Survey and Research Data

Human Factors Have a Positive Impacton TQM

In 2005, the American Society of Quality commissioned a survey to assess the impact and effectiveness of quality principles, practices and techniques. The society received responses from 2041 members and customers. Four areas were measured: a) the extent to which employees incorporated quality principles and tools into their daily decision making; b) the effectiveness with which the organisation’s employees were trained and provided with quality related skills; c) the effectiveness with which the organisation recognised and rewarded people for applying quality principles, and; d) the extent to which top leadership embraced quality principles. The survey revealed that:

1) Organisations that more effectively managed both people and processes dramatically outperformed their competition. These better performers had average employee turnover rates of only 7.6%, were 73% more likely to be among the top third of their industry in applying quality principles, and had a 60% probability of being in the top third in their industry in financial performance;

2) In these organisations, employees’ efforts were aligned to business strategy; employees had the ability to deliver customer value, and; employees were highly connected and committed to their organisation. [16]

High Awareness of TQM

In 2003, a study of five management “fads,” which had been very popular in the second half of the twentieth century, was undertaken in the USA to determine whether these methods were still known or applicable. A group of 178 managers and non-managers were surveyed as to their familiarity with the following: Management by Objectives (MBO), Sensitivity Training (ST), Quality Circles (QCs), Total Quality Management (TQM), and Self-Managed Teams (SMTs). The following findings were reported(see Figure 2):

1) 75% of respondents were familiar with MBO (widely adopted in the 1970s) and 95% of those stated MBO was still applicable to management in the new millennium;

2) 66% of respondents were familiar with ST (popular in the 1960s as a technique for lowering barriers between managers and employees to promote more open communication) and 87% of those stated ST was still applicable;

3) 52% of respondents were familiar with QCs (which originated with the work of W. Edwards Deming and was popular in Japan; in the early 1980s, a study showed that QCs were present in more than 90% of Fortune 500 companies) and 85% of those stated QCs were still applicable;

4) 96% of respondents were familiar with TQM and 94% of them felt that TQM was still applicable to management today. These numbers indicated that TQM was still alive and well in the workplace;

5) 89% of respondents were familiar with the concepts of SMTs (which arose from QCs and TQM in the 1990s) and 94% of those felt that SMTs were still applicable. [17]

TQM Improves Performance in Small-Sized Chinese Manufacturing Organisations

A 2003 survey examined the use of TQM by 112small manufacturing firms in China and reported the following findings:

1) Profile information relating to the responding firms:- Top management initiating TQM, 62 firms (55%)- Perceived as a cost-saving tool, 49 firms (44%)- Perceived as a quality improvement programme,36 firms (32%)- Perceived as a comprehensive management programme, 15 firms (13%)

2) Major reasons for adopting TQM- To improve long-term cost competitiveness, 65 firms (58%)- To be a long-term quality leader, 31 firms (28%)

3) Results reported by responding firms were (see Figure 3):- % reduction on inventory From 1 to 30%, 68 firms (60%)Greater than 30%, 29 firms (26%)- % reduction in raw materialsFrom 1 to 30%, 67 firms (59%)Greater than 30%, 34 firms (30%)- % reduction in defective itemsFrom 1 to 30%, 67 firms (59%)Greater than 30%, 36 firms (32%)- % improvement in profitFrom 1 to 30%, 84 firms (73%)Greater than 30%, 12 firms (11%) [18]

Barriers to TQM Implementation Identified

A study published in 2002 examined responses from 78 Indonesian manufacturers and identified 11 barriers to TQM implementation (51.28% of respondent companies were either ISO 9000 or ISO 14000 certified, or both). Some of the barriers that were identified, together with the numbers of organisations citing the barrier, were as follows (see Figure 4):

1) Human resource factors (54 respondents). These factors included insufficient education levels, poor skills, poor understanding of quality management, poor assimilation of the quality work culture, non-conformance with procedures, low worker morale, industrial action, high worker turnover and absenteeism;

2) Materials (35 respondents). These factors included raw materials not conforming with the specification, unscheduled deliveries, and difficulty in obtaining imported materials;

3) Machinery and Equipment (22 respondents). These included the poor condition of production machinery, downtime, poor coordination spare part procurement for equipment, and ineffective maintenance programmes, all of which made production processes inefficient;

4) Attitude towards Quality (12 respondents). Among these factors were the difficulty in changing the mindset of employees with regards to quality, and a belief that quality is an added cost;

5) Lack of information regarding quality (5 respondents);

6) Management (4 respondents). These factors included a lack of commitment in the leadership to implement TQM, which filtered down to each level of workers for whom the manager was a role model, and structural problems that caused a high turnover at management level;

7) Finance (3 respondents). These factors included a lack of sufficient funds to mobilise TQM-driven activities such as training programmes, and the lack of funds to provide quality resources. [19]

TQM Used in Hospitals

In 2002, an empirical investigation (110 completed and returned surveys from a mail out of 304) of the effectiveness of contemporary managerial philosophies in hospitals in Tennessee, USA, found that Total Quality Management (TQM), Continuous Improvement (CI), Just-in-Time techniques (JIT), Business Process Reengineering (BPR), Organisational Restructuring (OR), Job Reengineering (JR), and Benchmarking (BM) were all reported as having a positive impact. Of the respondents, 85.3% reported a positive level of impact on operating efficiency as a result of implementing quality programmes, and 88.4% reported a positive impact on clinical effectiveness. Programmes implemented and the extent of their success in for-profit and not-for-profit facilities are shown in Figure 5 [20] :

_________________________________________________________

You are reading a Management Brief Report in html-format. Become a member of the BPIR to receive a new report in PDF-format every month (see examples: Benchmarking & Business Excellence). PDF-format can be saved on your hard drive, emailed to work colleagues, and are much easier to read and print out!.. For BPIR updates and best practices sign up to our FREE newsletter.