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Tqm Practices in Peruvian Companies

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Tqm Practices in Peruvian Companies
TQM Practices in Manufacturing and Service Peruvian Companies

47

JCC
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

Abstract
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

Introduction
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



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Ghobadian, A., & Gallear, D.N. (1996). Total quality management in SMEs. International Journal of Management Science, 24(1), 83-106. Hair, J.F., Anderson, R.E, Tatham, R.L., & Black, W. (1995). Multivariate data analysis with readings, (4th ed.). Upper Saddle River, NJ: Prentice-Hall. Hasan, M., & Kerr, R. (2003). The relationship between total quality management practices and organisational performance in service organizations. The TQM Magazine, 15(4), 286-291. Huarng, F., & Cheng, Y. (2002). Relationships of TQM philosophy, methods and performance: A survey in Taiwan. Industrial Management + Data Systems, 102(3/4), 226-234. Huq, Z., & Stolen, J.D (1998). Total quality management contrasts in manufacturing and service industries. International Journal of Quality & Reliability Management, 15(2), 138-161. Krumwiede, D., & Lavelle, J. (2000). The effect of top manager personality on a TQM environment. Engineering Management Journal, 12(2), 9-14. Lagrosen, S. (2002). Quality management in Europe: A cultural perspective. The TQM Magazine, 14(5), 275-283. Ley de Formalización de la Micro y Pequeña Empresa [Law of Promotion and Formalization of the Micro and Small Company]. (2003). Ley 28015. Retrieved August 24, 2007, from www.mintra.gob.pe/contenidos/microempresa/ley_mype/ Ley_MYPE.pdf Li, J.H., Anderson, A.R., & Harrison, R.T. (2003). Total quality management principles and practices in China. The International Journal of Quality & Reliability Management, 20(8/9), 1026-1050. Footnotes * Correspondence with the author to rpino@pucp.edu.pe C JCC Int 02.indd 56 11/21/08 12:11:18 AM

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