Do it separately or simultaneously-An empirical analysis of a conjoint implementation of TQM and TPM on plant performance

Over the last decades, Total Quality Management (TQM) and Total Productive Maintenance (TPM) have become key concepts for improving production. The majority of modern manufacturing companies has implemented at least one of these improvement programs or even both of them. The common ground of TQM and TPM is the focus on human resources. In this paper, the impact of TQM and TPM on plant performance and especially the supporting role of employee involvement practices is investigated empirically using multiple regression analysis and structural equation modeling. The data used for conducting the analyses is taken from the international research project High Performance Manufacturing that contains the data of 238 plants. The results indicate that TQM and TPM, supported by HR practices, have a significant potential to improve plant performance. However, a simultaneous implementation of both concepts does not necessarily lead to superior performance. As potential reason for this, human resources are regarded as limiting factor both improvement programs draw on. Accordingly, this scarce resource is identified as crucial element with respect to performance when implementing TQM and TPM simultaneously.