Dynamics of a relationship between quality and productivity in the automotive manufacturing industry

  • Tshepo Mpshe
  • Grace Kanakana
  • John Trimble


Management of quality and productivity as key performance areas in automotive industry is an important aspect for the success of companies in the industry. Any conflict between these two key performance areas that if left unmanaged, can lead to overall deterioration of objectives and failure to protect the interests of investors and customers. Product recalls from customers and warranty costs are an embodiment of this conflict and costly to all involved stakeholders. This study uses data from automotive components manufacturing company to determine the nature and strength of a relationship between quality and productivity, with a attention to the automotive industry. In a research that includes primary data collection and analysis, as well as semi-formal interviews with stratified randomly selected participants, results obtained show a positive relationship between the two variables: quality and productivity in the automotive industry. The results obtained can be used to direct management efforts in automotive companies in areas of quality and productivity for optimum results, investor confidence boost, and customer satisfaction/retention.


1. United Nation Senate, Danger behind the wheel: The Takata Airbag Crisis and How to Fix Our Broken Auto Recall Process. Committee on Science, Commerce, and Transportation, 2015.
2. J. S. Oakland, Total Quality Management, 2nd ed. Butterworth Heinemann, 2000; pp. 362.
3. A. Mitra, Fundamentals of Quality Control and Improvement, 3rd Edition. New Jersey: John Wiley and Sons, 2008; pp. 33 – 35.
4. C. G. Benavides-Chicón; B. Ortega. The impact of quality management on productivity in the hospitality sector. International Journal of Hospitality Management 2014, 42, 165 – 173.
5. Automotive Industry – Wikipedia. https://en.wikipedia.org/wiki/Automotive_industry#Economy (Accessed 31 May 2015)
6. International Standards Organization, ISO/TS16949: 2009 Quality Management Systems – Requirements for the automotive industry, 2009.
7. T. Iqbal, (2012). Investigating the role of quality management and productivity: An analysis of quality and productivity in Pakistani manufacturing companies, 2012. PhD Thesis at School of Management University of Bradford.
8. International Standards Organization, ISO9000: 2005 Quality Management Systems – Fundamentals and Vocabulary, 2005.
9. Besterfield, D. Quality Control, 7th ed.; Pearson: Prentice-Hall, USA, 2004; pp. 1–4.
10. Cua K.; McKone K.; Schroeder R. Relationships between implementation of TQM, JIT, and TPM and manufacturing performance. Journal of Operations Management 2001, 19, 675 – 694.
11. Chong V.K.; Rundus M.J. Total Quality Management, market competition, and organizational performance. The British Accounting Review 2004, 36, 155 – 172.
12. Bernolak I. Productivity: the basis of competitive and world prosperity. International Journal of Production Economics 1997, 52, 203 – 213.
13. Corredor P.; Go-i S. TQM and performance: Is the relationship so obvious? Journal of business research 2010, 64, 830 – 838.
14. Terziovski M. Quality management practices and their relationship with customer satisfaction and productivity improvement. Management Research News 2006, 29, 414 – 424.
15. David A.; Stables D. Study on the effectiveness of the application of ISO/TS16949: 2009 in the South African Automotive Industry. United Nations Industrial Development Organization 2015.
16. Al-Darrab I.A. Relationship between productivity, efficiency, utilization, and quality. Work Study 2000, 43, 97 – 104.
17. Kumari S.; Anurhadha; Sharma S.K. How quality affect productivity and price in manufacturing industries. International Journal of Application of Innovation in Engineering & Management 2013, 2, 288 – 290.
18. Mohanty R.P.; Yadav O.P. Linking the quality and productivity movements. Work Study 2000, 49, 97 – 104.
19. Cooper D.R.; Schindler P.S. 2011. Business Research Methods, 11th Edition Mc Graw Hill International, 2000; pp 146 – 147, 160 – 163, 251.
20. B. Render, R. M. Stair Jr, M. E. Hanna, (2009) Quantitative Analysis for Management 10th Edition. Upper Saddle River: Pearson International Edition.
21. Automotive Industry – Wikipedia. https://en.wikipedia.org/wiki/Automotive_industry#Economy (Accessed 31 May 2015)
22. Cooper, D.R., Schindler, P.S. 2011. Business Research Methods, 11th Edition Mc Graw Hill International, pp 146 – 147, 160 – 163, 251.

How to Cite
MPSHE, Tshepo; KANAKANA, Grace; TRIMBLE, John. Dynamics of a relationship between quality and productivity in the automotive manufacturing industry. Journal of Economics & Management Theory, [S.l.], v. 1, n. 1, p. 34-44, sep. 2017. Available at: <https://www.archyworld.com/journals/index.php/jemt/article/view/102>. Date accessed: 16 june 2019. doi: https://doi.org/10.22496/jemt20170102.