Integrated analysis of the performance of TQM tools and techniques: a case study
in the Taiwanese motor industry
Shun-Hsing Chen*
Department of Marketing and Logistics Management, Yu-Da University, Miao-Li County, Taiwan, ROC
(Received 29 October 2011; final version received 9 March 2012)
Most studies of total quality management (TQM) have focused on the managerial aspects and associated
success factors of TQM programmes, whereas relatively few studies have examined the appropriateness and
performance of the large number of available tools and techniques that actually implement TQM practices.
To assist in determining the best strategy for improving the performance of TQM tools and techniques, the
present study integrates a modified importanceperformance matrix with elements of failure mode and effects
analysis (FMEA) to provide a comprehensive methodology for assessing and improving the performance of
TQM tools and techniques in the Taiwanese motor industry. The methodology presented here can be applied
in a variety of industries, including the Taiwanese motor industry, to enable efficient utilisation of TQM tools
and techniques and thus improve quality, reduce costs and shorten cycle times.
Keywords: failure mode and effects analysis (FMEA); performance control matrix; total quality management
(TQM)
1. Introduction
Increasing competition, complexity and technological development in the business environment have enhanced the
importance of total quality management (TQM). Ever since the late 1980s, when a positive correlation between
TQM and enhanced competitiveness first became apparent, evidence has accumulated that the majority of
organisations that have introduced TQM believe that it has helped them to increase their market share, enhance the
satisfaction of their customers and improve their competitive advantage (Powell 1995, Taylor and Wright 2003, Cho
and Pucik 2005, McAdam et al. 2008, Vanichchinchai and Igel 2011). It is now generally agreed that there is a cause-
and-effect relationship between TQM practices and healthy or improved business performance (Pinho 2008,
Ablanedo-Rosas et al. 2010).
The critical elements of TQM can be divided into two broad categories: (1) the management (or soft) aspects of
TQM; and (2) the technical (or hard) aspects of the programme (Wilkinson et al. 1998, Evans and Lindsay 1999,
Tar and Sabater 2004). In the latter category, numerous tools and techniques have been developed to implement the
quality-improvement process (Feigenbaum 1991, Bunney and Dale 1997, Stephens 1997, Hellsten and Klefsjo 2000,
Tar and Sabater 2004). However, despite the plethora of TQM tools and techniques that have now been developed,
a review of the literature reveals that the vast majority of studies of TQM have analysed the managerial aspects of
TQM such as critical factors for successful implementation of TQM and its influence on operational performance
with relatively few studies having focused on the choice and implementation of appropriate TQM tools and
techniques (Saraph et al. 1989; Powell 1995; Hendricks and Singhal 1997, Taylor and Wright 2003, Bayazit and
Karpak 2007, Sila 2007, Stock et al. 2007).
Because the available tools and techniques of TQM are plentiful, diverse and frequently utilised, many
businesses are liable to choose the wrong tools or implement them at an inappropriate time. These errors inevitably
diminish the supposed predictability of the performance of the chosen tools and techniques. It is the contention of
the present study that, if business is to utilise the tools and techniques of TQM effectively, it is essential to choose the
right tools at the right time and to implement them in the right way. Against this background, the present study
undertakes an analysis of the utilisation of TQM tools and techniques in the motor industry of Taiwan. The
intensely competitive motor industry demands high-quality, low-cost, flexible production if it is to achieve customer
*Email: chen88@ydu.edu.tw
satisfaction (Roy et al. 2005). To achieve these objectives, the motor industry must employ the right tools and
techniques of TQM at the appropriate time.
The importanceperformance matrix has been widely used by service providers in various industries to assess key
quality attributes with a view to devising strategies for quality improvement. The matrix has been applied in higher
education sectors (Chen et al. 2006) and banking industries (Chen 2009). It is an excellent service quality evaluation
method for managers seeking to determine the best improvement strategies. To determine the best strategy for
implementing and improving the performance of the many available tools and techniques of TQM, the present study
utilises a performance matrix based on Hung et al. (2003), as modified by the contribution of Chen et al. (2007). This
matrix is used to identify which tools and techniques are under-performing compared with their level of importance.
The study also utilises the so-called risk priority number (RPN) of failure mode and effects analysis (FMEA; Ford
Motor Company 1988) to determine the order of priority for improvement among the under-performing tools and
techniques identified in the performance matrix.
The remainder of this paper is organised as follows. The next section provides a review of the relevant literature
on: (1) the tools and techniques of TQM; (2) some aspects of failure mode and effects analysis (FMEA); and (3) the
development of an appropriate importanceperformance matrix of the identified tools and techniques. The
following section of the paper describes the methodology of the empirical study of the Taiwanese motor industry.
The results of the study are then presented, followed by a discussion of the implications. The paper concludes with a
summary of the major findings and contributions of the paper.
2. Literature review
2.1 Tools and techniques of TQM
It is difficult to provide a definitive list of the very large number of tools and techniques that have been utilised in
implementing TQM programmes. The diversity of tools and techniques that have been applied to TQM
programmes in various industries is reflected in the quite different lists that various scholars have suggested over the
years (Crosby 1979, Ishikawa 1985, Imai 1986, McConnell 1989, Lemak and Montgomery 1996, Dale 1999, Evans
and Lindsay 1999, Tar and Sabater 2004, Chen 2009).
One of the earliest lists of TQM tools and techniques is the so-called seven old quality-control (QC) tools
(Ishikawa 1985; McConnell 1989): (1) flow charts; (2) cause-and-effect diagrams; (3) Pareto charts; (4) histograms;
(5) run charts and graphs; (6) X bar and R control charts; and (7) scatter diagrams.
Dale and McQuater (1998) and Tar and Sabater (2004) subsequently identified a list of the tools and techniques
that have been most widely used by businesses in implementing TQM in various ways. This list included:
. The seven old QC tools (noted above).
. The seven new management tools: (1) affinity diagram; (2) arrow diagram; (3) matrix diagram; (4) matrix
data analysis; (5) process decision programmer chart; (6) relations diagram; and (6) systematic diagram.
. Various other tools and techniques: benchmarking, control plan, design of experiments (DOE), fault-tree
analysis (FTA), force-field analysis, problem-solving methodology, questionnaires, sampling, statistical
process control (SPC), brainstorming, departmental purpose analysis, FMEA, flow charts, pokayoke,
quality costing, quality function deployment (QFD), and quality-improvement teams.
More recently, Prajogo and Sohal (2006) identified a different list of TQM tools: (1) SPC; (2) the seven old QC
tools (noted above); (3) QFD; and (4) FMEA. Other suggested lists of tools and techniques have come from Lee
and Ho (2003), who included the seven old QC tools, together with quality-control circle (QCC), suggestion
system, benchmarking, business process reengineering (BPR) and Six Sigma. Sheu (2006) proposed the seven old
QC tools and various other tools and techniques including ISO 9000, QFD, QCC, quality costing, SPC, Six
Sigma, Demings (1982) plandocheckaction (PDCA) cycle, and so on.
In the specific context of Taiwan, Dai (2006) proposed: (1) the seven old QC tools; (2) the seven new
management tools; and (3) various other tools and techniques including ISO 9000, brainstorming, benchmarking,
QFD, QCC, quality costing, SPC, 5S, 5W1H (who, what, when, where, why, how), VA/VE (value analysis/value
engineering), FMEA, DOE, Six Sigma, PDCA and so on.
On the basis of this review of the literature and consultation with expert practitioners in the field, the present
study identified a list of 32 tools and techniques as those most widely used by manufacturing industries in Taiwan.
The 32 tools and techniques that were identified as relevant to the present study were as shown in Table 1.
1074 S.-H. Chen
Table 1. The tools and techniques of TQM in the Taiwanese manufacturing industry.
RPNi Si Oi Di 1
in which:
Si degree of severity
Oi frequency of occurrence
Di chance of detection
i FMEA factor (110)
It is obvious that a greater RPN implies a greater risk (Dong 2007). Depending on the size of the RPN,
differential judgements can be made about the degree of risk and the appropriate response in accordance with
standardised FMEA applications (Lin et al. 2006, Tay and Lim 2006). The RPN is utilised in the present study to
prioritise the TQM tools and techniques identified as being in need of improvement on a modified importance
performance matrix.
International Journal of Production Research 1075
1.0
2/3
B22
j=2 B12 Appropriate B32
Improvement Performance Zone Improvement
Importance (PI) (Maintain)
1/3
B11
B21 B31
j=1 Appropriate
Improvement Improvement
Performance Zone
(Maintain)
Excellent
Zone
PCCL
PUCL
PLCL
1/3
Improvement
Zone
. When j 1, the three performance zones (B11 , B21 and B31 ) represent the lowest level of importance (least
important zones).
. When i j, the three performance zones (B11 , B22 and B33 ) represent zones in which the level of importance
equals the level of satisfaction with performance (appropriate performance zones).
In theory, the target levels of satisfaction with the performance of a particular quality attribute should be
proportional to the importance of that attribute. To achieve this objective, the present study adopts the indices
suggested by Lin et al. (2006) and Chen et al. (2007). The author has redefined the indices of importance that were
plotted along the horizontal axis and the indices of execution performance that were plotted along the vertical axis.
Therefore, these indices of importance (PI) and performance of execution (PP) are defined as follows:
X I min
PI 2
5
X P min
PP 3
5
in which:
PI: index of importance;
PP: index of execution performance
X I : mean of importance
X P : mean of performance
min the minimum value of the k scale (1 to 5)
The present study also adopted the control chart of Montgomery (1991), whereby the acceptable range of the
performance matrix is limited to an area within two bold oblique lines to obtain an appropriate performance control
zone (Figure 2). Between these two lines is an oblique line representing the performance control centre limit (PCCL).
This line and the two bold oblique lines the performance upper control limit (PUCL) and the performance lower
control limit (PLCL) are established according to the coordinates that enable objective diagnosis and judgement of
the required improvements to be performed. Based on heuristics, 99.73% of the indices can be expected to fall within
International Journal of Production Research 1077
3 standard deviations (which indicates a failure rate of about 0.27%), 95.44% of the indices can be expected to fall
within 2 standard deviations (which indicates a failure rate of 4.56%) and 68.26% can be expected to fall within
1 standard deviations (which indicates a failure rate of about 31.74%).
Therefore, in the present case, a line indicating 3 standard deviations was used to establish the oblique lines of
the PUCL and PLCL, as follows:
PUCL T 3s
PCCL T 0 4
PLCL T 3s
The tools and techniques identified previously can then be mapped onto the performance control matrix. The
two bold diagonal lines in the performance control matrix indicate the limits of the performance control zone
(maintain zone); the tools and techniques within this zone can be maintained in accordance with the present
situation. The tools and techniques that fall into the bottom-right zone (improvement zone) have greater
importance than performance; more resources must be invested in these tools and techniques to improve
performance. The tools and techniques that fall into the upper-left zone (excellent zone) have less importance than
performance; these tools and techniques are already performing well (given their level of importance). Generally
speaking, managers should seek to improve only those tools and techniques that are located within the
improvement zone.
3. Methodology
3.1 Questionnaire design and structure
The questionnaire for the present study was based on: (1) a review of the relevant literature (Dale and McQuater
1998, Lee and Ho 2003, Tar and Sabater 2004, Dai 2006, Sheu 2006); (2) discussions with experts (including quality-
management scholars and consultants); and (3) discussions with 10 experienced senior engineers in the Taiwanese
motor industry.
The final questionnaire was divided into three parts, as follows:
. Demographics: gender, age, education and years of service.
. Survey of importance: responses requested on a Likert-type scale of 1 to 5 (with 1 representing extremely
unimportant and 5 representing extremely important).
. Survey of satisfaction with performance: responses requested on a Likert-type scale of 1 to 5 (with 1
representing extremely unsatisfactory execution performance and 5 representing extremely satisfactory
execution performance).
Items No. %
1.0
24
1615
17 22 9
21 8
.8
Excellent Zone 12 41
710 2 26
Performance of execution (PP)
PUCL= 0.2952
2011 23
14
18
5 28
13
31 32
30
.6
27
Maintain Zone PLCL= -0.2952
PCCL= 0 19
.4 6
25
29 3
.2
Improvement Zone
0.0
0.0 .2 .4 .6 .8 1.0
Importance (PI)
6 9 8 9 648 2
Business process reengineering 10 9 10 900 1
QCC 7 10 8 560 4
Seven new management tools 8 9 8 576 3
Suggestion system 7 10 7 490 6
TRIZ 8 7 9 504 5
Equation (1). It is apparent that the order of priority of the six tools and techniques was as follows: (1) BPR, (2) Six
Sigma, (3) seven new management tools, (4) QCC, (5) TRIZ and (6) suggestion system.
4. Discussion
The three tools and techniques that achieved the highest level of satisfaction with execution performance were: (1)
seven old QC tools (PP 0.94); (2) ISO 9000 (PP 0.91); and (3) JIT (PP 0.90). In the case of the first of these,
the Taiwanese motor industry has a long history of utilising these seven old QC tools to accomplish the traditional
industry goals of high quality and low cost. In the case of ISO 9000, the Taiwanese motor industry has a high level
of certification because ISO 900 provides clear operating criteria that enable the achievement of high quality
standards. In the case of JIT, it should be noted that the Taiwanese motor industry generally considers this to be the
most important productivity-enhancing innovation since the turn of the century because it reduces manufacturing
costs continuously through better quality, lower inventory and shorter lead times (Fullerton and McWatters 2001);
as a consequence, JIT has been widely adopted throughout the Taiwanese motor industry.
Priorities for improvement strategies for under-performing tools and techniques vary depending on the
availability of appropriate resources. When the resources of an enterprise are limited, they must first be allocated to
the tools and techniques that most urgently require improvement. The tools and techniques in the maintain zone
(25 items) and excellent zone (1 item) in the present case study do not require attention when resources are limited.
Those in the improvement zone must therefore be prioritised for improvement measures. In the present study, these
just-do items, in order of priority, were: (1) BPR, (2) Six Sigma, (3) seven new management tools, (4) QCC, (5)
TRIZ and (6) suggestion system. Education and training in the use of these tools and techniques should be improved
to ensure that all employees are familiar with their correct operation. The aim is to see these items promoted to the
maintain zone.
If an enterprise has abundant resources, items that fall into the improvement zone must retain their high
priority, but those that fall into the maintain zone should also be considered for improvement actions. The ultimate
aim is that all tools and techniques can be upgraded to the excellent zone. Many enterprises utilise a variety of tools
in an attempt to improve the quality of their products or services, but if the tools are applied inappropriately or the
timing of the application is not optimal, the expected performance is unlikely to be achieved. Strategies for
improvement should be based on the available resources and the nature of the firms products and industry sector.
For example, in the present case study, which dealt with mass-production products, the improvement strategy
should allocate the available resources with the aim of ensuring that all items fall into the maintain zone. In
contrast, if a firm specialises in customised products, the aim should be to surpass the customers expectations to
ensure customer satisfaction; in this instance, the infusion of more resources is required to ensure all items are
upgraded to the excellent zone. In both cases, resources must be allocated to the tools that are located in zones of
highest priority for improvement. The adoption of this approach ultimately ensures that resources are used
efficiently to improve performance while maintaining the enterprises competitive advantage.
5. Conclusions
To obtain maximum value from the use of the many tools and techniques that are available for quality
improvement, businesses should establish a planned approach to their choice of appropriate tools and the
International Journal of Production Research 1081
application of limited resources to these tools and techniques. The present study has made a contribution to such a
planned approach by integrating elements of the FMEA methodology and a modified performanceevaluation
matrix to provide a methodology for assessing priorities for improvement of the performance of TQM tools and
techniques. The study has demonstrated that this integrated approach provides an excellent measuring instrument
for prioritising an improvement strategy in relation to the wide variety of tools and techniques that are available for
quality management. Once priorities are established, firms can direct their resources appropriately to ensure that
employees understand the tools and techniques and are committed to their proper application. Appropriate training
should be undertaken to assist employees to practise what has been taught in a step-by-step process.
This study has thus made four major contributions to knowledge in this important area. First, the study has
identified and delineated the available TQM tools and techniques that are suitable for application in the Taiwanese
motor industry. Second, the study has provided an analysis of the performance of the tools and techniques of TQM
currently used in the Taiwanese motor industry. Third, the study has provided valuable guidance for appropriate
improvement strategies among the identified tools and techniques in this particular industry. Finally, by integrating
the FMEA methodology and a modified performanceevaluation matrix, the study has provided a useful and
convenient methodology for assessing TQM tools and techniques that could be successfully applied in a variety of
other industries.
Acknowledgement
The author thanks the National Science Council of Taiwan, ROC for providing financial support for this study in 2010 (Number:
NSC 99-2221-E-412 -001).
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Appendix
Almost impossible 1 05
Very low 2 615
3 1625
Medium 4 2635
5 3645
6 4655
High 7 5665
8 6675
Very high 9 7685
10 86100