IT use in supporting TQM initiatives

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Researchers:
Cristobal Sanchez-Rodriguez
Frank W. Dewhurst
Angel Rafael Martinez-Lorente

This study examined the use of IT to support TQM initiatives and their contribution to operational and quality performance in the manufacturing sector of Spain and provides a step towards understanding how IT and TQM jointly add value to manufacturing firms. Since, organizations use a variety of approaches and practices to remain competitive, identifying practices that positively impact on performance allows organizations to more effectively manage their scarce resources.

The relative strength and significance of the structural model coefficients are instructive in understanding the positive effects of the use of IT in TQM on performance. Five of the seven uses of IT to support TQM factors were found
to be significantly and positively related to operational performance. This suggests
that managers who focus on improving operational performance measures (i.e. reduced unit production cost, faster delivery, improved flexibility, and reduced cycle time) should invest in IT to support management leadership, customer focus, supplier relations, workforce management and information collection/storage and reporting.

This is not to say that TQM firms should not invest in the other two factors (IT to
support product design, and ITPFM) but rather to note that in our study these weaker factors did not significantly distinguish the high from the low performers. With respect to quality performance, all of the TQM-oriented IT factors were found to be significantly and positively related. Consequently, if a management focus is on quality performance (product quality and customer satisfaction) then firms should direct their IT investment to all seven key TQM initiatives.

The results confirm the importance of the interaction between TQM and IT
(Weston, 1993), and shed light on the support mechanisms between IT and TQM activities. Indeed these results are not unique to TQM firms in manufacturing and could also be applied to organisations that want to maximize the return of their IT investments. The results suggest that organizations should link their IT investments to support specific quality-oriented initiatives. For example, if the focus is on workforce management, then organisations should invest in the use of IT to help employees to share task-related information, facilitate teamwork and provide training about quality management issues.

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