where F value was found

to be 5.001 and P value of .041.

GM has detailed information about supplier’s performance: ANOVA test revealed an

insignificant difference with GM having detailed information about supplier’s performance and

high productivity and quality with F value of 8.562 and P value of .009.

GM regularly conducts supplier quality audit: Analysis of variance revealed significant influence

towards the high productivity and quality with value of (F=5.001; P=.041), as the p value is less

than .05 hence it is significant

GM has a clear long-term vision statement: ANOVA for GM having a clear long-term vision

statement as related to high productivity and quality revealed a significant difference with F

value of 11.028 and P value of .004.

The vision effectively encourages employees’ commitment to quality management. Significant

difference was found for this component with respect to high productivity and quality, where F

value was found to be 8.354 and P value of .010.


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In the aspect of GM having a clear short-term business performance plan there is a positive

relationships between high productivity and quality, the anova method revealed a significant

difference with f value of 5.001 and the p value of .041.

GM has a detailed quality goal - ANOVA test revealed a significant difference with GM having

a detailed quality goal and high productivity and quality with P value of .014.

GM has effective quality improvement plans: ANOVA for GM having effective quality

improvement plans with high productivity and quality revealed a significant difference with P

value of .042.

The ANOVA summary table reveals that the association between various policies and plans are

well communicated to the employees and high productivity and quality. The F-ratio is the p-

value is .014, which indicates that there is a significant difference.

Employees from different levels are involved in making policies and plans- Significant

difference was found for this component with respect to high productivity and quality, where P

value was found to be .009. Hence it clearly indicates the significant relation between high

productivity and quality and high productivity and quality.

ANOVA test revealed a significant difference with GM conduction regular audits of various

business strategies and high productivity and quality with P value of .043. Hence there is a

positive relationship between the firm regular audits of various business strategies and high

productivity and quality. Significant difference was found for Benchmarking is used extensively

by GM with respect to high productivity and quality, with a p value of .022.

CONCLUSION

Many organizations may not use the term TQM anymore but is still very much part of most

business thinking. It is seen as being a way in which a business can add value to its product and

to gain competitive advantage over its rivals. The study revealed that there is a positive

correlation between the implementation of TQM and high productivity and quality. Thus all the

TQM parameters considered in this study are positively related to high productivity and quality.

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Documents

IMPACT OF TQM IMPLEMENTATION ON PRODUCTIVITY AND QUALITY · PDF file · 2014-07-11IMPACT OF TQM IMPLEMENTATION ON PRODUCTIVITY AND QUALITY - A STUDY AT GENARAL MOTORS Dr. S.J.MANJUNATH*;