Journal of CENTRUM Cathedra ™
TQM Practices in Manufacturing and Service Companies in Peru by
Ricardo M. Pino*
Professor, CENTRUM Católica, Pontificia Universidad Católica del Perú Doctor en Administración Estratégica de Negocios, Pontificia Universidad Católica del Perú Master of Philosophy, Maastricht School of Management, The Netherlands Master of Business Administration, Universidad del Pacífico, Perú
The research study involved exploring how Peruvian companies use TQM practices and the differences in this use considering industrial sector and company size. Three hundred and sixty-three MBA students, middle managers of private companies operating in Arequipa, Cajamarca, Chiclayo, Cusco, Lima, Piura, or Trujillo, answered a questionnaire, developed by the author, about the use of TQM practices in their companies. The findings indicate significant differences between manufacturing and service companies in two practices, information and analysis and empowerment; and significant differences among small, medium, and large companies in two practices, information and analysis, and employee training. Keywords: TQM; quality, industrial sector, company size, Peru
Total quality management (TQM) is a management philosophy, diffused all over the world, with the objective of improving the operative and business performance of the organizations, by offering a systemic approach to continually improve the operative activities to continually fulfill customers’ requirements (Agus, 2005; Powell, 1995). The philosophy is particularly attractive because of the focus on quality, which offers the promise of improvement of an organization’s performance. However, until 1993, only one third of the 500 largest companies in the United States declared having perceived benefits of TQM implementation (Ahire, Waller, & Golhar, 1996). The poor results could be relate to a bad design or to not taking into account certain variables that could be
relevant for the success of this implementation (Tata & Prasad, 1998). To implement one or more of the TQM principles, companies use a series of management practices and TQM tools associated with the principles, given that the principles are the beliefs, and practices are the actions the companies take according to the principles (Boaden, 1997). The objective of the practices, as management commitment and training to workers, is to produce improvement in operative and business performance (Powell, 1995). Operative performance refers to customer satisfaction or product quality, while business performance relates to financial results. TQM practices became a means to improve business performance of the companies (Agus, 2005; Brah, Wong, & Rao, 2000; Chow-Chua, Goh, & Wan, 2003). Research in Peru about quality management is scarce.
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Electronic copy available at: http://ssrn.com/abstract=1481924
11/21/08 12:11:17 AM
TQM Practices in Manufacturing and Service Peruvian Companies
The literature review reflected no research related to the use of TQM practices in Peru. The results of the study may have closed this gap partially by illustrating information on how Peruvian companies are using TQM practices and whether any significant differences exist in this use considering industrial sector and company size. The research study represents a first approximation to the analysis of the use of TQM practices in Peru. The objective of the study was to describe the use of TQM practices in Peruvian companies, considering companies from the manufacturing and service sector, and small, medium and large companies. The following research questions aided in fulfilling the objective of the study: 1. Do any significant differences exist in the use of TQM practices between companies in the manufacturing and service sector? 2. Do any significant differences exist in the use of TQM...