Total Quality Management In A Service System

In this era of globalization and intense competition, the concept of ‘total quality’ becomes utmost important, not only in manufacturing sector of industry but also in the service sector. ‘Total quality’ means that the services offered, have to be internally efficient and externally effective. It is in this context, that the question of ‘total quality’ becomes relevant in the management of manufacturing and service industries. Thus, total quality management (TQM) is the art of managing the whole to achieve excellence. The aim and philosophy of TQM is not the measurement of quality performance but the continuing and continual improvement of quality through a process of cultural and organizational change. It is people driven and results are evident in terms of improved teamwork, company moral and organizational climate – resulting in improved productivity and profitability.

TQM aims to connect to the customer at every stage of the business process and is the key mantra for manufacturing industries as well as for the customer-oriented service industries. Implementation of quality initiatives using TQM, Six Sigma, just-in-time (JIT), etc., in manufacturing has increased operational efficiency, brought down manufacturing costs and made companies strategically competitive in many countries. The quality concepts have spread disproportionately across functional areas of product design, production, sales and marketing and finance and administration as reported by Mandal and Gunasekaran (2002). Further, Gunasekaran (2000) in his study on world class manufacturing in small and medium enterprises realizes the importance of SMEs in the national economy and applies WCM techniques like TQM, JIT, lean, agile manufacturing, etc., in SMEs with the objectives of improving productivity and quality of manufacturing industries.

Also, Rahman and Talib (2008) in their study on Taguchi’s parameter design approach for optimizing a process (a TQM tool) found it to be very useful technique for measuring different quality characteristics in a process.

Earlier in 1970s, much of the initial attention was directed towards manufacturing practices with little consideration being given to the service sector largely because of the domination of researchers from the engineering and operations disciplines. The service sector was also not subjected to the same intensity of foreign competition as its manufacturing counterpart and, in those formative years, service quality was largely the exclusive preserve of large firms. But over the past three decades, the service sector has increasingly received its share of attention with good reasons. First, service has been a key element for many studying the impact of total quality management in service industries 251manufacturing industries. The service factor concept fostered the realization that a factory does not just produce goods but is also produces a blend of services that are integral to each product and plays an important role in meeting the challenges of foreign competition. Secondly, the service sector has been growing rapidly in the recent years. In addition, international agreements have created a highly competitive global environment in financial services and other cross-border sectors.

In response to increasing customer expectation with regard to quality of service as well as products, quality is becoming as important as price in other service sector on the domestic front.

Samat et al. (2006) explores the relationship between TQM practices and service quality as well as the relationship between TQM practices and market orientation and contributes significant knowledge to the service industry. This study adds to the literature by bridging the gap and showing the importance of TQM practices in service organizations. There are several research studies that examine and explore the service quality initiatives in service organizations like: Rönnback and Witell (2008), Singh et al. (2006), Bergman and Klefsjö (2007) and Chowdhary and Prakash (2007). Besides this, some other studies that were made on service quality system are quality management in service ecosystem, web service, service level management, service quality models, supplier service quality in supply chain, human service agency, etc., that shows TQM is not only limited to product quality improvement but it also covers a wider aspect of quality in different service sectors.

Previous empirical studies regarding the linkage between TQM and organizational performance as well as quality have shown significant and positive results. Therefore, it is not surprising that service quality is progressively occupying center stage for service organization regardless of the nature of the business they are in. Initiating and implementing TQM in a service system is a major task. It requires a thorough analysis of customer expectations, an analysis of the current system, process and functions, defining the quality parameters, developing systems of measurement and control and integrating this system with business.