Application of TQM Principles in the International Technology Transfer Process of Industrial Production Plants: A Conceptual Framework

This paper attempts to illustrate the application of the principles in Total Quality Management (TQM) to the International Technology Transfer (ITT) processes used in industrial production plants. Disaggregated analysis of the ‘technology transformation’ process is deployed to highlight the application of TQM. AT&T's ‘customer–supplier’ model of quality is introduced to explain the interactive roles of the parties involved. It argues that the existing literature deals inadequately with the issues raised and discussed in this paper. A conceptual ITT-TQM model is proposed. Such a model should ensure proper assimilation of imported technology and permit continuous improvement of the processes leading to the customer satisfaction. It is suggested that the success of the model depends on the ‘win-win-win’ strategies of the supplier, the process owner and the customer. Examples from various sources are presented to reinforce the argument. In addition, international standards such as the ISO 9000 standard and frameworks for TQM such as the US Malcolm Baldrige National Quality Award and the European Quality Award (European Foundation for Quality Management) are posited as necessary to ensure quality technology transfer.     

TOTAL QUALITY MANAGEMENT: A LITERATURE REVIEW AND AN AGENDA FOR FUTURE RESEARCH

Total quality management (TQM) is a revolutionary approach to effective management. The research in TQM has emerged from practical needs of organizations embracing this philosophy, and the literature is mostly conceptual and practitioner-oriented. There is a lack of sound theoretical framework classifying past efforts and guiding future research. To fill the void, a study of the published TQM literature is undertaken. A review, classification, and analysis of the research in TQM spanning the last two decades is presented. A total of 226 TQM-related articles are identified from 44 refereed management journals published from 1970 to 1993. These articles are then classified and analyzed using the following two-dimensional scheme: (1) article orientation (conceptual, case study, empirical, analytical, simulation, and overview) and (2) article focus using the Malcolm Baldrige National Quality Award criteria. The analysis of the literature presents pertinent developments in each of the seven criteria. In addition, it provides future research directions as well as a ready reference of the TQM literature. The suggestions for research should guide future developments in the TQM field and help transform it into a formal discipline.     

Evolution of Quality: First Fifty Issues of Production and Operations Management

Many contributions have been made to the field of quality since the inaugural issue of Production and Operations Management in 1992. The first issue called for more research and teaching on TQM, which resulted in two special issues dedicated to TQM. Many other articles related to quality have also been published in the first fifty issues of the journal on topics ranging from technical methods to the Baldrige Award and ISO 9000. As we review these articles, we assess their contribution and the progression of the field of quality. Although past research has advanced our understanding of quality, there still exists many research opportunities in developing more theory, using additional research methodologies, and studying emerging topics in this field.     

UNDERSTANDING THE IMPORTANT DIFFERENCES BETWEEN THE MALCOLM BALDRIGE NATIONAL QUALITY AWARD AND ISO 9000 REGISTRATION

Market globalization, higher requirements for improved quality, and tough, faster-pace, price-sensitive competition have led to two parallel and visible quality thrust: the Baldrige Award in the U.S. and, internationally, the ISO 9000 standards. The relationship between the Baldrige Award and ISO 9000 registration is widely confused. Two common misper-ceptions stand out: (1) that they both cover the same requirements and (2) that they both address improvement, relying on high quality results, and thus, are both forms of recognition. Many have concluded that the Baldrige Award and ISO 9000 are equivalent and that companies should choose one or the other. These conclusions are incorrect. The Baldrige Award and ISO 9000 registration differ fundamentally in focus, purpose, and content. The focus of the Baldrige Award is on enhanced competitiveness. The Award Criteria reflect two key competitiveness thrusts: (1) delivery of ever-improving value to customers and (2) improvement of overall operational performance. The Award's central purpose is educational-to encourage sharing knowledge and experience of competitiveness and to drive this learning, creating an evolving fund of knowledge. By contrast, the focus of ISO 9000 registration is on conformity to practices specified in the registrant's own quality systems. Its central purpose is to enhance and facilitate trade. The Baldrige Award addresses competitiveness factors either not addressed in ISO 9000 registration or addressed differently. These factors include a customer and market focus, results orientation, continuous improvement, competitive comparisons, a tie to business strategy, cycle time and responsiveness, integration via analysis, public responsibility, human resource development, and information sharing. Overall, ISO 9000 registration covers less than 10% of the scope of the Baldrige Award Criteria and does not fully address any of the 28 Criteria items. As a result, the national drive to improve competitiveness could be diminished. Companies required to or electing to seek ISO 9000 registration are encouraged to integrate their conformity efforts with the Baldrige Award competitiveness improvement framework.     

Revisiting the stock price impact of quality awards

In an event study, Hendricks and Singhal [Hendricks KB, Singhal VR. Quality awards and the market value of the firm: an empirical investigation. Management Sci 1996;42:415–36.] find evidence that firms that win quality awards are further rewarded with a stock price increase on the day of the award announcement. We revisit Hendricks and Singhal (1996), extend their research and find four reasons why management, owners and analysts should be cautious about expecting an abnormal return when a firm wins a quality award. First, in our sample of Baldrige Award winners, the evidence of a stock price response on the announcement day is only marginally significant. Second, in our sample of State quality award winners, the announcement day relationship between stock returns and winning awards is not significant. Third, in the most recent subperiod, 1992–1997, we find no evidence of positive abnormal returns. Fourth, the marginally significant Baldrige results are actually driven by just four companies. A company-by-company microanalysis reveals that only 50% of the award winners experienced positive abnormal returns. The diminishing stock price response on event day does not necessarily imply a lack of stockholder rewards. Evidence from other studies suggests that the stockholders are rewarded for successful total quality management (TQM) implementation, but the rewards can come long before and after the formal award is presented. From a shareholder value perspective, TQM still matters but the award ceremonies may not.     

An empirical study of quality management practices in the petroleum industry

The purpose of this paper is to empirically study quality management practices in the petroleum industry in Iran. A reliable and valid survey instrument has been used for data gathering from managers in the petroleum industry in Iran. The instrument has been developed based on the criteria of the Malcolm Baldrige National Quality Award (MBNQA), which consists of 13 dimensions of quality management. Correlation analysis has been used to test for a relationship between the quality management constructs and quality results (internal quality results and/or external quality results). Most of the linkages within the Baldrige criteria were supported, which indicates the universal applicability of the Baldrige Award criteria. The result of the correlation analysis indicates that top management support is the major driver for quality management implementation which is significantly correlated with most of the quality management constructs. Furthermore, the results indicated that employee training and employee involvement are significantly correlated with internal (operational) quality results. Customer orientation and supplier quality are not significantly correlated with external quality results (business performance).     

Swiftness and Intensity of Administrative Innovation Adoption: An Empirical Study of TQM in Information Systems

Considerable attention has been directed toward developing a more complete understanding of innovation adoption by Information Systems (IS) departments. Much of this research has focused on the adoption of technological innovations, and limited research has focused on the adoption of administrative innovations. This paper focuses on an administrative innovation that is increasingly becoming popular among IS departments, namely Total Quality Management (TQM) in systems development. A synthesis of the IS innovation and TQM literatures was conducted to identify environmental, organizational, and task‐related factors that should relate to both the swiftness and the intensity of TQM adoption. The relationships between the identified variables and TQM adoption were examined using data collected from 123 IS departments in Fortune 1000 firms and large government agencies in the U.S. The results indicate that TQM adoption in systems development is influenced by the host organization's quality orientation and factors internal to the IS department including IS management support for quality, the presence of a separate quality assurance function, and the structural complexity of the IS department. Implications of this study for theory, future research, and practice are discussed.     

An Empirical Investigation of the Malcolm Baldrige National Quality Award Causal Model

The objective of this research is to test the theory and causal performance linkages implied by the Malcolm Baldrige National Quality Award (MBNQA). The survey instrument used a comprehensive set of 101 questions that were directly tied to specific criteria in the 1995 MBNQA Criteria. Results reported here represent the first published article that tests the MBNQA performance relationships and causal model using comprehensive measurement and structural models. In general, our research concludes that (1) The underlying theory of the MBNQA is supported that “leadership drives the system that causes results”; (2) Leadership is the most important driver of system performance; (3) Leadership has no direct effect on Financial Results but must influence overall performance “through the system”; (4) Information and Analysis is statistically the second most important Baldrige category; (5) the Baldrige category, Process Management, is twice as important when predicting customer satisfaction as when predicting financial results; and (6) a modified “within system” set of five Baldrige causal relationships is a good predictor of organizational performance.     

Integration of BPR and TQM: Past,present and future trends

During the past decade, some efforts have been put forth by researchers towards integrating Total Quality Management (TQM) and Business Process Reengineering (BPR) principles. The results of the majority of research work carried out in this direction have been scattered and have not been applied in practice. In this context this paper is being brought out with the aim of reporting the literature survey conducted with the objective of evolving future direction of research imperatives for integrating TQM and BPR principles. The literature survey was carried out by using CD-ROM journal called Anbar Electronic Intelligence (AEI) (published by MCB University Press, UK) and by visiting the site maintained by Emerald Library, UK. On systematic analyses, it was found that the integration of BPR with the quality strategies identified in a theoretical Strategic Quality Management model would make a meaningful start in this direction.     

A grounded theory research approach to building and testing TQM theory in operations management

Total quality management (TQM) has continued to develop as a strategic business improvement approach in organisations and within the Operations Management literature. Strategic TQM is a dynamic phenomenon, reflecting the complexity and technology development in the business environment. Therefore, this conception of TQM has led to significant challenges with regards to developing suitable models and research methodology where traditional, and normative research data, includes survey responses associated with deductive theory and testing. Such data, and its use, is often premised on cause and effect rationality and fails to supply deep rich data to address meanings, phenomena and complex socio-political events, which is a feature of strategic TQM.     

COMPARING THE ENVIRONMENTAL AND QUALITY INITIATIVES OF BALDRIGE AWARD WINNERS

Can best‐practice quality firms leverage their quality programs for environmental management? This paper explores this question by comparing the implementation of successful and unsuccessful quality and environmental initiatives in five manufacturing‐ and five service‐sector Malcolm Baldrige National Quality Award (mbnqa) winners. The results lead to a series of propositions to guide future research. While the literature suggests that quality and environmental programs are closely related, this study finds that drivers of successful environmental initiatives are not the same as those for successful quality initiatives.     

The integration of TQM and technology/R&D management in determining quality and innovation performance

This paper presents an empirical study which examines the co-alignment between Total Quality Management (TQM) and technology/research and development (R&D) management in predicting organizational performance in terms of quality and innovation. This study improves our understanding of the relationship between TQM and innovation based on the following two major issues. First, this study contributes to the understanding of the co-alignment between TQM and technology management along with R&D management by bridging the gap between the two areas which are often addressed in a separate fashion. Second, this study also examines the impact of the integration between TQM and technology/R&D on quality and innovation performance which have been considered as the primary sources of a competitive advantage. The empirical data was drawn from 194 Australian organizations and analyzed using the Structural Equation Modeling (SEM) technique. The findings indicate that TQM shows a strong predictive power against quality performance but no significant relationship against innovation performance. On the other hand, technology and R&D management shows a significant relationship with quality performance but at a lower level than that of TQM, and shows much stronger relationship with innovation performance. In addition, there is strong and positive correlation between TQM and technology/R&D management. The major implication of this study is that technology/R&D management is an appropriate resource to be used in harmony with TQM to enhance organizational performance, particularly innovation.     

Critical success factors of TQM: A select study of Indian organizations

In the context of TQM, it is essential that the organizations identify a few key critical success factors, which should be given special attention for ensuring successful implementation of TQM program. The concept of critical success factors (CSFs) and their use in supporting planning efforts was originated from the approach associated with the development and implementation of management information systems. This paper represents a review of the literature on CSFs and supported by various philosophies of TQM. Such factors are considered as conducive to the success of TQM implementation. Based on an exploratory study of Indian organizations engaged in manufacturing and services, CSFs have been identified.     

Hoshin Kanri: Implementing the Catchball Process

Involving employees in strategy deployment is an active topic of strategic management, but has been difficult to achieve in western companies. The methodology known as Hoshin Kanri has proved an effective strategy deployment process in Japan where it has been extensively applied for integrating strategy and Total Quality Management (TQM), but its adoption in the West has been low, except for a few innovatory companies. The application of Hoshin Kanri relies on a process called “catchball” to gain consensus on the deployment of Hoshin targets and measures in a team environment. This paper presents a process design based on an adaptation of the Delphi technique for the effective implementation of catchball, to reinforce the link between the corporate strategy and annual planning cycle. The catchball process described was implemented at the Rover Group, a UK-based automotive company, to develop the company's quality strategy based on Hoshin Kanri principles.     

Total quality management and information technology

Total Quality Management is now well-established as a central method for improving the efficiency and competitive position of firms and organizations. Developed in a manufacturing environment, it has shown the same attributes in administrative and service industries. In this paper we examine the potential for use in the Information Technology sector. Little impact has been made by TQM in the IT industry. We use the famous 14 points of W. Edwards Deming to discuss the potential and the pitfalls awaiting such implementation. The particular nature of the industry means that the techniques are not transparently transportable, and we develop some initial ideas for using TQM in situations which are traditionally seen as one-off and not susceptible to process analysis and measurement. We illustrate the idea of designing in quality by focusing on software design for reduction of maintenance costs and also touch on the role of the IT sector in corporate TQM development.     

Coaching für Führungskräfte im Krankenhaus Baustein einer Strategie zum Total Quality Management

Coaching of managers in hospitals as component of a total quality management strategy The author delineates the changed conditions of hospitals at the beginning of the new millenium. In order to be up to date with the growing challenges and the need for change a Total Quality Management (TQM) is necessary. This TQM sees the satisfaction of clients and of employees as crucial for all reorganization processes. The realization in everyday hospital life requires a total personnel development concept, with special regard to the managers and their specific needs for support by supervisors resp. coaches.     

TQM in health care: mistaken identity?

Total Quality Management is a powerful tool in health care today. The definition of quality improvement in the medical literature focuses on improving patient outcomes. However, most quality initiatives in the health care field focus on improving productivity, cost-effectiveness, market share, employee morale, and efficiencies of processes. This disparity between the medical definition of quality and the actual application of quality improvement may have the effect of alienating many physicians, the very people who must be involved. The semantics are important to address in a TQM initiative.     

Universal versus contextual effects on TQM: a triangulation study using neural networks

The objective of this study is to extend previous research on total quality management (TQM)-context-performance relationships and ‘fit’ using multiple methods. We combine artificial neural networks (ANNs) with structural equation modelling (SEM) to analyse several hypotheses and propositions. This is the first study in this area of research that utilises ANNs and a triangulation technique in the presence of several contextual factors. The SEM analyses suggest that company size and industry type may have contingency effects on some of the TQM practices and/or TQM-performance relationships. However, the ANN models have shown that these two contingency factors do not moderate TQM outcomes, implying that all organisations can benefit from TQM regardless of size and type. As well, these models show that formal TQM implementation and/or ISO certifications do not add any predictive power to the ANN models except in one case: TQM implementation and/or ISO certification added to organisational effectiveness and customer results to predict financial and market (F&M) results. The results further indicate that even though implementing TQM alone has a bigger impact on F&M results than obtaining ISO certification alone, combining the two will have an even greater impact on these results. Joint implementation leads to greater improvements in organisational effectiveness, which, in turn, has a positive effect on customer results and consequently F&M results. This is a unique finding within the context of moderator effects on TQM-performance relationships.     

DEVELOPING SOPHISTICATED QUALITY IMPROVEMENT APPROACHES THROUGH BUSINESS-ACADEME COLLABORATIONS: INTRODUCTION TO THE SPECIAL ISSUE

The pursuit of better performance has led to a number of business-academe collaborations. These collaborators have developed a number of sophisticated approaches that go far beyond such traditional simple methods as benchmarking against the best company, Ishikawa diagrams on feedback and control, Pareto diagrams, incentive systems based solely on output or quality, standard process control charts, and separate treatment of control charts and product inspection. The authors in this special issue report on approaches like benchmarking industrial performance through industry studies; the use of an artificial-intelligence statistical-tree growing method to analyze complex customer service data; an incentive system based on the total quality management (TQM) concepts of continuous improvement, teamwork, adaptation to change, and a focus on customer satisfaction; and integration of product inspection and process control. Because of the continuing widespread interest in TQM, there is an opportunity to take stock of how successful TQM initiatives have been and how we should consolidate and further extend the knowledge in TQM. Two of the papers report on the gap between what organizations espouse as TQM and what they actually implement and on the literature on TQM.     

Achieving total quality through intelligence

American firms want 'total quality'. The time and money spent by U.S. companies attempting to qualify for the coveted Baldrige Award exemplifies corporate America's desire to achieve new quality standards. Corporate intelligence and 'total quality' are inextricably linked. In this article, the authors demonstrate how shared and properly-used information can be a powerful tool for elevating quality standards, and how corporate intelligence programmes can provide the information links vital for success in attaining the highest standards of quality.