Strategic planning to investigate the decision index of organization for effective total quality management implementation – in context of Indian small and medium enterprises

Abstract

Purpose The aim of this paper is to present an empirical assessment and strategic planning for measuring the impact of total quality management (TQM) practices on small and medium enterprises (SMEs) and its effectiveness for business excellence. The authors investigate the present status of quality system in SMEs and find the thrust areas for TQM implementation in SMEs of strengths, weaknesses, opportunities and threats analysis. Also, it examines the effect of external environment on internal factors of SMEs by situation analysis. This study helps to develop a model for assessing the components of TQM in SMEs after identifying their weightage. Design/methodology/approach The qualitative and quantitative techniques have been used together for robust conclusions. The survey data has been collected through the properly designed questionnaire. After studying the present status of TQM in SMEs, situation analysis has been carried out for examining the effect of the external environment on internal factors of SMEs. The weightage of TQM critical success factors was calculated by pair-wise comparison method of analytical hierarchical process (AHP) analysis for framework development. Findings The study offers useful insights and guidelines for identification of the contribution of TQM critical factors in SMEs performance. It has been observed that the attribute understanding of customer need and its fulfillment ability has the highest priority, whereas supplier partnership and the ability to reduce waste having the least priority in SMEs. Validation study facilitates to channelize TQM initiatives, to improve environmental and operational performance. Originality/value The authors provide a comprehensive typology of TQM practices, and its performances on SMEs. This paper can increase the awareness of the significance of TQM strategy which could help managers of SMEs to have a better understanding of the benefits of implementing TQM and therefore unable patient satisfaction with their organizations.