The Effect of Total Quality Management On Operation Performance in Manufacturing Industry In Dire Dawa Administration

The purpose of the study was to identify the effect of total quality management on operation performance in manufacturing industry in Dire Dawa Administration. The objectives of the study were: to identify the critical success factors of TQM in manufacturing industry. A descriptive survey research design was adopted using both quantitative and qualitative methods. The study targeted 355 respondents but 251 were returned fully completed, giving a response rate of 71%. Simple random sampling technique was used to select manufacturing industry while purposive sampling was used to select the Management Staff, and stratified sampling was used to select the Employees. Data analysis involved frequencies, percentages and inferential statistics such as Ordinal logistic regression analysis. The Nagelkereke R2 indicates the model can for 62.6% of the variance in the effect of total quality management on operation performance in manufacturing industry. More specifically seven TQM success factors identified in the study; which are Top Management Support, Process Management, People Management, Supplier Quality Management, Continuous Improvement, Customer Focus and Product Design & their impacts on contemporary operational performance measures i.e. Quality, Cost, Delivery & Flexibility to volume performances were examined. The findings suggested that there was a significantly associated with Operational Performance of manufacturing industries but Supplier Quality Management and Continuous Improvement there was no significantly associated with Operational Performance of manufacturing industries. It is advisable to consider all aspects of TQM dimensions in the manufacturing industries as this study investigated; each TQM construct improves different aspects of operational performance measures. In general the managers in the manufacturing industry should consider implementing the TQM dimensions on their operational activities as this study has indicated there is strong positive relationship of most of TQM dimensions & operational performance of the organizations.