Analysis of Performance Improvement Brought by the Application of an ISO 9001 Quality Management System With TOPSIS Approach

Analysis of Performance Improvement Brought by the Application of an ISO 9001 Quality Management System With TOPSIS Approach

Ece Gokpinar (Turkish Petroleum International Company, Ankara, Turkey), Yusuf Tansel Ic (Department of Industrial Engineering, Faculty of Engineering, Başkent University, Ankara, Turkey) and Mustafa Yurdakul (Gazi University, Ankara, Turkey)
Copyright: © 2019 |Pages: 13
DOI: 10.4018/IJKBO.2019070101

Abstract

Quality management systems (QMS) are applied by companies to improve their performance in their processes, service or product quality measures. The application of QMSs force the companies to evaluate their existing processes and develop action plans to improve their middle and long-term performance levels. The applications also require inspection, approval, and certification by independent audit firms. In this study, improvement in the performance level of a real company brought with the application of ISO 9001 QMS is evaluated with Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). The analysis shows that the company's performance improves considerably with the application of ISO 9001 QMS.
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Introduction

Companies must improve their internal structures and processes continuously to meet or even exceed their customers’ expectations and requirements (Taşçı et al., 2013). The continuous improvement must be performed within a company in a consistent, coordinated and controlled manner. ISO 9000 series of quality management system (QMS) standards provide companies a systematic improvement approach. It is noted in the literature that as soon as the ISO 9000 QMS is installed, companies can start to observe performance improvements brought by the application (Kusumah et al., 2018; Nikabadi et al., 2014).

There are various studies about QMS applications available in the literature (Şale, 2001; Manders & Vries, 2012; Huoa, Hana & Prajogob 2014). For example, Jain and Samrat (2015) surveyed 62 companies to understand the difficulties in establishing a QMS. Pheng and Teo (2004) analyzed QMS applications in construction companies and found QMS applications brought lower quality costs and higher job satisfaction. Nowicki (2015) focused on applications of ISO 9001 QMS standard series and provided application examples in different sectors. Padma, Ganesh and Rajendran (2008) and Bandyopadhyay (2000) measured the impact of decisions made during ISO 9001 audit and certification process by using various performance criteria in Indian companies. A similar study is performed by Hamza and Alinazi (2013) in petroleum and natural gas companies. Their study showed that the three most important factors affecting the companies positively are “working with the certification bodies operating globally, qualifications and training of auditors and communication between auditors and the companies that are being audited”. Ilkay and Varinli (2005) compared the companies with ISO 9001 certification in Turkey, Europe and other parts of the world. Corbett et al. (2005) studied the financial influence of ISO 9000 certification in the companies in the USA. In a similar study, Terlaak and King (2006) found that ISO 9001 QMS certification provides a competitive advantage for companies in the USA. They observed that certified companies grow rapidly after their certification. In another study, Buttle (1997) showed that the most important benefit of the certification process is increased profits and more satisfied customers. In another study, Escanciano, Fernández and Vázquez (2001) analyzed 749 companies in Spain and concluded that application of QMSs brought reduced managerial complexity and increased competitiveness in markets. In a national study performed by Koçyiğit and Duran (2011), 274 small and medium sized companies are analyzed in Turkey and they found that TQM practices improve the overall performance of the companies.

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