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What makes Total Quality Management work A study of obstacles and outcomes
WHAT MAKES TOTAL QUALITY MANAGEMENT WORK: A STUDY OF OBSTACLES AND OUTCOMES by Deborah A Hill JEAN GORDON, Ph.D., Faculty Mentor and Chair JOHN KLOCINSKI, Ph.D., Committee Member WARREN MCDONALD, Ph.D., Committee Member Kurt Linberg, Ph.D., Dean, School of Business & Technology A Dissertation Presented in Partial Fulfillment Of the Requirements for the Degree Doctor of Philosophy Capella University April 2008 UMI Number: 3303697 UMI Microform 3303697 Copyright 2008 by ProQuest Information and Learning Company All rights reserved This microform edition is protected against unauthorized copying under Title 17, United States Code ProQuest Information and Learning Company 300 North Zeeb Road P.O Box 1346 Ann Arbor, MI 48106-1346 Abstract Data was gathered from a section survey of ASQ members to determine the obstacles associated with managing a successful quality transformation The five most significant barriers to TQM were: (a) management’s compensation was not tied to achieving quality goals, (b) employees are not trained in quality improvement skills, (c) there are not adequate resources to effectively employ total quality management, (d) employees are resistant to change, and (e) employees are not trained in problem identification and problem solving techniques Factor analysis on the ratings of the twenty-one barriers to TQM revealed three underlying constructs: (a) lack of planning for quality, (b) lack of training on quality, and (c) lack of leadership for quality These obstacles were found to be significantly related to specific potential outcomes that can be used to measure TQM success (or failure) The potential outcomes include frequent turnover of employees, frequent turnover of management, the cost/benefit ratio of implementing TQM, and quality improvement results rarely meet expectations This provides a useful way to evaluate the significance of obstacles to TQM success, and therefore, provides guidance and direction for developing strategies for an effective quality transformation ii Table of Contents List of Tables vi List of Figures vii CHAPTER INTRODUCTION Introduction to the Problem Background of the Study Statement of the Problem Purpose of the Study Research Questions Significance of the Study Definition of Terms Assumptions and Limitations Nature of the Study, or Theoretical/Conceptual Framework Organization of the Remainder of the Study CHAPTER LITERATURE REVIEW TQM Defined History of TQM Obstacles to TQM 32 Benefits of TQM 40 How Can TQM Work? 46 CHAPTER METHODOLOGY 56 iii Population 56 Research Design 57 Sample 61 Instrumentation/Measures 62 Data Collection 63 Data Analysis 63 Validity 64 Reliability 64 Ethical Considerations 65 CHAPTER RESULTS 66 Summary of Research Design and Methodology 66 Characteristics of Respondents 66 Definitions of Quality 68 Product Quality Dimensions 71 Service Quality Dimensions 76 Research Questions 82 Obstacles to TQM Success 82 Correlations of Obstacles with Outcomes 97 CHAPTER DISCUSSION AND CONCLUSIONS 103 Findings and Interpretations 104 Recommendations 112 Suggestions for Future Research 114 Summary and Conclusion 115 iv REFERENCES 117 APPENDIX SURVEY QUESTIONS 125 v List of Tables Table Eigenvalues and the Total and Cumulative Variance for Each Extracted Factor97 Table Results From the Regression Analyses 100 vi List of Figures Figure Size of Organization 67 Figure Type of Organization 67 Figure Quality Defined as Innate Excellence 68 Figure Quality Defined as a Measured Characteristic 69 Figure Quality Defined by Intended Use 70 Figure Quality Defined as Conformance to Standards 70 Figure Quality Defined as Performance at an Acceptable Price 71 Figure Product Quality Dimension-Aesthetics 72 Figure Product Quality Dimension-Conformance 73 Figure 10 Product Quality Dimension-Durability 73 Figure 11 Product Quality Dimension-Features 74 Figure 12 Product Quality Dimension-Perceived Quality 74 Figure 13 Product Quality Dimension-Performance 75 Figure 14 Product Quality Dimension-Reliability 75 Figure 15 Product Quality Dimension-Serviceability 76 Figure 16 Service Quality Dimension-Reliability 77 Figure 17 Service Quality Dimension-Responsiveness 78 Figure 18 Service Quality Dimension-Competence 78 Figure 19 Service Quality Dimension-Access 79 Figure 20 Service Quality Dimension-Courtesy 79 Figure 21 Service Quality Dimension-Communication 80 Figure 22 Service Quality Dimension-Credibility 80 vii Figure 23 Service Quality Dimension-Security 81 Figure 24 Service Quality Dimension-Knowing the Customer 81 Figure 25 Service Quality Dimension-Tangibles 82 Figure 26 Statement 1-Strategic Plans not Include Quality Goals 84 Figure 27 Statement 2-The Best Practices and/or Products of Other Companies are NOT Benchmarked 85 Figure 28 Statement 3-There are Excess Layers of Management 85 Figure 29 Statement 4-Quality is Treated as a Separate Initiative 86 Figure 30 Statement 5-Quality is not Everyone’s Responsibility 86 Figure 31 Statement 6-Employees are NOT Trained in Problem Identification and Problem Solving Techniques 87 Figure 32 Statement 7-There is no Joint Planning with Suppliers 87 Figure 33 Statement 8-Quality is not Effectively Measured 88 Figure 34 Statement 9-Quality is NOT Defined by the Customer 88 Figure 35 Statement 10-Employees are not Trained in Group Discussion and Communication Techniques 89 Figure 36 Statement 11-Quality Action Plans are Often Vague 89 Figure 37 Statement 12-The Strategic Plan is NOT Customer Driven 90 Figure 38 Statement 13-Employees are NOT Empowered to Implement Quality Improvement Efforts 90 Figure 39 Statement 14-There are Inadequate Resources to Effectively Employ Total Quality Management 91 Figure 40 Statement 15-Cross-Functional Teams are not Employed 91 Figure 41 Statement 16-Employees and/or Teams are NOT Recognized for Achievements in Quality Improvement 92 Figure 42 Statement 17-Employees are NOT Trained in Quality Improvement 92 viii Figure 43 Statement 18-Top Management is NOT Visibly and Explicitly Committed to Quality 93 Figure 44 Statement 19-Quality Improvement Efforts Rarely Meet Expectations in Terms of desired results 93 Figure 45 Statement 20-Management’s Compensation is NOT Linked to Achieving Quality Goals 94 Figure 46 Statement 21-There is Frequent Turnover of Employees 94 Figure 47 Statement 22-Time Constraints Prohibit Effective Total Quality Management Implementation 95 Figure 48 Statement 23-Employees are Resistant to Change 95 Figure 49 Statement 24-The High Costs of Implementing Total Quality Management Outweigh the Benefits 96 Figure 50 Statement 25-There is Frequent Turnover of Management 96 Figure 51 Scree Plot for the Principal Components Analysis 98 ix In this study it was very difficult to get responses from the survey by including it in a newsletter It is highly recommended that a survey be sent out separately and by itself in order to get more responses Also, it is recommended to have some kind of reward or prize for those that complete the survey Summary and Conclusion This study showed the main obstacles to TQM and how they relate to specific outcomes This study showed the most significant obstacle is not tying management’s compensation to achieving quality goals The second most significant barrier to TQM was that employees are not trained in quality improvement skills The third most significant barrier was that there are not adequate resources to effectively employ total quality management The fourth most significant barrier was that employees are resistant to change The fifth most significant barrier was that employees are not trained in problem identification and problem solving techniques When the twenty-one obstacles were correlated with potential outcomes, three underlying constructs resulted: lack of planning for quality, lack of training on quality, and lack of leadership for quality Then regression analysis was performed on the four undesirable outcomes of TQM (frequent turnover of employees, frequent turnover of management, high cost of implementing TQM outweighs the benefits, and quality improvement efforts rarely meet expectations) and it was found that lack of planning and lack of leadership were significant for all four undesirable outcomes Lack of training was significant for the frequent turnover of employees 115 This study is very beneficial for those involved in implementing or maintaining an effective TQM system It can help those involved in TQM realize what potential obstacles can occur and what the underlying constructs or reasons can be This study also leads to further research in that the five most prevalent obstacles could be hypotheses in future studies They could each be tested to see if they are the same obstacles for other areas, groups, or organizations Managers need to realize that when implementing a TQM program the expected results not occur overnight; it may take years before an organization realizes benefits However, if there is proper planning, 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Is your organization involved in Total Quality Management? Yes No If yes, for how many years has your organization been involved? II Rate how closely each of the following definitions of quality matches that of your organization Not at all Somewhat Exactly Quality is innate excellence Quality is reflected by the level of some measurable product/service attribute Quality is realized when customer satisfaction is maximized because the product/service fits its intended use Quality is conformance to specification 5 Quality is performance at an acceptable price 125 III If your division is primarily involved in MANUFACTURING, complete PART A only If your division is primarily involved in SERVICE, skip PART A and complete PART B only PART A Rate how important each of the following product quality dimensions is to your organization's competitive strategy not minor somewhat important very important importance important important Aesthetics Conformance Durability Features 5 Perceived Quality Performance Reliability Serviceability PART B Rate how important each of the following service quality dimensions is to your organization's competitive strategy not minor somewhat important very important importance important important Reliability Responsiveness Competence Access 5 Courtesy Communication Credibility Security Knowing the Customer 10 Tangibles 126 IV Please indicate the extent to which each of the following statements is true about your organization not at all slightly somewhat mostly completely true true true true true Strategic plans not include quality goals The best practices and/or products of other companies are benchmarked 5 5 There are excess layers of management Quality is treated as a separate initiative Quality is not everyone's responsibility Employees are trained in problem identification and problem solving techniques 5 5 There is no joint planning with suppliers Quality is not effectively measured Quality is defined by the customer 10 Employees are not trained in group discussion and communication techniques 127 11 Quality action plans are often vague 5 12 The strategic plan is customer driven 13 Employees are empowered to implement quality improvement efforts 14 There are adequate resources to effectively employ total quality management 5 15 Cross-functional teams are not employed 16 Employees and/or teams are recognized for achievements in quality improvement 17 Employees are trained in quality improvement skills 18 Top management is visibly and explicitly committed to quality 19 Quality improvement efforts rarely meet expectations in terms of desired results 20 Management's compensation is linked to achieving quality goals 21 There is frequent turnover of employees 22 Time constraints prohibit effective total quality management implementation 128 5 23 Employees are resistant to change 24 The high costs of implementing total quality management outweigh the benefits 25 There is frequent turnover of management 129 ... and product quality Malcolm Baldrige National Quality Award (MBNQA) This award is administered by ASQ and is presented annually to organizations that demonstrate quality and performance excellence... and the Malcolm Baldrige National Quality Award (MBNQA) TQM is often thought of as either a terrific quality marvel or tragic quality malpractice It depends on several factors, such as to what. .. operational levels rather than adopting Strategic Total Quality Management 36 Another obstacle to TQM is change and resistance to change Too often, management ignores human resistance issues and