1. A study on the impact of
implementation of TQM in
Malaysia Engineering Firm.
Chan Chee Mang
TP021569
BM040-3-2-RESM
Lecturer: Benjamin Chan Yin Fah
13/10/2011 1

2. Introduction
Subject
• Starting from 1980s, TQM (Total Quality Management)- a new concept
evolved and was strongly influenced by Japanese manufacturers.
• TQM has positive effects on a firm’s performance and productivity through the
involvement of all levels of the organisation.
• For past 20 years, quite number of authors focused on the TQM soft factors
and its dimension.
• TQM is not only a program but a way of business management-comprehensive
management philosophy which provides continuous improvement to all
organisation’s functions.
13/10/2011 2

3. Introduction Cont.
Object
• Critical success of implementation of
TQM soft factors in an engineering
firm-process improvement, zero defect
mentality, employee
empowerment, open
organisation, increased
training, benchmarking, closer supplier
relationship, closer customer
relationship, adoption and
communication, committed leadership.
13/10/2011
(Powell, 1995) 3

4. Introduction Cont.
Linkage
• Examine a comprehensive framework for TQM soft factors.
The proposed TQM model for an engineering firm located
in Malaysia.
• Explore the positive correlation between the degree of
implementation of TQM basing on quality practices that
implemented and corresponding productivity index.
• Introduction of soft factor elements which affect the TQM
implementation whereby to prioritise the factors with
interrelationships.
13/10/2011 4

5. Problem Statement
TQM as a managerial philosophy that
become a need for any organisation to
outperform over competitors.
Is the implementation of TQM has a
positive effects on engineering firm’s
productivity?
13/10/2011 5

6. Research Objectives
• To examine the feasibility of implementing TQM in an
organisation.
• To determine the level of soft factors.
• To identify the positivity or negativity correlation of the 10
Soft factors with the Respondent demographic factors.
• To identify the Top 3 implemented Soft Factors and the
least 3.
13/10/2011 6

7. Research Hypothesis
H1. Process Improvement has a positive correlation on firm’s productivity.
H2. Zero Defect Mentality has a positive correlation on firm’s productivity.
H3. Employee Empowerment has a positive correlation on firm’s productivity.
H4. Open Organisation has a positive correlation on firm’s productivity.
H5. Increased Training has a positive correlation on firm’s productivity.
H6. Benchmarking has a positive correlation on firm’s productivity.
H7. Closer Supplier Relationship has a positive correlation on firm’s productivity.
H8. Closer Customer Relationship has a positive correlation on firm’s productivity.
H9. Adoption and Communication has a positive correlation on firm’s productivity.
H10. Committed Leadership has a positive correlation on firm’s productivity.
13/10/2011 7

8. Significance of study
• Clearly showing the correlation of soft factors implemented
in firm.
• The imply of the soft factors.
• Training is not much correlated to other factors.
• Leadership has the highest value among the soft factors.
• The addressed factors have been designed and distributed
in organisation as the enablers of improving effectiveness
of TQM.
13/10/2011 8

9. Limitation of Study
The proposed framework is
• Costly and
• Time consuming due to large number of questions
hold.
• Possibility in which these subdivisions do not have
the same relative importance weight.
• Limits to one company only. (findings should not
be generalised)
13/10/2011 9

10. Terminology Definition
Terms Conceptual Operational
Committed Leadership Successful implementation of TQM requires effective changes in an
organisation’s culture and it is somehow impossible without management
leadership (Ho et al., 1999).
Adoption and Communication plays a vital role in efficient producing high quality
Communication products (Schloss, 2003).
Closer Customer For continuous improvement, customer requirements must be consistently
Relationship measured and satisfied. The firm should be organised to obtain the needed
customer database, and reliable comments on product or service quality
levels (Forza & Filippini, 1998).
Benchmarking Benchmarking is a continuous process of comparing an organisation’s
products, services, and processes against those of its best competitors or
industry leaders (Ghobadian & Woo, 1996).
Increased Training Training of employees is crucial for building the human capital of the
organisation (Black and Porter, 1996)
Open Organisation Also known as teamwork. Teams should have authority to implement the
changes and motivate employees to involve in the processes (Gonzalez-
13/10/2011 Benito & Martin-Lorente, 1999) 10

11. Terminology Definition Cont.
Terms Conceptual Operational
Employee Empowerment is an integral part of any successful
Empowerment quality improvement process which helps employees
to make decisions about their own work and
environment (McQuater et al., 1995)
Zero-Defect Quality programs should measure the percentage or
Mentality the number of parts that deviate from acceptable items
in order to prevent the recurrence of a defect
(Motwani, 2001).
Process The key aspect in TQM programs (Sinclair & Zairi,
Improvement 1995).
The reduction or elimination of variance (Deming,
1986).
13/10/2011 11

12. Research Framework
Respondent Profile
Age
Tenure in present 10 Soft Factors
occupation Process Improvement
Education level Zero Defect Mentality
Gender Employee Empowerment
Specialisation Field Open Organisation
Company annual
Manager Status Increased Training
report 2010
Benchmarking
Ratio of total annual
Closer Supplier
Company Profile output out of total
Relationship
History & annual cost.
Adoption and
Background Communication
Involvement of Closer Customer
Industry Relationship
Market Scope/Work Committed Leadership
scope (PESTLE)
Input Throughput Output
13/10/2011 12

13. Organisation of study
• Chapter 1
Description of the various contents in which the problem statement
and objective.
• Chapter2
Literature review Independent Variables and Dependent Variables.
• Chapter3
Research design and data analysis
• Chapter 4
Result of the study.
• Chapter5
Conclusion, implications, limitations and recommendations.
13/10/2011 13

14. Thank you for listening.
13/10/2011 14