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PROJECT REPORT
ON
COMPARISON OF SUCCESS FACTORS
OF
TOTAL QUALTY MANAGEMENT
IN
MANUFACTURING AND SERVICE INDUSTRY
SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION (MBA)
Submitted by:
ANUBHUTI JHINGRAN
Enrol. No. – 02312303909
DELHI INSTITUTE OF ADVANCED STUDIES
Guru Gobind Singh Indraprastha University, Delhi MBA 2009-11
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ACKNOWLEDGEMENT Success comes to those who strive for it. To achieve one’s goal, one outs in a lot of
hard work efficiency. In this process, one takes all the encouraging and helping hands
of the people.
Apart from my efforts, the success of this project depends largely on the
encouragement and guidelines of many others. I take this opportunity to express my
gratitude to the people who have been instrumental in the successful completion of
this project.
I would like to show my greatest appreciation to Ms. Ritika Maheshwari, for her
tremendous support and help.
ANUBHUTI JHINGRAN
02312303909
MBA (2009-2011)
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DECLARATION
I hereby declare that the project work entitled “Comparison of Total Quality
Management Success factors in Manufacturing and Service Industry ” submitted to
the Delhi Institute of Advanced Studies (Guru Gobind Singh Indraprastha University) is a
record of an original work done by me under the guidance of Ms. Ritika
Maheshwari, Faculty Member, Delhi Institute Of Advanced Studies, and this project
work has not performed the basis for the award of any Degree or diploma/ associate
ship/fellowship and similar project if any.
ANUBHUTI JHINGRAN
02312303909
MBA (2009-2011)
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EXECUTIVE SUMMARY OF THE PROJECT
Ø Total Quality Management is an integrative management philosophy aimed at continuously improving the performance of products, processes and services to achieve and surpass customer expectations. There are many differences in manufacturing and service industries.
Ø The purpose of this project is to understand concept of TQM in both industry sectors and
to identify the significant differences (if any) in TQM practices in Indian service and manufacturing organisations based on critical success factors- Critical Success Factors (CSFs) are internal or external factors that can seriously affect the firm for better or worse. They provide an early warning system for management and a way to avoid surprises or missed opportunities. In the context of TQM, it is essential that the organizations identify a few key critical success factors, which should be given special attention for ensuring successful implementation of TQM program.
Ø For this purpose related literature is collected. The literature is deeply studied and the critical factors that influence the TQM success in industry are determined. Based on these factors a questionnaire was prepared which includes two types of questions, variable questions and ranking questions. The first few questions are related to the company background and demographic data such as name of the respondent, sector of business, position of the respondent, etc.
The variable questions are grouped in to seven factors such as-
• Customer focus • Continuous Improvement • Team work and Involvement • Top management Commitment and Recognition • Training and Development • Communication in Company • Measurement and feedback
Questionnaires were sent to both types of industry, then questionnaires were collected back and the data was managed in a usable format and the independent t-test was applied on the data with the help of SPSS.
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TABLE OF CONTENTS CCHHAAPPTTEERRSS CCHHAAPPTTEERR PPAARRTTIICCUULLAARRSS PPAAGGEE NNOO
1 Introduction........................................................................... 1.1 Introduction............................................................... 1.2 Sectors involved……………………………………. 1.3 Relevance to the organizations…………………… 1.4 Research Objectives.................................................. 1.5 Research Methodology.............................................. 1.6 Limitations………………………………………….
2 3 4 5 6 8
2 Literature review...................................................................
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3 Conceptual Framework......................................................... 3.1 Concept of TQM......................................................... 3.2 Differences between manufacturing and services… 3.3 Case study of TATA STEELS(MFG) Case study of DABBAWALAS(service)
12 13 21 23 25
4 Findings and Analysis........................................................... 4.1 Cross tabulation of factors………………………… 4.2 Ranking Of Data…………………………………… 4.3 Independent T test………………………………… 4.4 Key findings and discussion……………………….
25 26 35 41 51
5 Conclusion and Suggestions................................................. 5.1 Conclusion................................................................. 5.2 Suggestions................................................................ AANNNNEEXXUURREE
Questionnaire………………………………………. RREEFFEERREENNCCEESS………………………………………………………………………… MMIISSCCEELLLLAANNEEOOUUSS Evaluation Sheet
Attendance Sheet
52 53 54 56 60
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CHAPTER ONE CONTENTS- • INTRODUCTION OF THE TOPIC • SECTOR INVOLVED • RELEVANCE TO THE ORGANIZATIONS • OBJECTIVES OF THE RESEARCH • RESEARCH METHODOLOGY
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1.1 -INTRODUCTION
TQM is a comprehensive and long-term transformational process. As a result of this process, an organization moves from a traditional, outdated mode of operating to a newer, more progressive way of running the enterprise Along the way, the organization learns how to change, improve, and evolve continuously. It does this by focusing on people first — in particular, on passengers, employees, and people in the community. Systems, procedures, structure, measures, and responsibilities are transformed to support the employee's desire to serve the passenger and the community. TQM PRINCIPLE "It's an ongoing process...you need to improve and do everything You can to bring about customer satisfaction"
• 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.
• There are a number of evolutionary strands, with different sectors creating their own
versions from the common ancestor.
Ø This project discusses the results of a survey on Critical success factors (CSFs) of TQM implementation in Indian manufacturing and service industries. The project begins with an overview of the CSFs for TQM, research methodology and data collection, reliability and validity tests conducted on the CSF instrument, followed by analysis of survey results.
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1.2- SECTORS INVOLVED MANUFACTURING SECTOR -50 QUESTIONNAIRES collected from manufacturing companies. Namely-Tata steels, Luxottica India Eyewear Pvt Ltd, Shree cements, Jindal Steels, Ranbaxy, Asian Paints, Mother dairy, Dabur, LG
SERVICE SECTOR -50 QUESTIONNAIRES collected from service companies. Namely-Axis Bank, HDFC SLIC, ICICI Bank, APPOLO Hospital, PNB, AIRTEL,
IDEA, BIG BAZAR, Reliance Fresh, Shopper’s Stop, Infosys, ITC Maratha, FORTIS Hospital, Spencer
Ø Manufacturing is considered to be associated with those organisations where there
is a very low level of direct contact with the customer, as in mining, farming and heavy engineering. Manufacture requires a physical transformation; a change in the form and utility of resources.
Ø In this research, manufacturing companies are defined as “those which produce
tangible products with a significant element of their operations function involving manufacturing activities, such as raw materials being transformed to a product”.
Ø Services are defined as “a process which transforms inputs such as strategy, technology, skills etc. in to an output i.e. service”.
Ø In this research, service companies are defined as those which produce intangibles with a service operations focus.
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1.3- RELEVANCE TO THE ORGANIZATIONS
Total Quality Management has impacts on every aspect of the organization. Every person and every function is responsible for quality and is affected by poor quality. A company cannot achieve high quality if its accounting is inaccurate or the marketing department is not working closely with customers. TQM requires the close cooperation of different functions in order to be successful.
Ø Marketing plays a critical role in the TQM process by providing key inputs that make TQM a success. The goal of TQM is to satisfy customer needs by producing the exact product that customers want. Marketing needs to accurately pass customer information along to operations, and operations needs to include marketing in any planned product changes.
Ø Finance is another major participant in the TQM process because of the great cost consequences of poor quality. General Definitions of quality need to be translated into specific dollar terms. This serves as a baseline for monitoring the financial impact of quality efforts and can be a great motivator.
Ø Accounting is important in the TQM process because of the need for exact costing. TQM efforts cannot be accurately monitored and their financial contribution assessed if the company does not have accurate costing methods.
Ø Engineering efforts are critical in TQM because of the need to properly translate customer requirements into specific engineering terms. We depend on engineering to use general customer requirements in developing technical specifications, identifying specific parts and materials needed, and identifying equipment that should be used.
Ø Purchasing is another important part of the TQM process. Whereas marketing is busy identifying what the customers want and engineering is busy translating That information into technical specifications, purchasing is responsible for acquiring the materials needed to make the product.
Ø Human resources is critical to the effort to hire employees with the skills necessary to work in a TQM environment. That environment includes a high degree of teamwork, cooperation, dedication, and customer commitment. Human resources is also faced with challenges relating to reward and incentive systems.
Ø An information system (IS) is highly important in TQM because of the increased need for information accessible to teams throughout the organization. IS should work closely with a company’s TQM development program in order to understand exactly the type of information system best suited for the firm, including the form of the data, the summary statistics and frequency of updating.
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1.4 OBJECTIVES OF THE RESEARCH
This PROJECT has been undertaken to carry out Total Quality Management in manufacturing and service organizations. In order to accomplish this following are the objectives- 1. To study the Concept of Total Quality Management in manufacturing and service organisations 2. To do Survey and classification of literature on Total Quality Management. 3. To find out Benefits of Total Quality Management in manufacturing and service organisations as stated in literature. 4. To find out Short comings of Total Quality Management in manufacturing and service organisations. 5. To find out significant difference (if any) in importance of Total Quality Management success factors in manufacturing and service organisations.
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1.5 RESEARCH METHODOLOGY Research Methodology guides researchers to meet the objectives of the research in a structured and organized manner. DATA USED IN STUDY The data collected for the purpose of the study has been collected from two main Sources; they are primary data and secondary data.
(a) Primary data:
The primary data is collected by survey method using questionnaire which is based on the seven critical factors identified from case study, conceptual and survey articles.
• The method used for gathering data is postal survey. This method was chosen due to the advantage that the designed questionnaire could be sent to a large number of organizations in a limited time.
• The questionnaire included two types of questions-
Variable questions and Ranking questions. The first eight questions are related to the company background and demographic data such as Name of the employee, sector of the business, type of industry, position of respondent etc.
• The variable questions are grouped in to 7 factors. Each factor is then divided in to variables or statements. The list of critical factors [Garg, (2005 & 2002)] is shown in Appendix-A.
• The questionnaires were sent to various service and manufacturing organizations, Top
level employees were approached.
(b) Secondary Data: Published work of leading academics in TQM research and the various articles given by researchers. Presentation reports etc. Sample Size: The sample size, which has selected for this project is 100 employees. 50 each of Manufacturing and Service Industry. Research Design: Exploratory Research cum descriptive. Sampling Technique: The sampling technique used in the study is convenience sampling Research Instrument: The research instrument for the study is survey through questionnaire.
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TOOLS OF ANALYSIS
• Cross tabulation to compare the data. • Independent two sample T TEST was used.
Independent two sample T-Test An independent samples t-test is used for comparing the means on an interval/ratio variable between two categories on a nominal/ordinal variable. It answers the question of whether the difference between means is statistically significant in the population of interest (assuming good sampling) or whether the difference is due to sampling error. To do this test, you need two variables from one population and sample. The independent variable is nominal/ordinal and the dependent is interval/ratio.
The t statistic to test whether the means are different can be calculated as follows:
where
Here is the grand standard deviation (or pooled standard deviation), 1 = group one, 2
= group two. The denominator of t is the standard error of the difference between two means.
For significance testing, the degrees of freedom for this test are 2n − 2 where n is the
number of participants in each group.
HYPOTHESIS-
• NULL HYPOTHESIS (Ho) - There is no difference in importance of success factors for manufacturing and service industry.
• ALTERNATIVE HYPOTHESIS (H1) - There is difference in importance of success factors in manufacturing and service industry.
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1.6 LIMITATIONS
• Employees of the organization may hide the fact. • Numbers of respondents are very less, so clear conclusion can’t be drawn. • Owing to the time limitation, a postal questionnaire survey was applied for this project.
However, semi-structured interviews would have enabled to have a greater understanding of the TQM practices in these companies.
• It would have been better to carry out factor analysis on the data for identifying the critical success factors of TQM in both industrial sectors with statistical significance.
• It was found during the course of this research that the response rate for the postal survey was not very high.
• Another factor was that some of the questionnaires were returned incomplete. So as not to bias any adjustment, these were disregarded and only the completed questionnaires were considered for the analysis.
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CHAPTER 2
LITERATURE REVIEW
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Literature review is the prime source for assessing the state of TQM. In embarking on the quality journey, as with any other change management initiatives, one must first have a clear definition and an understanding of the basic philosophy being pursuit. This chapter provides with an overview on various aspects of Total Quality Management (TQM) relating to the research. It traces the origins of the term TQM and describes the numerous definitions employed by academics, consultants, engineers and practitioners. Feigenbaum and Ishikawa are perhaps the greatest contributors to the development of the term. However, the prominent quality gurus such as Deming, Juran and Crosby were those who have shaped the dimensions, practices and mechanisms which underpin the concept although none of them actually uses the term (Dale et.al, 1994).
• Deming is best known for developing a system of statistical quality control, although his contribution goes substantially beyond those techniques (Saunders, 1995). His philosophy begins with top management but maintains that a company must adopt the fourteen points of this system at all levels.. He developed what is known as the Deming Chain reaction; as quality improves, costs will decrease and productivity will increase, resulting in more jobs, greater market share and long term survival.
• Juran, like Deming was invited to Japan in 1954 by the Union of Japanese Scientists and Engineers (JUSE). His lecture introduced the managerial dimensions of planning, organizing, and controlling and focused on the responsibility of management to achieve quality and the need for setting goal (Juran, 1951). Juran defines quality as fitness for use in terms of design, conformance, availability, safety and field use. Thus, his concept more closely incorporates the point of view of the customer. He advocated ten steps to quality improvement that has a broader concept than Deming which emphasis more on the responsibility of management to achieve total quality.
• Crosby (1979) stresses motivation and planning and does not dwell much on
statistical process control and the problem-solving techniques of Deming and Juran. Like Deming, Crosby has his own fourteen points that he believes to be good quality practices for a company to adopt. He believes that quality is free because the small cost of prevention will always be lower than the cost of detection, correction and failure.
• Armand Feigenbaum also achieves visibility through his work with the Japanese. Unlike Deming and Juran, he used a total quality control (TQC) approach that may very well be the forerunner of today’s TQM. He defined TQC as “an effective system for integrating the quality development, quality maintenance, and quality-improvement efforts of the various groups in an organization so as to enable production and service at the most economical levels which allow for full customer satisfaction” (Dale, 1994)
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• Although the literature on total quality management includes a rich spectrum of research, there
is no consensus on the definition of quality. The notion of quality has been defined in different ways by different authors. Gurus of the total quality management disciplines such as Garvin, Juran, Crosby, Deming, Ishikawa and Feigenbaum defined the concept of quality and total quality management in different ways.
• Total quality management is the culture of an organization committed to customer satisfaction through continuous improvement. This culture varies both from one country to another and between different industries, but has certain essential principles which can be implemented to secure greater market share, increased profits, and reduced costs (Kanji & Wallace, 2000).
• Management awareness of the importance of total quality management, alongside business process reengineering and other continuous improvement techniques was stimulated by the benchmarking movement to seek, study, implement and improve on best practices (Zairi & Youssef, 1995).
• The commitment to continuous improvement historically originated in manufacturing firms; but spread quickly to the service sector (e.g. teller transactions in banks, order processing in catalog firms, etc.).
• Surveys point at the widespread interest and application of TQM: I 95% of manufacturing companies and 70% of service companies have used one form or other of quality improvement programs and 55% of American executives and 70% of Japanese executives use quality improvement information at least monthly (Olion & Rynes, 1991), (Rigby, 1998). I An international survey of over 4000 managers in 15 countries indicated TQM usage by approximately 60% in 1997 (Rigby, 1998). A Survey of TQM and continuous improvement programs indicates 12 common aspects: Committed leadership, adoption and communication of TQM, closer customer relationships, benchmarking, increased training, open organization, employee empowerment, zero defects mentality, flexible manufacturing, process improvement, and measurement (Powel, 1995).
• Furthermore, to determine critical factors of total quality management, various studies have been carried out and different instruments were developed by individual researchers and institutions such as Malcolm Baldrige Award, EFQM (European Foundation For Quality Management), and the Deming Prize Criteria. Based on these studies, a wide range of management issue, techniques, approaches, and systematic empirical investigation have been generated.
• Accordingly, Saraph, Benson & Schroder, (1989) developed 78 items, which were classified into eight critical factors to measure the performance of total quality management in an organization.
• These critical factors are: Role of divisional top management and quality policy, role of the quality department, training, product and service design, supplier quality management, process management, quality data and reporting, and employee relations.
• Flynn, Schroeder & Sakakibara, (1994) developed another instrument to determine critical factors of total quality management. Flynn et al. identified seven quality factors. These are top management support, quality information, process management, product design, workforce management, supplier involvement, and customer involvement.
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• As it is seen, this instrument is very similar to the preceding instrument that was developed by Saraph et al. (1989). Flynn, Schroder & Sakakibara, (1995) measured the impact of total quality practices on quality performance and competitive advantage.
• In another noteworthy study, Anderson, Rungtusanatham & Schroeder, (1994) developed the theoretical foundation of quality management practice by examining Deming’s 14 points. They reduced the number of concepts from 37 to 7 using the Delphi Method. These are visionary leadership, internal and external cooperation, learning, process management, continuous improvement, employee fulfillment, and customer satisfaction. SEVERAL RESEARCHES DONE- 1. A COMPARATIVE STUDY OF TQM CRITICAL SUCCESS FACTORS IN MANUFACTURING AND CONSTRUCTION UK INDUSTRIES BY-DAVID JOAQUIN DELGADO HERNANDEZ (School of Engineering, University of Birmingham, Edgbaston) 2. PARETO ANALYSIS OF TOTAL QUALITY MANAGEMENT FACTORS CRITICAL TO SUCCESS FOR SERVICE INDUSTRIES (Mechanical Engineering Section, University Polytechnic, Aligarh Muslim University, Aligarh, India) Department of Management Studies, Indian Institute of Technology Roorkee, India
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CHAPTER 3
CONCEPTUAL FRAMEWORK
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For more than four decades after independence the companies in India enjoyed a protected market with virtually no competition, and some of them even monopolized the market, with customers having little or no choice. As a result complacency set in, and no pressure existed for improvement or change. However, the policy of globalization and liberalization adopted by the Indian Government has thrown open new avenues and challenges to companies in India. The new policy has resulted in open doors through which global corporate players have entered the Indian markets, and are threatening the domestic manufacturers and suppliers, using quality as a weapon.
This has compelled the managers of local companies to look for those tools and techniques, proven and tested, which would help them to maintain and improve their strategies and positions in the market. One such policy or philosophy that has captured the attention of industry and the business community is TQM. Particularly, in the recent years TQM is even regarded as absolutely essential for growth, stability, and prosperity.
Definition of TQM Numerous definitions have been given on Total Quality Management (TQM) by quality gurus, practitioners and academician. Besterfield (1995) defined TQM as both a philosophy and a set of guiding principles that represents the foundation of a continuously improving organization. Using a three-word definition, Wilkinson and Wither (1990) defines TQM as (Ho, 1999):
Total : every person is involved (its customers ,suppliers)
Quality : customer requirements are met exactly
Management : senior executives are fully committed
What is total quality?
Total quality is called total because it consists of 3 qualities :
Quality of return to satisfy the needs of the shareholders,
Quality of products and services to satisfy some specific needs of the consumer(end user)
and Quality of life to satisfy the needs of the people in the organization.
Management
Management is concerned with five basic activities, namely planning, organizing, directing,
controlling, and improvement (Stoner, 1990; Joiner 1993).
This has been sharpened by Deming who introduced the concept of Plan-Do Check/Study-
Act (PDSA).
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Ø TQM is described as the mutual cooperation of everyone in an organization and associated business processes, in order to produce products and services which meet and hopefully exceed the needs and expectations of customers, (Dale, 1999).
Ø TQM is an approach to improve competitiveness, efficiency and flexibility for a whole organization, (Oakland, 1989).
Ø TQM is an evolving system, consisting of practices, tools, and training methods for managing organizations in a rapid changing context. The system provides customer satisfaction and improves the performance of organizations by eliminating product defects and speeding service delivery,(Shiba et al., 1993)
Ø TQM is a corporate culture that is characterised by increased customer satisfaction through continuous improvement, involving all employees in the organization, (Dahlgaard et al., 1999)
Ø The TQM philosophy provides the overall concept that fosters continuous
improvement in an organization. This philosophy stresses a systematic, integrated, consistent, organization-wide perspective involving everyone and everything. It focuses primarily on total satisfaction for both internal and external customers within a management environment that seeks continuous improvement of all systems and processes.
Ø Continuous improvements can be achieved through internal and external quality
improvements. Ø Internal improvements refer to the utilization of resources and preventing defects
and problems in the process. Gradually, this result in the effectiveness of controlling and minimizing production cost which in turn yield to higher profits.
Ø Similarly, external quality improvements put more emphasis on designing quality into
the product, which aims to earn higher profits by remaining competitive with a bigger market share. This can be done through the ability of companies to respond quickly to the demands of their customer and offering them with a better value added services.
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TQM BASIC PRINCIPLES
TQM calls for a cultural transformation that requires employee involvement at all levels and a spirit of teamwork among customers, suppliers, employees, and managers. Employee involvement, participation and empowerment form the cornerstones of TQM (Saylor, 1992). 1. Customer focus-
If TQM is aimed at anything; it is aimed at winning and keeping customers keeping them delighted. This factor covers the investigation of customer complaints, the specification of internal and external customer requirements and their satisfaction. 2. Continuous improvement- It is only when management supports, in both word and deed, the goal of continuous
improvement, that it will begin to see increases in both quality and productivity.
Wheeler & Chambers
This factor covers the continuous improvement activities on the system, processes and continuous monitor of employee’s performance. Moreover, the review on the quality issues and identification of opportunities for improvement are also included in this factor. Continuous improvement of all systems and processes in an organization is essential for TQM success. A continuous improvement system gears the organization toward attainment of the vision (Richardson, 1997). The improvement system must not only be continuously applied, but also consistently, throughout the organization. This requires a disciplined continuous improvement system based on trust, with everyone in the organization striving to improve the system (Crosby, 1979).
Saylor (1992) suggested a continuous system cycle that involves 5 stages :-
The cycle starts by defining the vision or mission of the organization. Top leadership determines the vision, with input from everyone. Then everyone in the organization ascertains his specific mission to accomplish the overall vision. In doing so this, the focus and priorities of the vision are determined, established, understood and supported by all.
The next phase after defining their vision includes listing all improvement opportunities. It is important to obtain an understanding of the process of determining improvement opportunity at this stage.
Customers, both internal external, are identified and their needs and expectations understood. Suppliers also are matched with requirements. Any potential problems are identified during this process. For the third stage of selecting improvement
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opportunity, specific improvement opportunities are selected based on the critical processes that have the greatest impact on customer satisfaction. These problems are solved using a disciplined methodology such as statistical process control, quality function deployment and process analysis and should be used consistently to complete a mission, improve a process and solve problems throughout the organization.
Finally, similar to Shewhart PDCA cycle, the results for the impact of improvements are evaluated against the overall mission. In this case, a sixth stage can be added as a reminder: Do it again and again and again. The cycle is never ending in a continuous improvement system.
3. Teamwork and involvement- The participation of all employees in quality activities, implementation of quality improvement teams, team rewards and teamwork structures are included in this factor. TQM stresses that quality is an organizational effort. To facilitate the solving of quality problems, it places great emphasis on teamwork. The use of teams is based on the old adage that “two heads are better than one.” Using techniques such as brainstorming, discussion, and quality control tools, teams work regularly to correct problems. The contributions of teams are considered vital to the success of the company. For this reason, companies set aside time in the workday for team meetings. Teams vary in their degree of structure and formality, and different types of teams solve different types of problems. One of the most common types of teams is the quality circle, a team of volunteer production employees and their supervisors whose purpose is to solve quality problems. The circle is usually composed of eight to ten members, and decisions are made through group consensus. The teams usually meet weekly during work hours in a place designated for this purpose. They follow a preset process for analyzing and solving quality problems. Open discussion is promoted, and criticism is not allowed. Although the functioning of quality circles is friendly and casual, it is serious business. Quality circles are not mere “gab sessions.” Rather, they do important work for the company and have been very successful in many firms. 4. Top management commitment and recognition- This factor includes the awareness and support of top management on the quality systems. The recognition of quality improvement and employees contribution is also covered in this factor.
5. Training and development-
World-class companies realize that all firms have access to the same equipment,
technology, financing, and people. The “half-life” of any academic degree is
extremely short; therefore, the real difference among companies is the degree to which
employees are developed. . . .
Ernest &Young
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This factor is related to the availability of training programmes to the employees. Training programs include the statistical improvement techniques, quality related matters and teamwork. Furthermore, the education for the suppliers and subcontractors are also covered. Training in TQM philosophy, guiding principles and tools and techniques is never ending. Personal and team interaction skills must be continually refined. This training should be given only as it is needed to the people who will use it immediately. It should start with specific training for management. Once management has the skills to lead the TQM process, the rest of the organization should be trained to ensure a systematic, integrated, consistent organization- wide effort . 6. Communication within the company- The cooperation between various departments or units with in a company is covered in this factor. This factor accentuates the use of cross functional teams for problem solving and team working. The success of TQM demands communication with and among all the organization members, suppliers and customers. Supervisors must keep open airways where employees can send and receive information about TQM. Downward communication helps supervisors make TQM clear to employees. Upward communication would allow employees to provide suggestions which top management can implement and sideways communication would breakdown all barriers between different departments, so that work can be more coordinated and effectively done. 7. Measurement and feedback- The measurement of the performance of processes, performance in financial and non financial terms and feedback provision are embedded into this fact. This pillar enables the voice of the customer to be translated into measures of performance with which the organization can identify and on which it can improve. It deals with internal measures of performance, supplier assessment and development. Measurement process involves two way flow of information between organization and its customer’s and suppliers. These parties should be consulted as part of the process of deciding what measurements to make.
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TQM :- The Strategic Choices
• Total quality management (TQM) has become a part of the corporate management parlance on a global scale. Compelling reasons to adopt TQM are: pressure set in due to decreased profits, inability to penetrate into new markets, intensifying competition, and above all quality conscious customers demanding better and improved products and services from the companies.
• The post-independent era did not witness any spectacular improvement regarding the quality of goods and services produced in the country. Due to protected business environment many positive attributes of the Indian industry have been lost and weaknesses have surfaced.
• These weaknesses based on the study are: lack of trust and credibility in the working system, lack of clarity/seriousness for achieving target, lack of precise observance of rules and norms, low quality of supplies and components, lack of consciousness of time as money, viewing only short term benefits ahead of long term goals, politicalization of labor unions, lack of accountability for actions, lack of management commitment, lack of national quality policy, inadequate economic resources, lack of indigenous technology, inadequate infrastructure, preferring quantity to quality, lack of team spirit, cartel formation, and seller’s market.
• The TQM initiatives were first set by the Confederation of Indian Industries (CII) in the early 1980s, in its pioneering effort in promoting awareness about quality among Indian industries.
Post-liberalization scene: - Improvement In Quality
• The economic reforms that started in 1992 have ushered in a new era of progress and prosperity in the country while all these developments are seen at the gross level, companies in India have been trying individually to improve their product quality, besides overall performance through TQM practices.
• Total quality control in an engineering company through the extensive use of personal computers, and state that the Indian company was able to overcome many quality related problems which included: high rejection levels, slow inspection rates, frequent errors in measurement, inconsistency in interpreting inspection data, time consuming data storage and retrieval, rigid inspection schedules, not responding to changing environment, and quality plans not adjusted to varying batch sizes.
• The company improved the problem solving capacity through quality circles, and quality database at each stage. Comprehensive information systems enabled the personnel to obtain better guidance leading to improved decision making. Thus the success is attributed to systematic application of TQM
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An Overview of the Problems & Barriers with the Implementation of TQM TQM is recently concerned to imply that it is a way of managing organisation to improve product/service quality and the overall efficiency of production or companies operations. Although there is evidence that supports the effectiveness of TQM initiatives in organisations, a large number of studies have shown that between 60% and 80% of TQM initiatives fail, or fail to have shown significant impact on business performance. Research has also indicated that many organisations have encountered difficulties in implementing TQM. Researchers with in TQM fraternity have suggested the following reasons for these failures:
Ø Lack of Top Management Commitment.
Ø No supporting infrastructure for cultural change.
Ø Lack of synergy between quality improvement programmes and overall business strategy.
Ø Poor management leadership.
Ø Lack of focus on the Process.
Ø Fear of Change.
Ø Misperception that TQM is a set of tools rather than a way of thinking.
Ø Inconsistent management commitment from department to department.
Ø Lack of rewards and recognition.
Ø Organisations are more concerned about short-term business returns rather than long-term sustainability of business performance.
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3.2 Differences between Services and Manufacturing
• Several researchers have identified four characteristics of services that distinguish service organisations from manufacturing organisations. These are: Intangibility, Inseparability, Perishability, and Heterogeneity. The differences between manufacturing and service industries are as follows:
Ø Inseparability
• This involves simultaneous production and consumption, which characterizes most services. The inability to store services is a critical feature of most service operations. Since the customer must be present during the production of many services, inseparability ‘forces the buyer into intimate contact with the production processes. This simultaneous production and consumption eliminates many opportunities for quality control intervention.
Ø Intangibility
• Because services are performances, ideas or concepts rather than objects, they cannot be seen, felt, tasted, heard or smelled in the same manner in which goods can be sensed. When buying a product, the consumer is usually able to see, feel and oftentimes test its performance before purchase. However, with services, the consumer must often rely upon the reputation of the service firm. This thereby greatly influences the expectations aspect of quality measurement in services.
Ø Perishability
• This refers to the concept that a service cannot be saved or inventoried. Hotel rooms going vacant, empty airline seats, and unfilled appointment times for a doctor are all examples of opportunity losses. This perishability presents a problem of synchronizing supply and demand, causing customers to wait or not be served altogether. The implications for customer satisfaction are quite obvious.
Ø Heterogeneity
• Since the same service can be provided by various employees at the same facility or different facilities, the quality and essence of the service can vary from provider to provider, from customer to customer, and from day to day. Attempting to offer a consistent service or to measure the variability of different performance types can be difficult. Unlike manufacturing, in which the product is inspected before delivery, services must rely upon a sequence of measures to ensure the consistency of output.
27
28
3.3 “MANUFACTURING”
CASE STUDY- TATA STEELS Jamshedpur: It may not make sense to many in the steel industry to invest in various quality control drives during such a tough time, but for Tata Steel, pursuing such goals has been a passion and the very essence of its existence. The company has recently won the Deming Application Prize for its excellence in total quality management (TQM), the only steel company in the world outside Japan to bag the award. The steel major, which in earlier years had been saving around Rs 300-400 crore annually, would, aided by Deming this year (2009-10), target to save around Rs 800 crore.
"This is not because of the effect of market prices or impact of raw material costs going up or down, it is purely internal—from improvements in the work processes the company has brought about," said Avneesh Gupta, TQM chief of Tata Steel.
The steel major’s commitment to the best practices... can be gauged by the remarks of Tata Steel managing director B Muthuraman recently: "In every walk of life, whether it is in running a business, in sports or education, if you take care of the processes, the results will take care of themselves." He was speaking at the ‘JJ Irani award for excellence in education in Jamshedpur schools’.
Tata Steel, which expects to emerge strongly from the ongoing global recession, has already put in place a revised plan for the second half of 2009-10 (Oct onwards). The plan includes techniques/benefits learnt in Deming and the target has been set in crores.
Various items, right from the raw material side to marketing & sales, several daily management items which could be done better while bringing about cost reduction, cost-cutting contributions from its ‘Aspire’ projects (problem solving, Six Sigma application, etc), efforts from supply chain management by following inventory replenishment models (while ensuring that whatever the customer was wanting was readily available to him) have been listed.
"It (Deming) is a very robust and a very involving process in which you cannot escape the enlightenment at the end of it," Gupta told FE here recently. It is only the application of the steps involved in Deming and the consequent effects that emerged gives one the real insight into its working, he added.
"Each key performance indicator (KPI) is being tracked by the company, like zinc consumption, coal rate, coke rate, etc, including whether any delays were taking place or not," Gupta said. Even the monthly performance improvement review of the company’s TQM efforts by chief operating officer HM Nerurkar ensures that things were moving in the right direction....
29
“SERVICE”
Case Study – DABBAWALAS
Mumbai’s 5000 plus Dabbawalas are world famous for their impeccable service standards. They pick up lunch boxes/ tiffin carriers from over 2,00,000 homes/ apartments, deliver them to some 80,000 destinations and again ensure their safe return to those homes/ apartments – all on the same day with each lap of journey & route accomplished within the specified time limits. The people at work are not from any high academic background; rather many of them are almost illiterate. They face the same crowded pavements, on-road dense vehicular traffic and overloaded suburban trains. Their way of doing business has, therefore, become a case study destination for every Management guru and B-school. A Dabbawala figured among a handful few from India who got invitations to witness the marriage ceremony of Prince Charles. Sometime back, there was also an All-Dabbawala ‘Deal Ya No Deal’ show in Sony Entertainment TV. They steal all attention just because their service is of Six Sigma quality. When the Defects Per Million Opportunity (DPMO) doesn’t exceed 3.4, the process is said to have met Six Sigma level. And Mumbai Dabbawalas’ DPMO is less than 3.4 or precisely, it is 2! ‘Sigma (r)’ denotes ‘Standard deviation’ – a statistical measure of dispersion/ variance. It is the positive square root of the arithmetic mean of the squares of deviations of given observation from their arithmetic mean.
30
CHAPTER 4 FINDINGS AND ANALYSIS
31
1 . CUSTOMER FOCUS (cross tabulation of mean values)
Sector * customer focus Cross tabulation
MEAN VALUES
2.8 3.0 3.2 3.4 3.6 3.8 4.0
Sector M 2 4 2 7 10 20 4
S 0 0 5 7 9 9 18
Total 2 4 7 14 19 29 22
Sector * customer focus Cross tabulation
Customer focus 4.2 4.4 Total
Sector M 1 0 50
S 0 2 50
Total 1 2 100
Total Mean:- MANUFACTURING=3.6
ü SERVICE=3.744
v MEAN FOR SERVICES IS MORE In service industry there is direct interaction with customers, hence more importance is given to focusing on the customer, while in manufacturing there is no face to face interaction with the customer.
32
2. CONTINOUS IMPROVEMENT
Continous improvement
2.8 3.0 3.2 3.4 3.6 3.8 4.0
Sector M 0 0 0 3 2 24 12
S 1 4 10 10 17 4 4
Total 1 4 10 13 19 28 16
Sector * continous improvement Cross
tabulation
Continous
improvement 4.2 Total
Sector M 9 50
S 0 50
Total 9 100
Total Mean:-
ü MANUFACTURING=3.880 SERVICE=3.464 v In manufacturing use of machines is more and more focus is on product quality, thus to
decrease errors this factor is given more importance. Continuous improvement is only possible when the quality objectives can be measured and quantified.
33
3. TEAMWORK AND INVOLVEMENT
Team work and involvement
2.4 2.8 3.0 3.2 3.4 3.6 3.8
Sector M 2 2 5 3 4 15 15
S 0 6 16 12 8 4 4
Total 2 8 21 15 12 19 19
Sector * teamwork and involvement Cross
tabulation
Teamwork and
involvement 4.0 Total
Sector M 4 50
S 0 50
Total 4 100
Total Mean:-
ü MANUFACTURING=3.512 SERVICE=3.200
v Manufacturing requires more interdependency of departments and involves set procedures
34
4. TOP MANAGEMENT COMMITMENT AND INVOLVEMENT
Top management
2.8 3.0 3.2 3.4 3.6 3.8 4.0
Sector M 1 3 6 17 14 7 2
S 0 2 8 10 14 4 10
Total 1 5 14 27 28 11 12
Sector * top management Cross tabulation
Top
management 4.2 Total
Sector M 0 50
S 2 50
Total 2 100
Total Mean:-
MANUFACTURING=3.476 ü SERVICE=3.592
v Service is to be consumed where it is produced, thus support and guidance of top
level management is more important
35
5. TRAINING AND DEVELOPMENT
Training and development
2.4 2.8 3.0 3.2 3.4 3.6 3.8
Sector M 2 3 3 5 12 18 6
S 0 0 10 10 13 11 2
Total 2 3 13 15 25 29 8
Sector * training and development Cross tabulation
Training and development 4.0 4.2 Total
Sector M 1 0 50
S 2 2 50
Total 3 2 100
Total Mean:- MANUFACTURING=3.412
SERVICE=3.396 v Training and development is equally important in both.
36
6. COMMUNICATION IN THE COMPANY
Communication in company
2.8 3.0 3.2 3.4 3.6 3.8 4.0
Sector M 4 15 13 9 8 1 0
S 0 1 8 12 10 12 6
Total 4 16 21 21 18 13 6
Total Mean:- MANUFACTURING=3.220
ü SERVICE=3.584
v This factor is more important in service industry because services are perishable and cannot be stored, it deals directly with customer and customer satisfaction is the prime important factor. Services are heterogeneous , customer expectation is too high and thus it has to be delivered efficiently.
Sector * communication in company Cross
tabulation
Communication
in company 4.2 Total
Sector M 0 50
S 1 50
Total 1 100
37
7. MEASUREMENT AND FEEDBACK
Measurement and feedback
2.6 3.0 3.2 3.4 3.6 3.8
Sector M 2 2 9 17 16 4
S 0 10 15 12 10 0
Total 2 12 24 29 26 4
Sector * measurement and feedback Cross
tabulation
Measurement
and feedback 4.0 Total
Sector M 0 50
S 3 50
Total 3 100
Total Mean:-
ü MANUFACTURING=3.412 SERVICE=3.336
v This factor is almost equally important in both the industries.
38
INTERPRETATION RANKING OF FACTORS ACCORDING TO THE VALUE OF MEANS MANUFACTURING INDUSTRY- Table 1
S.NO
FACTOR MEAN RANK
1. Customer Focus 3.627 2nd
2. Continuous improvement 3.880
1st
3. Teamwork and Involvement 3.512 3rd
4. Top management commitment and Recognition
3.476 4th
5. Training and development 3.412
5th
6 Communication In the company 3.220
7th
7. Measurement and Feedback 3.412
6th
SERVICE INDUSTRY- Table 2
S.NO
FACTOR MEAN RANK
1. Customer Focus 3.744 1st
2. Continuous improvement 3.464
4th
3. Teamwork and Involvement 3.200 7th
4. Top management commitment and Recognition
3.592 2nd
5. Training and development 3.396
5th
6 Communication In the company 3.584
3rd
7. Measurement and Feedback 3.336
6th
39
COMPARISON OF FACTORS ON THE BASIS OF MEANS IN BOTH MANUFACTURING AND SERVICE INDUSTRY
40
4.2 Ranking of Data (as per questionnaire)
• The respondents were asked to rank the factors in descending order of importance in
their company from 1 to 7. The rank 1 means the most important factor for implementation of TQM and rank 7 means the least important. The scores were then added together to determine the list of factors in a hierarchical manner.
• Table-3 illustrates the total scores of each critical factor in both manufacturing and
service organisations.
• It is rather surprising to note from table-3 that communication in company is seem to be unimportant in Indian manufacturing & service industries, although a strong communication in company is one of the key drivers in the successful journey towards TQM.
o Table 3 present the scores of each factor in manufacturing and service industries respectively.
o These figures indicate that the total scores associated with the levels of
quality management practice of factors are lower for service organisations when compared to manufacturing organisations.
o This finding is consistent to the research of Jiju Antony and Craig
Fergusson (2004). According to Jiju Antony, most service firms were not ready to digest and understand some of the factors of quality management.
o This observation and finding also explains why some service managers or
respondents thought that some of the TQM success factors in the questionnaire did not apply to them.
41
Table-3 Total of scores of ranking of factors in manufacturing and service industries as per preferences of employees in their companies current situation.
Sr. No. Factor Score in
Manufacturing Score in Service
1. Customer Focus 108 62
2. Continuous Improvement 63 131
3. Teamwork & Involvement 147 116
4. Top Management Commitment & Recognition
195 210
5. Training & Development 296 247
6. Communication in Company 335 331
7. Measurement & Feedback 256 303
Ø These figures indicate that the total scores associated with the
levels of quality management practice of factors are lower for service organisations when compared to Manufacturing organisations.
42
MANUFACTURING INDUSTRY
FACTOR SCORE
CUMULATIVE SCORE((TOTAL SCORE-SCORE OF FACTOR)
WEIGHTED AVG
CUSTOMER FOCUS 108 1292 15.3
CONTINOUS IMPROVEMENT 63 1337 15.9
TEAMWORK AND INVOLVEMENT 147 1253 14.9
TOP MANAGEMENT AND RECOGNITION
195 1205 14.3
TRAINING AND DEVELOPMENT 296 1104 13.1
COMMUNICATION 335 1065 12.6
MEASUREMENT AND FEEDBACK 256 1144 13.6
TOTAL 1400 8400
INTERPRETATION- CONTINUOUS IMPROVEMENT HOLDS HEIGHEST POSITION AND COMMUNICATION THE LOWEST.
43
SERVICE INDUSTRY
FACTOR SCORE
CUMULATIVE SCORE(TOTAL
SCORE-SCORE OF FACTOR)
WEIGHTED AVG
CUSTOMER FOCUS 108
1338
15.9
CONTINOUS IMPROVEMENT 63 1269
15.1
TEAMWORK AND INVOLVEMENT 147 1284
15.2
TOP MANAGEMENT AND RECOGNITION
195 1190
14.1
TRAINING AND DEVELOPMENT 296 1153
13.7
COMMUNICATION 335 1069
12.7
MEASUREMENT AND FEEDBACK 256
1097
13.3
TOTAL 1400 8400
INTERPRETATION- CUSTOMER FOCUS HOLDS HEIGHEST POSITION AND COMMUNICATION THE LOWEST.
44
Table-4 Results of Ranking data
Sr. No. Factor Manufacturing Industry
Service Industry
1. Customer Focus 2 1
2. Continuous Improvement 1 3
3. Teamwork & Involvement 3 2
4. Top Management Commitment & Recognition 4 4
5. Training & Development 5 5
6. Communication in Company 7 7
7. Measurement & Feedback 6 6
Ø According to Research- ü In case of manufacturing organizations continuous improvement is
holding the first rank and in case of service organizations customer focus is holding the first position.
ü The ranks obtained for factors in manufacturing match with that obtained through mean values, while in case of service industry this is not the case. This shows that employees still are not satisfied with the practices and there is lot of scope for improvement in service industry for TQM practices.
ü It is surprising to note from table-4 that communication in company seems to be unimportant in Indian manufacturing & service industries
45
COMPARING TQM IMPLEMENTATION IN THE
MANUFACTURING AND SERVICE ORGANIZATIONS. • In order to compare the levels of TQM practice in both industrial sectors, it is important
to define the question “Is there any significant differences on the mean for each factor between
manufacturing and service sectors?” • The levels of significance i.e. 5% is chosen to analyse the data. In order to compare the
average scores of each factor in manufacturing & service industries, t-test is conducted with the help of SPSS.
• The software provides the so called p-value, which is used as the criterion to see as if
there is any significant difference between the average scores in these two industries. Here p-value refers to the probability of obtaining the results of a statistical test by chance.
• If the p-value is less than the predetermined alpha level or significance level, then the
null hypothesis (there is no difference in the mean score for a critical factor between manufacturing & service industries) shall be rejected. In other words, if the p-value is smaller than the alpha value, it can be concluded that the difference in the mean scores for a critical success factor is statistically significant.
Table-5 shows the different statistical values such as mean, standard deviation, p-value
and significant correlation for different factors at 5% significance level
46
4.3 Independent T-Test for perceptions between Manufacturing and Service Organisations
TABLE 5 - 1. CUSTOMER FOCUS
Group Statistics
SECTOR N Mean Std. Deviation Std. Error Mean
Customer focus M 50 3.600 .3232 .0457
s 50 3.744 .3052 .0432
Independent Samples Test
Levene's Test for Equality of
Variances
t-test for Equality of
Means
F Sig. t df
Customer focus Equal variances assumed .059 .808 -2.291 98
Sig. (2-tailed) Mean Difference
Std. Error
Difference
Customer focus Equal variances assumed .024 -.1440 .0629
Ø INFERENCE-
• Value of p is .024 which is smaller than .05, thus alternative hypothesis is accepted
that there is difference in the importance of CUSTOMER FOCUS in service and manufacturing industries.
• The mean score of service industries for this particular factor is more compared to manufacturing this shows that customer focus is more important in service organizations because here the customer directly interacts with the service provider.
47
2. CONTINOUS IMPROVEMENT Group Statistics
SECTORN Mean Std. Deviation Std. Error Mean
Continuous improvement M 50 3.888 .2067 .0292
s 50 3.464 .2841 .0402
Ø INFERENCE- • Value of p is .000 which is less than .05, thus alternative hypothesis is accepted
that there is significant difference in the importance of CONTINOUS IMPROVEMENT factor in service and manufacturing industries.
• The value of mean of this factor for manufacturing industries is much more
than that of service, this shows that this factor is more significant for manufacturing organizations.
• Manufacturing firms focus more on production and use of machines, and
thereby focus more on decreasing errors.
Independent Samples Test
Levene's Test for Equality of
Variances
t-test for
Equality of
Means
F Sig. t
Continuous improvement Equal variances assumed 5.383 .022 8.534
df Sig. (2-tailed) Mean Difference
Continuous improvementEqual variances assumed 98 .000 .4240
48
3. TEAMWORK AND INVOLVEMENT Group Statistics
SECTORN Mean Std. Deviation Std. Error Mean
Teamwork and involvement M 50 3.512 .3900 .0552
s 50 3.200 .2857 .0404
Independent Samples Test
Levene's Test for Equality of
Variances
t-test for
Equality of
Means
F Sig. t
Teamwork and involvement Equal variances assumed 3.590 .061 4.563
df Sig. (2-tailed) Mean Difference
Teamwork and involvement Equal variances assumed 98 .003 .3120
Ø INFERENCE- • Value of p is .003 which is less than .05, thus alternative hypothesis is accepted
that there is significant difference in the importance of teamwork and involvement factor in service and manufacturing industries.
• Teamwork and involvement is considered more important in manufacturing than in service industries.
• All the activities in a manufacturing organization are interlinked, from production to inventory to delivery. All departments need to be interconnected.
49
4. TOP MANAGEMENT COMMITMENT AND RECOGNITION
Group Statistics
SECTORN Mean Std. Deviation Std. Error Mean
Top management
commitment
M 50 3.476 .2552 .0361
s 50 3.592 .3155 .0446
Independent Samples Test
Levene's Test for Equality of
Variances
t-test for Equality of
Means
F Sig. t df
Top management
commitment
Equal variances assumed 1.900 .171 -2.021 98
Sig. (2-tailed) Mean Difference Std. Error Difference
Top management
commitment
Equal variances assumed .046 -.1160 .0574
Ø INFERENCE- • Value of p is .046 which is less than .05, thus alternative hypothesis is accepted
that there is significant difference in the importance of top management commitment and recognition factor in service and manufacturing industries.
• Service organizations involve direct interaction with the customer, top management need to regulate all processes so that best could be delivered on the spot. More of hierarchy in organizations often defeat this objective. Thus a smart check is required all the time.
50
5. TRAINING AND DEVELOPMENT Group Statistics
SECTORN Mean Std. Deviation Std. Error Mean
Training and development M 50 3.412 .3438 .0486
s 50 3.396 .3117 .0441
Independent Samples Test
Levene's Test for Equality of
Variances
t-test for
Equality of
Means
F Sig. t
Training and development Equal variances assumed .124 .726 .244
df Sig. (2-tailed) Mean Difference
Training and development Equal variances assumed 98 .808 .0160
Ø INFERENCE- • Value of p is .808 which is more than .05, thus null hypothesis is accepted that
there is no significant difference in the importance of Training and development factor in service and manufacturing industries
• For every new technology or any new TQM practice training must be provided in the most modernized and well versed manner so that employee get encouraged to work ahead.
51
6. COMMUNICATION IN THE COMPANY Group Statistics
SECTOR N Mean Std. Deviation Std. Error Mean
Communication in company M 50 3.220 .2563 .0363
s 50 3.584 .2824 .0399
Independent Samples Test
Levene's Test for Equality of
Variances
t-test for
Equality of
Means
F Sig. t
Communication in company Equal variances assumed .700 .405 -6.749
df Sig. (2-tailed) Mean Difference
Communication in company Equal variances assumed 98 .000 -.3640
Ø INFERENCE- • Value of p is .000 which is less than .05, thus alternative hypothesis is accepted
that there is significant difference in the importance of communication in service and manufacturing industries
• It is considered more important in service industries than manufacturing industries as per the value of means because here direct interaction with customer takes place and also internal customer i.e the employees also need to work with each other for which they need to communicate.
52
7. MEASUREMENT AND FEEDBACK Group Statistics
SECTORN Mean Std. Deviation Std. Error Mean
Measurement and feedback M 50 3.412 .2569 .0363
s 50 3.336 .2663 .0377
Independent Samples Test
Levene's Test for Equality of
Variances
t-test for
Equality of
Means
F Sig. t
Measurement and feedback Equal variances assumed 1.020 .315 1.452
df Sig. (2-tailed) Mean
Difference
Measurement and feedback Equal variances assumed 98 .150 .0760
Ø INFERENCE-
• Value of p is .150 which is more than .05, thus null hypothesis is accepted that
there is no significant difference in the importance of measurement and feedback factor in service and manufacturing industries.
• Both the types of companies require time to time inspection and measurement of performances of employees and provide them feedback accordingly.
53
TABLE 6
S.NO
MEAN (MFG)
MEAN (SER)
Std deviation(S)
Std deviation(M)
T VALUE
P VALUE
1.
3.627
3.744
.323
.305
-2.29
.024
2. 3.880
3.464
.206 .284 8.53 .000
3. 3.512 3.200 .390 .285 4.56 .003
4. 3.476 3.592 .255 .315 -2.021 .046
5. 3.412
3.396
.343 .311 .244 .808
6. 3.220
3.584
.256 .282 -6.74 .000
7. 3.412
3.336
.256 .266 1.45 .150
54
INTERPRETATION OF THE TABLE 6
1. CUSTOMER FOCUS-
• P VALUE-.024 , which is less than .05 • H1 accepted: there is difference in important of this factor in
manufacturing and service industry. • Customer focus is given more importance in service industry.
2. CONTINUOUS IMPROVEMENT-
• P VALUE- .000, which is less than .05. • H1 accepted: there is difference in important of this factor in manufacturing
and service industry. • Continuous improvement is given more importance in manufacturing
industry.
3. TEAMWORK AND INVOLVEMENT-
• P VALUE-.003, which is less than .05. • H1 accepted: there is difference in important of this factor in
manufacturing and service industry. • Team work and involvement is given more importance in
manufacturing industry. 4. TOP MANAGEMENT AND RECOGNITION-
• P value-.046, which is less than .05. • H1 accepted: there is difference in important of this factor in
manufacturing and service industry. • Top management and recognition is given more importance in service
industry.
55
5. TRAINING AND DEVELOPMENT-
• P VALUE- .808, which is more than .05. • H0 accepted, there is no difference in importance of this factor in
manufacturing and service industry. 6. COMMUNICATION IN THE COMPANY-
• P VALUE-.000, which is less than .05. • H1 accepted, there is difference in importance of this factor in
manufacturing and service industry. • This factor is given more importance in service industry.
7. MEASUREMENT AND FEEDBACK-
• P VALUE-.150, which is more than .05. • H0 accepted, there is no difference in importance of this factor in
manufacturing and service industry.
56
4.4 KEY FINDINGS • From the various tables it can be seen that there is significant difference in the critical
factors for the implementation of TQM in manufacturing and service industries.
• Manufacturing industries exceed service industries in many aspects of quality management. More importance is given to the critical factors in manufacturing industry as indicated by more value for means.
• Service industries exceed manufacturing industries in customer consideration
and satisfaction.
• From the table-1 and table -2 it can be seen that according to mean values continuous improvement is most important in manufacturing organizations while customer focus is most important in service industry.
• In manufacturing industry all the ranks of the factors obtained coincides with that given
by the respondents, which is not the case with service industry. This shows that there is lot of scope for improvement in TQM for service industry.
• In case of services according to mean values customer focus holds prime importance
and team work and involvement the last, but in case of ranking given by employees customer focus is most important but communication is considered to be the lowest of all.
• From table-3 and table-4 it can be seen that the communication in the company has the least importance in both manufacturing and service industries.
• From table -5, P values (>.05) indicate that there is difference between importance of
customer focus, top management and recognition, Continuous improvement Teamwork and involvement, and Communication in service and manufacturing industry both But there is no significant difference in training and development and measurement and feedback in both the industries.
57
CHAPTER FIVE SUGGESTIONS AND CONCLUSION
58
CONCLUSION
• This project revealed that awareness on quality of products and services has picked up in India. With quality based competition intensifying, Indian industries and business people are showing keen interest in improving the quality of products through TQM. A number of organizations, private and Government are actively propagating TQM through a variety of training and educational programs.
TQM has proved to be a vital ingredient for success, and now has its permanent roots in the ``mission and vision'' of the Indian corporate sector.
• There is a high correlation between the concepts of total quality management and manufacturing as the system of total quality management is pretty important in the context of the manufacturing industry. The main stress of the application of total quality management in case of the manufacturing industry is to make sure that the production process runs smoothly. The emphasis is also on minimizing the amount of products that are of an inferior quality. It may be opined that total quality management process is extremely important in case of the manufacturing industry.
• As service products are perishable, they cannot be stockpiled and must be produced 'on demand'. The result is that the process for delivering a service may be highly complex involving the co-ordination of primary and support systems in what is usually a very time sensitive relationship with the customer. This is in contrast to manufacturing organizations where although time may be an important aspect in the delivery of the goods it is rarely regarded as a feature of the goods which will affect its quality.
• Thus it can be concluded that both manufacturing and service industry must learn from each other. Manufacturing industry must learn to pay more focus on customer satisfaction and service industry should lay more stress on continuously improving the processes and delivering the best.
59
SUGGESTIONS
• TQM is a long term investment thus before making decision to jump into it a complete research should be done. Management should clear their vision mission and goals towards the employees in the organization.
• Employees should be surveyed to find their needs and they should be included in improvement projects.
• Management should involve the workers’ representatives in managerial activities so that the transparency could be maintained and through this they can win the confidence of the employees It is very important to provide the opportunity to the employees of the organization to express their ideas.
• Modern methods of training should be used and fundamentals of TQM should be taught from top to bottom..
• Self-potential system should be encouraged. • In SERVICE INDUSTRY- complaint resolution must be spontaneous. New idea may
face resistance therefore HR machinery must counsel on importance of TQM and communication Top management commitment should be increased through quality circles and other procedures. Service industry must focus more on customer satisfaction. For this they must-
• Hold the customer hand through installation.
• Create custom surveys to capture customer needs
• Constantly improve lead times
• Quickly responding to customer questions.
• Providing detail information on company website.
• In MANUFACTURING INDUSTRY-There should be regular review and comparison of current & past performance to detect gradual deterioration in the strategy.
There should be effective feedback system for the product. Customer feedback about quality of product should be taken and institutionalized system should be there for corrective and preventive action.
• Better communication could reduce the misunderstanding and confusion of the requirements from internal and external customers.
• Manufacturing companies that focus solely on process and product quality should include service quality as a concern, learning service quality management and customer satisfaction techniques from leading service companies.
• Conversely, service companies should maintain a balance between external customer satisfaction and internal productivity and profitability, learning quality assurance, management and methods from leading manufacturing companies.
60
ANNEXURES
61
APPENDIX A: QUESTIONNAIRE
62
63
64
65
REFERENCES BOOKS- Total Quality Management: Performance and Cost Measures By : Dorsey J. Talley Human Resource Management – C B gupta RESEARCH PAPERS- Antony, Jiju and Fergusson, Craig (2004), “Comparing TQM success factors in UK manufacturing and service industries”, Journal of advances in Management Research, Vol.1 (2), p.32-45. D. Garg, T.K. Garg and Raj Kumar (2006), “Total Quality Management: an approach to success”, AISN, p. 391-395. [6] D. Garg, T.K. Garg and Raj Kumar (2005), “Perspectives of TQM in Indian industries”, Productivity, March, Vol. 45, No.4, p.634-641 WEBSITES- http://www.citehr.com/research.php?q=role-of-total-quality-management-in-manufacturing-industry
http://geodesy.gd.itb.ac.id/ http://eprints.hec.gov.pk http://www.perfnet.com/papers/TQM.pdf http://www.emeraldinsight.com/journals.htm?articleid=1901490&show=pdf http://www.businesstrainers.net/pdf/TQM_vs_Poka_Yoke.pdf http://www.bexcellence.org/Total-Quality-Management-Tools.html http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1481924 http://www.articlealley.com/article_1270720_11.html http://www.infocheese.com/TQM.html http://my.safaribooksonline.com/book/quality-management/9781405142793/a-framework-for-the-introduction-of-tqm/measurement_and_feedback http://www.google.co.in/#hl=en&biw=1280&bih=685&q=tqm+case+study+in+india http://academic.udayton.edu/gregelvers/psy216/spss/descript1.htm http://en.wikibooks.org/wiki/Using_SPSS_and_PASW/Independent_Samples_t-test
