Transforming Quality Management into Better Profitable Company
Johnny Rajatin1, a, Jeevan Ram
Thanasakaran2, b, Jude Victor
Judah Immanuel Balakrisan4, d, Harvend
A/L Anbarasu5, e.
3, 4, 5 Universiti Tenaga Nasional (UNITEN), Kajang,
The paper contends that the transforming quality management idea and its
usage is the basic requirement for the survival of ventures. Meanwhile, lean
manufacturing and imperative administration could cooperate to enhance
profitability, proficiency and quality. This article talks about nature in
which organizations are working, the impact of the transforming quality
management on efficiency and exhibits a portion of the advantages that were
acknowledged by executing all out quality administration. Coordinate advantages
from joining the ideas of lean assembling and imperative administration amid the
profitability change process by utilizing automation and robots to reduce the
generation process duration by more viably outlining and planning the
development of robots. A definitive objective is to fulfil customer’s
requirement. The paper talks about how transforming quality management to the better profitable company.
Transforming quality management; Imperative administration; Lean manufacturing.
The concept of quality is an essential issue in every single human
undertaking which constitutes the main thrust of
organisational transformation endeavours and exercises. Add up to Quality
Management (TQM) was received by the United
States of America in the 1990s in light of the expanded worldwide rivalry from
Japanese products, engine vehicles, household appliances and gadgets. TQM has
turned out to be inescapable and generally embraced in manufacturing,
government, social insurance and banking service sub-sectors of the created
financial matters. TQM is a consistent push to enhance quality and accomplish
consumer loyalty. It is an organizational system considered as a change program
to accomplish brilliance by delivering quality service as characterized by the
Transformation is a critical
positive change in the natural phenomena, institutions projects, thoughts and
procedures which collect coordinated advantages to corporate organisations.
Corporate organisations are huge business or non-business substances that have
been enlisted. They have legitimate rights, resources and liabilities that are
isolated from proprietors and workers.
Lately, corporate organisations are tested by expanding requests and
desires from customers whose tastes seem to have changed because of new
creations in innovation and quality management conveyance. They contend with
products and enterprises from everywhere throughout the world and fulfil
instructed and complex customers.
Besides that, the fall-outs of a deregulated worldwide rivalry have
offered decisions among different options. New aggressive methodologies have
rendered set up administration regulations and regular strategies for
items/benefit advancement and conveyance outdated. The run of the amusement
today in all industry sections is a persistent
change of procedures, systems and skills. Be that as it may, numerous
organisation doesn’t have a sharp feeling
of criticalness required to re-examine the necessities of the present plan of
No organisations can bear to be aggressive in the event that it doesn’t
constantly enhance its items, administrations, procedures and individuals.
Against this foundation and issue explanation, the general goal of the
investigation is to evaluate the connection between Total Quality Management
and changes in the corporate organizations. The particular target is to decide
the impact of TQM standards on the budgetary execution of corporate
2. Methods /Key
Element in Quality Management.
There are several
methods of improvement used in Quality Management (QM) such as Total Quality
Management (TQM), Six Sigma, Just-In-Time (JIT), Pareto Analysis, etc. Quality
management of an organization makes sure that they produce a consistent service
or product. The main components of QM are quality planning, quality assurance,
quality control and quality improvement. This study focuses on quality
improvements made by organizations to improve their return investment. The
following sub-sections are comprised of methods with its case studies on their
Total quality management is an
explanation of the organization, culture
and attitude of a company that aim to provide good products and services for
the customer and achieve customer satisfaction. Implementing an effective total quality process may take a long
time but the organization can achieve the result in the short term and will
significantly increase as the TQM system develops. To achieve successful
implementation of TQM, an organization must focus on the eight key elements/methods:
TQM has been introduced to describe a
philosophy that makes quality the driving force behind leadership, design,
planning, and improvement initiatives
1. To achieve this philosophy, TQM requires the help of those eight
key elements or methods. These elements are divided into four groups according
to their function. The groups are:
I. Foundation – It includes Ethics,
Integrity and Trust.
II. Building Bricks – It includes: Training, Teamwork and Leadership.
III. Binding Mortar – It includes: Communication.
IV. Roof – It includes: Recognition.
Figure 1: Key Elements
/Results Implementing Total Quality
regularly utilized as a multidimensional way to deal with organizations
performance measurements, where both money related and non-monetary measures
accept square with significance 1. A Literature on TQM recommends different
measures of performance, for example, Performance was likewise conceptualized
distinctively crosswise over examinations.
connection between the total quality management and organizational performance
have been investigated. The vast majority of the researchers have found the
connection between total quality management (TQM) and money related execution.
Not just that, specialists have given verification that by utilizing a powerful
TQM, it improves long haul profitability and stock returns. A couple of studies
found that by rehearsing TQM, it limits fabricating process difference,
evacuate adjusts and scraps and furthermore improves quality performance.
Likewise, a few examinations additionally have found that TQM organizations
don’t perform superior to non-TQM associations. In light of the examinations,
it has been demonstrated that TQM enhances the potential for organizations to
improve authoritative performance 1. In addition, a change was found in the
product and design process by using the combinations of QFD and benchmarking
approaches and furthermore came about organizations in achieving noteworthy
budgetary and key result. 2
regularly brings about lower cost and diminishment in defects. Quality can’t be
bestowed without the dedication of top management. Most defects are not caused
by the workers but rather by the system. With a specific end goal to reduce
these defects and dispose of mass review, the inspection
must be done as such that organizations ready to diminish workforce, elevate
sustain and continuous improvement in process and quality of the product. In addition, by doing this it
separates obstructions from the ordinary representative to the top management
and makes collaboration among them.
Inspections likewise empower the
organization to search for providers who are extremely dedicated and give a
superior better quality of products which prompts a long haul relationship with
of decreasing scraps, defects, and enhancing the performance of product and consumer loyalty should prompt increment
in benefit showed that income and pieces of the overall industry are decidedly
influenced by higher quality. Although high quality may, in the end, prompt
lower cost, however, use of quality
management procedures may prompt expanded cost at the beginning. Organizations
undertaking TQM concentrate on mistakes. Despite the fact that, 96% achievement
might be uplifting news, TQM expects organizations to dissect and comprehend
remaining 4% mistake. TQM expects deformities to be examined as they happen 3.
Baldrige grant perceives the greatness in quality and was built up to reorient
American business towards high quality, an
area of service and production. It’s
assessing criteria are leadership, data and investigation, strategic quality planning, human resource usage, quality assurances or product services, quality outcomes and
customers fulfilment. The discovering
demonstrates that expansion in income and deals development of Baldridge Award
champs is more than that of the control gathering, showing that TQM can have a positive effect on the main issue.
4. Benefits of Total Quality Management.
Based on Bolatan et. al., the technology
transfer performance, quality performance and total quality management simultaneous
interrelationship was not previously studied before. The study was about
detecting the relationship between of quality
performance with implementation of technology transfer performance administered
by total quality management in manufacturing firms. a very positive and
beneficial relationship was obtained between the total quality management and
quality performance. The results were essential in giving empirical evidence
that technology transfer performance paves
excessively much greater quality performance coupled with total quality
In accordance to the automotive industry,
an article by Sabbagha et. al. reviewed that the shift of automakers had been
shifted to after sales service due to the rapid increment in production volume
but a decrement in profit margin. Therefore, a total quality management has
been introduced by several big players in the industry. The results were known
by feedbacks from the customer satisfaction survey conducted by the automotive
firms. One of the benefits that were fruited from this evolution was the increase
in the customer loyalty to the company. This is due to the impression of the
customers towards the company that these firms will lend a helping hand when
needed. Moreover, automakers will also
monitor the development of their vehicle in the first 90 days of ownership and
deduce that problems were 66% due to the design and 34% due to components
malfunction per 100 vehicles 5.
Based on this, the company would know the
improvement to be made in their future
production to decrease the chances of this manufacturing defects
reoccurring. Besides that, the customer
survey done by this firm were also taken into account individually and
cumulatively. This benefited these
companies to highlight the certain trend
of weaknesses and also strength or satisfaction by the customers. This will
help the company to further make tweaks to
their management and productions.
Based on a study by J.D
Power Asia Pacific (2014), it is found that Japanese car brands dominate the market
of high customer satisfaction in Malaysia with the top 3 being Toyota, Nissan
and Isuzu. This goes to show that Japanese automakers take their quality
management seriously and evidence is the responses from their customers.
5. Applications of TQM
Total Quality Management
of worldwide organization efforts to establish and make permanent a condition
where an organization has to continuously improve its ability to deliver
high-quality products and services to customers. TQM has been successfully
implemented in many fields of work and businesses and it is useful
as it helps improve the organizational
transformation as it has an impact on the
productivity and profitability with the dependence of the quality measurements,
training, benchmarking, employee focus, and supplier relation 6. It
is also not necessary to carry out the entire TQM theories in order to achieve
better profitability as they do not have a competitive advantage for firms.
Similar to a Venn
diagram, parts of TQM theories are substantial on its own to help improve total
quality management without using the entire ideology. Hence, the statistics
showed that 3 out of 12 practices associated with
TQM were essential to attain benefits from quality management without entirely
using all of its ideologies 7.
Applying TQM techniques on the automotive and computer industries in
several countries (Asian, European) a positive relationship between process
management techniques and profitability increase 7.
Chenhall (1997) adapted quality management
together with management performance evaluation system based on manufacturing
indicators. This method was able to have a positive effect on profitability and growth for the company. By
conducting a 2 in 1 technique, it enhances the overall financial performance.
On another platform, Easton and Jarrell (1998) conducted interviews with
company representatives, using TQM adaptation. They were able to find a
positive relationship between quality management and improving the company’s
growth, causing it to stand strong in the market with high value 7.
6. Limitations in TQM.
purpose of this study was to classify the organizational culture (OC) profiles
of Vietnamese construction organizations, study the relationship between OC and
TQM implementation and to observe the influence the TQM implementation on
organizational performance improvement. The TQM methods have limitations and
restrictions on it as the companies showed have been enduring the effects.
companies have faced serious daunting tasks to progress or improve in their
respective industries 8. The construction project and construction films are
highly affected by many factors, better known as limitations. The financial
growth is very heavily risked due to this constraint.
The main restrictions are due to poor management skills. Poor management skills
will be the prime factor in order to create a good community or a better
company 8. This has been shown when the company lost 30% of total
construction due to meagre management. The lack of implementation of TQM is
also connected to the culture change and mixing of TQM. The culture change and
the flexibility to adapt to it is a very
important strategy in order for the flow of movement of the company.
and market implementation are part of the factors of limitations to the TQM
method. This method has been widely regarded to have no impacts or a little
effect on the TQM method 8. Lack of experience in doing and completing a
certain task or project has widely
affected the Vietnamese companies in huge scale. Experience plays a vital key
role in driving a certain company to success and achieve their targeted goals. The dearth of financial capital and a reduced amount of knowledge in a certain
task have let to the downfall of the Vietnamese companies 9. They intend to
change the design frequently and poor design capacity is a factor to the not so
overwhelming progress of those companies. These limitations have to be
addressed in quick fashion to make at least a little improvement in the
The delay in
payment is truly regarded as a limitation to the improvement of the company’s
further progress. The lack of capable and highly efficient contractors in
addition to preserved domestic consultants add to the major infliction of these
Vietnamese companies 9. These people are involved in the projects and firms,
so the numbers must accompany the success rate of the project. Major corruption
and bribery have led concerns to the collapsed
state of the country’s financial growth. It is a very important point to
address as this limitation will block or will not allow further future
enhancing the development of the
In a nutshell, to achieve a systematic approach study
was employed to determine the transformation quality management dimensions used
in the previous literature and suitable
to be tested in this study. This approach provided a new instrument for assessing
the quality management dimensions required for all management levels in
organizations. The findings of this study contributed to both theoretical and managerial
perspectives. From the theoretical standpoint, the results gained from this
study consistent with the theories and the previous literature which supported
these theories by providing empirical evidence throwing in enrichment the body
of knowledge about the QM theory. From the managerial perspective, the results
of this study showed that there was a significant relationship between quality
management dimensions (leadership, strategic planning, customer focus, and
employee relation). This means the managers should be concerned about these
dimensions to enhance the OP of the organization.
Although the results of this study
are drawn from several of literature reviews. It is acknowledged that
differences among sectors may impact upon the results, but these are beyond the
scope of this research, and those issues could be addressed by further
research. The theoretical model of this study can be further extended as well.
Moreover, integrating those findings into the model and empirically testing it
would make a further research contribution in this vital research stream. The
researchers could also build more detailed models specific to a particular set
of circumstances. Future research needs to continue the development of sound
theoretical models and instruments.