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Afizan Amer
Universiti Teknologi MARA
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ABSTRACT
Total quality management is a management philosophy that managing organizations
to improve its overall effectiveness and performance towards achieving world class
status (Waldman, 1994). Total quality management practices towards achieving
quality performance is and tactically important for gaining a competitive advantage
to the organizations (Corbett et al., 1998). This research presents the following
objectives that are to explore the relationship between each of the Total quality
management practices and quality performance in an organization. The remaining of
this research is, the theories laid down in the literatures of TQM critical practices and
the link between TQM practices and quality performance are reviewed. The total
quality management practices in an organization are leadership, process
management, information analysis, customer focus, supplier relationship quality
system improvement, continual improvement and people involvement (Flynn et al.,
1995a). All of this total quality management practices can lead to the quality
performance of the organization. Nowadays, its become more important for any
organization in Malaysia or international country to practices this quality
management system as to ensure they can achieve their company well performance
and by that their companys goals and objectives can be achieve. And from one
article that related to this research, it was said that the framework for quality
management research of Flynn et al. (1994) asserted that quality management
practices are the inputs and quality performance represents the outputs. Quality
management practices (statistical control and feedback, product design process,
process flow management, and top management support) were found positively
correlated quality performance (Flynn et al., 1995).
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The purpose of this paper is to explore the relationship between total quality
management practices in Pos Malaysia Berhad Kota Kinabalu, Sabah. The data were
analyzed using correlation analysis to find out the relationship between each of Total
quality management (TQM) practices with quality performance. From the findings, it
revealed that Total quality management (TQM) practices were found to be partially
correlated with quality performance. It is also found that where customer focus and
continual information analysis and people involvement were perceived as dominant
Total quality management (TQM) practices in quality performance. The outcome of
the study could provide valuable knowledge to top management of ISO 9001:2000
certified to refine their quality management practices and subsequently improve
quality performance.
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1.0
INTRODUCTION
1.1
BACKGROUND OF COMPANY
1.2
BACKGROUND OF STUDY
For the purpose of this study, it focuses more on the total quality
management practices by the organization and its relationship with the quality
performance. The Total quality management can be define as a management
philosophy that seeks to integrate all organizational functions such as marketing,
finance, design, engineering, and production, customer service and other functions,
to focus on meeting customer needs and organizational objectives.
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Pos Malaysia Berhad has four main business units, they are PosMel,
PosNiaga, PosLaju and PosLigistik. This four business unit has its own responsibilities
for its department. PosMel that provided the service for mail and parcel normal
delivery in nation or outside the nation, for PosNiaga or retailing, it handles the
operations of business transaction of monetary, while PosLaju is handling the form
of express delivery for mail or parcel either domestic or international. And the
PosLogistic is the services that handling the operations of logistic for air, land and
water transportation in order to deliver the mail or parcel from its customers.
1.3
SCOPE OF STUDY
This research is conducted for Pos Malaysia Berhad, Kota Kinabalu Sabah
which it is the General Post Office in Sabah. Pos Malaysia provides postal and related
services, transport logistics, printing and insertion, counter collection and payment
agency services for a range of financial transactions, such as bill payments,
remittance, insurance and unit trusts. Respondent for this study are more to Pos
Malaysia Berhad occupants, and more specific, my respondent are covered only at
Pos Malaysia Berhad, Kota Kinabalu, Sabah. And questionnaires will be distributed
for this research.
The research of this paper is to explore the relationship between total quality
management (TQM) practices and quality performance within the organization. The
Total quality management practice is strategically and tactically important for
gaining a competitive advantage and for the company performance. This study is
focusing the Total quality management (TQM) practices in the organization and to
identify the quality performance of the adoption of total quality management. The
Total quality management (TQM) are the inputs and the quality performance
represents the outputs. The Total quality management that practices are leadership,
process management, information analysis, customer focus, supplier relationship,
quality system improvement, continual improvement and people involvement. The
study focus on four of the Pos Malaysia Bhd Business Units, that are; PosMel,
PosLaju, PosNiaga and PosLogistik.
1.4
PROBLEM STATEMENT
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1.5
RESEARCH OBJECTIVE
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
1.6
RESEARCH QUESTION
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
1.7
LIMITATION OF STUDY
1.7.1 The scope of study is only cover only at Pos Malaysia Berhad
The study only covered at Pos Malaysia Berhad, and cannot make
comparison with
their competitors such as ABX, FEDEX, DXL and
others.
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1.8
SIGNIFICANCE OF STUDY
The study will be useful for the company as they can improve their quality
performance by practicing Total quality management (TQM). By understanding the
quality management that being implemented in the company, it will be easy for the
top management and employees to practice this total quality management
successfully. Besides that it can create a good image for the company and can be
more competitive in the industry if they are being certified with the ISO 9001:2000.
Besides that the company can improve their company performance if they can
identify their problems and disadvantages and find a solution for it so it can be
prevented before occur or repeated.
Besides that the company can identify what is their problem regarding
implementation of Total Quality Management, they can learn and know how to
improve their company performance. From this they can become more competence
and strong organization and so to improve their relationship at different level. The
company can be more understand with their management so they can achieve their
company goal and objectives.
1.9
DEFINITION OF TERMS
1.9.1
Postal Services
The system whereby messages are transmitted via the post office
1.9.2
Insurance
Insurance is defined as the equitable transfer of the risk of a loss, from one
entity to another, in exchange for a premium, and can be thought of as a
guaranteed and known small loss to prevent a large, possibly devastating
loss.
1.9.3
Unit trust
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1.9.4
ISO 9000:2001
1.9.5
Pos Laju
Pos laju is an express delivery services that offer the delivery of mail or parcel
to various country either domestic or international.
1.9.6
PosNiaga
1.9.7
PosLogistik
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2.0
LITERATURE REVIEW
2.1
Definition of quality
As Reeves and Bender (1994) indicated, there is not a unique, universal, all
encompassing definition of quality. The concept of quality has evolved throughout
history. Depending on the approach taken for defining quality, different aspects of
quality could be defined, such as definitional issues (philosophy); profit and
competitiveness (economics); customer satisfaction (marketing), and manufacturing
processes (operation management) (Garvin, 1984). Garvin (1984) proposed five
major approaches for defining quality, including (i) the transcendent approach of
philosophy, (ii) the product-based approach of economics, (iii) the user-based
approach of economics, marketing, and operations management, (iv) the
manufacturing-based approach, and (v) the value-based approach of operations
management. Reeves and Bender (1994) provided four primary definitions of quality.
They defined quality in terms of (i) excellence, (ii) value, (iii) conformance to
specifications, and (iv) meeting and/or exceeding customers expectations.
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2.2
2.3
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also revealed that percentage of items passes final inspection without requiring
rework was not the key variable of quality performance (Flynn et al., 1995).
Nevertheless, a study in semiconductor industry context supported the finding of
Flynn et al. (1995). The outcome of the study reaffirmed that quality management
practices have no significant correlation with rework rate (Yang et al., 2003). Jeng
(1998) examined the performance of ISO 9000 certified organizations in Taiwan with
six quality management practices. Customer focus appeared to be the most powerful
discriminated factor of quality performance. The discriminating powers of the
remaining five dimensions (leadership, information and analysis, strategic quality
planning, human resource development and management, and management of
process quality) were relatively low.
2.4
2.5
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2.6
2.7
Crosby (1976, p. 25) defines management as being responsible for establishing the
purpose of an operation, determining measurable objectives, and taking actions
necessary to accomplish those objectives. Another perspective added that
management was responsible for encouraging innovation and breakthrough as well
as controlling it (Juran, 1995). These ideas characterize management as the true
bearer of the quality burden. Perhaps the most referenced outline for
transformational management is provided by Deming (1982, p. 23) in his 14 Points
for Management. These points speak both directly and indirectly about quality as a
responsibility as well as a process. Notably, Deming (1982) urges management to
continue to focus on customer needs and desires while instilling constancy of
purpose toward product improvement into the entire organization. Total and
continuous quality improvement is seen as a journey not a destination and, as such,
has no real beginning or ending (Owens, 2001). Though the ultimate responsibility
(to the public) lies with management, it is posited that it is the duty of all employees
to improve regardless
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2.8
Information and analysis involve quality costs such as internal failure costs of scrap
and rework, and external failure costs of warranty and liability as well as statistical
control charts to monitor process, to identify quality problems, to provide
information for process improvement (Ho et al., 1999; Montgomery, 2005). Effective
information and analysis will contribute to communicate with suppliers continually
and closely, check suppliers process/quality control performance, and exchange
data so that quick and corrective action will be taken as soon as possible while the
production process is not interrupted. A supplier performance measurement
database will improve material quality and supplier responsiveness, reduce
development cost and purchase price, facilitate to monitor nonconforming
percentage, reliability, process capability ratios, percent parts rejected/accepted,
and on-time delivery performance of the supplier. Supplier can be given feedback
about their performance and helped to improve their process (Forza and Flippini,
1998; Kaynak, 2003; Monk and Wagner, 2006).
2.9
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DEPENDENT VARIABLE
TQM PRACTICES
LEADERSHIP
PROCESS MANAGEMENT
INFORMATION ANALYSIS
CUSTOMER FOCUS
QUALITY PERFORMANCE
SUPPLIER RELATIONSHIP
QUALITY SYSTEM
IMPROVEMENT
CONTINUAL IMPROVEMENT
PEOPLE INVOLVEMENT
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3.0
RESEARCH METHODOLOGY
This chapter provides the methodology for this research project. First, a brief
discussion of the sampling frame and the participants is provided. Next, the research
variables and hypotheses are presented, and finally data collection procedures and
data analysis are discussed
3.1
This study conducted using two types of data collection method which are primary
data and secondary data.
3.1.1
Primary data
According to Malhotra (1999) primary data are originated by the researcher for the
specific purpose of addressing the problem at hand. For this study purpose, the
primary data collection was taken from the communicating with certain
respondents and also through distributing questionnaires.
3.1.1.1
Questionnaires
3.2
RESEARCH DESIGN
Research design is a master plan specifying the methods and procedures for
collecting and analyzing the needed information. And for doing research at Pos
Malaysia Berhad, focus group will be used.
3.3
RESEARCH SAMPLING
3.3.1
Target Population
The collection of the elements or objects that posses the information sought
by the researcher and about which inferences are to be made, Malhotra,
1999. In this scope of study, the target populations are the employees at
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3.4
In data analysis, all the data that has been gathered from the completed
questionnaires will be analyzed by statistical package for social science (SPSS). The
frequency distribution, percentage analysis and cross tabulation of data are analyzed
and interpreted to derived information.
3.4.1
Preliminary Analysis
Correlation Analysis
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FREQUENCY ANALYSIS
Table 1: Respondent Gender
Frequency
Percent (%)
Male
25
50
Female
25
50
Total
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100
Gender
Male
Female
From the 50 respondents taken, there are 25 male and 25 female respondents.
Which both are 50% for male and 50% for female.
Table 2: Respondent Age
Frequency
Percent (%)
20- 24
14
25 - 29
12
24
30 - 34
18
35 - 39
40 and above
19
38
Total
50
100
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25-29
30-34
35-39
40 above
Percent (%)
PMR
SPM
24
48
DIPLOMA
17
34
DEGREE
14
Total
50
100
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Education
PMR
SPM
DIPLOMA
DEGREE
From the 50 rspondents taken, they are 2 respondents that has PMR education level
with 4%, for SPM level is 24 respondents which is 48%, for Diploma level they are 17
respondents which is 34% and for Degree level is 7 respondents and the percentage
is 14%.
Percent (%)
1-5years
5years
17
34
6-10years
10years
10
20
11-15years
15years
10
18
36
Total
50
100
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40%
35%
30%
25%
20%
15%
10%
5%
0%
1-5years
6-10years
11-15years
16years above
From the 50 respondents taken, 1-5 years working period, there are only 17
respondents which is 34%, for 6-10 years working period they are 10 respondents
and the percentage is 20%, for 11-15 years working period they are only 5
respondents which is 10% and for 16 years working period and above they are 18
respondents and the percentage is 36%.
RELIABILITY ANALYSIS
Table 5: Leadership
Cronbach's Alpha
No of Items
0.882
Based on the reliability statistics, it shows that the Cronbachs Alpha for leadership is
0.882, which is near to 1, which shows there is a relationship between the
independent variables and the dependent variable which is the quality performance.
This is the highest reliability among the eight independent variables. This
independent variable of leadership is the most influences to the dependent variable.
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Cronbach's Alpha
No of Items
0.849
Based on the reliability statistics, it shows that the Cronbachs Alpha for process
management is 0.849. This is the second highest reliability after leadership among
the other eight independent variables. This reliability statistics is near to 1, which
shows there is a relationship between the independent variable of process
management that influence the dependent variable of quality performance.
No of Items
0.812
Based on the reliability statistics, it shows that the Cronbachs Alpha for the
information analysis is 0.812. This is the third highest reliability statistics among the
eight independent variables. It is near to 1, where it has a relationship that influence
the dependent variable
Table 8: Customer Focus
Cronbach's Alpha
No of Items
0.800
Based on the reliability statistics, it shows that the Cronbachs Alpha for the
customer focus is 0.800 which it is near to 1, where it is the fourth highest reliability
statistics which also become the influencer for the dependent variable.
No of Items
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0.724
Based on the reliability statistics, it shows that the Cronbachs Alpa for supplier
relationship is 0.724 which also near to 1. It also can influence the changes in
dependent variable and there is a relationship between the independent variables of
supplier relationship and the dependent variable that is quality performance.
Table 10: Quality System Management
Cronbach's Alpha
No of Items
0.628
The reliability statistics shows that the Cronbachs Alpha is 0.628, which also near to
1. This also can influence the dependent variable and there is a relationship between
the independent variables of quality system improvement and the dependent
variable that is quality performance.
Cronbach's Alpha
No of Items
0.623
The reliability statistics shows that the Cronbachs Alpha is 0.623, this is the lowest
reliability statistics among the eight independent variables, which it also near to 1.
This can influence the dependent variable and there is a relationship between the
independent variables of quality system improvement and the dependent variable of
quality performance.
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Cronbach's Alpha
No of Items
0.796
Based on the reliability statistics, the Cronbachs Alpha for people involvement is
0.796, which is the fifth highest among the eight independent variables. This is also
influence and has relationship with the dependent variable.
Cronbach's Alpha
No of Items
0.609
Based on the reliability statistics, the Cronbachs Alpha for quality performance is
0.609 from 5 items of questions.
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Correlation Analysis
A Pearsons Correlation analysis was carried out to examine the bivarite
relationships among the main variables. Table 13 displays the results of the
correlation analysis of the study variables. As a can be seen in table 13, the
correlation coefficients for the variables under investigation were relatively high
ranging from 0.158 to 0.678. The level of customer focus was highly correlated with
the quality performance (r = 0.678, p < 0.01). It was followed by information analysis
and people involvement (r = 0.447, p < 0.001), supplier relationship (r=0.445, p <
0.001), continual improvement (r = 0.444, p < 0.001), process management (r =
0.365, p < 0.001), leadership (r = 0.319, p < 0.001) and the lowest is quality system
improvement (r = 0.246, p < 0.001).
In general, a majority of the Total Quality practices had significance positive
correlations (p < 0.01) with quality performance. From all the correlation, all
correlation coefficients are larger than 0.15. The highest coefficient of correlation in
this research however is 0.678. From the correlation analysis, it shows that,
leadership and quality performance is positively correlated, where the Pearson
correlation is 0.319. Process management and quality performance is positively
correlated and the Pearson correlation is 0.365. Between information analysis and
quality performance is also positively correlated, where the Pearson correlation is
0.447. For customer focus, it also positively correlated with quality performance and
the Pearson correlation is 0.678. Besides that, supplier relationship is also positively
correlated with quality performance where the Pearson correlation is 0.445. Quality
management information is also positively correlated with quality performance, and
the Pearson Correlation is 0.246. For continual improvement and quality
performance is also positively correlated and the Pearson correlation is 0.444. And
people involvement is positively correlated with quality performance and its Pearson
correlation is 0.447.
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5.0
In conclusion, the study was examined the relationship between each one of
the Total quality management practices and quality performance in the Pos Malaysia
Berhad, Kota Kinabalu, Sabah. The level of quality management practices which are
leadership, process management, information analysis, customer focus, supplier
relationship, quality system improvement, continual improvement and people
involvement, was found to be partially influenced on quality performance.
i)
Leadership
In response with the research question 1, the findings provided empirical evidence
that leadership have significant and positive relationship with quality performance.
The Pearson correlation is 0.319. Leadership is the second lowest correlation
because they were lack of skills and knowledge about leadership. That leads to low
relationship between leader and employees. The recommendation to overcome this
problem is, the company need to give training to the leader to ensure the leader can
improve their skills and knowledge about leadership and providing them with the
required resources, and freedom to act with responsibility and accountability.
ii)
Process Management
In response with the research question 2, the finding shows that the process
management have significant and positive relationship with quality performance.
The Pearson correlation is 0.365. It has low correlation because the process is not
systematic and slow, for example the workers did not follow the procedure to do the
mailing process as there are no standard operation procedure (SOP) put in the notice
board for their information and lack of supervision by the supervisor. The
recommendation to improve this, the company should teach the workers about the
process management, to give them knowledge and skills about the techniques and
system to define visualize measure, control, report and improve process with the
goal to meet customer requirements profitably and establishing clear responsibility
and accountability for managing key activities.
iii)
Information analysis
In response to research question 3, the finding shows that information analysis have
significant and positive relationship with quality performance. And the Pearson
correlation is 0.447, it is the second highest. This is because the company informed
decisions, an increased ability to demonstrate the effectiveness of past decisions
through reference to factual records and the increased ability to review, challenge
and change opinions and decisions. The recommendation are, to ensuring that data
and information are sufficiently accurate and reliable, making data accessible to
those who need it, analysing data and information using valid methods and making
decisions and taking action based on factual analysis, balanced with experience and
intuition.
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iv)
Customer Focus
For research question 4, the finding shows that the customers focus have significant
and positive relationship with quality performance. It has the highest Pearson
correlation by 0.678. The company depend on their customers and therefore they
understand current and future customer needs, they meet customer requirements
and strive to exceed customer expectations. The recommendation to maintain this,
the company should do researching and understanding customer needs and
expectations, ensuring that the objectives of the organization are linked to customer
needs and expectations, communicating customer needs and expectations
throughout the organization and managing a good customer relationship.
v)
Supplier Relationship
The finding for research question 5, it shows that the supplier relationship have
significant and positive relationship with quality performance. It is the third highest
Pearson correlation by 0.445. This is because the company have a good relationship
with its supplier and maintain their long term relationship with the suppliers, where
they ensure the supplier is qualified and supply products which clarify to its
specifications. And the supplier will do the maintenance if the machine breaks down.
For example Hewlett Packard (HP) personal computer is one of their supplier in
supplying computer and printer. The recommendation is the company need to
maintain the long term relationship, company need to do evaluation with their
suppliers to ensure the supplier supply good product that to them. Identifying and
selecting key suppliers, clear and open communication and sharing information and
future plans.
vi)
Quality System Improvement
The research question 6, the finding shows that the quality system improvements
have significant and positive relationship with the quality performance. It has the
lowest Pearson correlation by 0.246. This is because, they only do evaluation of
performance in the service counter, not with the workers and less on other
department, which give impact to other department which not being evaluated,
where the workers may not follow did not take seriously about the quality system
and did not follow the quality standard. The recommendation to improve this
problem, the company should standardize the performance evaluation system at all
departments. The building of a quality management program must begin with
management commitment and acceptance of the program.
vii)
Continual Improvement
The finding for the research question 7 shows that the continual improvement have
significant and positive relationship with quality performance. The Pearson
correlation is the fourth highest by 0.444. This is because the company maintain
their quality by ensuring that they make continual improvement of their system,
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6.0
BILBIOGRAPHY
JOURNALS
1.
The TQM Magazine, Vol. 18 No. 1, 2006, pp. 30-43, Emerald Group
Publishing Limited.
2.
The TQM Magazine, Vol. 20 No. 6, 2008, pp. 636-650, Emerald Group
Publishing Limited
3.
4.
The TQM Magazine Vol. 18 No. 6, 2006 pp. 606-625, Emerald Group
Publishing Limited.
5.
6.
International Journal of Quality & Reliability Management Vol. 23 No. 6,
2006, pp. 625-646
7.
8.
10.
11.
Garvin, D.A. (1988) Managing Quality, The Free Press, New York, NY.
12.
Garvin, D.A. (1984) What does product quality really means? Sloan
Management Review, 26 (1), pp. 25-43.
13.
Flynn, B.B. and Saladin, B. (2001) Further evidence on the validity of the
theoretical
models underlying the Baldrige criteria, Journal of Operations
Management, 19 (3), pp. 617-652.
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15.
16.
Lawler, E.E. III, Mohrman, S.A. and Ledford, G.E. Jr (1995), Creating High
Performance Organizations, Jossey-Bass, San Francisco CA.
17.
Ahire, S.L., Dreyfus, P., 2000. The impact of design management and
process management on quality: an empirical examination. Journal of
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Crosby, P.B. (1979), Quality is Free: The Art of Making Quality Certain,
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BOOKS
1.
2.
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