Impact of TQM in Small and Medium Enterprises (SME)

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Globalization of market economies has urged industries in all sectors to concentrate on maintain a sustaining a competitive edge, which is direct, related to the upkeep of quality productivity. Industry worldwide have been exoring ways to improve business practices to gain competitive edge. On to the most important technological innovation of the last decade has been the emergence of TQM solutions. But implementation of TQM in Small and Medium Enterprises (SME) is not just a technological challenge, It's a Soci-technological endeavour. Hence, there are organizational and cultural issues, which determining the success of TQM implementation, the main objective TQM in Small and Medium Enterprises (SME) is to integrate the organizations business process and manufacturing operations for improved business results by considering customer complaint regarding product quality. A good quality product or service will enable industry to add and retain customers. Poor quality will leads to discounted customers, so the costs of poor quality are not just those of immediate waste or rectification also the loss of future sales for Small and Medium Enterprises (SME). Technological innovations have diffused geographical boundaries resulting in more informed customers. The business environment has become increasingly complex and the marketplace has changed from local to global . Constant pressure is applied by customer, on Small and Medium Enterprises (SME) to improve competitiveness by lowering operation cost and improving logistic. Customers are becoming increasingly aware of rising standards, having access to wide range of products and services to choose from . There is an ever increasing demand for quality product and this global revolution had forced industry to invest substantial resources in adopting and implementing total quality management (TQM) strategies. It will be a Small and Medium Enterprises (SME) strategy to embed awareness of quality in all organizational process. It operates within quality circles, which encourage the meeting of minds of the workforce in different departments.

So it become essential to industry to set an effective model of such a vision of success is total quality management (TQM), which is a customer centric, set of management policies , improve production, reduce wastage that deliver quality, to attain a firm grip over the market share, continuously improving overall business performance based on leadership, supplier quality management , vision and plan statement , evaluation, process control and improvement, product design, quality system improvement, employee participation, recognition and reward, education and training , customer focus, positive effects on employee satisfaction, product quality ,customer satisfaction, and strategic business performance, implementation of TQM to industry is an opportunity, to develop a quality system to manage the company, rather, industry see it as an exercise in documentation forced on them by an overbearing and unsympathetic customer who has unrealistic expectation of what type of system their company needs in order to supply consistent quality on time, every time.

The importance of total quality management (TQM) for small and medium sized (SME) is widely acknowledged by various authors. It state that SME are often suppliers of goods and services to larger organizations and therefore a lack of product quality and or service from SME could adversely affect the competitive performance of larger organizations.

The study will be completing on the SME from published literature in NSK Technology Ltd. UK ,(page 2 pdf six sigma must see , this line has taken from the middle of paragraph)

"TQM is a never-ending process. Investing in TQM implementation often implies a choice for a long term effort that requires a great deal of energy, management attention, money , patience, and tenacity" (Boersma, 1994)



The main aim of this research is to evaluate and analyse the influence and merits of TQM practices at small UK manufacturing organisations.


The primary objectives of this project are:

  • Examine one particular case study to discover how they have used TQM to improve their organization business processes
  • To analyse how the case study could best use TQM to improve its organizational activity
  • To analyse other UK SMEs to examine how they have embedded awareness of quality in their organizational process
  • To determine how TQM can best aid UK SMEs to reduce costs, customer complaint and enhance both the product quality and associated services
  • To examine the impact cultural issues may have on the effectiveness of while TQM


Total quality represents a competitive strategy. In other words, "Quality" in terms of "Total Quality" is every thing an organization does in the eyes of its customers, which will determine whether they buy from this company or from its competitor. "Total Quality ' provides an umbrella under which everyone in the organization can strive and create customer satisfaction. TQM has emerged as a new and different way of 'managing business that allows it to provide quality goods and services at the lowest cost in order to achieve customers' satisfaction and at the same time, to ensure satisfactory business development by continuous improvements. TQM , thus eyes the triple targets of gaining maximum productivity, profitability and customer loyalty.

Hence Total Quality Management is (TQM)

  • Total - quality involves everyone and all activities in the work
  • Quality- conformance to requirements ( meeting customer requirements)
  • Management - Quality can and must be managed

Total quality management has may definitions. Gurus of the total quality management discipline like Deming, Juran Crosby, Ishikawa and Feigenbaum defined the concept in different ways but still the essence and spirit remained the same. Deming (1999), "quality is a continuous quality improvement process towards predictable degree of uniformity and dependability". Deming also identified 14 principles of quality management to improve productivity and performance of the organization. Juran (2000) defined quality as "fitness for use" according to him, every person in the organization must be involved in the effort to marked products or services that are fit for use. Crosby (2002) defines "quality as conformance to requirements." His focus has been on zero defects and doing it right the first time. Ishikawa also emphasized importance of total quality control to improve organizational performance. According to him quality does not only mena the quality of product, but also of after sales service, quality of management, the company itself and human life. Feigenbaum (1992) defined "total quality as a continuous work process, starting with customer requirements and ending with customer's satisfaction."

Definition of quality have changed with the passage of time with changing customer's needs and requirements. But the essence has more or less been to develop an approach to problem solving, conformation to standards for customer satisfaction. With management functions getting complex, approaches to managing quality in functional areas are becoming difficult. Organizations, which have successfully use TQM principles. Have customer and quality embedded in their corporate strategy, any organization is a system of interrelated units.

For TQM to succeed , all of the components within the organization must be collectively involved, initially, organizations implemented TQM in the hope that improvement in the shop floor activities would solve all existing productivity and quality problems. Later, they have realized that TQM is much more than just shop floor improvements. The definitions of quality incorporate factors like top management commitment, leadership, team work, training and critical factors are the foundation for transformational orientation to create a sustainable improvement culture for competitive advantage on a continuous basis. According to Selladurai (2002) TQM interventions or activities must be guided by four change principles. Namely work process, variability , analysis and continuous improvement. Product design and production systematically collected and analyzed in a problem solving cycle. And commitment made to continuous learning by the employee about their work.

importance of TQM

Apart from the adaption and implementation of formal documented procedures, the quality system imposes discipline upon all aspects of company's operations with a view to ensuring that each task is performed correctly, first time and every time consistently. This will reduce rework, cutting waste by reducing rejections and scrap on the shop floor. It will also lead to prompt delivery by reducing rejections and scrap on the shop floor. It will also lead to prompt delivery by reducing delays to minimum. Hence operating efficiency will improve resulting in an improvement in overall profitability.


In this region researcher will discuss about the general summary of research methodology in terms of qualitative and quantitative research technique, data collection method like primary and secondary data. Moreover researcher will take help of case study approach so it will help to researcher in implementing it in company.

methods of data collection

None of the methods of data collection provides 100 per cent accurate and reliable information. The quality of the data gathered is dependent upon a number of other factors.

There are two major approaches to collecting information about a situations, person, problem or phenomenon. Sometimes, information required is already available and need only be extracted. However there are times when the information must be collected. Based upon these broad approach to information gathering , data are categorised as (check link in D- jan08)

  • secondary data
  • primary data

Information gathered using the first approach is said to be collected from secondary sources, whereas the sources used in the second approach are called primary sources.

secondary data

Data collected by someone else for some other purpose, it is secondary data. Secondary data analysis saves time that would otherwise be spent collecting data and particularly in the case of qualitative data, provides larger and higher-quality databases than would be unfeasible for any individual researcher to collect on their own.

Dussmuir and Williams (1992) list the following advantage and disadvantages of secondary research (look link in D-jan08)

Secondary data is always gathered before primary data because you want to find out what is already known about a subject before you decline into your own investigation

primary sources

If data collected set question collected by the researcher ( or team of which the research is a part ) for the specific purpose or analysis under consideration, it is primary data. Several methods can be used to collect primary data. The choice of a method depends upon the purpose of the study, the resources available and the skills of the researcher. There are times when the method most appropriate to achieve the objectives of a study cannot be used because of constraints such as lack of resources and or required skills. In such situations researcher should be aware of the problems these limitations impose on the quality of data

Qualitative research explore attitudes, behaviour and experiences through such methods as interviews or focus groups. It attempts to get an in -depth opinion from participants. As it is attitudes, behaviour and experiences which are important, fewer people take part in the research, but the contact with these people tends to last a lot longer. Under the umbrella of qualitative research there are many different methodologies

quantitative research

quantitative research generates statistics through the use of large scale survey research using methods such as questionnaires or structured interviews. If a markets researcher has stopped you on the streets, or you have filled in a questionnaire which has arrived through reaches may more people. But the contact with those people is much quicker than it is in qualitative research.


  1. Deming, W. (1999). "Quality management" 4th Ed. Prentice Hall , London
  2. Juran, J. ( 2000), "Quality planning and analysis", 4th Ed. McGraw-Hill , Newyork.
  3. Crosby, P (2002) "Management , quality and competitiveness"4th Ed. McGraw-Hill , Newyork.
  4. Feigenbaum, A. (1992). "Quality control: principles, practice, and administration" 8th McGraw -Hill , Newyork
  5. Selladurai, R (2002). "A Look at Total Quality Management's (TQM) 7th Ed San Antonio, TX, USA