Transforming Quality Management into Better Profitable CompanyJonathanJohnny Rajatin1, a, Jeevan RamThanasakaran2, b, Jude VictorJoseph3,c,Judah Immanuel Balakrisan4, d, HarvendA/L Anbarasu5, e.
com Abstract. The paper contends that the transforming quality management idea and itsusage is the basic requirement for the survival of ventures. Meanwhile, leanmanufacturing and imperative administration could cooperate to enhanceprofitability, proficiency and quality. This article talks about nature inwhich organizations are working, the impact of the transforming qualitymanagement on efficiency and exhibits a portion of the advantages that wereacknowledged by executing all out quality administration. Coordinate advantagesfrom joining the ideas of lean assembling and imperative administration amid theprofitability change process by utilizing automation and robots to reduce thegeneration process duration by more viably outlining and planning thedevelopment of robots. A definitive objective is to fulfil customer’srequirement. The paper talks about how transforming quality management to the better profitable company. Keyword:Profitability;Transforming quality management; Imperative administration; Lean manufacturing.
1. IntroductionThe concept of quality is an essential issue in every single humanundertaking which constitutes the main thrust oforganisational transformation endeavours and exercises. Add up to QualityManagement (TQM) was received by the UnitedStates of America in the 1990s in light of the expanded worldwide rivalry fromJapanese products, engine vehicles, household appliances and gadgets. TQM hasturned out to be inescapable and generally embraced in manufacturing,government, social insurance and banking service sub-sectors of the createdfinancial matters. TQM is a consistent push to enhance quality and accomplishconsumer loyalty. It is an organizational system considered as a change programto accomplish brilliance by delivering quality service as characterized by thecustomers.
Transformation is a criticalpositive change in the natural phenomena, institutions projects, thoughts andprocedures which collect coordinated advantages to corporate organisations.Corporate organisations are huge business or non-business substances that havebeen enlisted. They have legitimate rights, resources and liabilities that areisolated from proprietors and workers. Lately, corporate organisations are tested by expanding requests anddesires from customers whose tastes seem to have changed because of newcreations in innovation and quality management conveyance. They contend withproducts and enterprises from everywhere throughout the world and fulfilinstructed and complex customers. Besides that, the fall-outs of a deregulated worldwide rivalry haveoffered decisions among different options. New aggressive methodologies haverendered set up administration regulations and regular strategies foritems/benefit advancement and conveyance outdated. The run of the amusementtoday in all industry sections is a persistentchange of procedures, systems and skills.
Be that as it may, numerousorganisation doesn’t have a sharp feelingof criticalness required to re-examine the necessities of the present plan ofaction. No organisations can bear to be aggressive in the event that it doesn’tconstantly enhance its items, administrations, procedures and individuals.Against this foundation and issue explanation, the general goal of theinvestigation is to evaluate the connection between Total Quality Managementand changes in the corporate organizations.
The particular target is to decidethe impact of TQM standards on the budgetary execution of corporateorganisations.2. Methods /KeyElement in Quality Management.There are severalmethods of improvement used in Quality Management (QM) such as Total QualityManagement (TQM), Six Sigma, Just-In-Time (JIT), Pareto Analysis, etc. Qualitymanagement of an organization makes sure that they produce a consistent serviceor product. The main components of QM are quality planning, quality assurance,quality control and quality improvement.
This study focuses on qualityimprovements made by organizations to improve their return investment. Thefollowing sub-sections are comprised of methods with its case studies on theirrespective firms.Total quality management is anexplanation of the organization, cultureand attitude of a company that aim to provide good products and services forthe customer and achieve customer satisfaction. Implementing an effective total quality process may take a longtime but the organization can achieve the result in the short term and willsignificantly increase as the TQM system develops.
To achieve successfulimplementation of TQM, an organization must focus on the eight key elements/methods:1. Ethics2. Integrity3. Trust4. Training5. Teamwork6.
Leadership7. Recognition8. Communication Key Elements TQM has been introduced to describe aphilosophy that makes quality the driving force behind leadership, design,planning, and improvement initiatives 1. To achieve this philosophy, TQM requires the help of those eightkey elements or methods. These elements are divided into four groups accordingto 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 3.
Findings/Results Implementing Total QualityManagementTQM isregularly utilized as a multidimensional way to deal with organizationsperformance measurements, where both money related and non-monetary measuresaccept square with significance 1. A Literature on TQM recommends differentmeasures of performance, for example, Performance was likewise conceptualizeddistinctively crosswise over examinations. Theconnection between the total quality management and organizational performancehave been investigated. The vast majority of the researchers have found theconnection between total quality management (TQM) and money related execution.Not just that, specialists have given verification that by utilizing a powerfulTQM, it improves long haul profitability and stock returns. A couple of studiesfound 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 organizationsdon’t perform superior to non-TQM associations. In light of the examinations,it has been demonstrated that TQM enhances the potential for organizations toimprove authoritative performance 1. In addition, a change was found in theproduct and design process by using the combinations of QFD and benchmarkingapproaches and furthermore came about organizations in achieving noteworthybudgetary and key result.
2Qualityregularly brings about lower cost and diminishment in defects. Quality can’t bebestowed without the dedication of top management. Most defects are not causedby the workers but rather by the system. With a specific end goal to reducethese defects and dispose of mass review, the inspectionmust be done as such that organizations ready to diminish workforce, elevatesustain and continuous improvement in process and quality of the product.
In addition, by doing this itseparates obstructions from the ordinary representative to the top managementand makes collaboration among them.Inspections likewise empower theorganization to search for providers who are extremely dedicated and give asuperior better quality of products which prompts a long haul relationship withthe providers. Demonstrationof decreasing scraps, defects, and enhancing the performance of product and consumer loyalty should prompt incrementin benefit showed that income and pieces of the overall industry are decidedlyinfluenced by higher quality. Although high quality may, in the end, promptlower cost, however, use of qualitymanagement procedures may prompt expanded cost at the beginning. Organizationsundertaking TQM concentrate on mistakes. Despite the fact that, 96% achievementmight be uplifting news, TQM expects organizations to dissect and comprehendremaining 4% mistake.
TQM expects deformities to be examined as they happen 3. MalcolmBaldrige grant perceives the greatness in quality and was built up to reorientAmerican business towards high quality, anarea of service and production. It’sassessing criteria are leadership, data and investigation, strategic quality planning, human resource usage, quality assurances or product services, quality outcomes andcustomers fulfilment. The discoveringdemonstrates that expansion in income and deals development of Baldridge Awardchamps 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 technologytransfer performance, quality performance and total quality management simultaneousinterrelationship was not previously studied before. The study was aboutdetecting the relationship between of qualityperformance with implementation of technology transfer performance administeredby total quality management in manufacturing firms. a very positive andbeneficial relationship was obtained between the total quality management andquality performance.
The results were essential in giving empirical evidencethat technology transfer performance pavesexcessively much greater quality performance coupled with total qualitymanagement. 4 In accordance to the automotive industry,an article by Sabbagha et. al. reviewed that the shift of automakers had beenshifted to after sales service due to the rapid increment in production volumebut a decrement in profit margin. Therefore, a total quality management hasbeen introduced by several big players in the industry. The results were knownby feedbacks from the customer satisfaction survey conducted by the automotivefirms. One of the benefits that were fruited from this evolution was the increasein the customer loyalty to the company. This is due to the impression of thecustomers towards the company that these firms will lend a helping hand whenneeded.
Moreover, automakers will alsomonitor the development of their vehicle in the first 90 days of ownership anddeduce that problems were 66% due to the design and 34% due to componentsmalfunction per 100 vehicles 5. Based on this, the company would know theimprovement to be made in their futureproduction to decrease the chances of this manufacturing defectsreoccurring. Besides that, the customersurvey done by this firm were also taken into account individually andcumulatively. This benefited thesecompanies to highlight the certain trendof weaknesses and also strength or satisfaction by the customers. This willhelp the company to further make tweaks totheir management and productions. Based on a study by J.DPower Asia Pacific (2014), it is found that Japanese car brands dominate the marketof high customer satisfaction in Malaysia with the top 3 being Toyota, Nissanand Isuzu. This goes to show that Japanese automakers take their qualitymanagement seriously and evidence is the responses from their customers.
5. Applications of TQM Total Quality Management(TQM) consistsof worldwide organization efforts to establish and make permanent a conditionwhere an organization has to continuously improve its ability to deliverhigh-quality products and services to customers. TQM has been successfullyimplemented in many fields of work and businesses and it is usefulas it helps improve the organizationaltransformation as it has an impact on theproductivity and profitability with the dependence of the quality measurements,training, benchmarking, employee focus, and supplier relation 6. Itis also not necessary to carry out the entire TQM theories in order to achievebetter profitability as they do not have a competitive advantage for firms. Similar to a Venndiagram, parts of TQM theories are substantial on its own to help improve totalquality management without using the entire ideology. Hence, the statisticsshowed that 3 out of 12 practices associated withTQM were essential to attain benefits from quality management without entirelyusing all of its ideologies 7.
Applying TQM techniques on the automotive and computer industries inseveral countries (Asian, European) a positive relationship between processmanagement techniques and profitability increase 7. Chenhall (1997) adapted quality managementtogether with management performance evaluation system based on manufacturingindicators. This method was able to have a positive effect on profitability and growth for the company. Byconducting a 2 in 1 technique, it enhances the overall financial performance.On another platform, Easton and Jarrell (1998) conducted interviews withcompany representatives, using TQM adaptation.
They were able to find apositive relationship between quality management and improving the company’sgrowth, causing it to stand strong in the market with high value 7. 6. Limitations in TQM. The mainpurpose of this study was to classify the organizational culture (OC) profilesof Vietnamese construction organizations, study the relationship between OC andTQM implementation and to observe the influence the TQM implementation onorganizational performance improvement. The TQM methods have limitations andrestrictions on it as the companies showed have been enduring the effects. Vietnamesecompanies have faced serious daunting tasks to progress or improve in theirrespective industries 8. The construction project and construction films arehighly affected by many factors, better known as limitations. The financialgrowth is very heavily risked due to this constraint.
The main restrictions are due to poor management skills. Poor management skillswill be the prime factor in order to create a good community or a bettercompany 8. This has been shown when the company lost 30% of totalconstruction due to meagre management. The lack of implementation of TQM isalso connected to the culture change and mixing of TQM. The culture change andthe flexibility to adapt to it is a veryimportant strategy in order for the flow of movement of the company.Hierarchyand market implementation are part of the factors of limitations to the TQMmethod. This method has been widely regarded to have no impacts or a littleeffect on the TQM method 8. Lack of experience in doing and completing acertain task or project has widelyaffected the Vietnamese companies in huge scale.
Experience plays a vital keyrole 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 certaintask have let to the downfall of the Vietnamese companies 9. They intend tochange the design frequently and poor design capacity is a factor to the not sooverwhelming progress of those companies. These limitations have to beaddressed in quick fashion to make at least a little improvement in theeconomic growth.
The delay inpayment is truly regarded as a limitation to the improvement of the company’sfurther progress. The lack of capable and highly efficient contractors inaddition to preserved domestic consultants add to the major infliction of theseVietnamese companies 9. These people are involved in the projects and firms,so the numbers must accompany the success rate of the project. Major corruptionand bribery have led concerns to the collapsedstate of the country’s financial growth.
It is a very important point toaddress as this limitation will block or will not allow further futureenhancing the development of thecompanies. 7. Conclusion In a nutshell, to achieve a systematic approach studywas employed to determine the transformation quality management dimensions usedin the previous literature and suitableto be tested in this study. This approach provided a new instrument for assessingthe quality management dimensions required for all management levels inorganizations. The findings of this study contributed to both theoretical and managerialperspectives. From the theoretical standpoint, the results gained from thisstudy consistent with the theories and the previous literature which supportedthese theories by providing empirical evidence throwing in enrichment the bodyof knowledge about the QM theory.
From the managerial perspective, the resultsof this study showed that there was a significant relationship between qualitymanagement dimensions (leadership, strategic planning, customer focus, andemployee relation). This means the managers should be concerned about thesedimensions to enhance the OP of the organization. Although the results of this studyare drawn from several of literature reviews. It is acknowledged thatdifferences among sectors may impact upon the results, but these are beyond thescope of this research, and those issues could be addressed by furtherresearch. The theoretical model of this study can be further extended as well.
Moreover, integrating those findings into the model and empirically testing itwould make a further research contribution in this vital research stream. Theresearchers could also build more detailed models specific to a particular setof circumstances. Future research needs to continue the development of soundtheoretical models and instruments.