Integrating Continuous Improvement Practices as an Innovative Strategy: An Application Model for Total Quality Managed Small and Medium Enterprises

The small and medium enterprises (SMEs) contribute immensely to the economic development and hold distinction in employment generation and occupation of masses in all the developing and developed countries. This sector has been affected more by globalisation and liberalisation resulting in multiple problems in the form of unfavourable government policies, politicised business activities, high cost of production, low capacity utilisation and lack of funds for new technology adoption. These enterprises faces significant problems in terms of poor quality management practices, increased incidence of sickness, absence of marketing approach, lack of entrepreneurial skills, lack of managerial competence, lack of information, ineffective associations and delay in implementation of programmes. They need better involvement by people at various levels in the organisation because people's attitude towards improvement can make dramatic effects in organisational performance. The involvement by everyone may lead to an integrated effort which results in performance improvement, directed towards satisfying cross-functional goals such as quality, cost, schedule, mission, need and suitability (Sarvan 1997). Here, the involvement can be expressed through persuasion, motivation, direction and involvement (Mohanty and Lakhe 2002), and covers people, equipment, supplies, materials and procedures (Bhatt 2002).