''ENHANCING OPERATIONAL EFFICIENCY AND CUSTOMER SATISFACTION THROUGH ADVANCED TOTAL QUALITY MANAGEMENT PRACTICES"

 

ENHANCING OPERATIONAL EFFICIENCY AND CUSTOMER SATISFACTION THROUGH ADVANCED TOTAL QUALITY MANAGEMENT PRACTICES"

 

 

Abstract

Total quality management (TQM) is an ongoing process of detecting and reducing or eliminating errors. Total quality management is used to streamline supply chain management, improve customer service, and ensure that employees are properly trained. This document explores the principles and implementation of Total Quality Management (TQM) within an organizational framework, emphasizing key components such as teamwork, competitive pricing strategies, employee performance enhancement, statistical process control, continuous improvement, and customer satisfaction. The paper also examines the application of the seven fundamental tools of quality for addressing various quality issues. Additionally, modifications to traditional control limit formulas in statistical process control are discussed, demonstrating the impact of setting control limits at six standard deviations from the mean to reduce false alarms and accommodate greater natural process variability.

Key words – Operational efficiency, customer satisfaction, advanced, total quality management

 Introduction

Total Quality Management (TQM) is an integrative approach to organizational management that seeks to enhance the quality of products and services through the continuous refinement of processes based on ongoing feedback. Significant contributions to the development of TQM principles were made by quality gurus in the mid-20th century, including W. Edwards Deming, Joseph M. Juran, Armand V. Feigenbaum, Dr. Kaoru Ishikawa, Dr. Genichi Taguchi, Shigeo Shingo, Philip Crosby, Tom Peters, Claus Møller, and others. This study delves into the core principles of TQM, proposing a model that includes fostering teamwork through competitive analysis, leveraging technology for pricing strategies, enhancing employee performance metrics, and maintaining rigorous statistical process control. The modification of standard control limits to better suit processes with higher natural variability is also analyzed.

Literature review

Ankesh Mittal, Pardeep Gupta, Vimal Kumar, Jiju Antony, Elizabeth A. Cudney, and Sandra L. Furterer (2023  ) This paper explores how Total Quality Management (TQM) practices, implemented by Deming-awarded Indian industries, affect organizational performance. Through data analysis, it shows that TQM practices positively influence satisfaction and business performance, ultimately enhancing organizational performance. These findings offer valuable guidance for organizations seeking to implement TQM practices effectively.Asif Nawaz Wassan , Muhammad Saad Memon , Sonia Irshad Mari , Muhammad Ahmed Kalwar (2022 ) This research identified key TQM practices that significantly impact organizational performance, including leadership, continuous improvement, customer satisfaction, training, and customer relations. It also found a positive relationship between sustainability practices and organizational performance, particularly in cost management, social image, research and development, waste reduction, and pollution control. Additionally, there's a strong positive correlation between TQM and sustainability performance. Overall, the study highlights the critical role of TQM and sustainability in enhancing organizational performance.Djojo Dihardjo and Lena Ellitan ( 2021 ) TQM, a cutting-edge management approach, focuses on enhancing customer satisfaction through continuous process improvement. It's widely recognized for its ability to boost competitiveness and customer value by involving all levels of an organization. By fostering coordination across departments, TQM lowers production costs, enhances efficiency, and ultimately improves overall business performance. This paper will explore the significance of TQM implementation for organizations in the Industrial Era 4.0.

Cemal Zehira , Öznur Gülen Ertosunb , Songül Zehirc , Büşra Müceldillid ( 2012 ) This study underscores the significance of TQM dimensions like management leadership, process management, and customer focus in improving quality and innovative performance. It suggests that supplier management and system approach to management also play crucial roles. However, the findings may vary across different organizational contexts and should be further explored. While the study provides valuable insights, its scope is limited to a specific geographic area and methodological approach. Future research should consider diverse samples and alternative data collection methods to validate these findings .Vimal kumar Ankesh Mittal, Pratima Verma Jiju Antony (2023) This paper aims to analyze the adoption of Total Quality Management (TQM) in ABC India Limited, a tire manufacturing company, to enhance its market leadership in India. It also delves into the challenges faced by the company pre-TQM and assesses the benefits post-implementation.  Francisco J. Carmona-Márquez,   Antonio G. Leal-Millán,   Adolfo E. Vázquez-Sánchez &  Antonio L. Leal-Rodríguez ( ) This research  explores how the implementation of Critical Success Factors (CSFs) relates to business performance in the context of Total Quality Management (TQM). By analyzing data from 113 Spanish organizations, it identifies causal relationships between CSFs and business performance. Using Partial Least Squares analysis, it confirms the mediating role of implementation factors between enablers and instrumental factors. The findings offer valuable guidance for managers to prioritize critical factors and improve business performance. Saumyaranjan Sahoo(2019) This paper aims to compare the effectiveness of Total Productive Maintenance (TPM) and Total Quality Management (TQM) approaches in improving manufacturing business performance across different sectors. It evaluates 231 manufacturing organizations in food and beverages, textiles, and electrical and electronics sectors. The study categorizes firms into TPM focus, TQM focus, and integrated TPM×TQM based on their primary strategy. Results suggest that integrated TPM×TQM approach is beneficial for food and beverages and electrical and electronics sectors, but not for textiles. The research suggests further exploration through broader studies and case analyses. Practical implications include helping managers decide on manufacturing strategies tailored to their specific sectors for enhanced competitiveness. This study provides valuable insights into the joint implementation of manufacturing programs across diverse sectors.Daniel Carnerud & Ingela Bäckström( 2019 ) This paper examines 37 years of research on quality, aiming to identify key areas and longitudinal trends. By analyzing data from specialized and broader operations management journals, it identifies seven central topics, including Service Quality & Customer Satisfaction, Process design & Control, and TQM - Implementation, among others. Despite a brief decline between 2000 and 2012, overall research on quality remains vibrant and relevant, showing continuous growth since 1980.

Analysis and discussion

                             Proposed model for total quality management

        The five principal of TQM

Team Work: Foster teamwork through benchmarking and competitive analysis to drive collaborative success

Daily Lowest Prices Ahead :: Utilize technology audit and re-engineering to ensure competitive pricing strategies.

"Improving Employee Performance Metrics: Utilizing Tolerance Design over System Design for Enhanced Performance"

Statistical Process Control: Employ statistical methods for maintaining process control.

Continuation Process Improvement: Ensure continuous improvement processes are in place to refine operations.

Customer Satisfaction: Prioritize customization to meet diverse customer needs.

 

Tools to Analysis TQM

The seven fundamental tools of quality — flowcharts, histograms, cause-and-effect diagrams, check sheets, scatter diagrams, control charts, and Pareto charts — are essential for troubleshooting various quality issues and implementing effective control methods. They serve as the gold standard for addressing a wide spectrum of quality problems."

Modify formula –

Total Quality Management (TQM): Breaking Down the Elements

Lot Number: This is an identifier for a specific batch or lot of products. It helps in tracing back any issues or defects to a particular production run.

Sample Number: In quality control, samples are often taken from a lot for inspection rather than inspecting every single item. The sample number indicates which sample you're analyzing.

Number of Samples Inspected: This refers to the total number of samples taken from the lot for inspection.

Fraction Defective: This is the proportion of defective items found in the samples inspected. It's often expressed as a percentage.

Damaged Sample: This could refer to a sample that has been physically damaged during the inspection process.

Under Control Limit (UCL): In statistical process control, this is the upper limit beyond which the process is considered out of control. It helps in identifying when there's a significant deviation from the norm.

Lower Control Limit (LCL): Similarly, this is the lower limit beyond which the process is considered out of control.

 

Sample Number	Samples Inspected	Number of Items Rejected (d)	Fraction Defective (p)	UCL	LCL
1	960	26	0.0271	0.5556	0
2	1015	54	0.0532	0.5556	0
3	1020	39	0.0382	0.5556	0
4	910	22	0.0242	0.5556	0
5	955	27	0.0283	0.5556	0
6	1015	23	0.0227	0.5556	0
7	1000	101	0.101	0.5556	0
8	950	258	0.2716	0.2716	0
9	1010	123	0.1218	0.1218	0
10	895	237	0.2648	0.2648	0

 

 

 Further formula was modified from

UCL = Χ + (3 × σ) 
LCL =  Χ – (3 × σ)

Let's calculate UCL and LCL using this  provided formulas:

UCL=𝑥ˉ+(3×𝜎)/0.5UCL=xˉ+(3×σ)/0.5

LCL=𝑥ˉ−(3×𝜎)/0.5LCL=xˉ−(3×σ)/0.5

In the given control limit formulas:

UCL (Upper Control Limit) = 𝑥ˉ+3×𝜎0.5xˉ+0.53×σ​

LCL (Lower Control Limit) = 𝑥ˉ−3×𝜎0.5xˉ−0.53×σ​

The inclusion of the 0.5 factor in the denominator might appear unusual. Typically, control limit formulas for a control chart are:

UCL = 𝑥ˉ+𝑘𝜎xˉ+kσ

LCL = 𝑥ˉ−𝑘𝜎xˉ−kσ

Where 𝑥ˉxˉ is the process mean, 𝜎σ is the process standard deviation, and 𝑘k is a constant (commonly 3 in many control charts, representing three standard deviations).

However, the given formula has 3×𝜎0.50.53×σ​, which simplifies to 6×𝜎6×σ. So the formulas can be rewritten as:

UCL = 𝑥ˉ+6𝜎xˉ+6σ

LCL = 𝑥ˉ−6𝜎xˉ−6σ

The inclusion of the 0.5 factor in the denominator effectively doubles the standard deviation multiplier used in calculating the control limits. This results in control limits set at six standard deviations from the process mean, as opposed to the conventional three standard deviations. Consequently, this adjustment broadens the control limits, thereby decreasing the chart's sensitivity to inherent process variability and reducing the likelihood of Type I errors (false alarms). This modification is particularly advantageous in contexts where the process exhibits significant natural variability or where minimizing false positives is critical for operational efficiency.

Conclusion

The principles of TQM, when effectively implemented, can lead to significant improvements in product quality, operational efficiency, and customer satisfaction. By fostering a collaborative team environment and leveraging competitive analysis, organizations can enhance their market positioning. Employing technology audits and re-engineering ensures competitive pricing strategies. The use of statistical process control with modified control limits broadens the scope for accommodating natural process variability, reducing the likelihood of Type I errors, and ensuring a more stable production process. Continuous improvement and customization to meet diverse customer needs remain central to achieving long-term success and sustainability in a competitive market environment.

References

Ankesh Mittal, Pardeep Gupta, Vimal Kumar, Jiju Antony, Elizabeth A. Cudney, and Sandra L. Furterer (2023  ) TQM practices and their impact on organizational performance: the case of India’s deming-award industries Total Quality Management & Business Excellence  Volume 34, 2023 - Issue 11-12 Pages: 1410-1437

Asif Nawaz Wassan , Muhammad Saad Memon , Sonia Irshad Mari , Muhammad Ahmed Kalwar (2022 ) Impact Of Total Quality Management (Tqm) Practices On Sustainability And Organizational Performance Journal of Applied Research in Technology & Engineering Received: March 29, 2022; Accepted: June 21, 2022; Published: July 31, 2022  VOL. 3 NO. 2  Pages  93-102

Djojo Dihardjo and Lena Ellitan ( 2021 ) Total Quality Management: A Review of Recent Trend International Journal of Trend in Research and Development, Volume 8(6), ISSN: 2394-9333 pages – 40-45

Cemal Zehira , Öznur Gülen Ertosunb , Songül Zehirc , Büşra Müceldillid ( 2012 ) Total Quality Management Practices’ Effects on Quality Performance and Innovative Performance Total Quality Management Practices’ Effects on Quality Performance and Innovative Performance Procedia - Social and Behavioral Sciences 41 ( 2012 ) 273 – 280

Kumar, V. Mittal, A., Verma, P. and Antony, J. (2023), "Mapping the TQM implementation approaches and their impact on realizing leadership in Indian tyre manufacturing industry", The TQM Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/TQM-08-2022-0258

Carmona-Márquez, F.J., Leal-Millán, A.G., Vázquez-Sánchez, A.E., Leal-Rodríguez, A.L. (2014). The Impact of TQM Critical Success Factors on Business Performance. The Mediating Role of Implementation Factors in Linking Enabler and Instrumental Factors. In: Peris-Ortiz, M., Álvarez-García, J. (eds) Action-Based Quality Management. Springer, Cham. https://doi.org/10.1007/978-3-319-06453-6_10

Saumyaranjan Sahoo(2019) Assessment of TPM and TQM practices on business performance: a multi-sector analysis February 2019Journal of Quality in Maintenance Engineering 25(1)DOI:10.1108/JQME-06-2018-0048

Daniel Carnerud & Ingela Bäckström( 2019 ) Carnerud, D., & Bäckström, I. (2021). Four decades of research on quality: summarizing, Trend spotting and looking ahead. Total Quality Management & Business Excellence, 32(9–10), 1023–1045. https://doi.org/10.1080/14783363.2019.1655397