Investigating the relationship between quality management and productivity: An analysis of quality and productivity in Pakistani manufacturing companies.

Abstract

The aim of this study is to determine the extent to which Quality Management Practices has been effectively adopted and implemented by Pakistani manufacturing companies and to identify best practices for adoption by the companies. The study employed primary and secondary data sources to determine the relationship between QM and Productivity. The study used quantitative methodology for data collection and analysis. The survey responses were categorised into foreign owned companies (FOC¿s) and local owned companies (LOC¿s). The outcome of the descriptive and statistical analysis of the survey responses and secondary data of the companies found that, although most of the companies were aware of the significance of the QM practices and Productivity, FOC¿s were found to have performed highly better in the adoption and implementation of QM practices in their companies compared to locally owned companies. The study also revealed that there is positive relationship between quality and productivity of the manufacturing companies. The evidence deduced from the study shows that foreign owned companies have performed better compared to local owned companies in terms of quality and productivity. Furthermore, the evidence from this study also points out that, automobile sector of Pakistan performed well in the adoption and implementation of QM practices. Strong positive link between quality and productivity was found in the case of automobile companies. This study therefore recommends for manufacturing companies in Pakistan to effectively adopt and implement Quality management practices that encapsulate the study¿s framework for adoption of QM practices (see figure 7.1).