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Total quality management practices in manufacturing and service industries:

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Int. J. Advanced Operations Management, Vol. 4, No. 3, 2012 155

Total quality management practices in manufacturing

and service industries: a comparative study

Faisal Talib*
Mechanical Engineering Section,
Faculty of Engineering and Technology,
University Polytechnic,
Aligarh Muslim University,
Aligarh – 202002, UP, India
Fax: +91-1332-285565
E-mail: ftalib77@yahoo.co.in
E-mail: talibddm@iitr.ernet.in
*Corresponding author

Zillur Rahman
Department of Management Studies,
Indian Institute of Technology,
Roorkee – 247667, UKh, India
E-mail: yusuffdm@iitr.ernet.in
E-mail: zrahman786@gmail.com

Abstract: Total quality management (TQM) practices can be described as best

ways in which organisations and their employees undertake business activities
in all key processes. These practices have a positive impact on business results
in manufacturing and service industries.
This paper seeks to investigate the sets of TQM practices in two
different sectors and identifies a set of common TQM practices applicable to
both the sectors, by reviewing the literature on TQM practices followed by
manufacturing and service industries. The methodology adopted was a survey
of published research studies on manufacturing and service industries were
selected and their TQM practices were compared. The studies selected for this
purpose focused on the TQM principles and practices used by them. The
finding showed no significant difference in the level of most of TQM practices
and broadly the same set of identified TQM practices do exist and are
applicable to both the sectors except few inconsistencies as reported by the
study. The results of this paper provide guidance for managers and practitioners
of quality to implement TQM in their organisations, effectively through the use
of the proposed set of identified TQM practices.

Keywords: total quality management; TQM; total quality management

practices; manufacturing industries; service industries; business performance;
customer satisfaction.

Reference to this paper should be made as follows: Talib, F. and Rahman, Z.

(2012) ‘Total quality management practices in manufacturing and service
industries: a comparative study’, Int. J. Advanced Operations Management,
Vol. 4, No. 3, pp.155–176.

Copyright © 2012 Inderscience Enterprises Ltd.

156 F. Talib and Z. Rahman

Biographical notes: Faisal Talib is an Assistant Professor at Mechanical

Engineering Section, University Polytechnic, Aligarh Muslim University,
Aligarh, UP, India. He received his Master in Industrial and Production
Engineering and currently pursuing his PhD in Total Quality Management in
service sector from Indian Institute of Technology Roorkee, UKh, India. He has
more than 13 years of teaching experience and has more than 35 research
publications to his credit in national/international journals and conferences. His
special interest includes quality engineering, TQM, service quality, quality
concepts Taguchi methods, and quality management in service industries.

Zillur Rahman is an Associate Professor at Department of Management

Studies, IIT Roorkee. He is a recipient of the Emerald Literati Club Highly
Commended Award and one of his papers was ‘The science direct top 25
hottest article’. His work has been published and cited in various journals
including Management Decision, Managing Service Quality, International
Journal of Information Management, Industrial Management and Data
Systems, The TQM Magazine, Business Process Management Journal,
International Journal of Service Industry Management, Information Systems
Journal, Decision Support Systems, Journal of Business and Industrial
Marketing, and International Journal of Computer Integrated Manufacturing,
to name a few.

1 Introduction

In the era of competitive business environment due to increase in global competition,

intensified by deregulation, total quality management (TQM) is viewed as a strategy to
meet or exceed customer’s requirements and expectations. TQM seeks excellence in all
aspects of business through organisation-wide continuous improvement, commitment by
all, and customer focus. The benefits of TQM can be achieved through identifying the
sets of common TQM principles and practices as applicable to the manufacturing and
service industries. These sets of TQM practices if implemented properly will result to
successfully implementation of TQM. TQM practices are defined by many authors.
Rockart (1979) defined TQM practices as “the limited number of areas in which results,
if they are satisfactory, will ensure competitive performance for organisation”. Also,
Boynton and Zmud (1984) explained TQM practices as “those few things that must go
well to ensure success”. These definitions emphasise gaining a competitive edge and are
applicable to all the sectors.
The concept of TQM philosophy and its principles is quite old and was introduced
into the USA around 1980, primarily in response to the severe competitive
challenge from Japanese companies (Prajogo, 2005). Initially, the attention was
towards manufacturing industries with little consideration being given to the service
industries largely because of the domination of researchers from the engineering and
operations discipline (Khamalah and Lingaraj, 2007; Redman and Mathews, 1998). The
emergence of TQM philosophy in service industries has been a recent development
and is being applied from last two decades. The study by Saraph et al. (1989) comes out
with the concept of applying TQM practices in service industries and was the first
study in this direction where a set of identified TQM practices were considered in
both manufacturing and service industries. Literature survey of manufacturing on
TQM is quite encyclopedic, encompassing an overabundance of research works
 Total quality management practices in manufacturing and service industries 157

(Saraph et al., 1989; Flynn et al., 1994; Ahire et al., 1996; Black and Porter, 1996;
Terziovski and Samson, 1999) while the extant review of the literature on service
revealed that it is young and recent emerging area in the field of service quality, human
resource management (HRM), and customer perception (Zeithaml et al., 1990; Schneider
and Bowen, 1995). These plethoras of studies have often appeased to produce mixed
results, but in general TQM has been credited in providing benefits for the organisations
that implement it properly. This has been proven by studies that have involved
wide-range of surveys, empirical studies, and case studies (Talib and Rahman, 2010b;
Pramod et al., 2008; Samson and Terziovski, 1999; Fryer et al., 2007; Sureshchandar
et al., 2002; Ueno, 2008; Bayazit and Karpak, 2007).
Following the success of TQM in manufacturing, practitioners and academicians have
started to study the potential of transferring and applying the TQM principles and
practices to the service industries and suggested its applicability in it. Although there are
some characteristics that distinguish the service industries with the manufacturing
industries like intangibility, co-production, inseparability, and heterogeneity of the
outputs of services that may affect the transfer of the TQM principles and practices to
service environment which is in contrast to there in the manufacturing industries that are
more measurable and standardised in their specifications (Prajogo, 2005; Sureshchandar
et al., 2001) and thus, causes difficulties for the service providers in controlling the
quality of the service output before delivering them to customers as is normally done with
manufacturing products.
On the other hand, the literature on manufacturing and service industries has
suggested that TQM is advanced now and is accepted as a management philosophy that
embodies a set of generic core principles which are unconstrained by industry-unique
considerations (Dean and Bowen, 1994). A number of studies have examined the
difference in TQM implementation between the manufacturing and service industries.
The study by Woon (2000) conducted on Singaporean companies used a sample size of
240 organisations consisting of 130 manufacturing and 110 service organisations. The
study found that service organisations generally showed a lower level of TQM
implementation than the manufacturing counterpart, particularly in terms of the elements
of information and analysis, process management (PM), and quality performance. On the
other hand, no significant difference was found with respect to the elements of
leadership, human resources, and customer focus.
Mehra and Ranganathan (2008) examines the role of TQM towards enhancing
customer satisfaction using meta-analysis approach on existing research studies on TQM
and customer satisfaction in manufacturing and service industries(four research studies
from each industry) and found that successfully adopted quality management (QM)
practices positively impact customer satisfaction level. They further argued that
organisational focus on customers also increases, resulting in enhanced business
performance. Fotopoulos and Psomas (2009) explore the relationship between ‘soft’ and
‘hard’ TQM elements and QM results on 370 Greek companies (manufacturing,
commercial, service industry). There findings proved that the quality improvement and
consolidation of the company’s market position are influenced mainly by adopting ‘soft’
TQM elements and secondarily ‘hard’ TQM elements. Antony et al. (2002) identified
seven critical success factors (CSFs) in the study of 17 manufacturing and 15 service
companies of Hong Kong. These seven CSFs were found to be applicable to both the
sectors: training and education (TE); quality data and reporting; management
commitment; customer satisfaction and orientation; role of quality department;
158 F. Talib and Z. Rahman

communication to improve quality; and continuous improvement. Huq and Stolen (1998)
investigated the contrast of TQM implementation between 18 manufacturing and
18 service companies based on 19 TQM dimensions. They conclude that the service
firms apply TQM practices selectively as opposed to the manufacturing firms, which
apply the full range of TQM practices. However, the study also found no significant
difference in the level of TQM concepts followed by the manufacturing and service
companies.
Solis et al. (1998) compared the QM practices and quality results between Taiwanese
manufacturing and service companies, based on a survey of 131 manufacturing and
109 service companies. The results presented eight critical factors of QM: quality
information and analysis; human resources management; quality assurance; supplier
quality; customer orientation; quality citizenship, and company quality results. The study
shows significant differences between the manufacturing and service companies with
manufacturing companies performing well in six critical dimensions of QM as well as in
quality results.
A recent study by Talib and Rahman (2010a) provides an overview of the impact
of TQM in different service industries like: health-care; banking; food and distribution;
education; and IT/IS and contributed the relevancy of TQM in these service
industries. Another study by Beaumont et al. (1997) presented a comparative analysis
of the attitudes to and the use of QM practice in Australia’s manufacturing and
service industries. They discussed the attitudes towards the use of factors which
encourage or discourage the implementation of QM practices in these two sectors
and finds that manufacturing uses QM practices more than the service sector.
Finally, Lagrosen and Lagrosen (2003) concluded that QM and business performance
have a stronger relationship for manufacturing organisations than for service
organisations.
Based on the above literature review, it is concluded that there are many studies on
the implementation of TQM practices in the manufacturing and service sectors but no
study has been conducted to identify a set of common and identical TQM practices as
applicable for both the sectors for successful TQM implementation. Although, this study
shares a similar purpose with the previous studies by examining the extent of
implementation of TQM and its practices in the manufacturing and service industries, but
it goes beyond the earlier studies, by examining the difference between TQM practices in
the manufacturing and service industries individually and than comparing them for their
commonalities with respect to their implementation in both these sectors. While, in the
previous TQM studies, no such type of comparisons were conducted. The studies by
Prajogo (2005), Saraph et al. (1989) and Huq and Stolen (1998) included both
manufacturing and service industries in their study, but they did not examine a
comparison of TQM practices for their commonalities in these two sectors. Accordingly,
there is a need to focus on this issue and therefore, this study tries to fill this gap by
conducting an extensive literature review on the TQM practices in manufacturing and
service industries by adopting a detailed research methodology as discussed in next
section.
The aim of the present study is to identify the set of TQM practices in manufacturing
industries as well as in service industries and to compare these sets of identified TQM
practices, and find out a set of common practices applicable to both the sectors so that the
same set of TQM practices can be adopted by the practitioners and academicians for
 Total quality management practices in manufacturing and service industries 159

successful implementation of TQM in their organisation to achieve business excellence

and customer satisfaction. Further, the scope of the present study is to provide managers
and practitioners an option of which principles and practices to include and which
principles and practices not to include in a quality improvement programme.
The remainder of the paper is organised as follows. The next section specifies
research objectives and methodology adopted, in detail. The section after provides an
overview of TQM practices in manufacturing industries and than overview of TQM
practices in service industries followed by results and analysis section of the study.
Conclusions are provided in the final section including the implications to managers and
scope for further study.

2 Research objectives and methodology

The objectives of the present study are threefold and are accomplished by review of the
literature on TQM practices in manufacturing and service sector.
1 to identify a set of TQM practices followed by the manufacturing industries
2 to identify a set of TQM practices followed by the service industries

3 to examine the difference between identified TQM practices in the manufacturing

and service industries by comparing them for their commonalities with respect to
their implementation.
The previous survey-based TQM studies focused on practices formed the basis for the
current study. The methodology adopted for this study was literature review of published
research studies on the current subject focusing on practices influencing TQM in the
manufacturing and service industries separately (studies on mixed industries are
excluded), and are either empirical or review studies. To identify the appropriate
published research studies for present study, a comprehensive computer-aided search of
Proquest/ABI INFORM and Emerald advanced search databases published from 1996 to
2009 was performed using the keywords/phrases like ‘TQM practices’; CSFs’; ‘TQM
practices in manufacturing industries’; and ‘TQM practices in service industries’ with a
limitation on English language, full-text, and scholarly peer-reviewed studies. The results
were further narrowed by excluding those studies which are limited on describing one
specific TQM practice responsible for organisation performance or case-studies or
projects to refine the search namely Sakthivel (2007), Chowdhury et al. (2007), Sinclair
and Zairi (2001), Salameh and Barrows (2001), Weeks and Helms (1998), Taylor and
Wright (2003) and Manjunath et al. (2007). The titles and abstracts based on these
criteria were extensively reviewed and finally, a total of 30 research publications
(15 research studies on TQM practices in the manufacturing industries and 15 on the
service industries) were selected from advanced search method and were reviewed. All
these selected studies have been published in a range of scientific journals. Moreover,
these research studies are mostly considered and are cited by researchers and authors of
TQM to carry out further research studies. An overview of these studies is presented in
the next two sections and also in Tables 1 and 2.
160 F. Talib and Z. Rahman

Table 1 Survey-based major TQM practices in manufacturing industries as reported by

different authors

Total

10
13
12
10

7
6
9

7
8
Lakhal et al. (2006)

1
1
1
1

1
Zhang et al. (2000)

1
1
1
1

1
1

1
Arumugam et al. (2008)

1
1
1

1
1

1
Mady (2009)

1
1
Yusof and Aspinwall (2000)

1
1

1
1
Demirbag et al. (2006)

1
1

1
1

1
1
Sila and Ebrahimpour (2005)
1
1

1
1

1
Wilson and Collier (2000)
1
1

1
Sohal and Terziovski (2000) 1

1
1

1
1
1
1

1
Terziovski and Samson (1999)
1
1

Joseph et al. (1999)

1

1
1
1

Dahlgaard et al. (1998)

1
1

1
1
1

Salaheldin (2009)
1
1

1
1
1
1

Dow et al. (1999)

1

1
1
1

Ahire et al. (1996)

1
1

1
1
1

1
Quality information and performance measurement (QIPM)
Customer focus and satisfaction (CFS)
Top-management commitment (TMC)

Human resource management (HRM)

Training and education (TE)

Employee involvement (EI)

Supplier management (SM)

Process management (PM)

Quality systems (QS)
TQM practices
Author(s)
 Total quality management practices in manufacturing and service industries 161

Table 2 Survey-based major TQM practices in service industries as reported by different

authors

Total

12

7
9
8

7
7
7

5
Khamalah and Lingaraj

1
1

1
(2007)

Al-Marri et al. (2007)

1
1

1
1
1
1
1
Mahapatra and Khan (2006)

1
1
1
1

1
1
1

1
Ueno (2008)

1
1
Kanji and Wallace (2000)

1
1
1
Tsang and Antony (2001)

1
1
1
1

1
1

1
Brah et al. (2000)
1

1
1

1
1

1
Shieh and Wu (2002) 1
1

1
Samat et al. (2006)
1

1
1
1

Saravanan and Rao (2007) 1

1
1
1
1

Sureshchander et al.(2002)
1
1

1
1
1

Gupta et al. (2005)

1
1

Gustafsson et al. (2003)

1
1

Li (1997)
1

Behara and Gundersen (2001)

1
1
1
Continuous improvement and innovation (CII)

Quality culture/work culture (QC/WC)

Customer focus and satisfaction (CFS)
Top-management commitment (TMC)

Human resource management (HRM)

Training and education (TE)
Employee involvement (EI)

Supplier management (SM)

Benchmarking (BM)
TQM practices
Author(s)
162 F. Talib and Z. Rahman

3 TQM practices in the manufacturing industries-an overview

Manufacturing is considered to be associated with those organisations where there is no

or very low level of contact with the customers such as in heavy industry, mining,
power plant, cement industry (Voss et al., 1985). Manufacturing requires a physical
transformation, change in the form, and utility of resources. Researchers have identified
four characteristics that distinguish service from manufacturing industries. These are:
intangibility; inseparability; perishability; and heterogeneity (Dean and Evans, 1994). On
the other hand, the impact of TQM on manufacturing sector was also studied by many
scholars particularly the TQM practices. The review of the literature suggested that there
are numerous TQM practices that can be identified as being crucial to the successful
implementation of TQM in manufacturing industries. These TQM practices vary from
one author to another, though there may be a set of common core practices formed which
can be applicable to this sector.
One of the earlier empirical studies in the QM area that analysed the TQM constructs
in the manufacturing was conducted by Ahire et al. (1996). In this study, the authors had
analysed the detailed contemporary QM literature and identified 12 constructs of
integrated QM strategies using a survey of 371 manufacturing firms. The constructs are
empirically tested and validated. They are: top-management commitment (TMC),
benchmarking, internal quality information use, employee involvement (EI), training,
empowerment, supplier QM, statistical process control usage, design QM, customer
focus, supplier performance, and product quality. Another useful study by Yusof and
Aspinwall (2000) in the QM area had carried out an empirical analysis in UK. This study
was conducted on 194 automobile industries and found that the TQM practices for
implementation in these industries are management leadership; continuous improvement
system; measurement and feedback; improvement tools and techniques; supplier quality
assurance; human resource development; systems and processes; resources, TE; and work
environment and culture. More importantly, Demirbag et al. (2006) carried out an
empirical study to identify factors critical to the success of TQM in the 500 Turkish
manufacturing industries. They concluded that there are seven CSFs of TQM: quality
data reporting; role of top-management; employee relations; supplier QM; training;
quality policies; and PM.
Terziovski and Samson (1999) studied the impact of TQM programme on
organisational performance of 1200 manufacturing industries in Australia. They reported
13 TQM practices followed by typical manufacturing organisations. They are: customer
satisfaction; employee morale; cost of quality; delivery in full; defect rates; warranty
rates; productivity; cashflow; employee growth; market share growth; sales growth;
export growth; and innovation. A recent study by Salaheldin (2009), proposed a model
consists of 24 CSFs in a study of 297 small to medium sized enterprises (SMEs) in the
Qatari industrial sector. The results showed significant improvements in operational and
organisational performance of the SMEs. Beside this, Dow et al. (1999) in their study on
698 manufacturing firms comes out with nine TQM factors which are responsible
for successful implementation of TQM: workforce commitment; shared vision; customer
focus; use of teams; personnel training; cooperative supplier relation; use of
benchmarking; use of advanced manufacturing systems; and use of JIT principles.
A study by Arumugam et al. (2008) explored the relationship between practices and
quality performance on 390 ISO 9001:2000 certified manufacturing organisations in
Malaysia. They revealed eight TQM practices which were found to be partially correlated
 Total quality management practices in manufacturing and service industries 163

with quality performance of the Malaysian ISO 9001:2000 certified manufacturing

organisations. The practices are: leadership; PM; information analysis; customer focus;
supplier relationship; quality system improvement; continual improvement; and people
involvement. Further, Sila and Ebrahimpour (2005) in their empirical investigation of
relationship among critical TQM factors and business results in 220 manufacturing
companies found seven TQM factors as: leadership; strategic planning; customer focus;
information and analysis; HRM; PM; and supplier management (SM).
Lastly, a study in 2006 by Lakhal et al. explored the relationship between QM
practices and their impact on performance and reveals seven TQM practices which are
responsible for enhanced performance of 133 manufacturing Tunisian companies from
the plastic transforming sector. The practices identified are: TMC and support;
organisation for quality; employee training; employee participation; customer focus;
information and analysis; and quality system improvement.
Other similar studies by Zhang et al. (2000), Wilson and Collier (2000), Joseph et al.
(1999), Dahlgaard et al. (1998) and Sohal and Terziovski (2000) are of interest and are
covered in the present literature review. An overview of the TQM practices in the
manufacturing industries included in the above literature review is presented in Table 1.
After critically analysing the above selected 15 research studies on TQM practices,
this study identified the following nine major TQM practices as applicable to the
manufacturing industry which are common and have highest frequency of occurrences.
They are:
1 TMC {13/15}
2 customer focus and satisfaction (CFS) {12/15}
3 TE {10/15}
4 SM {10/15}
5 HRM {9/15}
6 PM {8/15}
7 EI {7/15}
8 quality system {7/15}
9 quality information and performance measurement (QIPM) {6/15}.
The numbers in the parentheses represents the frequency of occurrences (the number of
studies in which a particular practice appears) from a total number of studies selected
(15). Though there are many other practices found to be present but their frequency of
occurrences were very low, this suggests that they are rarely used by the researchers in
these studies.

4 TQM practices in the service industries-an overview

Earlier the concept of TQM was widely applied to the manufacturing industries and was
treated as a tool for the manufacturing industries only. But with the recent advancement
in technology and increase in competition in the market due to globalisation and severe
competition challenges, services have been given increasing attention by both
164 F. Talib and Z. Rahman

practitioners and academics. Services have become an important part of the economy and
a key factor in achieving competitive advantage in the service industries (Gummesson,
1994). This led to shift attention from the manufacturing sector to the service sector and
finally the implementation of TQM principles and practices to service organisations. In
view of its holistic approach to quality, TQM is generally considered as a framework that
supports service management. Hence, TQM has been widely applied in the service
industries in recent years. TQM concepts are widely used in healthcare industry, banking
sector, higher education institutions, real estate, and hotels and tourism sectors. The
approach for applying TQM in these sectors is identifying core practices that are
important for successful implementation of TQM concept. If all these core practices are
identified and implemented properly, it will result to increased business performance and
productivity.
A number of studies have been carried out to examine the implementation process of
TQM together with the investigation of TQM core practices. Tsang and Antony (2001)
identified 11 CSFs for the successful implementation of TQM in the UK service sector:
customer focus; continuous improvement; teamwork and involvement; TMC and
recognition; training and development; quality systems (QS) and policies; supervisory
leadership; communication within the company; supplier partnership; measurement and
feedback; and cultural change. A research carried out by Sureshchandar et al. (2002) in
51 banks of India, identified 12 dimensions that contributes the level of total quality
service (TQS) implementation in the Indian banking system. They are: TMC and
visionary leadership; HRM; technical system; information and analysis system;
benchmarking; continuous improvement; customer focus; employee satisfaction; union
intervention; social responsibility; service escapes; and service culture. On the other
hand, Ueno (2008) identified seven management practices that support service quality in
a survey of medium and large-sized mass and technological services in the UK:
recruitment and selection; training, teamwork; empowerment; performance appraisals
and rewards (including measurement and recognition); communication (two-way); and
culture (of the organisation).
Beside this, Samat et al. (2006) explored the relationship between TQM practices
and service quality as well as the relationship between TQM practices and market
orientation in 175 service organisations of Malaysia. The results show seven practices:
management support and commitment; EI; employee empowerment; information and
communication; TE; customer focus; and continuous improvement. Brah et al. (2000) in
their study on TQM and business performance in Singapore service sector comes out
with 11 constructs of TQM implementation, they are: top-management support; customer
focus; EI; employee training; employee empowerment; supplier QM; process
improvement; service design; quality improvement rewards; benchmarking; and
cleanliness and organisation.
Saravanan and Rao (2007) examined the impact of TQS age on the 12 dimensions of
TQS in 306 service firms. The 12 dimensions are: TMC and leadership; benchmarking;
CFS; service marketing; social responsibility; HRM; employee satisfaction; service
culture; servicescape; continuous improvement; technical system; and information and
analysis. Also, Behara and Gundersen (2001) through a survey of 170 US service firms
empirically developed and validated 11 constructs for QM in services. They are:
compensation; benchmarking; training management; empowerment; technology
management; assessment; PM; participation; teamwork; training; and outcome
measurement.
 Total quality management practices in manufacturing and service industries 165

A study by Gustafsson et al. (2003) on the role of quality practices in the service
organisation uses data from 281 firms that work with QM and identifies three TQM
practices as: employee management; process orientation; and customer orientation. The
result supported the relationship between quality practices and business performance.
Finally, Kanji and Wallace (2000) identified ten CSFs. They are: TMC; CFS; QIPM;
HRM; EI; teamwork; PM; quality assurance; zero defects; and communication.
Studies by Li (1997), Gupta et al. (2005), Shieh and Wu (2002), Mahapatra and Khan
(2006), Al-Marri et al. (2007) and Khamalah and Lingaraj (2007) are of interest too and
are covered in the present literature review. An overview of the TQM practices in the
service industries included in the above literature review is provided in Table 2.
After analysing the above selected 15 research studies on TQM practices in the
service industries, following nine major TQM practices were found on the basis of their
frequency of occurrences:
1 TMC {12/15}
2 CFS {9/15}
3 HRM {8/15}
4 continuous improvement and innovation {8/15}
5 TE {7/15}
6 EI {7/15}
7 benchmarking {7/15}
8 quality culture/work culture {7/15}
9 SM {5/15}.
The numbers in the parentheses represents the frequency of occurrences (the number of
studies in which a particular practice appears) from a total number of studies selected
(15). Though there are many other practices found to be present but their frequency of
occurrences were very low, this suggests that they are rarely used by the researchers in
these studies.

5 Results and analysis

A review of the literature revealed that there are nine TQM practices in two different
sectors, i.e., manufacturing and service, based on their frequency of occurrences in the
extant literature that consists of 15 published research papers in each sector, totalling to
30 research papers that focused on practices influencing TQM in both the sectors. These
studies are of different sizes covering between 32 and 1,200 organisations. The studies
have been carried out in various countries such as India, Malaysia, UK, Turkey,
Singapore, Australia and others, this aid in discovering possible universal laws
concerning TQM. From these 15 research studies, this paper performs a comparison of
TQM practices between the manufacturing and service industries which are presented in
Table 3 and results are depicted in Figure 1. The results will help managers of the
organisation to know which practices to include and which practices not to include in
implementing the TQM programme.
 166 F. Talib and Z. Rahman

Table 3 Major and common TQM practices of manufacturing and service industries as
reported by the literature

TQM practices
S. no. Score/frequency Score/frequency of
Manufacturing Service
of occurrence occurrence
1 Top-management 13 Top-management 12
commitment commitment
2 Customer focus 12 Customer focus and 9
and satisfaction satisfaction
3 Human resource 9 Human resource 8
management management
4 Training and 10 Training and 7
education education
5 Employee 7 Employee 7
involvement involvement
6 Supplier 10 Supplier 5
management management
7 Quality 6 Continuous 8
information and improvement and
performance innovation
measurement
8 Process 8 Benchmarking 7
management
9 Quality systems 7 Quality culture/work 7
culture

Figure 1 Comparison of TQM practices in manufacturing and service industries

16
14 13
Frequency of occurances

12 12
12
10 10
10 9 9
8 8 8
8 7 77 7 7 7
6
6 5
4 3 3 3 3
2 2
2
0
TE
RM

M
M
C

EI

C
S

SM

PM

I
S

CI
CF
TM

W
Q

B
IP
H

C/
Q

Major TQM practices

Manufacturing Service
 Total quality management practices in manufacturing and service industries 167

Table 4 Comparison of TQM practices with previous studies

TQM practices TQM practices TQM practices

(Saraph et al., 1989) (Prajogo ,2005) (based on this research study)
1 Top-management 1 Leadership 1 Top-management
leadership commitment
2 Role of the quality 2 Strategic planning 2 Customer focus and
department satisfaction
3 Training 3 Customer focus 3 Human resource
management
4 Product and service 4 Information and analysis 4 Training and education
design
5 Supplier quality 5 People management 5 Employee involvement
management
6 Process management 6 Process management 6 Supplier management
7 Quality data reporting 7 Product quality
8 Employee relations

After critically analysing Tables 1 to 3, many results of interest emerged out from the
present study related to degree of performance and adoptability of TQM practices as well
as a common set of the TQM practices for the manufacturing and service industries.
• The present study showed that six out of nine TQM practices identified are similar
and common in both manufacturing and service industries. They are: TMC; CFS;
HRM; TE; EI; and SM. The plausible explanation for this result is the higher score
of frequency of occurrences of these practices in the two sectors. This suggest that
the level of TQM practices in both the sectors are not significantly different except
for SM in which the manufacturing industries showed a significantly higher
frequency of occurrences than the service industries (see Table 3). Therefore, this set
of common and major TQM practices could determine the success of a TQM
programme in the manufacturing and service environment and for further research
work in this area.
• Furthermore, the reason behind the less adoption of SM as practice in the service
industries could be that many companies feels supplier quality and performance is
not so crucial for them as they are mainly dealing with intangible services not
concerned with the incoming products or raw material as in case of the
manufacturing industries. Therefore, many service industries do not recognise the
role played by supplier performance and management in an organisation’s quality
performance and its contribution to customer satisfaction (Tsang and Antony, 2001).
• In contrast to above results, QIPM, PM, and QS represent other three major TQM
practices in the manufacturing industries while continuous improvement and
innovation, benchmarking, and quality culture/work culture are more important
TQM practices in the service industries. This concerns that there exists some
inconsistencies in these three practices while implementing a TQM programme in
the two sectors separately. The possible reason behind this outcome may be the
nature of service operations compared to their manufacturing counterpart. Service
industries are more focused on customer orientation and customer satisfaction as
168 F. Talib and Z. Rahman

well as on quality culture and work environment while the manufacturing industries
are highly tangible in nature where quality products and measurement performance
as well as management of process and use of quality tools and techniques plays an
important role in deciding the business performance.

• Regarding consistencies, four TQM practices stand out in several studies as being
more central for the manufacturing and service industries. They are: TMC (including
leadership), CFS (including customer orientation and customer feedback), HRM
(including job rotation, internal recruitment, quality circles, and employment security
policy) and TE (including learning). They have stronger relationship in
manufacturing as well as in the service industries. Previous research in TQM studies
showed the critical role of TMC in driving overall TQM implementation in the
organisations (Talib et al., 2010; Zakuan et al., 2010; Teh et al., 2008; de Jong and
den Hartog, 2007). Kanji (2001) asserted that TMC is the fundamental driver of
business excellence in service industry. Studies also suggested that TMC
significantly affects the quality, innovation, operational and financial performance
(Lakhal et al., 2006; Samson and Terziovski, 1999; Arumugam et al., 2008; Prajogo
and Brown, 2004). CFS is the essence for the success of business dealing with
intangible services. Organisations must be knowledgeable in customer requirements
and responsive to customer demands, and measure customer satisfaction through
TQM implementation (Talib et al., 2010; Zakuan et al., 2010; Zhang, 2000).
According to the review results from Hackman and Wageman (1995), obtaining
information about customer is one of the most widely used TQM implementation
practices to enhance business performance of the both manufacturing and service
industries. In addition to this, TE spread the knowledge of continuous improvement
and innovation in service process to attain full benefits and business excellence.
Talib and Rahman (2010b) observed the critical role of TE in maintaining high
quality level within the service industry. The research on TQM also found a positive
correlation between TE, and organisation performance (Reed et al., 2000; Vermeulen
and Crous, 2000). Finally, Deros et al. (2006) study suggested that HRM is one of
the effective and core practices for improving business and management processes.
Yang (2006) further concluded that HRM as TQM practice significantly correlated
with customer satisfaction which is also supported by Sit et al. (2009). This predicts
that TQM concept mainly lies on these four principles and practices and may be
treated as the pillars of TQM philosophy for obtaining improved organisation
performance.

• Moreover, the present study comes out with almost 42 various TQM practices which
are applicable to and used in the manufacturing industries. Similarly, 43 different
TQM practices were also identified in the service industries. After going through all
these TQM practices, it was found that many practices overlap in both the sectors
except few practices such as productivity, delivery in full, defect rates, operating
procedure, flexibility, feedback, and few more which were not identical in two
sectors, but these practices are considered rarely by any author and showed weak
score or low frequency of occurrences in this literature review. This may be again
due to the characteristic and nature of industry as well as the products or services
they are designing and delivering to their customers.
 Total quality management practices in manufacturing and service industries 169

• An extant review of previously published research studies on TQM practices also

suggests that researchers have defined the TQM practices in a number of ways and
combinations. But, in the present study, the authors utilises two existing TQM
models as the framework for the TQM practices and compared them with the results
of 15 research studies presented in this study. The framework used by Saraph et al.
(1989) (first study to operationalised the CSFs of TQM) and Prajogo (2005)
(an important study based on comparative analysis of TQM practices in
manufacturing and service sectors) were used to represent and compare the major
TQM practices of the manufacturing as well as the service industries in this study
primarily for the reason that they have been used in the several empirical studies all
over the world. Moreover, these two models also constitutes the criteria of the
MBNQA that is acknowledged as representing TQM practices by several scholars
such as Juran (1995), Ahire et al. (1995) and Curkovic et al. (2000) as well as
applicable to both the manufacturing and service industries. The TQM practices
taken in these studies are: top-management leadership; role of the quality
department; training; product design; supplier QM; PM; quality data reporting; and
employee relations for Saraph et al. (1989) study which were measured by 78 items
and leadership; strategic planning; customer focus; information and analysis; people
management; PM; and product quality for Prajogo (2005) study and were measured
through 53 items. After reviewing the listed items of TQM practices of these two
studies, the results were concluded and found that six TQM practices as mentioned
in Tables 3 and 4 are highly acknowledged as important dimensions in the area of
QM, hence, establishes the reliability and validity of these six major TQM practices
applicable to the manufacturing as well as the service industries.
• Further comparison of the results of this study with the above two studies revealed
that TMC is the most important practice scoring highest in all the three studies
whereas CFS, HRM, and TE were other important practices as suggested by the
present study. Moreover, the results of these three studies showed that customer
focus with 12 and 9 frequencies of occurrences in the manufacturing and service
industries was not factorised by Saraph et al. (1989) study. While factor like HRM
with 9 and 8 frequencies of occurrences in the manufacturing and service industries
was also not factorised by Saraph et al. (1989). Similarly, TE and SM factors were
not factorised by Prajogo (2005) study. Also, this study identified and comes out
with a new factor ‘EI’ which other two studies has not factorised and could add a
new dimension to implement TQM programme successfully in both the sectors. The
importance of the effective EI practice for the proper implementation and success of
TQM is indisputable (Taylor and Wright, 2003). The EI aspects of TQM such as
recognition, teamwork, and delegation had an impact to encourage the participation
in the quality practices such as problem solving, decision making, and quality
improvement. Therefore, for successful introduction and development of TQM
initiatives, managers should delegate authority and empowers employees to improve
the organisation’s performance.
• Finally, this study also proposed a conceptual model based on the six identified
major TQM practices in support of TQM philosophy conceptualised from the present
literature review. This model will assist in understanding the linkage between TQM
practices (independent variables) and organisation performance (dependent variable).
The proposed model will enhance the organisational performance through improved
170 F. Talib and Z. Rahman

product and service quality that helps in achieving quality performance, operational
performance, customer satisfaction, and employee satisfaction which are the core
objectives of any organisation as discussed in previous studies (Chase and Bowen,
1991; Samat et al., 2006; Hasan and Kerr, 2003; Arumugam et al., 2008; Prajogo,
2005; Brah et al., 2002; Behara and Gundersen, 2001). The proposed model will
work and produce desirable results as mentioned above under the assumption that
realisation of these practices is facilitated throughout the periphery of the
organisation and supported by every member of the organisation having quality
culture attitude and thinking about continuous improvement and innovation. Further,
the importance of this model is to guide in the selection and/or formulation of an
effective TQM implementation approach in the manufacturing and service
organisations. The construction of the present model is primarily based on findings
from the results of previous studies on TQM representing the experiences of TQM
organisations. It has been suggested from previous studies that these key TQM
practices used to construct this model are generalisable; however, the model is
presented more as a guide for organisations contemplating a TQM initiative. It is
proposed that the present model can provide useful advice in the first three years of
TQM implementation as a practical and systematic tool for assessing and evaluating
the progress made in the organisation. Moreover, this model is applicable to the
organisations in a wide range of industries, since it provides practical guidance for
the development of a TQM implementation plan. Further study can be made to test
the validity of the proposed model empirically across the service industry and further
modification may be incorporated within it. Beside this, a qualitative research can
give significant insights into the issues affecting the TQM implementation process.
The conceptual model is shown in Figure 2.

Figure 2 The conceptual model

TQM outcomes

Product quality
• Top-management
commitment
• Customer focus
and satisfaction • Quality performance
Industry/
• Human resource • Operational
organisation
management performance
performance
• Training and • Customer satisfaction
education • Employee satisfaction
• Employee
involvement
• Supplier
management
Service quality

6 Conclusions

This paper has successfully presented the sets of TQM practices for the manufacturing
and service industries as well as a set of common TQM practices applicable to both the
sectors. Although most of the practices identified in the two sets are similar but few
inconsistencies were also found to be present by comparing them. Such differences often
 Total quality management practices in manufacturing and service industries 171

in research results to frustration, both for researchers designing new studies and
practitioners who seek advice on how to implement TQM concept in their organisations.
These inconsistencies may be due to nature of operations, characteristic of firms, service
design, products and services offered by the manufacturing and service industries. Also,
this study is limited to review only 15 research studies on TQM practices in each sector,
if more studies in the same area are taken than these inconsistencies may be minimised.
This may be another reason for the presence of few inconsistencies in the present study.
Furthermore, the findings also suggested that the level of TQM practices in the
manufacturing and service industries are not significantly different except for QIPM, PM,
and QS practices in which the manufacturing industries show a significantly higher score
or frequency of occurrences while for the service industries, continuous improvement and
innovation, benchmarking, and quality culture/work culture shows higher score or
frequency of occurrences.

6.1 Implications for managers

Managers who have quality on their agenda must know which quality principles and
practices to choose for their organisations. This discussion is foremost important and
difficult to make as there are inconsistencies in the research and different studies have
different recommendations to the manufacturing and service industries. The wrong
decision can be a very expensive to the organisations. Therefore, this study will helpfully
bring some clarity and give support in this decision and function as a guideline for both
the manufacturing and service industries. By examining 15 research studies in each
sector, the present study provides some guidelines for managers of both sectors who want
to implement the TQM concept. Three most important TQM practice stands out as being
centre for the manufacturing and service organisations: TMC; CFS; HRM, and TE. Also,
managers should introduce and develop EI practices in their organisation by delegating
authority and empowering employees. Hence, by focusing on these principles and
practices, an organisation can build a quality improvement programme that will have a
positive influence on the business performance. Other important implications of this
study are:
• Management must focus on the identified TQM practices to achieve higher levels of
satisfaction in the industry which can provide an advantage over other industries in
retaining the competitive environment.
• The proposed model will allow practitioners and managers to assess the level of
organisation’s QM against other models proposed by quality gurus.
• The model can also provide a baseline measure for the extent of TQM practices that
is in place at an organisation. Thus, knowledge of this baseline can help in gaining
continuous improvement in the organisation performance.
• It is generally accepted that several organisations did not achieve any improvement
and some only a little because of the presence of a multitude of barriers. Many
organisations utilise only a partial implementation of TQM, and hence, are unable to
achieve continuous and systematic improvement. Therefore, managers and
practitioners should ensure that these TQM practices must be implemented gradually
to achieve maximum benefits.
172 F. Talib and Z. Rahman

6.2 Scope for future research

Despite the overall findings produced in this study, there are still open opportunities for
further studies. Further studies, therefore, could replicate this study in other organisations
that are more ‘mixed’ type (that is the manufacturing and service industries) to further
validate the results of the present work. Also, studies on comparing the degree of
performance on quality practices and relationship of these identified practices to quality
and organisation performance can be taken by the academicians and practitioners.
Furthermore, the set of identified practices proposed in this study can be compared with
those of quality award models proposed by the various quality gurus (like Malcolm
Baldrige national quality award (MBNQA), European foundation quality model (EFQM),
Deming model, and Kanji business excellence model) to further strengthen the
applicability and usefulness of the present study results. At the end, it would be
interesting to test and validate the proposed conceptual model (Figure 2) through data
collection from various industries using different approaches, one of them is the
‘structural equation modelling’ (SEM) approach which has the capability of testing and
validating such a conceptual model. Statistical software like Amos 16.0, LISREL 8.8,
etc., can be used in future to build correlation matrix, confirmatory factor analysis (CFA),
and diagramming to validate the relationships.

Acknowledgements

The authors would like to gratefully acknowledge the anonymous referees and the
Editor-in-Chief Dr. Kannan Govindan for their helpful and invaluable comments which
helped in improving the presentation of this paper considerably.

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