Impact of TQM Implementation on Employers Satisfaction

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1 International Journal of Engineering and Management Research, Vol.-3, Issue-1, February 2013 ISSN No.: Pages: Impact of TQM Implementation on Employers Satisfaction 1 Dr S.J.Manjunath 2 Arun Kumar.G 1 Associate Professor, MBA Department, B.N.Bahadur Institute of Management Sciences, Mysore, Karnataka, INDIA. 2 Assistant Professor, MBA Department, Vijanagara Sri Krishnadevaraya University, Bellary, Karnataka, INDIA. ABSTRACT Total quality management is a management approach to long term achievement through customer satisfaction. In a TQM attempt, all members of an organization partake in improving processes, products and services. The objective of the study is to determine whether the employers of Ford Company are satisfied with the implementation of the TQM. The study was conducted by collecting the required primary data through the structured questionnaire by employers of the Ford Company and it was analyzed by using SPSS software. The result revealed that all the parameters of TQM are positively correlated to employer s satisfaction. Keywords Total Quality Management, Employer satisfaction, Ford Company. 1. INTRODUCTION Total Quality Management (TQM) is an integrated system of principles, methods, and best practices that provide a framework for organizations to strive for excellence in everything they do. Total Quality Management (TQM) is a philosophy in which the core focus is meeting the customers' needs and ensuring their satisfaction. Quality in all levels of the organization and reduction of waste are the key components. Application of Total Quality Management (TQM) approach has played an important role in the survival and growth of many industries. Indian automobile sector has also adopted TQM path but it is still a player of little consequence in the global auto market. One of the major reasons for dismal performance of the Indian automobile sector can be attributed to the fact that it has not been able to prioritize and focus on the key variables, which are instrumental in enhancing TQM index. For the success of the Indian automobile sector, it is equally important to understand the implications of key variables in two different market scenarios and take policy decisions accordingly. 2. LITERATURE REVIEW Chan and Quazi have conducted a comparative study of quality management practices at a national level in nine Asian countries including India, from 1960 onwards. Quality Control Circles (QCCs), which worked well in Japan, were first adopted as the quality improvement practice. Between 1970 s and 1980 s, these countries have very active QCC activities. As more complete quality management systems were developed, TQM (late 1980 s) and ISO 9000(1992) widely accepted in these countries. The development and adoption of a comprehensive quality system were slower in certain countries. Singapore and South Korea were ahead in the implementation of quality management practices with the adoption of global and world-class standards. Malaysia was quite close behind. Philippines had a few years of experience with its national quality award and were moving towards world-class organizations. Thailand had yet to form such an award but like the other countries, had already ISO in place.with global automobile giants moving to Indonesia and India have reached world-class quality standar V.K.Khanna, et al.,(2002) conducted a study on causal relationships for a TQM index for the Indian automobile sector. Based on the Malcolm Baldrige National Quality Award model, the authors developed casual relationships among the different variables that represent enablers and results operating within 44 identified feedback loops. Of these loops, 33 are positive and 11 are negative. The resulting causal loop diagram provided an insight into understanding the dynamic 13

2 interactions among TQM subsystems which helps identify proactive action in implementing the TQM philosophy. Similar success stories of TQM implementation are many- Xerox, Motorola, Milliken,Nucor Stell, to name a few. But, there are only a few Indian companies successfully implementing TQM. Why are Indian companies not able to replicate the success of these Western Corporates. Iyer and Seshadri,(2004) illustrate quality improvement by focusing on one company in India, Rane Brake Linings (RBL). RBL is a division of the Rane group, an automotive components company with a sales turnover of $131 million and 4600 employers. In 2002, RBL won the prestigious Deming prize. The Deming prize, awarded by the Japan Union of Scientists and Engineers (JUSE), was the culmination of a three year journey for RBL, which began with a visit by professor Tsuda from Japan. RBL s TQM journey began with the choice of professor Tsuda as their coach in RBL decided to focus on policy deployment and daily routine management (DRM) to achieve their TQM implementation. As a result, RBL redefined its management of processes for New Product Development System, Manufacturing Quality, Supplier Quality and Customer Quality. TQM implementation created tangible and intangible benefits for RBL. Intangible benefits included role clarity so that each person understood their role in the organization, their suppliers and customers, and their metrics. Plant in process rejections at RBL decreased from 2.1 % of total pieces to 0.85 % of total pieces produced. Sales per employer went up from $22000 to $ Number of employer suggestions went from 280 to 7500 during the period. In order words, TQM brought about dramatic and measurable improvement across many specific metrics that would impact the company. Dinesh Seth and Deepak Tripathi, (2005) conducted a study on relationship between TQM and TPM implementation factors and business performance of manufacturing industry in Indian context. The objective of the study was to examine the relationship between factors influencing the implementation of TQM and TPM and business performance for the following three approaches in an Indian context: TQM alone; TPM alone; both TQM and TPM together. The research identifies two sets of factors which are critical for the effectiveness of TQM and TPM:universally significant factors for all three approaches like leadership, process management and focus on customer satisfaction. The study also highlights the complexities involved in implementing TQM and TPM together. 3. OBJECTIVE OF THE STUDY The objective of the study is determine the impact of TQM implementation on employer satisfaction 4. 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. 5. HYPOTHESIS 1) Ho There is no significant influence of TQM implementation on employer satisfaction at Ford Company H1 - There is a significant influence of TQM implementation on employer satisfaction at Ford Company 14

3 15

4 16

5 The analysis reveals that the Ford Company uses quality related costs extensively with a mean value of which gives a clear indication that most of the managers consider it as an important attribute for TQM. In terms of using quality related data to evaluate the management the above table reveals that the mean value is The above table reveals that Ford firm provides quality information to the middle and lower level employer by displaying that information at shop floor with a mean value of Thus it is considered as one of the important factor in implementation of TQM. Ford Company believes that the evaluation is done for the purpose of improvement and not for critizing the employers and the mean value is Hence most of the managers consider this factor as a significant attribute for the implementation of the TQM. The above analysis shows that Ford firm is kept neat and clean at all times with a mean value of which clearly shows that the company environment is always hygienic. Ford company has the best process capability that can meet production requirements with a mean value of and this is deemed to be an essential attribute for implementation of TQM. The production equipments in Ford Company are well maintained according to the maintenance plan with a mean value of 4.050which ensures that the equipment performs effectively. The managers have divulged that the Ford firm is implementing the various inspections effectively with a mean value of which gives a clear sign that the top management carries out the inspection activities effectively and efficiently. Ford Company uses seven QC tools, SPC, PDCA cycle extensively for process control and improvement with a mean value of 3.850, and respectively. It clearly shows that the Ford Company is using the various techniques of quality control for the effective implementation of TQM. The Ford Company ensures that the design engineers are required to have shop floor experience as well as marketing experience with a mean value of and respectively. Ford Company considers the customer requirements in new product design with mean value of , in order to consider the changing taste and preferences of the customer hence it ultimately leads to effective TQM. Ford Company ensures that the various departments in the company participate in the development of new product with mean value of Ford Company thoroughly reviews the design of the new product before production as it need to meet the customer expectation and its mean value is Cost is considered as one of the important aspect in the process of designing the product. Hence most of the managers consider it vital with a mean value of Ford Company uses extensively the experimental design in designing the new product and quality function deployment in order to minimize the failure of the product. This attribute has a mean value of and respectively. The quality system at Ford is continuously being improved with mean value of which clearly indicates that the company is regularly upgrading its quality system. Ford uses iso-9000 standards as a guideline for establishing its quality system and maintains a clear quality manual with a mean value of The Ford Company maintains clear procedural documents with a mean value of The company has a clear working instruction in order to maintain quality practices with the mean value of The firm has cross functional teams to maintain good inter functional relationships with a mean value of

6 Our firm uses qualityrelated costs extensively. Quality-related data are used to evaluate the management of our firm. Quality-related information is displayed at the shop floor The aim of evaluation is improvement, not criticism Our firm is kept neat and clean at all times Process capability can meet production requirements Production equipment is well maintained according to the maintenance plan Our firm implements various inspections effectively Our firm uses the Seven QC tools extensively for process control and improvement Our firm uses SPC extensively for process control and improvement. Our firm uses PDCA cycle extensively for process control and improvement ANOVA Sum of Squares Df Mean Square F Sig. Between Groups Within Groups Total Between Groups Between Groups Between Groups Total Between Groups Between Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Between Groups Between Groups Within Groups Total The design engineers are Between Groups

7 required to have some shop floor experience. The design engineers are required to have some marketing experience The customer requirements are thoroughly considered in new product design Various departments participate in new product development. New product designs are thoroughly reviewed before production. Cost is emphasized in the product design process Experimental design is used extensively in product design. Quality function deployment (QFD) is used extensively in product design. The quality system in our firm is continuously being improved. Our firm uses ISO 9000 as a guideline for establishing our quality system Our firm has a clear quality manual Our firm has clear procedure documents Within Groups Total Between Groups Between Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups

8 Our firm has clear working instructions. Our firm has cross-functional teams Anova for Ford using quality-related costs extensively with employer satisfaction revealed a significant difference with F value of and P value of.048. Hence Ford quality-related costs extensively have significant impact on employer satisfaction. To decide whether any major differences existed between the Quality-related data are used to evaluate the management of Ford with employer satisfaction one way anova test was carried out. In one way anova analysis we compared the Qualityrelated data which are used to evaluate the management of our firm with employer satisfaction. The results showed statistically significant differences with p value.043 (p <.05) In the aspect of Quality-related information being displayed at the shop floor and the positive relationships between employer satisfaction, the anova method revealed a significant difference with the p value of.011. The aim of evaluation is improvement, not criticism also had a significant relation with the employer satisfaction with a p value.011. To decide whether any major differences existed between the Our firm is kept neat and clean at all times concerning the employer satisfaction one way anova test was carried out. In one way anova analysis we compared the firm is kept neat and clean at all times employer satisfaction. The results showed statistically significant differences with p value.043 (p <.05) Process capability can meet production requirements: Significant divergence was found for this component with respect to employer satisfaction, where F value was found to be and P value of.011. Hence it clearly indicates the significant relation between Process capability can meet production requirements and employer satisfaction. Production equipment is well maintained according to the maintenance plan: ANOVA test revealed a significant difference with Production equipment is well maintained according to the Between Groups Total Between Groups Within Groups Total maintenance plan and employer satisfaction with P value of.022. Ford implements various inspections effectively: Analysis of variance revealed significant influence towards the employer satisfaction over Our firm implements various inspections effectively (P=.048), as the p value is less than.05 hence it is significant Ford uses the Seven QC tools extensively for process control and improvement: ANOVA for Ford using the Seven QC tools extensively for process control and improvement with employer satisfaction revealed a significant difference with P value of.043. Hence Our firm uses the Seven QC tools extensively for process control and improvement have insignificant impact on employer satisfaction ANOVA test revealed a significant difference with our firm uses SPC extensively for process control and improvement and employer satisfaction with P value of.011. Hence there is a positive relationship between our firm uses SPC extensively for process control and improvement and employer satisfaction. Ford regularly conducts quality audits also has a significant positive relationship with employer satisfaction. Significant difference was found for Ford using PDCA cycle extensively for process control and improvement with respect employer satisfaction, where F value was found to be and P value of.025 Anova for the design engineers are required to have some shop floor experience with employer satisfaction revealed a significant difference with P value of.041. Hence the design engineers are required to have some shop floor experience have a significant impact on employer satisfaction. To decide whether any major differences existed between the design engineers are required to have some marketing experience and employer satisfaction one way anova test was carried out. In 20

9 one way anova analysis we compared the design engineers are required to have some marketing experience with high productivity and quality. The results showed statistically significant differences with p value.043 (p <.05) In the aspect of the customer requirements are thoroughly considered in new product design between employer satisfactions, the anova method revealed a significant difference with p value of.011. Various departments participate in new product development also had a significant relation with the employer satisfaction with value.022. New product designs are thoroughly reviewed before production: Significant divergence was found for this component with respect to high productivity and quality, where F value was found to be P value of.048. Hence it clearly indicates the significant relation between new product designs are thoroughly reviewed before production and employer satisfaction. Cost is emphasized in the product design process: ANOVA test revealed an significant difference with Cost is emphasized in the product design process and employer satisfaction with P value of.041. Hence there is a positive relationship Cost is emphasized in the product design process and employer satisfaction. Experimental design is used extensively in product design. Analysis of variance revealed significant influence towards the employer satisfaction and Experimental design is used extensively in product design. (P=.009), as the p value is less than.05 hence it is significant Quality function deployment (QFD) is used extensively in product design: ANOVA for Quality function deployment (QFD) is used extensively in product design with employer satisfaction revealed a significant difference with P value of.043. Hence Quality function deployment (QFD) is used extensively in product design significant impact on high productivity and quality. The quality system in our firm is continuously being improved - Significant difference was found for this component with respect to employer satisfaction, where p value was found to be.048. Hence it clearly indicates the significant relation between the quality systems in our firm is continuously being improved and employer satisfaction. Our firm uses ISO 9000 as a guideline for establishing our quality system: Significant difference was found for this component with respect to employer satisfaction, with P value of.041. Our firm has a clear quality manual: ANOVA for Our firm has a clear quality manual with employer satisfaction revealed a significant difference with P value of.011. In the aspect of our firm has a clear procedure document with employer satisfaction. The anova method revealed a significant difference with p value of.043. In the aspect of Our firm has clear working instructions, anova p values was.011 and the p value was lower than 0.05, which means that there are significant differences among Our firm has clear working instructions and employer satisfaction The ANOVA summary table reveals that the association between- Our firm has crossfunctional teams and employer satisfaction. The p- value was.022 indicates that there is significant difference our firm has cross-functional teams and employer satisfaction. 7. CONCLUSION Many organizations have difficulties in implementing TQM. Researchers have established that only 20-36% of organizations that have undertaken TQM have achieved tremendous improvements in quality superiority, efficiency, competitiveness through employer satisfaction. The article reveals that the employers of the ford company are highly satisfied with the implementation of TQM in the organization. 8. REFERENCES 1. ANTHONY, D. (1983) Japan. In: D. J. STOREY (Ed.) The Small Firm: An International Survey (London, Croom Helm), pp. 46± ASHER, J.M. (1992) Implementing TQM in Small and Medium-sized Companies (Hertfordshire, Technical Communication). 3. DALE, B.G. & PRAPOPOULOS, M. (1995) The introduction of a quality 21

10 improvement process in small companies: an examination in Traþ ord Park, Quality World Technical Supplement, September, pp. 80± DEMING, W.E. (1986) Quality, Productivity, and Competitive Position (Cambridge, MA, Center for Advance Engineering Study, MIT). HEWITT, S. (1997) Business excellence: Does it work for small companies?, The TQM Magazine, 9, pp. 76 ± GARVIN, D.A. (1991) How the Baldridge Award really works, Harvard Business Review, November± December, pp. 80 ± GHOBADIAN, A. & GALLEAR, D.N. (1997) TQM and organisation size, International Journal of Operations and Production Management, 17, pp. 121± GHOBADIAN, A. & WOO, H.S. (1996) Characteristics, bene ts, and shortcomings of four major quality awards, International Journal of Quality and Reliability Management, 13, pp. 10± HO, S.K.M. & FUNG, C.K.H. (1994) Developing a TQM excellence model, The TQM Magazine, 6, pp. 24 ± HUXTABLE, N. (1995) Small Business Total Quality (London, Chapman and Hall). 10. JURAN, J.M. & GRYNA, F.M. (1993) Quality Planning and Analysis, 3rd Edn (Singapore, McGraw-Hill). 11. KANJ I, G.K. (1996) Implementation and pitfalls of total quality management, Total Quality Management, 7, pp. 331± KANJ I, G.K. & BARKER, R.L. (1990) Implementation of total quality management, Total Quality Management, 1, pp. 375 ± 389. THOMPSON, J. & SIMMONS, P. (1997) Carving up the business excellence model in a small rm, Quality World, April, pp. 274 ± THOMPSON, J.H. & LEYDEN, D.R. (1983) The United States of America. In: D. J. STOREY (Ed.) The Small FirmÐ An International Survey (London, Croom Helm), pp. 7± WELSH, J. & WHITE, J. (1981) A small business is not a little big business, Harvard B usiness Review, July± August, pp. 18 ±

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