Total Quality Management Practices And Its Effects On Product Performance: The Case Of Transformer Factory In Ethio Engineering Group

Abstract

The main objective of this study was to assess the total quality management practices and its effects on quality of products performance in Transformer Production Factory of Ethio Engineering Group. In order to achieve this study objective, explanatory research design was used to investigate the effect of the independent variables. For the purpose of this study, the target population has been identified as the entire employees of EEG / TPF with staff made up of 418 employees in the factory. The sample size for the study was determined using the Taro Yamane (1967) formula was used to select the sample of 204 respondents from the target population of 408. Proportional stratified sampling was used to distribute the number of samples based on categories of employees. Proportionate stratified sample is a version of a sampling method call stratified sample. Questionnaires were used as data collection instruments while descriptive, correlational as well as regression analysis were conducted. The result showed that the factory has well-designed processes to reduce the possibility of employee error; the factory has clear, thorough, and standardized documentation about work methods and process instructions to employees; the factory makes extensive use of statistical techniques to reduce variance in processes. Additionally, based on the correlational result, product performance of Transformer Factory in Ethio Engineering Group is strongly related with its activities in terms of top management support, process management, people management, continuous improvement, supplier quality management, and customer focus. Customer Focus, Top Management Support, People Management, Continuous Improvement, Supplier Quality Management, and Process Management (Sig = 0.000). As well as these variables also predict 79.2% variability of the dependent variable (Product Performance) (Sig=0.000). Transformer Production Factory of Ethio Engineering Group department is highly recommended to set clearly state vision, mission or values which mentioned total quality management practices, Policy and strategy of the organization up dated through schedule for entire accomplishment of goals and objectives through involvement of the employees or community through improved product performance.