LITERATURE
REVIEW
Organizations worldwide have
been exploring ways to improve business practice to gain competitive edge. In
today’s global competition and economic liberalization, quality has become one
of the important factors for achieving competitive advantage. A good quality
product or services enables an organization to add and retain customers. Poor quality
leads to discontented customers, so the costs of poor quality are not just
those of immediate cost or rectification but also the loss of future sales.
Technological innovations have diffused geographical boundaries resulting in more
informed customers. The business environment has become increasingly complex
and the marketplace has changed form local to global. Constant pressure is
applied on the management to improve competitiveness by lowering operating cast
and improving excellence in production through total quality management (TQM
EMPIRICAL REVIEW
Improving production
excellence through total quality management (TQM) has played an important role
in the development of contemporary management. Quality, considered a key strategic
factor in achieving business success, is more than ever required for competing
successfully in today’s global market place dean and Evans,(1994) however, the
results of most of the work carried out on TQM show that the implementation of
TQM is beneficial in routine work and can increase efficiency from both overall
and individual perspective.
Oluwale and Gbenga (2004) examined the impact of
the use TQM in an organization, using survey questionnaire and chi-square test
fund out that TQM will facilitate the change and transformation in an
organization and enable them to move towards business excellence. Schroeder
(1994) investigated how Tankey
university implements total quality management (TQM) in administrative affairs
using parametric tests, found that the implementation of TQM is beneficial in
routine work and organization efficiency.
Reiffers (2001) has highlighted
the relationship between production excellence and total quality management on
long term growth. The data suggest that production excellence is positively
associated with quality more over an instrumental variables procedure indicates
a strong connection that production excellence is positively associated with
quality management.
Abu – Bader and Abu – Quam
(2007) examined the casual relationship between quality management and
production capability in Egypt during the period 1960 – 2007 with Granger –
causes production growth either through increasing efficiency or through
increasing resources for investment they suggested further deepening of quality
management is an important instrument to simulate production and therefore
long-term production growth.
Ochiwar (2010) analyzed the
role of the strategies to improving production excellence in relieving
industrial constraints thereby allowing for smoother production and less
volatile growth. They suggested that an increased in commitment of top
management will improve TQM.