The Effect of Quality Management System on Organizational Effectiveness of Kaliti Metal Products Factory

Abstract

This research has been conducted to determine how the quality Management system implementation affects an overall effectiveness of Kaliti metal products factory (KMPF). This is due to the reason that companies frequently assume QMS implementation and ISO certification can improve organization effectiveness. The study type is descriptive and explanatory and in line with this both quantitative and qualitative methods were employed. The data were taken from company managers, division heads, section head, experts and staffs. Purposive sampling used to select the respondents for the questionnaire and interviewees. Data was analyzed using descriptive statistics and results were presented using tables. The results indicate that concerning the dimensions of ISO 9001:2015 QMS implementation practices an overall dimension of QMS endeavored categorized under moderate level. Among the elements of QMS; customer focus and relationship management practiced at a high level. As the descriptive findings indicate that all QMS implementation have statically significant and moderate positive association with product quality, profitability, and Operational efficiency. As the regression finding depicted, except customer focus other six namely Leadership, Engagement of people, Process Approach, Improvement, Evidence based decision making, and Relationship management are found to be significant effect with Product quality, and except Relationship management all the variables have a significant effect with operational efficiency. On the other hand, except Leadership, and Relationship management, all variables were significant effect about company’s profitability. Therefore, organizational effectiveness has been affected positively by ISO QMS 9001:2015principles implementation. The result indicated that ISO 9001:2015QMS implementation contributes towards the adoption of Quality Management, Even though the company is moderate in practice of QMS activities. The identified gaps such as Lack of top management commitment and support, Lack of internal communication, launch new technology in the production system, rewarding mechanisms and on job trainings, and it should be do more to practices of QMS implemented at their full extent level for effectiveness.