As the competition among countries and companies becomes fierce, quality information, reliability & quality guarantee of a product are more emphasized, quality management has become an important strategic task of a company.
Today, in order to perfo...
As the competition among countries and companies becomes fierce, quality information, reliability & quality guarantee of a product are more emphasized, quality management has become an important strategic task of a company.
Today, in order to perform such a strategic task, many companies adapt total quality management system with all employees' participation for quality improvement.
Due to the fact that a sound quality management system warrants high quality products and services which leads to the customers' satisfaction and improvement of competitiveness, companies worldwide put top priority on quality management activities through quality innovation and establish ISO 9001 Quality Management System.
The major purpose of this study is to examine the effects of the requirements of quality management system on performance.
To accomplish the purpose, this study empirically analysed the data based on the answers to the prescribed questionnaires from manufacturing department personnel of 340 Korean manufacturing companies. The correlation analysis, regression method were used to identify the relationships among the Quality Management System, operations objectives and performance variables and to verify four research hypotheses.
The major results of this study are as follows :
First, companies with well established QM system show outstanding performance in the areas of customer satisfaction, human relationship and subcontractor management.
Second, companies which execute QM system put Quality improvement at top priority in establishing production management objectives. Especially, those companies have chosen the quality in the first place, then the prime cost in decide competition ranking.
Third, production management objectives, cost, quality, delivery reliability and flexibility are important factors impacting on the performance of management such as customer satisfaction, finance, market and subcontractor management as well as the efficiency of organization.
Finally, the result of management performance analyses shows some differences among business types in finance and market but, noticeable difference is not shown in other performance areas.
The practical significance of this study is to establish a company specific and efficient QM system by analysing the effects of the requirements of quality management system on the production management and management performances.
But, this study has some limitations on generalizing the results mainly due to the weakness in selecting the measures of research variables including performance and sampling method.