The 2016 International Conference of Management Sciences (ICoMS 2016), March 10, UMY, Indonesia 183
THE INFLUENCE OF QUALITY MANAGEMENT SYSTEM ISO 9001: 2008
APPLICATION ON EMPLOYEE PERFORMANCE
(A CASE STUDY ON PT. APAC INTI CORPORA)
Nia Budi Puspitasari1, Diana Puspitasari2, RizkaAmalia Kusumarini3
[email protected]; [email protected]; [email protected]
Department of Industrial Engineering, Faculty of Engineering, Diponegoro University Jl. Prof Soedarto, SH Tembalang Semarang 50239
ABSTRACT
PT. Apac Inti Corpora is an integrated textile company which has implemented Quality Management System (QMS) ISO 9001 of more than 10 years. By implementing the ISO, impact on the employee performance is not good. The 2014 production target of spinning and denim fabric was not achieved and there was a production delay. From literature, it is also known that quality culture can affect employee performance. So this study was conducted to determine the effect of ISO 9001 QMS application to the quality culture and employees performance. Application of ISO 9001 QMS itself can be divided into three dimensions, namely ISO certification planning, organizational commitment, and application procedures. Results of study concluded that application of ISO 9001 QMS directly influence the quality culture and indirectly influence positive effect on employee performance. Organizational commitment, procedures implementation and quality culture are known to directly affect employee performance, but there is no influence on the ISO certification planning. Improvements to do are improving application procedures, focusing employee work, conducting internal audits more quickly for production department, and establishing contracts cooperation with machinery spare parts suppliers. Nevertheless, the QMS ISO implementation, quality culture, and organizational performance have been perceived in a good category by respondents.
Keywords : ISO 9001, quality culture, performance, Structural Equation Modelling (SEM)
1. INTRODUCTION
PT. Apac Inti Corpora is an integrated textile company produces quality and environmentally friendly textile products. With competitive prices, excellent service, and timely delivery, 70% of the resulting product can penetrate international markets five continents around the world, while 30% is for the local market. As one of the largest textile company in Indonesia, PT. Apac Inti Corpora always try to meet the needs and desires of customers according to the standard and quality that has been set.Therefore, PT. Apac Inti Corpora has implemented a Quality Management System (QMS) ISO 9001 for over 10 years and has been updated three times. According to the chief of Section Head of the Internal Audit section, by applying ISO 9001 QMS the company's main expectation is that employees can improve the company’s performance, loyalty to work, and work in accordance with the standards that have been applied. Improved company performance can be increased through operational performance and organizationalperformance.PT. Apac Inti Corpora itself, until now produces three types of products, namely yarn (spinning), denim and fabric sheets (Greige fabric). Based on the production achievement chart above, it can be known that there is anunachieved production target for spinning and denim fabrics. The target is to achieve the company's production output by 95%, and there is also production
for several months that the process is not completed on time. This happens because there are many qualities of the products are not standardized and the number of damaged machines that can not be used in the production process. Figure 1 is the percentage achievement of production PT. Apac Inti Corpora 2014 for each month:
Figure 1 Percentage Achievement of Production
The 2016 International Conference of Management Sciences (ICoMS 2016), March 10, UMY, Indonesia 184 SMM ISO, can change the orientation of the culture of
an organization towards a culture of quality, which in turn increased the performance of employees.
From the explanation and the above problems, the researcher wanted to know how to influence the implementation of QMS ISO to employee performance through the mediating role of culture with the quality of some of the indicators chosen at the PT. Apac Inti Corpora. Where the QMS ISO 9001 can be grouped into three dimensions that underlie these, namely: (1) Planning ISO certification, (2) Organizational Commitment, and (3) Application Procedures. The method can be used to analyze this research is Structural Equation Modeling (SEM). Based on these descriptions above then it is compiled the purpose of this study that is to know the QMS ISO direct influence on the culture of quality and performance of employees. Knowing the QMS ISO indirect effect on employee performance, and propose improvements based on the factors affecting the performance of the employees to help to achieve the production target.
2. THEORETICAL STUDY
Quality Management System ISO 9001 According toMei Feng, et al., (2006), based on a global survey in collaboration with the Anderson School of Business, University of California, Los Angeles, QMS ISO 9001: 2008 there are 3 dimensions. (1) Planning ISO certification, which is an initial phase in formulating and designing the implementation of QMS ISO steps, ranging from the selection of ISO certification bodies, identification quality aspect, documentation and others. (2) Organizational commitment, a condition in which employees feel part of the organization and aims to improve relations in the organization's membership. There are three main components of the organizational commitment, the affective commitment, continuous commitment and normative commitment. (3) The application procedure, namely as making employees should change the way the work that has been done for years. Activities that are part of the application procedure are: conduct audits on a periodic basis, the adherence to standard procedures, and the implementation of corrective and preventive action.
Quality Culture
Quality culture is the value of a system of organization that produces a conducive environment as the establishment and continuous quality improvement. Based on the President's Quality Award and the Malcolm Baldrige National Quality Award are nine factors that influence (Samuel, 2011): Top Management Support for Quality, Strategic Planning for Quality, customer focus, quality of training, recognition, Empowerment and Involvement, Quality Improvement Teamwork, Measurement and Analysis and Quality Assurance.
Employee Performance
Performance translated as an illustration of the level of achievement of the implementation of an activity / program / policies in realizing the goals, objectives, mission and vision of the organization as stated in the strategic plan of an organization.According Rivai and Basri (2005) there are five criteria for assessing the performance of the employee :quantity, quality, timeliness (timeliness), the need for supervision, cooperation, and according Gasperz (1998) the employee's performance can also be assessed on individual commitment.
3. RESEARCH METHODS
In this study, it is obtained 150 respondents who had attended briefing and training on ISO QMS in each department. Guidelines for determining the sample size in the can with SEM method parameter estimation formulas as much as 5 to 10 times the number of manifest variables (indicators) of all latent variables. This research involves as many as 25 indicators, so the sample size refers to the rule as follows:
~ The sample size of at least 5 x 25 = 125 ~ The sample size up to 10 x 25 = 250
Then determining the conceptual framework based on research Samuel (2011) as Figure 2:
H1
Dimensi 1 SMM ISO 9001 Perencanaan Sertifikasi ISO
Dimensi 2 SMM ISO 9001
Komitmen Organisasi KINERJA KARYAWAN
Dimensi 3 SMM ISO 9001 Penerapan Prosedur
BUDAYA KUALITAS
Figure 2 Conceptual Framework
From the above conceptual framework, it can be arranged the research hypothesis as follows:
Hypothesis 1: Planning ISO 9001 certification influence the quality culture.
Hypothesis 2: Organizational commitment affects the quality culture.
Hypothesis 3: The application of the procedure affects the quality culture.
Hypothesis 4: Planning ISO 9001 certification effect on employee performance.
The 2016 International Conference of Management Sciences (ICoMS 2016), March 10, UMY, Indonesia 185 Hypothesis 6: Implementation procedures affect the
employee's performance.
Hypothesis 7: Cultures affect the quality of employee performance.
4. RESULTS AND DISCUSSION
Of the samples used as research, known to the majority of the male respondents as many as 91 people (61%), with a range of 10-20 years old working employees (59%), and the last education is high school employees as many as 47 people (31%).Data processing is done by looking at the validity and reliability first. Variable is said reliable if the reliability value above 0.7, then the variable is said to be valid when the AVE value above 0.5, if there is a value below the limit can be categorized as moderate (Haryono&Wardoyo, 2012). The following Table 1 is the result of reliability and validity.
Table 1 Test Reliability and Validity
Variables Planning Certification ISO 0.829 0.549 Organizational Commitment 0.820 0.613 Application of Procedure 0715 0557 Quality Culture 0814 0459 Employee performance 0775 0573
After performing reliability and validity test, the next step is testing confirmatory test to see some of the goodness of fit criteria. After two iterations and several modifications, the model fit obtained as shown in Table 2.
Table 2 Full Confirmatory Test Model Goodness Probability ≥ 0:05 .000 Marginal
GFI ≥ 0.9 .910 Good hypothesized as the interpretation of the test results in Table 3. Hypothesis testing is done by looking at the output of AMOS 21.0 software with the reception area on the CR value is greater than the critical value of 1.96 (two-tailed) at significance P> 0.05 (Ghozali, 2011).
Table 3 Hypothesis Test Results
Hypothesis CR P Conclusion
The 2016 International Conference of Management Sciences (ICoMS 2016), March 10, UMY, Indonesia 186 Figure 3 the final model the effect of QMS ISO 9001
for quality culture and employee performance From the results of hypothesis testing showed rejection of the hypothesis 4, it is clear that the planning ISO has no direct effect on employee performance. While the main factors that influence the culture of quality and performance of employees is the variable application of the procedure with the greatest weight value, namely 0.508 and 0.309. Then the variables that directly influence the culture of quality and performance of employees is the organization's commitment amounted to 0.420 and 0.276.Quality culture is influenced directly by the planning ISO certification by 0.373, and quality culture directly affect the performance of employees amounted to 0.736.
On testing the indirect effect or influence emerged through an intermediate variable, showed significant positive results because there is an increase in total influence due to the indirect effect. It is clear that positive relations improve quality culture of the application of ISO 9001 QMS on the performance of employees of PT. Apac Inti Corpora. So it is said that the implementation of ISO 9001 QMS has indirect influence on employee performance through a quality culture.
Then, to determine the perceptions of respondents about the assessment of research variables perception of agree and strongly agree, as well as to see the average of each indicator research method used Top Two Boxes (TTB). The higher the average and the proportion of respondents, indicating to the rest of the variables have been running normally. The following table 4 the results of assessment respondents' perceptions on the research variables.
Table 4 Assessment of Respondent Perception Variables Indicator TTB
(%) Mean Category
Variables Indicator TTB
(%) Mean Category
The 2016 International Conference of Management Sciences (ICoMS 2016), March 10, UMY, Indonesia 187 performance of employees to scaling up production
yield can be completed on time and output in accordance with the quality and the set targets.Unknown variable that has the most impact is the application procedure, so that repairs can be carried out as follows:
1) Indicators to follow procedures
In the procedure followed indicator has a weight of 0.727 and a significant effect on the implementation of the procedure. On the assessment of the perception of respondents, an average of 4.00 respondents who indicate that employees of the company has been following company procedures properly. Nevertheless necessary to do some improvements in order to further establish the company's quality culture and increasing employee performance. Improvements that can be made include the creation of a second party (helper head) management representative for part of Quality Assurance and Energy Assurance. Because according to the management procedures of
representative companies, the head of the management representativeshould be assisted by three assistants heads in their duties, namely the deputy Quality Assurance, Assurance and deputy vice Energy Management Function. The improvement proposals intended to performing tasks more optimal results in terms of top management and the support both of the management functions can focus on its responsibilities.
2) Indicators of implementation of periodic audit On a periodic audit indicator has a weight of 0.688 and a significant effect on the implementation of the procedure. On the assessment of the perception of respondents, an average of 4.32 respondents who indicate that the company is considered to have conduct periodic internal audit very well. Nevertheless necessary to do some repairs on the implementation of the audit, including the re-establishment of ISO work team in charge of socialization preliminary survey of the work units within the organization in the implementation of internal audit. Then in conducting internal audits in each department scalable connection with products, specifically for the production department can be done every three months so that the quality and quantity of production is more controlled. Then for the HR department Marketing,Finance and Logistics can be made every four months. With routine audit can improve the improvement of employee and employee involvement in quality improvement, for example by increasing improvement of the company's award given to employees for each year. 3) Indicators of implementation of the action
In the application of the measures indicator has a weight of 0.608 and a significant effect on the implementation of the procedure. On the
assessment of the perception of respondents, an average of 3.94 respondents who indicate that the application of the measures the company has done well. Nevertheless necessary to do some repairs to the implementation of such measures, including establishing a contractual relationship with suppliers of machinery spare parts over the long term and provide the number of spare parts more in the barn, reset the schedule repair machinery to correct the number of a broken machine that can inhibit the production process and preventing the large number product defects. Then further implement 6S action (sort, set in order, shine, standard, sustain, and safety) especially in the weaving division so that employees can work well and can increase the improvement of the quality of the work team.
5. CONCLUSION
1) Culture of quality can be increased by strengthening planning ISO certification, ISO commitment and implementation of the company's procedures. While employee performance can be enhanced through the implementation of quality culture, organizational commitment, and application procedures.
2) Employee performance can be improved with better build the company's quality culture. Quality Cultures can be built through increasing the dimensions of the implementation of the Quality Management System ISO 9001 i.e. ISO certification planning, organizational commitment, and application procedures. 3) Proposed improvements granted to PT. Apac
Inti Corpora to increase productivity and prevent delays in the completion of the task is to focus the work of employees, one of them with a form representative of Quality Assurance and EnergyAssurance, conduct internal audits for faster production department among other departments, increasing the amount of training the quality of internal, braid cooperation long-term contracts with suppliers of spare parts engine, engine repair rearrange schedules and supporting the implementation of 6S action.
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