Author: Jocelyn C. Dela CruzPublisher:
ISBN:
Category :
Languages : en
Pages : 161
Book Description
Quality management is vital for the garments industry in order to remain competitive. Determining practices that have significant effects on a firm's performance will identify those that should be highly implemented in the firm. This study analyzed the relationship between quality management practices of infant's wear manufacturing exporters in the Philippines and their organizational performance in terms of average sales and average market share for the years 2001-2002. It also aims to determine the differences in the quality management practices used by these companies and what particular practices have a greater impact on organizational performance. A survey, together with informal interviews and observations, were used to determine such. Quantitative data from financial statements was used for organizational performance measures. One hundred forty-one (141) companies - 116 small firms, 17 medium firms and 8 big firms, participated in the study. Using Spearman's rank correlation, results showed significant differences in the quality management practices of infant's wear manufacturers with 69% variation for the small firms, 19% for medium firms and 12% for big firms. Regression analysis proved that a 90 % relationship exists between quality management practices and organizational performance for the whole infants wear manufacturing industry. To improve the regression analysis, maximum likelihood estimates (MLE) was used. MLE results showed skillC (quality-related trainings are given to managers and supervisors), methodC (in-process inspection), spreadB (people are aware of overall mission, goals and objectives) and topmgtC (top management has goals and objectives for quality performance and improvement) directly and positively affect average sales and market share; while topmgtA (top management involvement & commitment to quality performance), skillD (skills-related trainings are given to managers and supervisors), methodB (product inspection before costly or irreversible processes), and methodD (quality inspectors after production process) significantly but indirectly affect average sales and market share. Of these, only topmgtC (ave = 3.800), methodC (ave = 3.6286), topmgtA (ave = 3.917) and method D (ave = 3.8857) are highly implemented. Thus, some practices that are highly significant and affects organizational performance of infant's wear manufacturing exporters are not used extensively as should be. Percentage effect of the above variables to market share of small, medium and big firms were -6.04, -0.76 and 0.47, respectively. These results proved that a greater extent of implementation of quality management practices, as in the case of the big firms, resulted to a higher effect on sales and market share. Keywords: quality management practices, organizational performance, total quality management, garments industry, competitiveness.
