Total Quality Issues for SMEs

Abstract

The assignment focuses on the implementing total quality Philosophy and issues faced by firms. The essay highlights the issues faced by SMEs in implementing total quality tools. The study highlights past evidence for exploring the major problems faced by the SMEs.

Total Quality Issues for SMEs

Introduction

The field of Total Quality or Total quality management has primarily focused on the theoretical aspects of the concept, and most of the literatures cover the implementation of TQM in large organizations. Companies such as Motorola, HP, British Airways, IBM and other, all have implemented the philosophy of total quality. The area which is neglected is the implementation and issues of total quality philosophy are SMEs (small and medium businesses). Small businesses have generally lagged behind in implementing the philosophy successfully.

The assignment analyzes the multiple implementation problems faced by small firms (SMEs). First, I will provide the background information to review the philosophy of Total Quality management and certain initiates taken by SMEs. Most of the empirical evidence identified the areas of quality assurance and usage of BS EN ISO 9000. The numbers of studies, which focus on wider area of total quality philosophy implementation throughout the organization, are very few. The essay also share characteristics of SMEs in order to build understanding of implementation issues face by small companies. There are multiple issues such as management practices, processes and outcomes and results, which are investigated in previous studies. The final section provides review of major workplace issues faced by SMEs (Chittenden, 2001).

Background of the Issues

Total quality has been defined differently by various authors. According to Dahlgaard (1998), Total quality is a process, which requires total corporate focus on identifying, meeting, and exceeding expectations and reducing expenses through implementing new corporate culture and management system. The total quality principles have been described by various authors and include factors such as continuous improvement, supplier partnership, employee involvement, leadership and commitment. It is seen as a philosophy to attain business excellence.

Discussion

Previous studies on quality issues in SMEs have mostly highlighted achievement of high quality and implementation of statistical techniques. Ghobadian and Gallear (2002) studied the quality assurance feature of small and medium firms. They also reported that smaller companies have less coherent policies of quality assurance. Most of SMEs are still using inspection process rather than comprehensive quality assurance process.

Studies of the implementation of ISO 9000 have concluded that motivation of implementing certification does not come from a need to improve, but from external pressures such as large firms and customers. According to Chittenden et al. (1996), SMEs in manufacturing sector are more likely to implement ISO 9000, than those operating in service sector.

Mo and Chan (1997), and Rayner and Porter (1991) identified that the ambition to capture a larger market share, special requirements from prospective customers, keenness of certification demand and customer pressure are the major motivating forces to get certified. Smaller firms have generally failed to understand the main purpose of implementing the ISO 9000 certification and anxiety of ...