This paper reports the main findings based on the survey of ISO-9000 certified manufacturing companies, established in and around Bangalore (India), practicing TQM for the last five years. The study aims to investigate the impact of TQM on business performance in respondent companies. The results indicate that the quality of work life alone influenced the business performance to the extent of 30% and the overall impact of TQM practices on business performance is 79%, which confirms the expectation that good Quality System supported and supplemented by excellent HR practices enhances business performance.
In India, recent decades have seen the emergence of manufacturing industry as a major industrial enterprise with enormous potential for earning foreign exchange. However, the current levels of productivity and quality of goods are not adequate for sustaining an international advantage and this is mostly due to inefficient quality management. In this study, an effort is made to identify the components of TQM (Total Quality Management) and measure its impact on Business Performance in respondent companies. The outcome of the study would help companies to formulate suitable programs and use appropriate methods to improve their business performance through the practice of TQM.
TQM has become a buzzword meaning many things to many people. Therefore, it becomes necessary to infuse clarity and focus in understanding TQM as it stands today.TQM means involvement of everyone at all levels and across all functions in the organization, stimulating and training them to improve the quality of the products/services/processes on a continuous basis by using statistical quality control methods in order to delight the customers and benefit all the stakeholders of the company."
Based on the review of literature and discussion with management consultants, 14 components of TQM were identified-leadership style, training and development system, human resource planning and management, quality of work life, employee involvement and development scheme, social responsibility, supplier alignment, information and communication, resource management, strategic quality planning, quality assurance, process management, 5S concept and work place management, and customer orientation. The literature suggests that the implementation of these components leads to changes in business performance viz., Level of Repeat Business, Level of New Business, Delivery and Service Performance Level, Improvement in cycle time, Level of warranty and guarantee provisions, Defects/Errors/Rejection Levels, Price Level, Profit after Tax, Return on Net Worth and Exports. |
