1case study tqm

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Analysis of Total Quality Management

Practices in Manufacturing and Service

SectorsFaisal Talib

1

Mechanical Engineering Section, University Polytechnic,

Faculty of Engineering and Technology, Aligarh Muslim University, Aligarh,

U.P., India

([email protected])

Zillur Rahman

Department of Management Studies, Indian

Institute of Technology, Roorkee,

U.Kh., India

([email protected])

M.N. Qureshi

Department of Mechanical Engineering, Faculty of Technology and Engineering,

M.S. University of Baroda, Vadodara,

Gujarat, India

([email protected])

Abstract- Quality gurus such as Juran,

Deming and Crosby have advocated

various methodologies for business successand single out some quality practices.

These practices have a positive impact on

business performance in both

manufacturing and service sectors.

This paper attempts to identify the

TQM practices in two different sectors

and examines the difference between them

by analyzing their commonalities with

respect to their implementation as

applicable to both the sectors. The

methodology adopted was criticallyexamining the literature on TQM

practices followed by manufacturing and

service sectors. Altogether, 30 published

research studies (15 research studies on

TQM practices in the manufacturing

industries and 15 on the service

industries) were identified that focused on

TQM principles and practices used by

them. The finding showed no significant

difference in the level of most of TQM

practices and broadly the same group of

identified TQM practices do exist and are

applicable to both the sectors except few

differences were found and werepresented in this study. The results can

provide guidance for service managers

and quality practitioners aiming to

implement TQM. Further, some

managerial implications and future scope

of this study are also presented at the end.

Keywords- manufacturing industries,

service industries, top-management

commitment, Total Quality Management,

TQM practices,

I. INTRODUCTION

The concept of TQM philosophy and

its principles is quite old and was introduced

into the USA around 1980, primarily in

response to the severe competitive challenge

from Japanese companies [1]. Initially, the

attention was towards manufacturing

industries with little consideration being

given to the service industries largelybecause of the domination of researchers

The First International Conference on Interdisciplinary Research and Development, 31 May - 1 June 2011, Thailand

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Faisal Talib, Zillur Rahman, and M.N. Qureshi

from the engineering and operations

discipline [2]; [3]. The emergence of TQM

philosophy in service industries has been a

recent development and is being applied

from last two decades. The study by Saraph

et al. [4] comes out with the concept ofapplying TQM practices in service industries

and was the first study in the service sector

where a set of identified TQM factors were

considered in both manufacturing and

service industries. Further, literature survey

of manufacturing on TQM is quite

encyclopedic, encompassing an

overabundance of research works [4]; [5];

[6]; [7]; [8] while review of the literature on

service reveals that it is young and recent

emerging area in the field of service quality,human resource management, and customer

perception [9]; [10]. These plethora of

studies have often appeased to produce

mixed results, but in general TQM has been

credited in providing benefit for

organizations that implement it properly.

This has been proven by studies that have

involved wide-range of surveys, empirical

studies, and case studies [11]; [12]; [8]; [13];

[14]; [15]; [16]. Following the success of

TQM in manufacturing, practitioners and

academicians have started to study the

potential of transferring and applying TQM

principles and practices to service industries

and suggested its applicability in it. Although

there are some characteristics that distinguish

service industries with manufacturing

industries like intangibility, co-production,

inseparability, and heterogeneity of the

outputs of services that may affect the

transfer of the TQM principles and practicesto service environment which is in contrast

to there in the manufacturing industries that

are more measurable and standardized in

their specifications [1]; [17] and thus causes

difficulties for service providers in

controlling the quality of the service output

before delivering them to customers as is

normally done with manufacturing products.

It is identified that there are many

studies on the implementation of TQM

practices in manufacturing and service

sectors but no study has been conducted to

identify a set of common and identical TQM

practices as applicable for both the sectors

for successful TQM implementation.

Although, this study shares a similar purpose

with the previous studies by examining the

extent of implementation of TQM and itspractices in manufacturing and service

industries, but it goes beyond the earlier

studies, by examining the difference between

TQM practices in the manufacturing and

service industries individually and than

comparing them for their commonalities with

respect to their implementation in both these

sectors. While, in the previous TQM studies,

no such type of comparisons were

conducted. Accordingly, there is a need to

focus on this issue and therefore, this studytries to fill this gap by conducting an

extensive literature review on TQM practices

in manufacturing and service industries by

adopting a detailed research methodology.

The objectives of the present study

are as follows:

To identify TQM practicesfollowed by manufacturing

industries.

To identify TQM practicesfollowed by service industries,

and

To examine the differencebetween the identified TQM

practices in manufacturing and

service industries by analyzing

them for their commonalities with

respect to their implementation.

The above objectives areaccomplished through review of the

literature on TQM practices in

manufacturing and service sector. The

methodology adopted for this study was

literature review of published research

studies on the current subject focusing on

dimensions/practices influencing TQM in

manufacturing and service industries

separately. A total of 30 research

publications (15 research studies on TQM

practices in manufacturing industries and 15on service industries) were selected from

Special Issue of the International Journal of the Computer, the Internet and Management, Vol. 19 No. SP1, June, 2011

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Analysis of Total Quality Management Practices in Manufacturing and Service Sectors

advanced search method and were reviewed.

All these selected studies have been

published in a range of scientific journals

such as International Journal of Service

Industry Management, Decision Sciences,

International Journal of Productivity andQuality Management, The TQM Magazine,

Academy of Management Review,

International Journal of Quality and

Reliability Management, Production and

Operation Management, Total Quality

Management and Business Excellence,

International Journal of Production

Research, Managing Service Quality,

Management Research News, and

International Journal of Bank Marketing.

After critically going through these studies

concerning to the various TQM practicesadopted in manufacturing and service

industries, the survey report is presented in

the tabular form in the next two sections in

Tables 1 and 2.

II. TQM PRACTICES IN MANUFACTURING INDUSTRIES

TABLE I

SURVEY OF TQM PRACTICES IN MANUFACTURING INDUSTRIES AS REPORTED BY DIFFERENTRESEARCHERS


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III. TQM PRACTICES IN SERVICE INDUSTRIES

TABLE IISURVEY OF TQM PRACTICES IN SERVICE INDUSTRIES AS REPORTED BY DIFFERENT

RESEARCHERS

IV. RESULTS AND ANALYSIS

A review of the literature reveals that

there are nine TQM practices in two differentsectors i.e. manufacturing and service, based

on their frequency of occurrences in the

extent literature that consists of 15 published

research papers in each sector, totaling to 30

research papers that focused on practices

influencing TQM in both the sectors. From

these 15 research studies, this paper performs

a comparison of TQM practices between

manufacturing and service industries which

are presented in Table 3. After critically

analyzing Tables 1, 2 and 3, many results ofinterest emerged out from the present study

related to degree of performance and

adoptability of TQM practices as well as a

common group of TQM practices for

manufacturing and service industries.

The present study showed that six out

of nine TQM practices identified are similar

and common in both manufacturing and

service industries. They are: topmanagement

commitment; customer focus and

satisfaction; human resource management;

training and education; employee

involvement; and supplier management. The

plausible explanation for this result is the

higher score of frequency of occurrences ofthese practices in the two sectors. This


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suggest that the level of TQM practices in

both the sectors are not significantly

different except for supplier management in

which manufacturing industries show a

significantly higher frequency of occurrences

than service industries (See Table 3).Therefore, this group of common TQM

practices could determine the success of a

TQM program in manufacturing and service

environment and for further research work in

this area.

Furthermore, the reason behind the

less adoption of supplier management as

practice in service industries could be that

many companies feels supplier quality and

performance is not so crucial for them asthey are mainly dealing with intangible

services not concerned with the incoming

products or raw material as in case of

manufacturing industry. Therefore, many

service industries do not recognize the role

played by supplier performance and

management in an organization's quality

performance and its contribution to customer

satisfaction [39].

In contrast to above results, quality

information and performance measurement,process management, and quality systems

represent other three major TQM practices in

manufacturing industries while continuous

improvement and innovation, benchmarking,

and quality culture/work culture are more

important TQM practices in service

industries. This concerns that there exists

some inconsistencies in these three practices

while implementing a TQM program in the

two sectors separately. The possible reason

behind this outcome may be the nature of

service operations compared to theirmanufacturing counterpart. Service

industries are more focused on customer

orientation and customer satisfaction as well

as on quality culture and work environment

while manufacturing industries are highly

tangible in nature where quality products and

measurement performance as well as

management of process and use of quality

tools and techniques plays an important role

in deciding the business performance.

Regarding consistencies, four TQM

practices stand out in several studies as being

more central for manufacturing and service

industries. They are: top-management

commitment (including leadership),

customer focus and satisfaction (including

customer orientation and customer

feedback), human resource management

(including job rotation, internal recruitment,

quality circles, and employment security

policy) and training and education (includinglearning). They have stronger relationship in

manufacturing as well as in service

industries. This predicts that TQM concept

mainly lies on these four principles and

practices and may be treated as the pillars of

TQM philosophy.

TABLE IIISOME COMMON TQM PRACTICES OF MANUFACTURING AND SERVICE INDUSTRIES AS

REPORTED BY THE SURVEY


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V. CONCLUSIONS

This paper has successfully presented

the groups of TQM practices for

manufacturing and service industries as wellas a group of common TQM practices

applicable to both the sectors. Although most

of the practices identified in the two sets are

similar but few inconsistencies were also

found to be present by comparing them.

Such differences often in research results to

frustration, both for researchers designing

new studies and practitioners who seek

advice on how to implement TQM concept

in their organizations. These inconsistencies

may be due to nature of operations,characteristic of firms, service design,

products and services offered by

manufacturing and service industries. Also,

this study is limited to review only 15

research studies on TQM practices in each

sector, if more studies in the same area are

taken than these inconsistencies may be

minimized. This may be another reason for

the presence of few inconsistencies in the

present study.

Furthermore, the findings also

suggest that the level of TQM practices in

manufacturing and service industries are not

significantly different except for quality

information and performance measurement,

process management, and quality systems

practices in which manufacturing industries

shows a significantly higher frequency of

occurrences while for service industries,

continuous improvement and innovation,

benchmarking, and quality culture/workculture shows a higher frequency of

occurrences. By examining 15 research

studies in each sector, the present study

provides some guidelines for managers of

both sectors who want to implement TQM

concept. Three most important TQM practice

stands out as being centre for manufacturing

and service organizations: top-management

commitment; customer focus and

satisfaction; and training and education.

Also, managers should introduce anddevelop employee involvement practices in

their organization by delegating authority

and empowering employees. Hence, by

focusing on these principles and practices, an

organization can build a quality

improvement program that will have a

positive influence on business performance.

Despite the overall findings produced

in this study, there are still open

opportunities for further studies. Further

studies on comparing the degree of

performance on quality practices and

relationship of these identified practices to

quality and business performance can be

taken by the academicians and practitioners.

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