The TQM Journal: Article Information
The TQM Journal: Article Information
The TQM Journal: Article Information
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TQM
26,6
The Delphi hierarchy
process-based study of quality
engineering in Malaysia and
566 Indonesia automotive companies
Received 20 September 2012
Revised 19 September 2013
Nilda Tri Putri
Accepted 2 January 2014 Department of Industrial Engineering, Andalas University, Padang, Indonesia
Sha’ri Mohd. Yusof
Department of Manufacturing & Industrial Engineering,
Downloaded by Universiti Putra Malaysia At 20:33 02 September 2016 (PT)
Abstract
Purpose – The purpose of this paper is to empirically evaluate the critical factors for successful
quality engineering (QE) implementation in automotive-related companies in Malaysia and Indonesia.
The existence of these critical factors for the successful application of QE would help the automotive
industries, especially in Malaysia and Indonesia, to be able to investigate their current QE practices
and how they could be improved.
Design/methodology/approach – Delphic hierarchy process (DHP) methodology is used in this
study. The DHP method is a combination of the Delphi method and the analytic hierarchy process
(AHP) approach for determining the ranking of the factors and sub factors needed for successful QE
implementation. The Delphi method is employed to gather data from automotive experts in both
countries and the AHP approach is used to rank the critical factors for success of QE practices.
Findings – The findings of this study showed that the automotive industries in Malaysia and Indonesia
stressed the importance of management responsibility and people management for the successful
implementation of QE. Strategic quality planning, continuous improvement, and technology- and
production-related resources are the most important sub factors for successful QE in both countries.
Research limitations/implications – The series of rounds that took place during the Delphi
method increased the length of time required for data collection and the follow-up process. On the basis
of the consideration given, the limited resources included time, financial resources, and technical
availability for this study, which resulted in the small sample sizes used.
Practical implications – The ranking of the critical factors and sub factors for QE implementation
could be useful for automotive-related companies in Malaysia and Indonesia to create action plans for
improving their QE implementation.
Originality/value – The instrument that was developed is a contribution toward characterizing
critical factors for QE. Using DHP methodology, nine factors and 31 sub factors have been validated
through a series of rounds of the Delphi method. It was developed based on industry experts’ inputs.
Therefore, the critical factors represent actual situation for QE success.
Keywords Total quality management, Automobile industry, Quality management, Self-assessment,
Quality techniques, Quality engineering, Critical factors, Delphi hierarchy process, Automotive industry
Paper type Research paper
The TQM Journal
Vol. 26 No. 6, 2014
pp. 566-576
r Emerald Group Publishing Limited
1754-2731 The authors would like to thank to the Ministry of National Education of the Republic of
DOI 10.1108/TQM-09-2012-0068 Indonesia. The authors are most grateful to all the panelists who participated in the study.
Introduction Malaysia and
Over the last decade, the concepts of quality management including total quality Indonesia
management (TQM) and quality engineering (QE) have been widely adopted by
various organizations. Hellsten and Klefsjo (2000) believe that the differences in automotive
terminology, makes the concept of quality management to be unclear and create companies
confusion. Hassan et al. (2000) argue that quality management relates to soft aspects of
quality, whereas QE related to the hard aspects of quality. However, both terms can 567
overcome the same quality problem but they usually have different treatment in terms
of depth and breadth. More organizations have adopted the use of QE approach as a
means obtaining higher product quality and improving the level of TQM (Noviyarsi,
2005). QE implementation is, alongside critical factors, another important component
of TQM, which emphasizes their importance for the improvement of TQM levels and
results. Since QE is focussed on product/process design and production for customer
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Working experience in
Name Position of expert their position (years)
A set of questionnaire for round 1 was also sent via e-mail to all experts to ensure that
experts are really prepared. In the last section of first round questionnaire, the panel of
experts was asked to write down any comments regarding the proposed CSFs
hierarchy model. After the completion of Delphi round 1, researcher sent an e-mail
for rounds 2.
The second round was conducted at the end of January 2009. The nine experts from
round 1 made a commitment to participate as an expert in this round. The second
round of Delphi method was completed in May 2009. Based on the suggestions and
comments from expert panel on the initial AHP model, adjustments and changes were
made to the model. The experts agreed that the factors are critical and comprehensive,
which implies that the factors are suitable for achieving effective and successful QE
implementation. All of them also agreed with the revised hierarchy model of CSFs for
QE implementation. At the end of the second round, there were consensus amongst the
experts on the final AHP model of CSFs for successful QE implementation was
obtained. It can be concluded that the obtained CSFs derived from the literature and
two round of Delphi technique match with automotive industry practices and therefore
suitable to be used for the last round (round 3) of Delphi technique.
Based on the findings of Delphi round 1 and round 2, generally the panel of experts
agreed with the proposed AHP model for successful QE practices. One of the experts
made an adjustment on the proposed AHP model by adding in new CSFs at level 2, i.e.
quality technical material divided into two sub criteria at level 3: standardization
quality standard and QC technical management and quality jiritsuka (independent)
which consist of two sub criteria at level 3: develop management to become QC
management and independence without support from mother company. By using the
AHP approach, the critical factors have been divided into nine criteria and for each
criterion, one can then list suitable sub criteria that need to be met in order to achieve
each criterion goal. Figure 1 presents the final AHP model for QE implementation
based on Delphi rounds 1 and 2.
The last round of Delphi technique known as Delphi round 3 was conducted during
the months of June 2009 till May 2010. Eight of the ten experts from Delphi round 2
26,6
570
TQM
Figure 1.
The final AHP model for
Measurement, Quality
LEVEL 2: Management People Quality in Design Supplier Customer Quality Jiritsuka
Resource Management analysis and technical
CSFs Responsibility Management and Process Management focus (Independent)
feedback material
Quality
Customer Standardization Develop QC
Process measurment, Supplier
Technology and Employee involvement/ quality standard management
Strategic quality management/ feedback and quality/chain
production related involvement/ benchmarking satisfaction/
LEVEL 3: Planning/quality policy operating management
resources empowerment orientation
Sub procuders Continuous
Factors improvement
The role of divisional Financial related Role of quality Contact with Independence
top management resources Education and department Performance
supplier and Customer without support
training measurement:
professional driven QC Technical from mother
product design external and internal
The management Information and associates processes Management company
communication Quality data and
commitment/support reporting
related resources Teamwork and Process
Internal stackholders’ cooperation analysis and Communication to
involvement (middle improvement improve quality
management
Applied quality Recognition and
involvement)
Work tools and rewards
environment and techniques
culture Quality systems
LEVEL 4: Desired
EFFECTIVE AND SUCCESSFUL IMPLEMENTATION
results
returned to participate in round 3, yielding a response rate of 80 percent. They Malaysia and
comprise of four experts from Malaysia automotive industries and also four experts Indonesia
from Indonesia automotive industries. They served as the evaluators to carefully
determine the relative scales of a given list of critical factors and sub factors affecting automotive
their QE practices in a pair wise fashion. The pair wise comparison questionnaire for companies
round 3 was developed by using nine-point scale. The evaluators were asked to assess
a pair wise comparison among nine critical factors and related 31 sub factors with 571
Delphi round 3 questionnaire. The evaluators would give a score for each comparison
using Saaty’s scale. This process continues for all levels of the hierarchy, and finally
a series of judgment matrices for the critical factors and sub factors are obtained.
Having completed the Delphi third round, the importance weight or relative weights
to critical factors and sub factors were calculated using AHP approach. A pair wise
comparison matrix was developed to calculate “weights” which involved the relative
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significance among the criteria in the second level of the hierarchy. In other words,
a pair wise comparison matrix is very important for determining the consistency
of evaluators’ preferences.
The results of this evaluation will determine the ranking of critical factors and sub
factors with the aid of the multi criteria decision support analytical software known as
Expert choice. The Expert choice software version 11.5 was employed to determine the
normalized weights and synthesize the results. By using this software, the researcher
can obtain the local and global priority weight. The local weight is the priority of an
element related to its preceding element and it is first calculated. Meanwhile, the
global weight of each element related to the goal of successful implementation of QE
was calculated by multiplying the local weight of an element by the weight of its
preceding element.
The next stage of AHP approach was to calculate a consistency ratio (CR) to
measure how consistent the judgments given by panel of experts. Because the
comparisons were done through personal or subjective judgments, some degree of
inconsistency can occur. The results showed that the overall consistency of evaluator
judgments fall within the acceptable ratio of 0.10 as suggested by Saaty (1988).
This shows that the evaluators are given their weights consistently on examining
the priorities of decision criteria and assessing the success of QE implementation.
After all pair wise comparisons performed at each level, and proved consistent, then
the next step was to synthesize the judgments from evaluators to determine the
ranking of each criteria and its sub criteria. Geometric mean approach as suggested by
Saaty and Vargas (1982) was used to synthesize the assessment of each evaluator.
The results from geometric mean of evaluators were combined into judgment matrices
of pair wise comparison. Based on the findings, the CR for these matrices ranged
from 0.00 to 0.09, which means that the results are within the acceptable level of
0.10 according to the CR recommended by Saaty (1980). This result indicates that
the evaluators gave a positive outlook and assigned their weights consistently in
determining the priorities of critical factors and sub factors in achieving successful
implementation of QE in Malaysia and Indonesia automotive companies.
As summarized in Table III, it was found that both Malaysia and Indonesia group
emphasized the importance of management responsibility and people management
for successful QE implementation. Measurement, analysis, and feedback; resource
management; and supplier management are the third, fourth, and fifth important
factors respectively for Malaysia group. In the case of Indonesia group, on the other
hand, quality in design and process; resource management; and measurement,
analysis, and feedback are the third, fourth, and fifth important factors, respectively.
Malaysia and Indonesia group have the same opinion about the importance of the
sub factors relating to several critical factors include management responsibility;
resource management; quality in design and process; supplier management; customer
focus; quality technical material; and quality jiritsuka/independent. However, Malaysia
and Indonesia group presented different opinion about the importance of the sub
factors associated with two factors, i.e. people management and measurement,
analysis, and feedback.
Discussions
This study provides a hierarchical model to obtain a ranking of the critical factors for
achieving successful implementation of QE in the automotive industry in Malaysia and
Indonesia. The instrument that was developed is a contribution toward characterizing
critical factors for QE. Using DHP methodology, which is combination of Delphi and
AHP techniques, nine factors and 31 sub factors have been validated through three
TQM AHP analysis by AHP analysis by AHP analysis by
26,6 Malaysia group Indonesia group combined group
Level Ranking Global weights Ranking Global weights Ranking Global weights
rounds of the Delphi method. It was developed based on industry experts’ inputs.
Therefore, the critical factors represent actual situation for QE success.
This study is also aimed to examine the gap between Malaysia and Indonesia
automotive industries on QE practice. Based on the current situation, comparative studies
between ASEAN countries, provides an excellent opportunity that can provide overall Malaysia and
perspective and understanding of the similarities and differences in CSFs for successful Indonesia
QE and in the context of Malaysia and Indonesia to gain insight on the actual practices.
Results suggest that both Malaysia and Indonesia stressed management automotive
responsibility and people management for achieving successful QE implementation. companies
Strategic quality planning, customer involvement, and technology- and production-
related resources are among the most important sub factors for both countries. 575
Conclusions and further research directions
This paper has presented the results of a study on CSFs for QE implementation in
Malaysia and Indonesia automotive-related companies. Nine factors and 31 sub factors
have been derived from this study. Ranking of the nine CSFs and 31 sub factors has
provided a better understanding of the automotive industry in Malaysia and Indonesia
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on the direction and targets for improving practices QE. Ranking is very important
because it is impossible for both countries to improve all the factors in the same time
and it is hoped that with these rankings, they can focus first on improving the most
critical factors found lacking and then gradually improve on the other factors.
Future research could employ the normalized weight derived from DHP
methodology to develop self-assessment tool for both countries. The weights can be
used to identify the score and calculate the total score point for automotive-related
companies in both countries. The developed self-assessment method can be used as
a tool to evaluate how well a company implements QE compared to other companies.
It can also be used as a management model to determine the strengths of the company
in term of QE implementation. Finally, it is hoped that the results of this study will be
useful to continuously improve the application of QE within the automotive industry.
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electronics industry”, Total Quality Management, Vol. 14 No. 1, pp. 63-77.
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Corresponding author
Dr Nilda Tri Putri can be contacted at: [email protected]