Sains Malaysiana 45(6)(2016): 999–1006

Quality Management Practices and Performance Measurement in the Manufacturing Industry: An Instrument Validation

(Amalan Pengurusan Kualiti dan Pengukuran Prestasi dalam Industri Pembuatan: Suatu Pengesahan Alat)

ZAHARUZAMAN JAMALUDDIN¹, AHMAD MAHIR RAZALI¹*, ZAINOL MUSTAFA¹

& MOHD RASHID AB HAMID²

¹School of Mathematical Sciences, Faculty of Science and Technology, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor Darul Ehsan, Malaysia

²Faculty of Industrial Sciences and Technology, Universiti Malaysia Pahang, Lebuhraya Tun Razak, 26300 Kuantan, Pahang Darul Makmur, Malaysia

Received: 30 April 2014/Accepted: 23 December 2015

ABSTRACT

The aim of this article was to validate an instrument of quality management practices (QMPs) and performance measurement for the manufacturing industry in Malaysia. QMPs and performance were measured using the following six value indicators: Management commitment, training, process management, quality tools, continuous improvement and organisational performance. A total of 480 questionnaires were distributed and 210 questionnaires were valid for analysis. A confirmatory factor analysis (CFA) approach was employed using analysis of moment structures (AMOS) software. The results for the hypothesised CFA model showed the following fit statistics: Comparative fit index (CFI) = 0.924, Tucker Lewis index (TLI) = 0.913 and root mean square error of approximation (RMSEA) = 0.061. The values of CFI and TLI ≥ 0.9 and at the same time the value of RMSEA ≤ 0.08 showed that CFA model fits the data very well. Hence, the results of the study can be used by managers in manufacturing companies to consider and adapt their QMPs and performance assessments toward increasing competitiveness.

Keywords: Confirmatory factor analysis; manufacturing industry; organisational performance; quality management practices

ABSTRAK

Tujuan makalah ini adalah untuk mengesahkan alat amalan pengurusan kualiti (QMPs) dan pengukuran prestasi bagi industri pembuatan di Malaysia. QMPs dan prestasi diukur menggunakan enam petunjuk nilai berikut: Komitmen pengurusan, latihan, pengurusan proses, alat berkualiti, penambahbaikan berterusan dan prestasi organisasi. Sebanyak 480 kertas soal selidik telah diedarkan dan 210 kertas soal selidik adalah sah untuk dianalisis. Pendekatan analisis faktor pengesahan (CFA) telah diguna pakai menggunakan perisian analisis struktur masa (AMOS). Keputusan hipotesis bagi model CFA menunjukkan statistik padanan seperti berikut: Indeks padanan komparatif (CFI) = 0.924, indeks Tucker Lewis (TLI) = 0.913 dan penganggaran min ralat punca kuasa dua (RMSEA) = 0.061. Nilai CFI dan TLI ≥ 0.9 serta nilai RMSEA ≤ 0.08 menunjukkan bahawa model CFA padan dengan data. Oleh itu, keputusan kajian ini boleh digunakan oleh pengurus di syarikat pembuatan untuk mempertimbang dan menggunakan QMPs dan penilaian prestasi mereka ke arah peningkatan daya saing.

Kata kunci: Amalan pengurusan kualiti; analisis faktor pengesahan; industri pembuatan; prestasi organisasi

REFERENCES

Ab Hamid, M.R., Mustafa, Z., Suradi, N.R.M., Idris, F. & Abdullah, M. 2012. Value-based performance excellence for higher education institution: Instrument validation. Quality & Quantity. DOI 10.1007/s11135-012-9699-y.

Agus, A. 2005. The structural linkage between TQM, product quality performance and business performance: Preliminary empirical study in electronics companies. Singapore Management Review 27(1): 87-105.

Ahmed, S. & Hassan, M. 2003. Survey and case investigations on application of quality management tools and techniques in SMIs. International Journal of Quality & Reliability Management 20(7): 795-826.

Ahire, S.L., Golhar, D.Y. & Waller, M.A. 1996. Development and validation of TQM implementation construct. Decision Sciences 27(1): 23-56.

Armistead, C., Harrison, A. & Rowlands P. 1995. Business process re-engineering: Lessons from operations management. International Journal of Operations & Production Management 15(12): 46-58.

Arumugam, V., Ooi, K.B. & Fong, T.C. 2008. TQM practices and quality management performance: An investigation of their relationship using data from ISO 9001:2000 firms in Malaysia. The TQM Journal 20(6): 636-650.

Bhuiyan, N. & Baghel, A. 2005. An overview of continuous improvement: From the past to the present. Management Decision 43(5): 761-771.

Byrne, B.M. 2010. Structural Equation Modeling with AMOS. 2nd ed. New York: Taylor & Francis Group.

Chang, H.H. 2005. The influence of continuous improvement and performance factors in total quality organizations. Total Quality Management & Business Excellence 16(3): 413-437.

Chrusciel, D. & Field, D.W. 2003. From critical success factors into criteria for performance excellence- an organisational change strategy. Journal of Industrial Technology 19(4): 2-11.

Churchill, G.A.J. 1979. A paradigm for developing better measures of marketing constructs. Journal of Marketing Research 16(2): 64-73.

Davig, W., Brown, S., Friel, T. & Tabibzadeh, K. 2003. Quality management in small manufacturing. Industrial Management & Data Systems 103(2): 68-77.

Evans, J.R. & Lindsay, W.M. 2002. The Management and Control of Quality. 5th ed. Nashville, TN: South Western.

Flynn, B.B., Schroeder, R.G. & Sakakibara, S. 1995. The impact of quality management practices on performance and competitive advantage. Decision Sciences 26(5): 659-691.

Fornell, C. & Lacker, D.F., 1981. Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research 18(1): 39-50.

Fotopoulos, C. & Psomas, E. 2009. The impact of soft and hard TQM elements on quality management results. International Journal of Quality & Reliability Management 26(2): 150-163.

Grandzol, J.R. & Gershon, M. 1998. A survey instrument for standardizing TQM modeling Research. International Journal of Quality Science 3(1): 80-105.

Hagemeyer, C., Gershenson, J.K. & Johnson, D.M. 2006. Classification and application of problem solving quality tools. The TQM Magazine 18(5): 455-483.

Hair, J.F., Black, W.C., Babin, B.J. & Anderson, R.E. 2010. Multivariate Data Analysis. 7th ed. Upper Saddle River: Prentice Hall.

Handfield, R., Jayaram, J. & Ghosh, S. 1999. An empirical examination of quality tool deployment patterns and their impact on performance. International Journal of Production Research 37(6): 1403-1426.

Idris, F. 2011. Total quality management (TQM) and sustainable quality management company performances: Examining the relationship in Malaysian firms. International Journal of Business and Society 12(1): 31-52.

Islam, M. & Karim, A. 2011. Manufacturing practices and performance: Comparison among small-medium and large industries. International Journal of Quality & Reliability Management 28(1): 43-61.

Kaynak, H. 2003. The relationship between total quality management practices and their effects on firm performance. Journal of Operations Management 21: 405-435.

Lakhal, L., Pasin, F. & Limam, M. 2006. Quality management practices and their impact on performance. International Journal of Quality & Reliability Management 23(6): 625-646.

McQuater, R.E., Scurr, C.H., Dale, B.G. & Hillman, P.G. 1995. Using quality tools and techniques successfully. The TQM Magazine 7(6): 37-42.

Mustapha, M.R., Muda, M.S. & Hassan, F.A. 2011. A survey of total quality management in the Malaysian small and medium sized manufacturing companies. International Journal of Humanities and Social Science 1(2): 118-122.

Noe, R.A. 2008. Employee Training and Development. New York: McGraw-Hill.

Osman, I., Ali, H., Rashid, W.E.W. & Jusoff, K. 2009. Total quality management in the Malaysian automobile industry. International Business Research 2(1): 203-209.

Palmberg, K. 2009. Exploring process management: Are there any widespread models and definitions?. The TQM Journal 21(2): 203-215.

Rea, M.L. & Parker, R.A. 1997. Designing and Conducting Survey Research: A Comprehensive Guide. Ed. ke-2. San Francisco: Jossey-Bass, Inc.

Samson, D. & Terziovski, M. 1999. The relationship between total quality management practices and operational performance. Journal of Operations Management 17: 393-409.

Saraph, J.V., Benson, P.G. & Schroeder, R.G. 1989. An instrument for measuring the critical factors of quality management. Decision Sciences 20(4): 810-829.

Schreiber, J.B., Stage, F.K., King, J., Nora, A. & Barlow, E.A. 2006. Reporting structural equation modelling and confirmatory factor analysis results: A review. The Journal of Education Research 99: 323-337.

SMIDEC. 2008. Promoting Innovation –led and Technology – Driven SMEs. Paper presented in Asia Pacific Conference of Technology and Technology Entrepreneurship.

Sohail, M.S. & Hoong, T.B., 2003. TQM practices and organizational performances of SMEs in Malaysia: Some empirical observations. Benchmarking: An International Journal 10(1): 37-53.

Su, Q., Li, Z., Zhang, S.X., Liu, Y.Y. & Dang, J.X. 2008. The impacts of quality management practices on business performance: An empirical investigation from China. International Journal of Quality & Reliability Management 25(8): 809-823.

Tari, J.J., Molina, J.F. & Castejon, J.L. 2007. The relationship between quality management practices and their effects on quality outcomes. European Journal of Operational Research 183: 483-501.

Tari, J.J. & Sabater, V. 2004. Quality tools and techniques: Are they necessary for quality management?. International Journal of Production Economics 92: 267-280.

Wilkinson, A. 1992. The other side of quality: ‘Soft’ issues and the human resource dimension. Total Quality Management 3: 323-329.

Yeung, A.C.L., Cheng, T.C.E. & Lai, K.H. 2005. An empirical model for managing quality in the electronics Industry. Production and Operations Management 14(2): 189-204.

Yusof, S.M. & Aspinwall, E. 2000. Critical success factors for total quality management implementation in small and medium enterprises. Total Quality Management 10(4-5): 803-809.

Zhang, Z., Waszink, A. & Wijngaard, J. 2000. An instrument for measuring TQM implementation for Chinese manufacturing companies. International Journal of Quality & Reliability Management 17(7): 730-755.

*Corresponding author; email: mahir@ukm.edu.my