ANALYSIS OF QUALITY PRACTICES IN SMALL AND MEDIUM-SIZED INDUSTRIES USING STATISTICAL TOOLS: CASE STUDY

In the era of globalization and privatization, businesses must adapt to current market challenges, and one effective approach is the application of Total Quality Management (TQM) principles. Small and medium-sized enterprises (SMEs) play a crucial role in generating employment and strengthening the economy of developing countries like India. To achieve customer satisfaction, the quality of products produced by SMEs is essential. Key factors for quality improvement include enhancing customer satisfaction, increasing profits, and minimizing losses. These goals can be achieved through the adoption of advanced quality philosophies and TQM principles. This paper explores the identification of critical success factors that influence the effectiveness of quality practices in SMEs. The study aims to establish guidelines for management to improve firm productivity. It includes a questionnaire survey to assess the implementation of TQM practices within the governance structures of SMEs. Based on the data collected, critical factors are prioritized. The study formulates three hypotheses: employee satisfaction, customer satisfaction, and operational effectiveness. Statistical analysis is conducted using T-tests, one-way ANOVA, and MANOVA to test the hypotheses. The findings suggest that SMEs implementing TQM are more effective in meeting the needs of employees, customers, and operational goals.