The Impacts of Implementing TQM, Personal Competence Management, and ERP in Improving Business Performance

Siagian, Hotlan and Tarigan, Zeplin Jiwa Husada and Suprapto, Widjojo (2016) The Impacts of Implementing TQM, Personal Competence Management, and ERP in Improving Business Performance. In: The 26th International Conference on The Pacific Rim Management, 16-06-2016 - 16-06-2016, Taoyuan city - Taiwan.

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Abstract

Manufacturing companies always apply a system through the project and normally project managers are assigned based on their capability to handle such a project. Companies implementing Total Quality Management (TQM) requires a QA manager having a reliable competency especially in personnel management. When the application of TQM is already running well, the company can also implement ERP (Enterprise resources Planning) and requires a project manager as welll to apply the system. The completion of a project depends heavily on the ability of the project manager in selecting the projects to be undertaken, choosing a strategy in completing the project, choosing the method of work to complete the project, choosing the measurement system to monitor the project as well as evaluating the project, and declaring the end of the project. This study will explore the impact of implementing TQM on personal management, which consists of knowledge, skill, personal competence, and demonstrable performance, to the ERP implementation in order to improve business performance. Based on the results of 71 questionnaires distributed in East Java and using PLS (Partial Least Square) to analize, it is obtained that TQM has positive influences on the knowledge, skill, and demonstrable performance but does not influence on the personal competence. Personal management which influences the ERP implementation is the skill, personal competence, and demonstrable performance, while knowledge has no influence. Finally, the ERP implementation affects the business performance.

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