TOTAL QUALITY CONTROL AS DETERMINANT FACTOR FOR EFFECTIVE AND EFFICIENT PRODUCTION

TOTAL QUALITY CONTROL AS DETERMINANT FACTOR FOR EFFECTIVE AND EFFICIENT PRODUCTION

CHAPTER ONE

INTRODUCTION

 1.1      BACKGROUND OF THE STUDY

Total Quality Control (TQC) has become a world-wide topic in the twenty-first century. Having its roots partly in the USA and partly in Japan, it was primarily adopted by some Japanese companies in the decades immediately after world war II with the greater successes of Japanese companies during the 1980s.

Companies all over the world found that it was necessary to have good quality Control practices in order to stay competitive (Lagrosen, 2002). Total Quality Control is an enhancement of the traditional way of doing business. It is a proven technique to guarantee survival in world competition. Only by changing the actions of Control will the culture and actions of an entire organization be transformed. Total quality Control (TQC) as a Control approach of an organization is centred on quality based on the participation of all its members and aiming at long term success. This is achieved through

customer satisfaction and benefits to all members of the organization and society.

In other words, TQC is a philosophy for managing an organization in a way, which enables it to meet stakeholders need and expectations efficiently and effectively without compromising ethical values (ISO, 8404, 1994). TQC has been widely implemented throughout the world. Many firms have arrived at the conclusion that effective TQC implementation can improve their competitive abilities and provide strategic advantages in the market place. (Anderson, Fornell& Lehmann, 1994) several studies have shown that the adoption of TQC practices can allow firms to compete globally (Easton, 1993), (Ernst and Young, 1996; Womack &Roos, 1990). Several researchers also reported that TQC implementation has led to improvements in quality, productivity and competitiveness in only 20 – 30% of the firms that have implemented it (Benson, 1993). According to a survey of manufacturing firms in Georgia, the benefits of TQC are improved quality, employee participation, teamwork, working relationship, customer satisfaction, employee, satisfaction, productivity, communication, profitability and

market share (Dale, Zairi, VanfderWiele& Williams, 2000).

A study conducted by Rategan (1992) indicated that a 90% improvement rate in employee relations, operating procedures, customer satisfaction, and financial performance is achieved due to TQC implementation. However, Burrows (1992) reported a 95% failure rate for initiated TQC implementation programs; Eskildson

(1994), Tomow and Wiley (1991) reported that TQC implementation has uncertain or even negative effects on performance.

TOTAL QUALITY CONTROL AS DETERMINANT FACTOR FOR EFFECTIVE AND EFFICIENT PRODUCTION