MBA DISSERTATION MODULE
Project Title:-
Impact of TQM in SME
PROJECT BACKGROUND (rational for selection including previous work)
Globalization of market economies has urged industries in all sectors to concentrate on maintain a sustaining a competitive edge, which is direct, related to the upkeep of quality productivity. Industry worldwide have been exploring ways to improve business practices to gain competitive edge. On to the most important technological innovation of the last decade has been the emergence of TQM solutions. But implementation of TQM in Small and Medium Enterprises (SME) is not just a technological challenge, It’s a Soci-technological endeavour. Hence, there are organizational and cultural issues, which determining the success of TQM implementation, the main objective TQM in Small and Medium Enterprises (SME) is to integrate the organizations business process and manufacturing operations for improved business results by considering customer complaint regarding product quality. A good quality product or service will enable industry to add and retain customers. Poor quality will leads to discounted customers, so the costs of poor quality are not just those of immediate waste or rectification also the loss of future sales for Small and Medium Enterprises (SME). Technological innovations have diffused geographical boundaries resulting in more informed customers. The business environment has become increasingly complex and the marketplace has changed from local to global . Constant pressure is applied by customer, on Small and Medium Enterprises (SME) to improve competitiveness by lowering operation cost and improving logistic. Customers are becoming increasingly aware of rising standards, having access to wide range of products and services to choose from . There is an ever increasing demand for quality product and this global revolution had forced industry to invest substantial resources in adopting and implementing total quality management (TQM) strategies. It will be a Small and Medium Enterprises (SME) strategy to embed awareness of quality in all organizational process. It operates within quality circles, which encourage the meeting of minds of the workforce in different departments.
So it become essential to industry to set an effective model of such a vision of success is total quality management (TQM), which is a customer centric, set of management policies , improve production, reduce wastage that deliver quality, to attain a firm grip over the market share, continuously improving overall business performance based on leadership, supplier quality management , vision and plan statement , evaluation, process control and improvement, product design, quality system improvement, employee participation, recognition and reward, education and training , customer focus, positive effects on employee satisfaction, product quality ,customer satisfaction, and strategic business performance, implementation of TQM to industry is an opportunity, to develop a quality system to manage the company, rather, industry see it as an exercise in documentation forced on them by an overbearing and unsympathetic customer who has unrealistic expectation of what type of system their company needs in order to supply consistent quality on time, every time.
The importance of total quality management (TQM) for small and medium sized (SME) is widely acknowledged by various authors. It state that SME are often suppliers of goods and services to larger organizations and therefore a lack of product quality and or service from SME could adversely affect the competitive performance of larger organizations.
The study will be completing on the SME from published literature in NSK Technology Ltd. UK ,(page 2 pdf six sigma must see , this line has taken from the middle of paragraph)
“TQM is a never-ending process. Investing in TQM implementation often implies a choice for a long term effort that requires a great deal of energy, management attention, money , patience, and tenacity” (Boersma, 1994)
(1) RESEARCH AIM AND OBJECTIVE:-
(2.1) Aim:-
The main aim of this research is to find out the influence of TQM practices at small manufacturing organisations and discourse the merits of TQM practices at small manufacturing organisations.
(2.2) Objectives
To run small manufacturing organisation in an efficient manner is aim: if this is not the objective for industry, then small manufacturing organisation should take a step back and determining
why small manufacturing organisation pursuing TQM implementation and how to benefit from this exercise.?
The first step is to determine where industry is compared to TQM requirement. A through is self-assessment (gap analysis) by a qualified individual or a second-or third-party assessment will show industry place on the journey to implement. Once this gap analysis is complete, industry should develop a detailed implementation plan with specific dates and assignment of responsibilities.
Furthermore it leads sub questions to SME with special attachment to the NSK technologies ltd. UK and those are as follows:
- how to integrate the organization business process and manufacturing operations for improve result? (ans flow chart)
- what should be the industries strategy to embed awareness of quality in all organizational process? (action plan)
- how TQM aids to small manufacturing industries to reduce customer complaint and enhance the product quality and services? (try to relate with quality audit and try to make customer complaint list)
- What are the benefits of TQM at small manufacturing companies based on the initial cost-sacrifice relating to training time and staffing of quality professionals.? ( importance of TQM
- how to enhance the future sales? (SWOT ANALYSIS)
- how to control manufacturing process and improve product design? ( Quality control and quality assurance)
- what type of system industries needs in order to supply consistent quality on time, every time? ( evaluation and monitoring)
- how TQM help to improve effective communication within NSK technology ltd. UK? ( effective communication)
- what will be the cultural issues at industries while implementing TQM? (help from pdf page 50 six sigma) must see.( by using pest,( try to write point for social only )
- what will be role of quality chain and teamwork at NSK technology ltd UK? (quality chain and teamwork)
- How leadership and management commitment helps at NSK technology ltd.uk (leadership and management)
(2) LITERATURE REVIEW
Total quality represents a competitive strategy. In other words, “Quality” in terms of “Total Quality” is every thing an organization does in the eyes of its customers, which will determine whether they buy from this company or from its competitor. “Total Quality ‘ provides an umbrella under which everyone in the organization can strive and create customer satisfaction. TQM has emerged as a new and different way of ‘managing business that allows it to provide quality goods and services at the lowest cost in order to achieve customers’ satisfaction and at the same time, to ensure satisfactory business development by continuous improvements. TQM , thus eyes the triple targets of gaining maximum productivity, profitability and customer loyalty.
Hence Total Quality Management is (TQM)
Total – quality involves everyone and all activities in the work
Quality- conformance to requirements ( meeting customer requirements)
Management – Quality can and must be managed
Total quality management has may definitions. Gurus of the total quality management discipline like Deming, Juran Crosby, Ishikawa and Feigenbaum defined the concept in different ways but still the essence and spirit remained the same. Deming (1999), “quality is a continuous quality improvement process towards predictable degree of uniformity and dependability”. Deming also identified 14 principles of quality management to improve productivity and performance of the organization. Juran (2000) defined quality as “fitness for use” according to him, every person in the organization must be involved in the effort to marked products or services that are fit for use. Crosby (2002) defines “quality as conformance to requirements.” His focus has been on zero defects and doing it right the first time. Ishikawa also emphasized importance of total quality control to improve organizational performance. According to him quality does not only mena the quality of product, but also of after sales service, quality of management, the company itself and human life. Feigenbaum (1992) defined “total quality as a continuous work process, starting with customer requirements and ending with customer’s satisfaction.”
Definition of quality have changed with the passage of time with changing customer’s needs and requirements. But the essence has more or less been to develop an approach to problem solving, conformation to standards for customer satisfaction. With management functions getting complex, approaches to managing quality in functional areas are becoming difficult. Organizations, which have successfully use TQM principles. Have customer and quality embedded in their corporate strategy, any organization is a system of interrelated units.
For TQM to succeed , all of the components within the organization must be collectively involved, initially, organizations implemented TQM in the hope that improvement in the shop floor activities would solve all existing productivity and quality problems. Later, they have realized that TQM is much more than just shop floor improvements. The definitions of quality incorporate factors like top management commitment, leadership, team work, training and critical factors are the foundation for transformational orientation to create a sustainable improvement culture for competitive advantage on a continuous basis. According to Selladurai (2002) TQM interventions or activities must be guided by four change principles. Namely work process, variability , analysis and continuous improvement. Product design and production systematically collected and analyzed in a problem solving cycle. And commitment made to continuous learning by the employee about their work.
(3.1) importance of TQM
Apart from the adaption and implementation of formal documented procedures, the quality system imposes discipline upon all aspects of company’s operations with a view to ensuring that each task is performed correctly, first time and every time consistently. This will reduce rework, cutting waste by reducing rejections and scrap on the shop floor. It will also lead to prompt delivery by reducing rejections and scrap on the shop floor. It will also lead to prompt delivery by reducing delays to minimum. Hence operating efficiency will improve resulting in an improvement in overall profitability.
(3) RESEARCH METHODOLOGY
In this region researcher will discuss about the general summary of research methodology in terms of qualitative and qualitative research technique, data collection method like primary and secondary data. Moreover researcher will take help of case study approach so it will help to researcher in implementing it in company.
(4.1) methods of data collection
None of the methods of data collection provides 100 per cent accurate and reliable information. The quality of the data gathered is dependent upon a number of other factors.
There are two major approaches to collecting information about a situations, person, problem or phenomenon. Sometimes, information required is already available and need only be extracted. However there are times when the information must be collected. Based upon these broad approach to information gathering , data are categorised as (check link in D- jan08)
(4.1.1) primary data
Information gathered using the first approach is said to be collected from secondary sources, whereas the sources used in the second approach are called primary sources.
(4.1.2)secondary data
Data collected by someone else for some other purpose, it is secondary data. Secondary data analysis saves time that would otherwise be spent collecting data and particularly in the case of qualitative data, provides larger and higher-quality databases than would be unfeasible for any individual researcher to collect on their own.
Dussmuir and Williams (1992) list the following advantage and disadvantages of secondary research (look link in D-jan08)
| Secondary research | |
| Advantage | Disadvantage |
| Cheap and accessible | Lack of consistency of perspective |
| Only way to examine large- scale trends | Biases and inaccuracies can not be checked |
Secondary data is always gathered before primary data because you want to find out what is already known about a subject before you decline into your own investigation
(4.1.2) primary sources
If data collected set question collected by the researcher ( or team of which the research is a part ) for the specific purpose or analysis under consideration, it is primary data. Several methods can be used to collect primary data. The choice of a method depends upon the purpose of the study, the resources available and the skills of the researcher. There are times when the method most appropriate to achieve the objectives of a study cannot be used because of constraints such as lack of resources and or required skills. In such situations researcher should be aware of the problems these limitations impose on the quality of data
| Primary data | |
| Advantage | Disadvantage |
| Quick and cheap if your sample is small | Using large sample can be time-consuming |
| Verifiable by replication and requisitioning of interviewers/ respondents | Closed questions may constrain the data( pre- empting a richer range of respose) |
| Respondents may interpret the questions differently. This makes comparision of the answers difficult. | |
(4.2) qualitative research and quantitative research
(4.2.1) qualitative research
Qualitative research explore attitudes, behaviour and experiences through such methods as interviews or focus groups. It attempts to get an in -depth opinion from participants. As it is attitudes, behaviour and experiences which are important, fewer people take part in the research, but the contact with these people tends to last a lot longer. Under the umbrella of qualitative research there are many different methodologies
(4.2.2) quantitative research
quantitative research generates statistics through the use of large scale survey research using methods such as questionnaires or structured interviews. If a markets researcher has stopped you on the streets, or you have filled in a questionnaire which has arrived through reaches may more people. But the contact with those people is much quicker than it is in qualitative research.
Qualitative versus quantitative
MBA dissertation
| Key Activities
(milestones) |
Time-scale
(plan of action) |
Resources required
(equipment, software, personal etc) |
| Searching and reading literature | Week 1, week2 | Online database, university database, library resources, business press, trade agencies, labour unions, publications and journals etc. Personal computer, MS word , internet connection |
| Finalize Research Objectives | Week 2 | Online database, university database, library labour unions, publications and journals, personal computer, MS word , internet connection |
| Draft literature review | Week 2, week 3, week4 | Online database, university database, library resources, business press, trade agencies, labour unions , publications and journals, personal computer, MS word internet, connection |
| Draft research strategy and methodology | Week4 | Personal computer, MS word , telephone, internet connection |
| Plan and develop interviews schedules | Week 4 | Personal computer , MS word, telephone , internet connection excel, |
| Conduct interviews | Week 5 | Personal computer, MS Word, Excel, paper, pen , voice recorder, company employees |
| Analyse data | Week 5 | Personal computer, MS word,, Excel, Visio, CAQDAS(N6, Hyper RESEARCH OR nvivo) |
| Conclusion, and recommendations | Week 6 | Personal computer, MS Word, excel, Visio |
| Conclusion, and recommendations | Week 6 | Personal computer, MS Word, excel, Visio |
| Conclusion, and recommendations | Week 6 | Personal computer, MS Word, excel, Visio |
| Self development plan | Week 6 | Personal computer, MS Word, Visio |
| Draft dissertation | Week 6 , week 7 | Personal computer, MS Word, excel, Visio |
| Print, bind and submit dissertation | Week 7 | Personal computer, printing papers, printer, binding Machine, binding folders |
| Supervisor comments (Any comments or amendments appropriate to the project should be recorded here) |
References
1) Deming, W. (1999). “Quality management” 4th Ed. Prentice Hall , London
2) Juran, J. ( 2000), “Quality planning and analysis”, 4th Ed. McGraw-Hill , Newyork.
3) Crosby, P (2002) “Management , quality and competitiveness” 4th Ed. McGraw-Hill , Newyork.
4) Feigenbaum, A. (1992). “Quality control: principles, practice, and administration” 8th McGraw -Hill , Newyork
5) Selladurai, R (2002). “A Look at Total Quality Management’s (TQM) 7th Ed San Antonio, TX, USA