Abstract
M.Phil. (Engineering Management)
Total Quality Management (TQM) as a management philosophy is driven by top
management with employee participation. This encompasses all facets of an organisation,
with the aim of producing products and services which meet the customer’s needs.TQM was
adopted by project-based organisations in the 1990s in response to increasing global
competition.
Process engineering design firms are operating in a competitive, global business environment
where outsourcing of process engineering design services from other countries is not an
uncommon practice. It is argued that TQM is crucial for an organisation’s success and
survival. Although various quality management techniques exist, TQM offers the holistic
approach necessary to adequately manage design quality.
The study investigates the effects of Total Quality Management (TQM) implementation on
process engineering design firms. Secondly, the study investigates the extent of TQM
adoption by South African process engineering design firms. Lastly, the study investigates
the perceived importance of TQM principles. The research questions are:
i. What is the effect of TQM on the performance of process engineering design firms?
ii. To what extent has TQM been adopted by South African process engineering design
firms?
iii. What is the perceived importance of TQM principles in process engineering design?
The first research question was answered by conducting a literature survey. The author was
unable to find studies relating specifically to process engineering design firms. As a result,
the literature study was done for engineering firms in general. The study indicates that TQM
adoption has a favourable effect on engineering firms. The study reveals that TQM
implementation improves employee satisfaction, customer satisfaction, and financial
performance while providing a vision that channels the entire organisation towards
improvements in product quality and customer-related performances.
The second and third research questions were answered with the use of a questionnaire
survey, which measured importance and adoption utilising a 5-point Likert scale. The study
reveals that 70% of the firms which participated in the survey have formally adopted TQM
while 30% have not. Eighty five per cent of the organisations that have adopted TQM are
ISO9001 certified. An adoption rate of 70% indicates an above-average adoption of TQM by
South African process engineering design firms. An ISO9001 certification of 85% indicates
that South African process engineering design firms are conforming to international quality
standards.
The adoption of the TQM principles ranges from 66% to 80% (moderate to high). Customer
Involvement and Management Commitment are the most highly adopted, while Supplier
Quality Management and Continuous Improvement are the least adopted. The firms which
have formally adopted TQM report 77% implementation rate, while the firms which have not
formally adopted TQM report a 63% implementation rate. Although the firms which have not
formally adopted TQM are implementing TQM principles, they have not been able to
implement the principles as well as the firms which have formally adopted TQM.
The perceived importance of the TQM principles ranges from 78% to 92% (“important” to
“very important”). The most important principle is perceived to be Customer Involvement,
while Continuous Improvement and Supplier Quality Management are perceived to be the
least important. The firms which have formally adopted TQM rate the principles more highly
in the importance scale (86%) compared to the firms which have not formally adopted TQM
(80%). The results indicate that the firms which have formally adopted TQM find value in
doing so.
The mean score for the importance of TQM principles is 84%, while the mean score for the
adoption of TQM principles is 73%. It is evident from the data that there is a gap between the
perceived importance and adoption of the TQM principles. The data suggests that the policies
and strategies of the organisation have not achieved full implementation of TQM and have
room for improvement.