TQM Implementation in China
Based on the author’s thorough literature review, the TQM implementation in China has
been identified. This section presents the brief review results. In 1978, the Beijing Internal
Combustion Engine Factory and the Qinghe Woollen Mill started to implement TQM
through cooperating with their foreign partners. In the meantime, a number of experts and
scholars began to disseminate the knowledge of TQM to firms. In September 1978, some
firms began to introduce QC circle activities. On 24 August 1979, the excellent QC circles’
reports were presented in Beijing. On 31 August 1979, the China Quality Control
Association was established. One of its duties was to cooperate with relevant governmental
agencies to promote TQM in the country. Because of the significant effects of TQM
implementation in the Beijing Internal Combustion Engine Factory, it was concluded that
TQM could be effectively implemented in China. Thus, the experiences of TQM
implementation were then popularized and disseminated to other firms. In order to
encourage firms in implementing TQM, the State Economic Commission issued the
Provisional Regulations on TQM Implementation in Industrial Firms in March 1980. The
provisional regulations, which integrated TQM theory with Chinese national specific
conditions, stipulated the significance, role, and implementation method of TQM. In order to
help firms implement TQM, a large number of training courses and seminars were organized
by the quality control associations at various levels
2
The statistical data in 1985 showed that .
38,000 firms implemented TQM while 500,000 QC circles were established in various
firms. Today, there are tens of thousands of firms that have implemented TQM, which has
been implemented not only in state-owned firms but also in collective and township firms,
not only in industrial firms but also in service firms.
2
China has different levels of quality control associations such as state, ministry, province,
municipality, and county.4
In fact, TQM was not well defined in China, but was still an ambiguous concept. However,
the major TQM implementation practices in Chinese manufacturing firms could be
summarized as: Using various kinds of quality management tools such as the QC seven tools
and statistical process control in practice; implementing QC circles activities; analyzing and
identifying quality-related costs; emphasizing quality inspection; establishing quality bodies
(e.g., TQM implementation offices) in manufacturing firms; conducting quality audits;
strengthening process control and improvement, product design, and after sales services. In
the meantime, many people working in firms accepted education and training on TQM.
Over the past several years, China has become a focus of interest for Western organizations
and management researchers, along with the awareness of the important role it has played in
the global economy. Accordingly, more and more researchers have been involved in
conducting research projects in relation to China in various fields, such as culture (e.g.,
Adler et al., 1989), organizational studies (e.g., Shenkar and von Glinow, 1994), technology
transfer (e.g., Tackaberry, 1998), and marketing (e.g., Fock and Woo, 1998). Research on
China’s TQM domain, however, has not attracted much attention. As a result, little research
has been conducted in this field, especially on TQM implementation at the firm level. Table
1.2 lists main articles published in international journals before 1996, dealing with general
China’s quality management.
Table 1.2 Articles Concerning China’s Quality Management Appeared in International
Journals Before 1996
- Stephens, K.S. (1989), China’s emerging quality emphasis, Quality Progress, December,
pp. 56-61.
- Liu, D.X. and Willborn, W. (1990), Quality improvement in China, International
Journal of Quality & Reliability Management, Vol. 7 No. 5, pp. 27-33.
- Chou, Y., Chang, P.L. and Tuan, C. (1993), Total quality control Chinese style and its
management implications - Taiwan versus China, Total Quality Management, Vol. 4,
No. 3, pp. 283-303.
- Liu, Y.Z. (1994), TQM in the socialist market economy of China, Asia Pacific Journal
of Quality Management, Vol. 3 No. 3, pp. 36-44.
- Barad, M. (1995), Some cultural/geographical styles in quality strategies and quality
costs (P.R. China versus Australia), International Journal of Production Economics,
Vol. 41, pp. 81-92.
- Zhao, X.D., Young, S.T. and Zhang, J.C. (1995), A survey of quality issues among
Chinese executives and workers, Production and Inventory Management Journal, Vol.
36 No. 1, pp. 44-48.
- Tang, C.L. and Tummala, V.M.R. (1996), The PCB industry in Hong Kong and China:
A 14-step implementation strategy for ISO 9002 certification, International Journal of
Quality & Reliability Management, Vol. 13 No. 2, pp. 99-113.5
The existing Chinese literature
3
related to the TQM showed that there are three main streams
of published Chinese articles. First, a number of articles were published dealing with
institutional policies. Such articles mainly discussed what kinds of governmental quality
policies should be drawn up in order to encourage Chinese firms to emphasize quality
management, implement TQM, and improve product quality. Second, some articles reported
the specific experiences of implementing TQM in firms. These articles generally discussed
the benefits, importance, and methods of implementing TQM in firms. These writers adopted
case study research methodologies in their studies. Third, a few articles addressed how to use
specific quality tools (e.g., the seven QC tools, statistical process control, experimental
design, and quality function deployment) in practice.
Although many Chinese manufacturing firms began to implement TQM in the late 1970’s
and early 1980’s, to date no large-scale empirical survey has been conducted to study the
effects of TQM implementation on overall business performance in Chinese manufacturing
firms. In addition, no research has been conducted about the confusion of TQM concept and
TQM effects. Furthermore, no research has been conducted for developing a TQM
implementation model that can be used by Chinese manufacturing firms to improve their
TQM implementation efforts. The lack of sufficient guidelines to assist firms’ TQM
implementation has contributed to a number of unsuccessful TQM implementations in
China.
The European Model for TQM
The European Quality Award was officially launched in 1991. The primary purpose of the
award is to support, encourage, and recognize the development of effective TQM by
European firms. The model of the European Quality Award is divided into two parts,
Enablers and Results. The enablers are leadership, people management, policy & strategy,
resources, and processes. These five aspects steer the business and facilitate the
transformation of inputs to outputs. The results are people satisfaction, customer
satisfaction, impact on society, and business results (the measure of the level of output
attained by the firm). The European Quality Award model (1994) consists of nine primary21
elements, which are further divided into a number of secondary elements. The primary and
secondary elements are listed below:
(1) Leadership
- Visible involvement in leading total quality;
- A consistent total quality culture;
- Timely recognition and appreciation of the effects and successes of
individuals and teams;
- Support of total quality by provision of appropriate resources and assistance;
- Involvement with customers and suppliers;
- Active promotion of total quality outside the organization.
(2) Policy and strategy
- How policy and strategy are based on the concept of total quality;
- How policy and strategy are formed on the basis of information that is
relevant to total quality;
- How policy and strategy are the basis of business plans;
- How policy and strategy are communicated;
- How policy and strategy are regularly reviewed and improved.
(3) People management
- How continuous improvement in people management is accomplished;
- How the skills and capabilities of the people are preserved and developed through
recruitment, training and career progression;
- How people and teams agree on targets and continuously review performance;
- How the involvement of everyone in continuous improvement is promoted and people
are empowered to take appropriate action;
- How effective top-down and bottom-up communication is achieved.
(4) Resources
- Financial resources;
- Information resources;
- Material resources and fixed assets;
- The application of technology.
(5) Processes
- How processes critical to the success of the business are identified;
- How the organization systematically manages its processes;
- How process performance measurements, along with all relevant feedback, are used to
review processes and to set targets for improvement;
- How the organization stimulates innovation and creativity in process
improvement;
- How the organization implements process changes and evaluates the benefits.
(6) Customer satisfaction.
(7) People satisfaction.
(8) Impact on society
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