Effect of Total Quality Management (TQM) Dimensions on Operational Performance of Ethiopian Pharmaceutical Manufacturing Plants
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Date
2019-05
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Addis Ababa University
Abstract
The purpose of this study is to examine the effect of TQM dimensions on the operational performances of the pharmaceutical manufacturing companies operating in Ethiopia. Data for this study was collected using self-administered questionnaires that were distributed to the 13 companies. Census was carried out due to the relatively small number of Ethiopian pharmaceutical manufacturing companies. The target populations for study are plant technical managers, operational managers (production managers), quality control & assurance managers and other senior experts who are assumed to provide the most relevant information of the respective companies. Out of 65 questionnaires distributed to the companies a total of 57 were returned. Through comprehensive literature review, seven critical success factors of TQM that are relevant to the pharmaceutical industries were identified. Using correlation & regression analysis the relationship between TQM variables and common operational performance measures (Quality, Cost, and Delivery & Flexibility to volume) was investigated. The Correlation analysis reveals that there is strong relationship between TQM dimensions and operational performances of pharmaceutical manufacturing companies. The outcome of regression analysis indicate that customer focus, process management, product design and people management have significant contribution to at least one of the operational performance measures. Top Management support, supplier quality management and continuous improvement do not appear to contribute to higher performance. This study offers pharmaceutical companies and their managers a better understanding of the relationship and impact that some of TQM elements have on the performance of their operations. Thus managers will get an opportunity to take better & more effective decisions about the implementation of TQM. Due to nature of the study, the sample size is small and performance measures was based on the perceptions of managers, therefore generalization should be made with caution.
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Keywords
Ethiopia, Operational Performance, Pharmaceutical Manufacturing Companies, Total Quality Management