U.S. Manufacturing Industry: A study of Relationship between the Total Quality Management and Organizational Performances

Abstract

Our to those who have not. Using article
com p ares the p erform an ces o f
m anufacturers who have won quality
rela ted a w a rd s v ariou s a cco u n tin g
indices as indicators o f perform ance, we
test few o f the argum ents being currently
m ade in manufacturing strategy
literature. Studies suggest that quality is
now ju st a “qualifier,” as opposed to being
an “order w inner” (Colyer, 2006; Hill 2000,
page 36). To the extent, perform ance o f
aw ard winners com pared to non-winners
is better, quality can still be considered to
have conferred advantage. Furthermore,
insignificant differences in perform ances
reinforce the notion o f quality as a
qualifier. Another argum ent m ade in the
literature is that com panies that have
im plem ented the TQM are also expected
to be lean m anufacturer (Hill, 2000 page
36; Easton an d Jarrell, 1998; H endricks
an d Singhal, 1997). We have used som e
fin an cial indices as indicators o f leanness
to test the differences betw een quality
aw ard winners an d non-winners.