C.M.Sedani Page 1 Chapter VI: SUMMARY OF FINDINGS, RECOMMENDATIONS, LIMITATION OF STUDY AND SCOPE FOR FUTURE WORK “Any thing experienced in terms of general cause and specific effect must be an illusion, because such causes and effect exists only relative to each other. Indeed, whatever has a beginning must have either real or unreal end.” - Swami Prabhupada, Shrimad Bhagavatam, (224, pp. 124) ----------------------------------------------------------------------------------------------------------------- This research examines how a firm should select and adopt “good quality practices” to improve the manufacturing performance in SMEs as well as large enterprises. Currently, no framework or model is available, which integrates ISO 9000, TQM and Quality Awards, and decisions regarding quality performance initiatives are based on ambiguous judgements of quality managers. In past, Research has had little to offer the manager in this regard. This research aimed to fill this gap by exploring quality practices and performance measures and their assessment through a proposed model for “Good quality practices and Performance”. The study also provides the relationship of different performance measures with quality practices, to indicate the difference between SMEs and large enterprise. This chapter summarises and discusses the knowledge gained from this research and identifies areas for further research. Section 6.1 presents the conclusion and summary of key evidence of research findings of previous chapter. Section 6.2 suggests several recommendations based on empirical examination of this research in the areas of QM and adoption of initiatives for quality practitioners. Section 6.3 presents the limitations of this research, and finally section 6.4 suggests areas of future research. The thesis ends with the conclusion. 6.1 Summary of Research findings of this study Studies on service quality assessment have attracted the attention of researchers since 1970s. The researchers mainly focus on issues of measuring performance through several manufacturing and quality inputs. However, the measurement of performance is largely influenced by the expectations and
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C.M.Sedani Page 1
Chapter VI: SUMMARY OF FINDINGS, RECOMMENDATIONS,
LIMITATION OF STUDY AND SCOPE FOR FUTURE WORK
“Any thing experienced in terms of general cause and specific effect must be an illusion, because such causes and effect exists only relative to each other. Indeed, whatever has a beginning must have either real or unreal end.” - Swami Prabhupada, Shrimad Bhagavatam, (224, pp. 124) -----------------------------------------------------------------------------------------------------------------
This research examines how a firm should select and adopt “good quality
practices” to improve the manufacturing performance in SMEs as well as large
enterprises. Currently, no framework or model is available, which integrates ISO
9000, TQM and Quality Awards, and decisions regarding quality performance
initiatives are based on ambiguous judgements of quality managers. In past,
Research has had little to offer the manager in this regard. This research aimed
to fill this gap by exploring quality practices and performance measures and
their assessment through a proposed model for “Good quality practices and
Performance”. The study also provides the relationship of different performance
measures with quality practices, to indicate the difference between SMEs and
large enterprise.
This chapter summarises and discusses the knowledge gained from this
research and identifies areas for further research. Section 6.1 presents the
conclusion and summary of key evidence of research findings of previous
chapter. Section 6.2 suggests several recommendations based on empirical
examination of this research in the areas of QM and adoption of initiatives for
quality practitioners. Section 6.3 presents the limitations of this research, and
finally section 6.4 suggests areas of future research. The thesis ends with the
conclusion.
6.1 Summary of Research findings of this study
Studies on service quality assessment have attracted the attention of
researchers since 1970s. The researchers mainly focus on issues of measuring
performance through several manufacturing and quality inputs. However, the
measurement of performance is largely influenced by the expectations and
C.M.Sedani Page 2
perceptions of customers because they are directly utilising the manufactured
product.
The quality practitioners across the India have shown their interest in
adopting ISO 9000, TQM and QA model guidelines to manage the quality and
continual improvement in their organization, with an assumption that ISO 9000
is mainly for SMEs and TQM/QA largely applicable and practiced in LE. There is
no such model is available which integrates ISO 9000, TQM and QA models.
The selection of quality typology in Indian scenario is dependent on rise in
competitiveness and increase in sales turnover
Further, in SMEs it was observed that firms are reluctant to implement
TQM in their organizations, due to its long term process of implementation and
fear of failures of TQM programmes. They also view QA model guidelines as a
part of winning the award only, with spending the huge amount of time and
capital and even not aware with the fact; that SMEs can also participate in QA
winning procedures. This, is probably due to the two most recognised business
excellence models, the Baldrige Criteria for Performance Excellence (CPE) and
the European Foundation for Quality Management Business Excellence Model,
being developed in the West, and their use in Asia following later. Moreover,
manufacturing practices and performance differs in many ways with different set
of mind of expectations (before manufacturing) and perceptions (after selling)
across the industries. Performance measures require a different model of
quality practices; that are even antagonistic in their nature since maintaining
paradoxes; can be one of the biggest challenges for organizations in
competitive environment.
Hence, it was desirable to develop a model for adopting good quality
practices in industries to assess the impact on manufacturing practices and
performance (performance measures) to enable the managers with self
assessment of quality practices and performance measures in ISO 9000
certified firms, TQM practicing firms, and firms willing to apply for Quality Award.
Therefore, in this dissertation work, attempt has been made to provide a model
for designing the instrument suiting to both SMEs and LE and to identify the
bottlenecks for measuring the performance measures. The proposed model of
adopting good quality practices in industries to asses the impact on
manufacturing practices and performance, was in aligned with several
C.M.Sedani Page 3
frameworks of past. However, unlike past frameworks; the advantage of
proposed model can be obtained in both ways: measuring the performance as a
single construct with eight constructs of quality practices, and measuring five
performance indicators (product quality, process improvement, financial
performance, customer satisfaction, and employee satisfaction) with single
construct of quality practices. This dual advantage differentiates the proposed
model with all past empirical frameworks. The proposed model of quality
practices and performance measures provided the scale stability as reliability
and validity assessment, mentioned in Chapter IV of this thesis has shown that
model is statically significant for empirical investigations. Table 6.1, further
provides the summary and checklist of reliability and validity assessment of
model.
Assessment Analysis Final Items Observations Conclusion
Reliability Eight constructs of Quality Practices and One Constructs of Performance Measures (Means of all 24 constructs)
For Quality Practices N=40, For Performance Measures N=24,
The Cronbach’s α Value is ≥ 0.7
The α Value more than 0.7 is acceptable for New Scale. The analysis provides the conclusion that scale provides the internal consistency and content validity for measurement (Nunnally,1998)
Reliability All constructs of Quality Practices are considered as single Construct to measure five dimensions of Performance Measures
For Quality Practices N=40, For Performance Measures N=06,
The Cronbach’s α Value is ≥ 0.7
The Value more than 0.7 is acceptable for New Scale. The analysis provides the conclusion that scale provides the internal consistency and content validity for measurement (Nunnally,1998)
Unidimensionality Analysis
Eight constructs of Quality Practices and One Constructs of Performance Measures (Means of all 24 constructs)
For Quality Practices N=40, For Performance Measures N=24,
All GFI Values are ≥ 0.9
The GFI Values more than 0.9 provides the scale maintains the evidence of Good fit (Bentler, 1990). The Cronbach’s α Value ≥ 0.7 & GFI Value ≥ 0.9 for composite score of all nine constructs indicating that there is no evidence of a lack
Table 6.1: Summary & Check-list of Reliability & Validity Assessment
C.M.Sedani Page 4
of Unidimensionality for all constructs (Hair et al. , 2005)
Unidimensionality Analysis
All constructs of Quality Practices are considered as single Construct to measure five dimensions of Performance Measures
For Quality Practices N=40 (as a single construct) For Performance Measures N=06,
All GFI Values are ≥ 0.9
The GFI Values more than 0.9 provides the scale maintains the evidence of Good fit (Bentler, 1990). The Cronbach’s α Value ≥ 0.7 & GFI Value ≥ 0.9 for composite score of all nine constructs indicating that there is no evidence of a lack of Unidimensionality for all constructs (Hair et al. , 2005)
Discriminant Validity
For Quality Practices & Performance Measures
For Quality Practices N=40, For Performance Measures N=24,
The confirmatory Factor Analysis and Chi-Square Value for Test of Independence of all constructs ≤ 0.05
The CFA Model with KMO value ≥ 0.6 along with statistical significant value of chi-square ≤ 0.05, exhibits that constituent items estimates only one construct to maintain Discriminant validity of a scale (Ahire et al., 1996)
Criterion-Related Validity
For Quality Practices & Performance Measures
For Quality Practices N=40, For Performance Measures N=24,
The composite score of all nine constructs is indicated by Co-generic Model with Pearson co-relation is significant at the 0.05 level (2-tailed)
The scale score of quality practices is co-related with performance measures shows statically significant correlation between two variables
This research provides the model for adopting quality practices in industries and
questionnaire for self assessment of quality practices in industries. The
suitability of our questionnaire can be mentioned as:
It provides the self assessment to ISO certified SMEs, for evaluating their
performance. Most SMEs start their quality journey from ISO certification,
and after receiving the certification they do not continue the quality
journey due to lack of awareness for TQM implementation and QA
guidelines. This questionnaire will provide the evaluation of quality
practices and performance in their firm, and will suggest the area of
improvement. The questionnaire includes TQM elements and QA
guidelines for assessment, which will provide them focus on attempting
the quality initiatives in their firm, beyond ISO 9000 certification. Such
C.M.Sedani Page 5
initiatives will provide them adoption and implementation of good quality
practices in their firm, which is part of TQM philosophy and QA
implementation strategy. Thus ISO certified firms, in more or less will
start/ continue their journey towards “Total quality” and continual
improvement.
TQM practing industries, shows more rigorous approach for managing
quality in their units; than ISO 9000 certified firms. However
implementation of TQM is quite challenging; since the philosophical
framework of TQM, do not provide any concrete strategy for continual
improvement. Our instrument includes several items based on QA
criteria, which will provide them certain guidelines to focus their efforts
and strategy from old paradigm of TQM to emerging paradigm of winning
the Business Excellence (Quality) Award. Our instrument also contains
the items of ISO 9000 certification, and it will provide the self assessment
to those firms, have applied for ISO certification. Thus our instrument will
provide the evaluation to TQM firms, where they actually stand for
winning the quality award and how far they are from receiving the ISO
certification.
The research instrument also provides certain guidelines and self
assessment to QA winning firms. The participation in and winning of
business excellence awards appears to be a key issue for many
organisations that have adopted business excellence. The QA category
indicated that the awards have different guidelines for SMEs and LE. Our
instrument also contains the criteria of high profile LE and thus provides
the evaluation to QA winning SMEs for their next objective of winning the
Quality Award in LE category; in recent future. It also provides them an
assessment for attaining the ISO 9000 certification.
For QA winning large enterprises (LE) the association with winning the
award is representation of high degree of prestige. In addition,
participation in awards was seen as a way of validation or getting
independent assessment of the organisations. However, our concern is
that there are a number of barriers to long-term commitment that need to
be addressed. Significantly, the most significant barriers are internal and
C.M.Sedani Page 6
relate to a lack of development of a business excellence culture, unclear
benefits from business excellence and a lack of resources. Firstly, the
failure to fully educate the majority of staff in business excellence may be
partly to blame for the failure to develop a business excellence culture.
Secondly, the focus on short-term plans in some organisations and the
failure to fully understand the long-term benefits of business excellence
means that some organisations are unwilling to commit resources to
business excellence. Thirdly, national award administrators may be
focussing too much of their time on running the awards process rather
than educating organisations on the meaning and benefits of business
excellence and how to develop a business excellence culture in their
organisations. When organisations were asked what BE administrators
should focus on improving or undertaking, more often the responses
were adoption of best/good quality practice as the highest priority
activities. In addition, and rather alarmingly, 60 % of surveyed companies
believed that the prime purpose of a BE framework is to assess a
company’s management systems and performance so that an award can
be given to the “best company” which indicates that understanding of
business excellence can be improved. Our instrument recommends to
QA winning firms, to opt for world class level of TQM adoption, beyond
the business excellence.
The research design was developed in three phases: establishing
conceptual back ground, developing the framework and testing of research
instrument (theory building), and conduction of explorative survey to obtain the
empirical investigations (theory testing). The detailed design was already
described in Chapter III of this dissertation. This research has examined several
hypotheses related to quality practices and manufacturing performance. The
key evidence of findings were mainly focusing the significant relationship
between quality practices, impact of length of time, approaches to quality
implementation, impact of other factors on manufacturing performance
(measured as manufacturing practices and performance or performance
measures). Along with newly designed model, this dissertation also provides the
evaluation methodology which incorporates length of time with quality
implementation, order of implementation of quality typology, impact of other
C.M.Sedani Page 7
factors on performance to provide several investigations along with defining the
relationship between quality practices and performance. The evaluation is not
just relating the comparison of an apple (ISO certified firms) with another apple
(QA winning firms) but provides the systematic empirical examination for ISO
certified firms in two groups ( ISO certified and TQM practicing) and QA winning
firms, have just turned into LE from SME. Thus the outcome of this dissertation
provides the empirical assessment for only ISO certified SMEs, ISO certified
and TQM practicing SMEs, and SMEs who bagged QA recently and turned into
LE. This evaluation is compatible to provide decision aid to any quality
practitioner, adopted any of these typology or all the three typologies in his firm,
irrespective of its belonging to SME or large manufacturing unit.
In addition, the length of time with quality implementation, adoption of
quality typology, selection of typology to win the quality awards and age of firms;
size of firm; type of manufacturing; and annual sales turnover also influences
manufacturing performance to large extent. Therefore, it becomes practically
difficult to set the standards and procedures for measuring and evaluating the
performance measures. The proposed model and research instrument of our
study provides the assessment for all above mentioned influencing variables on
manufacturing practices and performance. Thus it can be mentioned that our
questionnaire and research instrument provides multiple analysis for QM
practices to assess the impact on manufacturing practices and performance,
which provides an added advantage and comparison over previous frameworks.
The other aspects of quality practice significant to winning the quality
awards, and impact of quality practices on different performance indicators, and
empirical findings of manufacturing performance outcomes, is presented as a
summary and key evidences in Table 6.2.
C.M.Sedani Page 8
Table 6.2: Summary and key evidence of findings
Research Question Hypothesis To test / Findings Conclusion Key Evidence
R1: Do all quality practices provide positive and significant relationship with performance measure?
H1-1: There is significant and positive relationship between ISO 9000 quality practices and Performance Measure
Only process Management has shown positive and significant relationship with performance measure(t ≥3.0 and p ≤0.005)
H1-1: Rejected
There is insignificant relationship between quality practices and performance
H1-2: There is significant and positive relationship between TQM practices and Performance Measure
Only planning and customer focus have shown positive and significant relationship with performance (t ≥3.0 and p ≤ 0.005)
H1-2: Rejected
There is insignificant relationship between quality practices and performance
H1-3: There is significant and positive relationship between QA Model practices and Performance Measure
Only leadership, planning ,customer focus, people management, process management, and supplier relationship have shown positive and significant relationship with performance measure (t ≥3.0 and p ≤ 0.005)
H1-3 : Rejected
There is insignificant relationship between quality practices and performance
R2: Does a length of time with quality adoption provide significant impact on Manufacturing Practices & Performance?
H2-1: In SMEs, length of time with TQM implementation is significantly correlated with Manufacturing practices and performance.
In SMEs, length of time with TQM implementation has shown significant correlation ship with manufacturing practices and performance
H2-1: Accepted
Length of time with ISO certification is not significantly related with manufacturing practices and performance
C.M.Sedani Page 9
(Correlation found significant at the 0.01 level) ( MRA shown Adj. R
2= 0 .73
with ∆F=0.000 of TQM practices ≥ Adj. R
2= 0.54 with ∆F=0.000 of ISO
certification)
H2-2: In large firms, length of time with TQM implementation is significantly correlated with Manufacturing practices and performance
In large firms, length of time with TQM has shown significant correlation ship with manufacturing practices and performance (Correlation was significant at the 0.05 level)
H2-2 : Accepted
Length of time with ISO certification is not significantly related with manufacturing practices and performance
R3: Do different approaches to adopting quality in firm, provides significant impact on manufacturing practices and performance?
H3 : In SMEs, implementation of TQM before ISO 9000 provides significant impact on Manufacturing practices and performance
In SMEs, Implementation of TQM before ISO 9000 has shown significant impact on manufacturing practices and performance (ANOVA indicated that performance means of group implemented TQM before ISO 9000 was higher than other two groups)
H3:Accepted Implementation of ISO 9000 before TQM hasn’t shown significant impact on manufacturing practices and performance.
C.M.Sedani Page 10
Research Question Hypothesis To test / Findings Conclusion Key Evidence
R4: Which quality practice is significantly associated with winning the Quality Award?
H4: TQM practices are significant to win the Quality Awards
TQM practices are found significant to win the Quality awards
( ANOVA of QA winning firm with more years with TQM practices and less year with ISO certification has shown higher means over SMEs with more years with ISO certification and less year with TQM)
H4:Accepted ISO certification is not significant to win Quality Awards
R5: Is there any impact of other factors on manufacturing performance of industries?
H5-1: There is significant and positive impact of other factors on manufacturing performance of SMEs.
The impact of other factors was not found positive and significant with manufacturing performance of SMEs
The multivariate analysis has shown Pillai's Trace (F=2.361, P≤ 0.05), Wilks' λ (F = 2.904, P≤0.05), Hotelling's Trace (F=3.675, P≤0.05), and Roy's Largest Root (F = 11.133, P≤0.05) with partial eta square values for age of firm (0.33), size of firm (0.38), type of manufacturing (0.44) and annual sales turnover (0.70)
H5-1 Rejected
Only annual sales turnover provides significant and positive impact on manufacturing performance
H5-2:
There is positive and significant impact of other factors on manufacturing performance of ISO Certified SMEs
The impact of other factors was found insignificant and negative with manufacturing performance of ISO certified SMEs
Roy's Largest Root was comparatively smaller for ISO certified SMEs (value 0.39, F =1.56, P> 0.05) in comparison with other three variables to indicate at least one or two variables are negatively influencing the performance and all values of partial eta square were also found very low.
H5-2 Rejected
Both annual turnover and size of firm has shown negative impact on manufacturing performance of ISO certified SMEs.
C.M.Sedani Page 11
H5-3: There is positive and significant impact of other factors on manufacturing performance of TQM Practicing SMEs
The impact of other factors was not found positive and significant with manufacturing performance of TQM practicing SMES
Roy's Largest Root was comparatively smaller for ISO certified SMEs (Value 0.15, F=2.08, P> 0.05) in comparison with other three variables to indicate at least one or two variables are negatively influencing the performance. The partial eta square values for age of firm (0.27), size of firm (0.65), type of manufacturing (0.07) and annual sales turnover (0.74)
H5-3 Rejected
Only size of firm and annual turnover of TQM practicing SMEs have shown positive and significant impact on performance
H5-4: There is positive and significant impact of other factors on manufacturing performance of large enterprise
The impact of other factors was found positive and significant with performance. The Roy's Largest Root was found higher for (Value 26.45, F=5.78, P< 0.05) All partial eta square values were observed above 0.8.
H5-4 Accepted
All factors have shown positive and significant impact on manufacturing performance
C.M.Sedani Page 12
Research Question Hypothesis To test / Findings Conclusion Key Evidence R5: (Contd.) H5-5: The impact of other factors on manufacturing
performance differentiates SMEs from large enterprises
The impact of other factors has shown the difference between SMEs and large enterprises
(The Regression analysis has indicated higher Adj. R2
values for all factors of large units over the Adj.R2 values
of all factors of SMEs)
H5-5 Accepted The age of firm, size of firm, type of manufacturing, and annual sales turnover provides positive impact on performance of large manufacturing units
R6: Is there any difference in performance measures of SMEs and Large Enterprises due to quality practice?
H6-1: There is significant relationship between performance measures and quality practice of SMEs
The significant relationship was found for product features, labour productivity, inspection cost, customer services and employee motivation (t ≥ 3.0, P≤ 0.05).
Defect reduction was observed insignificant with quality practice in SMEs
H6-1: Rejected There is insignificant relationship between performance measures and quality practices
H6-2: There is significant relationship between performance measures and quality practice of large enterprise
The significant relationship was found for product innovation, customer satisfaction, operation cost, labour productivity, and ROA/ROI (t ≥ 3.0, P≤ 0.05). However, Employee involvement has shown insignificant relationship with quality practice in LE.
H6-2 Rejected There is insignificant relationship between performance measures and quality practices
C.M.Sedani Page 13
The summary of key evidences of research findings also provides the
investigations to define cause and affect relationship, between quality practices and
performance measures. It was observed that SMEs are having less number of
adaptations of good quality practices in their firms, for example only process
management was significant to performance measures of ISO 9000 certified units, while
customer focus and planning; were found significant in TQM practicing firms. Table 6.3,
presents the plausible reasons for such differences in quality practices and performance
measures.
Table 6.3: Reasons for Insignificant relationship with performance
Type of Industry Variables
needed to
be improved
Plausible reasons for insignificant relationship
with performance measures
ISO certified SMEs Leadership
Planning
Customer satisfaction
Information Analysis
People Management
Supplier relationship
Employee
involvement
The characteristics of ISO certified SMEs have been recognized as obstacle to growth due to founder’s expertise and commitment in a particular area of the business. The behaviour of organisations management should create a clarity and unity of purpose within the organization to ensure that all organisational activities are aligned & deployed in a structured and systematic manner. In the absence of proper business vision and quality planning, these firms are only focusing the improvement in processes, and emphasizing the other important aspects of continual performance improvements.
Lack of core management practices, in the absence of formal TQM programmes, no formal education and training for quality deployment and performance improvement, insufficient and less efficient workforce, no emphasize on customer needs and value, inadequate facilities and quality infrastructure, lack of supplier relationship and employee commitment, will result only improvement in processes not in all other important aspects of continual improvement.
TQM practicing SMEs Leadership
Information Analysis
People Management
Supplier relationship
Most often, it is argued that TQM is a very long term campaign, which is characterised as “good” or “not so good”. The underlying cause of TQM deficiencies is that top management and managers failed to understand the concept of quality.
C.M.Sedani Page 14
Employee
involvement
To inspire purposeful change for improvement, mangers must have a clear understanding of quality and how “good quality practices” can help to improve the performance and competitive advantage. As recommended by Deming, TQM practices are related with a specific purpose to satisfy the customers; and our finding represents an example to his way of defining TQM to “develop quality plans for customer satisfaction”. It was observed that top management has taken these two variables as their “prime strategy” and ignored the other important elements of TQM such as employee involvement & motivation, developing strategic partners, commitment for business excellence, and operational performance improvement.
The Quality Award Models has formalized the assessment of TQM implementation into six/ nine categories along with impact on business results, and all quality practices are important to attain the business excellence. Thus present findings of TQM practicing SMEs indicates that relationship between two quality practices significant to performance measures, is due to their efforts to reach the short- term objective. Firms which have implemented TQM as long term strategy will have both operational and financial results along with satisfied employees and customers. Top management support and commitment represents anomalies in implementation of TQM as long- term strategy.
Quality Award winning firms
Employee involvement
Business Excellence (BE) is defined as, excellence in strategies, Quality practices, and related performance results. These models were developed from a set of core values and principles that are considered to be essential for long-term organisational success.
Organisations which score highly when assessed against a business excellence model are considered to be a BE organisation as they will have embedded many of the core values and principles of BE. However, there is no one route or road map to achieve this status. Organisations have decided themselves, after taking into account their business environment, culture and current position, how best to advance using the Quality Award model as a benchmark.
C.M.Sedani Page 15
With respect to the deployment of BE, CEOs were not convinced by BE or TQM. They have their own way to run the company and have their own focus. From the respondents opinion it was observed that BE deployment creates extra loading on employees, and results from BE are not seen quickly. In other response, it was stated that integrating BE with other organisational initiatives is quite difficult and firms do not have the time to document and produce evidence as to why they follow a certain path and take certain actions. It was also noted that BE can be difficult to sustain due to staff turnover and lack of resources.
Although most of the respondents were trained, it may be considered a weakness that some of the organisations do not involve their employees as it is understood that BE is already embedded in their work practices of TQM and specific training is not required. Such weaknesses is indicative that BE practices needs to improve the employee involvement to move ahead for the next objective of becoming world class manufacturing (WCM) unit.
The difference in results of five performance indicators of SMEs and large enterprises,
due to implementation of quality practices; are summarised in Table 6.4.
Table 6.4: Impact of quality practices on Performance Measures
Type of industry Observations Performance Indicator
Plausible Reasons
ISO 9000 certified SMEs (N =189)
Improvements observed Product features Labour Productivity Inspection cost Customer services
Product Quality Process Management Customer Satisfaction
The process model of ISO 9000 QMS and documentation procedures is based on standardisation of activities and conformity to specification (sub clause 8.3) along with product realization (sub clause 7.1), monitoring and measurement (sub clause 8.1 and 8.3 of ISO 9001:2001). These clauses are partially associated with Process management , supplier relationship and Quality results of TQM elements (See Appendix 3.2), which provides improvement in product features, labour productivity, and customer services and reduction in
C.M.Sedani Page 16
Improvement are not observed Employee Involvement
Employee Satisfaction
inspection cost ISO 9001: 2008 QMS specifies the provision of resources (sub clause 6.1), human resources (sub clause 6.2), infra structure (6.3) and work environment (sub clause 6.4) which are partially related with TQM elements of HR management. The other clauses of Design and development (sub clause 7.3), production and service provision (sub clause 7.5) are associated with managing the process. All these clauses are related with short-term and bureaucratic approach of meeting the quality results. There are no long- term perspectives in ISO 9001:2008 QMS for defect reduction/prevention and employee motivation.
Insignificant Relationship was observed Financial Returns
Financial Performance
ISO 9001: 2008 QMS neither emphasize on increasing the ROI/ NPV and other financial indictors nor provide any measures for the same. It is generic model for process management, and managing the cost associated with it. Thus, it is not expected that certification will provide improvement in sales and other financial returns
Type of industry Observations Performance Indicator
Plausible Reasons
Quality Award winning Large Enterprises (N=40)
Improvements observed Product innovation Labour Productivity Operation cost Customer Satisfaction Financial Returns and Improvement in competitiveness
Product Quality Process Management Customer Satisfaction Financial Performance
The Quality Award model provides the guidelines for Approach/ Deployment of quality practices as ‘enablers’ and ‘results’ to measure employee satisfaction, customer satisfaction and other CPE along with scoring points. It provides the self- assessment methodology for measuring the performance. Due to item classifications and scoring dimensions, it is possible to visualise the organisational maturity stages and development. The QA model provides the implementation guidelines of core values like customer driven quality, competence development, long-range perspectives, process orientation, prevention, partnership,
C.M.Sedani Page 17
Improvement are not observed Employee Motivation
Employee Satisfaction
continuous improvement etc. and scoring system to assess the start-up, on the way, and mature stages. It is thus possible to observe the improvements in several quality dimensions and performance measures.
Most of the reasons were already described in Table 6.3
6.2 Recommendations to Quality Practitioners
This research has many recommendations for quality practitioners using ISO 9000,
TQM and Quality Award (BE) Model guidelines in their firms. Based on key evidence
presented in section 6.1., we would like to propose these recommendations to several
Quality Practitioners:
Applying ISO 9000 for internal reasons is likely to mean the same thing as
implementing quality practices. Companies applying ISO 9000 by external
motivation such as customer pressure or as a promotional tool saw fewer benefits
from it than those companies that were convinced of ISO 9000’s possibilities to