EFFECT OF TOTAL QUALITY MANAGEMENT (TQM) DIMENSIONS ON OPERATIONAL PERFORMANCE OF PAKISTAN PHARMACEUTICAL MANUFACTURING

Abstract

The purpose of this study is to examine the effect of TQM dimensions on the operational performances of the pharmaceutical manufacturing plant operating in Pakistan. Data for this study was collected using self-administered questionnaires that were distributed to 250 respondents of different pharmaceutical companies. The target populations for study are plant technical managers, operational managers (production managers), quality control & assurance managers and other senior experts who are assumed to provide the most relevant information ofthe respective companies. Through comprehensive literature review, seven critical success factors of TQM that are relevant to the pharmaceutical industries were identified. Using correlation & regression analysis the relationship between TQM variables and operational performance measures (Quality, Cost, and Delivery) was investigated. The Correlation analysis reveals that there is strong relationship between TQM dimensions and operational performances of pharmaceutical manufacturing companies. The outcome of regression analysis indicates that supplier quality management, continuous improvement process management, product design and top management support have significant contribution to at least one ofthe operational performance measures. People management, customer focus does not appear to contribute to higher performance. This study offers pharmaceutical companies and their managers a better understanding of the relationship and impact that some of TQM elements have on the performance oftheir operations. Thus, managers will get an opportunity to take better & more effective decisions about the implementation of TQM. Due to nature of the study, the sample size is small and performance measures were based on the perceptions of respond, therefore generalization should be made with caution