WHAT MAKES TOTAL QUALITY MANAGEMENT WORK:
A STUDY OF OBSTACLES AND OUTCOMES
by
Deborah A. Hill

JEAN GORDON, Ph.D., Faculty Mentor and Chair
JOHN KLOCINSKI, Ph.D., Committee Member
WARREN MCDONALD, Ph.D., Committee Member

Kurt Linberg, Ph.D., Dean, School of Business & Technology A Dissertation Presented in Partial Fulfillment
Of the Requirements for the Degree
Doctor of Philosophy Capella University
April 2008
UMI Number: 3303697
3303697
2008
UMI Microform
Copyright
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ProQuest Information and Learning Company

Statement of the Problem 2
Purpose of the Study 2
Research Questions 3
Significance of the Study 4
Definition of Terms 4
Assumptions and Limitations 6
Nature of the Study, or Theoretical/Conceptual Framework 6
Organization of the Remainder of the Study 7
CHAPTER 2. LITERATURE REVIEW 8
TQM Defined 8
History of TQM 9
Obstacles to TQM 32
Benefits of TQM 40
How Can TQM Work? 46
CHAPTER 3. METHODOLOGY 56
iv
Population 56
Research Design 57
Sample 61
Instrumentation/Measures 62
Data Collection 63
Data Analysis 63
Validity 64
Reliability 64
Ethical Considerations 65
CHAPTER 4. RESULTS 66
Summary of Research Design and Methodology 66
Characteristics of Respondents 66
Definitions of Quality 68
Product Quality Dimensions 71

vi
List of Tables

Table 1. Eigenvalues and the Total and Cumulative Variance for Each Extracted Factor97Table 2. Results From the Regression Analyses 100

vii
List of Figures
Figure 1. Size of Organization 67Figure 2. Type of Organization 67Figure 3. Quality Defined as Innate Excellence 68Figure 4. Quality Defined as a Measured Characteristic 69Figure 5. Quality Defined by Intended Use 70Figure 6. Quality Defined as Conformance to Standards 70Figure 7. Quality Defined as Performance at an Acceptable Price 71



Figure 18. Service Quality Dimension-Competence 78Figure 19. Service Quality Dimension-Access 79Figure 20. Service Quality Dimension-Courtesy 79Figure 21. Service Quality Dimension-Communication 80Figure 22. Service Quality Dimension-Credibility 80viii
Figure 23. Service Quality Dimension-Security 81

Figure 24. Service Quality Dimension-Knowing the Customer 81Figure 25. Service Quality Dimension-Tangibles 82Figure 26. Statement 1-Strategic Plans do not Include Quality Goals. 84Figure 27. Statement 2-The Best Practices and/or Products of Other Companies are NOT
Benchmarked. 85


Figure 37. Statement 12-The Strategic Plan is NOT Customer Driven 90Figure 38. Statement 13-Employees are NOT Empowered to Implement Quality
Improvement Efforts 90Figure 39. Statement 14-There are Inadequate Resources to Effectively Employ Total
Quality Management 91Figure 40. Statement 15-Cross-Functional Teams are not Employed. 91Figure 41. Statement 16-Employees and/or Teams are NOT Recognized for
Achievements in Quality Improvement 92Figure 42. Statement 17-Employees are NOT Trained in Quality Improvement 92
ix
Figure 43. Statement 18-Top Management is NOT Visibly and Explicitly Committed to
Quality 93Figure 44. Statement 19-Quality Improvement Efforts Rarely Meet Expectations in
Terms of desired results 93Figure 45. Statement 20-Management’s Compensation is NOT Linked to Achieving

been undermined by the failure of a large proportion of those programs.” There are many
reasons for these failures; however, the top five given in a 2003 study concerning
obstacles to continuous improvement programs were (a) inadequate human resources
development and management, (b) lack of planning for quality, (c) lack of leadership for
quality, (d) inadequate resources for improvement programs, and (e) lack of customer
focus (Sebastianelli & Tamimi, 2003, p. 45). The returns on these programs have been far
below expectations.

Background of the Study
There are many obstacles to continuous improvement programs and there have
been many studies that pursued this topic; however, few have evaluated the relationship
of the obstacles to components of success and failure (Sebastianelli & Tamimi, 2003).
Since so many of these programs have not provided expected returns, it is worthwhile to
find out exactly what the obstacles are, as that will assist companies in the
implementation and the sustaining of continuous improvement initiatives. One study by
2
Hendricks and Singhal (2001, p. 360) stated that, “Firms that implement TQM effectively
must have patience, as the benefits will be realized in the long run. The evidence suggests
that even after effective implementation, it still takes a couple of years before financial
performance starts to improve.”

Statement of the Problem
The problem is that many companies are implementing and using various types of
continuous improvement initiatives, but either the results are far below expectations or
companies are unable to sustain quality management. This study determined the obstacles
to TQM and then established a link between particular measures of perceived TQM
success to show how the quality transformation process can be more efficiently managed
in manufacturing and service organizations.

Purpose of the Study

perceived as real barriers to TQM success for organizations among
members of the Raleigh, North Carolina, section of ASQ?

2. How do these obstacles relate to specific outcomes that measure the
perceived success (or failure) of TQM efforts for organizations among
members of the Raleigh, North Carolina, section of ASQ?
4

Significance of the Study
This study is important because companies that are undertaking various forms of
TQM need to know effective implementation measures and how to sustain the necessary
and appropriate level of quality management. Therefore, the return on the investment of
time and labor must be benchmarked for continuous improvement. With TQM failure
rates high, companies need to see the links between obstacles and potential successful
outcomes. This study can build on existing knowledge to provide more recent
information to assist in implementation and maintenance of TQM and can show
companies how to maximize the benefits derived from TQM. Benefits of TQM are also
explained and illustrated to encourage companies to continue to improve implementation
processes.

Definition of Terms
ASQ. The American Society for Quality is a professional organization that
advances learning, quality improvement, and knowledge exchange to improve business
results and to create better workplaces and communities worldwide. ASQ also
administers the Malcolm Baldrige National Quality Award.
Continuous Improvement. This is the process by which an organization constantly
monitors its processes for areas of improvement. It is a never-ending effort to discover
and eliminate the root causes of problems.
Effective. This means to have an intended or expected effect.
5

assumption is that ASQ members can speak only to their particular company’s TQM
process and factors. It was assumed that responses will be honest and forthright without
fear of casting the company in question in a poor light. The limitations are that
perceptions are from members of the Raleigh section of ASQ only and may not be
generalizable to other parts of the country or world.

Nature of the Study, or Theoretical/Conceptual Framework
This study used quantitative methodology to analyze the results. According to
Robson (2002), with quantitative or fixed designs, links from research to theory are
straightforward and theory driven. Robson believes that the phenomenon under study is
already thoroughly and conceptually understood before the study is undertaken.
Quantitative data includes all values and measurements of variables and provides validity
based on the accuracy of results (Robson, 2002). Therefore, since this study determined
obstacles and how they relate, the study is solidly fixed and the components have already
been determined. Additionally, the quantitative approach is the best way to determine
7
how reliable and valid the results are and the best way to answer and measure the
research questions.

Organization of the Remainder of the Study
Chapter 2 reviews the history of TQM and discusses what the current literature
states concerning benefits and obstacles to TQM. Chapter 3 details the methodology and
conceptual framework of this study. Chapter 4 discusses the results of the survey and
chapter 5 addresses the findings and interpretation of the results, as well as
recommendations and opportunities for further research.
8

CHAPTER 2. LITERATURE REVIEW
TQM Defined
TQM has been defined in many different ways. The definition of TQM according


History of TQM
TQM was introduced in the United States in the early to mid-1980s, primarily as a
result of severe competition from Japanese companies (Prajogo, 2005). At that time,
American business faltered and productivity decreased, quality of products and services
deteriorated, and the trade deficit began to rise (Reis & Pena, 2001). Although research
has different opinions on exactly who started TQM, seven seminal quality authors surface
repeatedly: Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru
Ishikawa, Joseph M. Juran, Walter A. Shewhart, and Genichi Taguchi. Each expert
devised his own unique plan of action for success; however, Deming and Juran are
credited with starting quality initiatives in the United States after returning from Japan in
the late 1950s. Deming and Juran assisted in reconstructing Japanese industry after WWII
10
(Goldman, 2005). Their techniques improved the quality of Japanese-made products to a
level that was better than similar products produced in the United States in the late 1970s
and early 1980s (Goldman, 2005). The TQM movement took root in the United States
with the airing of a NBC televised program in 1980 entitled "If Japan Can, Why Can't
We?" which revealed Deming's key role in the development of Japanese quality (Reis &
Pena, 2001, p. 669). Since then, TQM concepts have been implemented in many
companies in the United States and abroad. However, TQM began by utilizing the works
of the seven seminal authors, and it has now led to quality programs in the United States
such as the Malcolm Baldrige Award Program, ISO 9000, Six Sigma, and Lean Sigma.
Listed below, in alphabetical order, are the philosophies of the seven seminal quality
authors from which TQM evolved.
Crosby
Crosby (1926-2001) is well-known for his "Quality is free" concept and his zero-
defects concepts. In his book, Quality is Free, Crosby stated (1979, p.1), "Quality is free.
It's not a gift, but is free. What costs money are the unquality things—all the actions that
involve not doing jobs right the first time." Crosby’s philosophy can be described best by
his four absolutes of quality management (1989, p. 50):

7. Establish an ad hoc committee for the zero defects program-arranging for
the day-commencement day, when management will stand up in front of
everyone and declare that they have been converted.

8. Supervisor training: employee education involves building a base for
comprehension and implementation through a common language and the
application of special skills.

9. Zero defects day: the day when everyone gets together and celebrates their
commitment to quality.

10. Goal setting: describing the specific achievements that each individual is
going to accomplish.

11. Error cause removal: a system of pinpointing and eliminating the obstacles
to zero defects.

12. Recognition-acknowledgement: saying "thank you" to those who earn and
deserve it.

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13. Quality councils: meetings of those responsible for an organization's
wellness.

14. Do it over again: to quote Albert Schweitzer, "Example is not the main
thing in influencing others, it is the only thing."

Crosby (1984, pp. 53-54) also wrote about five characteristics of companies that
do not improve much, even though they seem determined:
1. The effort is called a program rather than a process. This makes people

repetition makes the program perpetual. Quality must become engrained in the
organization or it will never happen (Crosby, 1979, p. 139). According to Crosby, there
are three phases of change (1989, p. 15): (a) developing conviction, (b) commitment, and
(c) conversion. Once converted, there is no temptation to take shortcuts or go back to
destructive ways; the converted stay converted (1989, p. 16). Therefore, if top
management is not committed and converted to the idea of quality, quality improvement
initiatives fail.
Deming
Deming (1900-1993) was well recognized for his work with Japan. His
background is as a statistician. He is well-known for his 14 points of management and the
Plan-Do-Check-Act (PDCA) Cycle that is still used today. In 1950, Deming helped to
transform Japan before the United States was willing to change. A chain reaction to
improve quality was developed that was on the blackboard of every meeting with top
management in Japan from July 1950 onward (Deming, 1986, p. 3). This quality chain
reaction had the following impacts (1986, p. 3):
1. Costs decrease because of less rework, fewer mistakes, fewer delays, snags;
better use of machine-time and materials.

2. Productivity improves.
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3. Capture the market with better quality and lower price.
4. Stay in business.
5. Provide jobs and more jobs.
According to Deming, once management in Japan adopted the chain reaction,
everyone there from 1950 onward had one common aim; namely, quality (1986, p. 3).
Also, in 1950, Deming created the chart, Production Viewed as a System (1986, p. 4).
This chart showed that improvement of quality envelopes the entire production line, from
incoming materials to the consumer, as well as redesign of product and service for the
future. Deming believed that the consumer is the most important part of the production
line and that quality should be aimed at the needs of the consumer, present and future


8. Drive out fear, so that everyone may work effectively for the company.

9. Break down barriers between departments. People in research, design,
sales, and production must work as a team to foresee problems of
production and in use that may be encountered with the product or service.

10. Eliminate slogans, exhortations, and targets for the work force asking for
zero defects and new levels of productivity. Such exhortations only create
adversarial relationships, as the bulk of the causes of low quality and low
productivity belong to the system and thus lie beyond the power of the
work force.

11. a. Eliminate work standards (quotas) on the factory floor. Substitute
leadership.

b. Eliminate management by objective. Eliminate management by
numbers, numerical goals. Substitute leadership.

12. a. Remove barriers that rob the hourly worker of his right to pride of
workmanship. The responsibility of supervisors must be changed from
sheer numbers to quality.

b. Remove barriers that rob people in management and in engineering of
their right to pride of workmanship. This means abolishment of the
annual of merit rating and or management by objective.

13. Institute a vigorous program of education and self-improvement.

14. Put everyone in the company to work to accomplish the transformation.