The development of an assessment model for determining the level of total quality management (TQM) adoption in large Philippine manufacturing companies: An exploratory study

• Main Author: Manalang, Anna Bella Siriban
• Format: text
• Language: English
• Published: Animo Repository 2001
• Subjects: Total quality management; Benchmarking (Management); Industrialists; Manufacturing
• Online Access: https://animorepository.dlsu.edu.ph/etd_doctoral/886
• Institution: De La Salle University

This research is a study of Total Quality Management (TQM) diagnostics focused on the identification and quantification of the key indicators of TQM.Through concept mapping, TQM factors were derived which formed the basis for designing and developing TQM indicators with the end-in-view of characterizing TQM systems contained within organizational systems. Utilizing the results, a survey questionnaire of quantitative measures was formulated and, subsequently, administered across 40 domestic manufacturing companies from various industries with a capitalization of at least PhP 50 million. The latent statistical relationships among the variables were explained from which a long list of 28 validated key indicators was reduced to 18 variables using Principal Components Analysis and Multi-collinearity Analysis. Through Multiple Linear Regression, the model structure of the relevant indicators characterizing the level of TQM adoption was established. The resulting regression equation presents a classification model which confirms that the Level of TQM adoption is affected by the various indicators identified from the literature. The levels of TQM adoption among the respondent organizations, categorized into four clusters to represent the existing levels of adoption of large Philippine manufacturing companies, were found to be distinct and well-discriminated from each other. Multi-axial graphs of the various cases, with the axes representing scores on each factor, show that while there are striking similarities across the sample companies, there are subtle differences that separate companies from one another. From a reduced set of 18 variables, 4 relevant indicators surfaced as predictor variables for determining the level of Total Quality Management Adoption for sample companies, namely: Approach of Strategic Quality Planning Process (ASQP), Percentage of customer complaints addressed (COMSOLV), Percentage of Employees who have attended TQM-related training programs (TRAIN), and Who are involved in Continuous Improvement programs/projects (WINVOLPS).The level of TQM Adoption was deemed higher in companies with higher values for the indicators ASQP, COMSOLV, and TRAIN it is lower in those with higher values of WINVOLPS. Higher levels of TQM Adoption are associated with companies having a more proactive ASQP, higher COMSOLV, and more people in the organization that are trained in TRAIN. Finally, as the Problem Solving Process reaches the lowest level in the organization, the higher is the cluster grouping. The linkages that surfaced among the TQM attributes show that Top Management Leadership drives Human Resource Empowerment and Process Vitality. Human Resource Empowerment impacts Continuous Improvement which is linked with Process Vitality. Process Vitality is in turn related with Customer Focus. However, the attribute that significantly differentiates companies from one another is Responsiveness of Customer Needs, which can be gauged by COMSOLV.This exploratory work on large-scale companies highlights the possibility of organizing benchmarking efforts through quantifiable measures for continuously improving the competitive advantages of companies.