Total Quality Management for Micro-businesses in the Manufacturing Industry

Mémoire (de fin d'études) , 2008 , 114 Pages , Note: 1,7

Ingénierie - Génie Industriel

Purpose Quality management models such as ISO 9001:2000 or excellence awards serve as quality guides for large and medium-sized organizations. There is nothing similar in the field for micro-businesses, i.e. businesses up to 20 employees. This thesis aims to lay down the foundation for a large-scale field study. The study shall unveil which areas of a company are essential to be addressed by a basic Quality Management System in order to optimize competitiveness, customer satisfaction and business results. The desired result of the study is to be able to make recommendations for an ideal total Quality Management System for micro-businesses in the manu-facturing industry.

Design/Methodology/Approach Based on an extensive literature review on quality management in small businesses and micro-businesses, criteria of quality awards and TQM practices in general, a framework was developed, called “Micro TQM for Micro-businesses Framework” – similar to those of famous quality awards, such as the MBNQA or the EFQM Award . Supported by experts from Stevens Institute of Tech-nology (Hoboken, NJ), industry associations, and the Brooklyn Chamber of Commerce, a questionnaire was developed for a subsequent field study.

Findings First of all the “Micro TQM for Micro-businesses Framework” has been created based on a literature review. The other output of this thesis is the quality man-agement questionnaire whose sections are linked to the elements of the framework. The questionnaire is made to test six hypotheses about cause-and-effect relations in the model. The main-hypothesis of this thesis is: ‘Companies that focus their quality effort proactively on prevention of non-conformances excel in customer satisfaction which leads to superior overall performance.’ Subsequent steps of the study will need to corroborate the hypotheses.

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Motivation
• Layout of This Thesis
• Background
• The Role of TQM in Business Today
• Evolution of Quality
• TQM, the Competitive Edge of the 21st Century
• Quality Management in Micro-businesses is Different
• The Definition of Micro-businesses
• What Makes Micro-businesses Unique – The Business Environment of Very Small Companies
• Ownership
• Management
• Organizational Structure
• Capital and Resources
• Markets and Customers
• Why Quality is Integral to Micro-businesses
• Strengths of Micro-businesses
• Weaknesses of Micro-businesses
• Opportunities for Micro-businesses
• Threats for Micro-businesses
• Critical Appraisal of Research on Quality Management in Micro-businesses
• Conclusion
• Development of the Model: Micro TQM for Micro-businesses Framework
• Two Cost Types as the Starting Point
• Elements of the Model
• Hypotheses
• Context
• Quality Awareness
• Prevention
• Areas for Preventive Activities
• Internal Prevention vs. External Prevention
• Process Quality of Prevention
• Correction
• Internal Correction vs. External Correction
• Process Quality of Correction
• Customer Satisfaction
• Performance Dimensions
• Empirical Survey
• Design/Methodology
• Difficulties in Empirical Studies on Micro-businesses
• Summary and Outlook

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis aims to develop a framework for total quality management (TQM) specifically tailored for micro-businesses in the manufacturing industry. This framework will be based on an extensive literature review of quality management practices in small and micro-businesses, as well as analysis of existing quality awards and TQM models. The ultimate goal is to provide recommendations for an ideal TQM system that can improve competitiveness, customer satisfaction, and overall business performance for micro-businesses.

• The unique challenges and opportunities of quality management in micro-businesses.
• The development of a new TQM framework specifically designed for micro-businesses.
• The identification of key areas for quality improvement and prevention within micro-businesses.
• The relationship between quality management practices, customer satisfaction, and overall business performance.
• The development of a questionnaire to gather empirical data for a future field study.

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: This chapter provides an overview of the thesis's motivation and research objectives, outlining the problem of the lack of a dedicated TQM framework for micro-businesses. It also details the structure of the thesis.
• Background: This chapter examines the role of TQM in modern business, tracing the evolution of quality management concepts and highlighting the importance of TQM for achieving a competitive edge in the 21st century.
• Quality Management in Micro-businesses is Different: This chapter delves into the unique characteristics of micro-businesses, exploring their specific business environment, including ownership structures, management styles, organizational structures, and resource constraints. It then analyzes the strengths, weaknesses, opportunities, and threats (SWOT) facing micro-businesses, emphasizing the crucial role of quality in their success.
• Development of the Model: Micro TQM for Micro-businesses Framework: This chapter focuses on the development of the proposed TQM framework, starting with the identification of two key cost types. It then outlines the framework's elements, including hypotheses, context, quality awareness, prevention, correction, customer satisfaction, and performance dimensions. The chapter explores the different areas for preventive activities and the distinction between internal and external prevention and correction.
• Empirical Survey: This chapter discusses the design and methodology of the planned empirical study, outlining the challenges of conducting research on micro-businesses. It also highlights the specific areas of focus for the study.
• Summary and Outlook: This chapter summarizes the key findings of the thesis and provides an outlook on future research directions. It discusses the potential impact of the proposed TQM framework on micro-business performance and identifies areas for further investigation.

Schlüsselwörter (Keywords)

This thesis focuses on total quality management (TQM), micro-businesses, manufacturing industry, quality management framework, customer satisfaction, business performance, prevention, correction, empirical research, field study.

• Université: Technical University of Berlin (Wirtschaft und Management)
• Cours: Technologie- und Innovationsmanagement
• Note: 1,7
• Auteur: Phillip Käser (Auteur)
• Année de publication: 2008
• Pages: 114
• N° de catalogue: V153144
• ISBN (ebook): 9783640656677
• ISBN (Livre): 9783640656783
• Langue: anglais
• mots-clé: TQM, Total Quality Management, Small Businesses, Kleinunternehmen, EFQM, Malcolm Baldrige Award, Kleinstunternehmen