The implementation of TQM in the component supply chain: A case study in the South African Motor Industry

The South African motor industry has flourished over the past two decades. During these years, many Original Equipment Manufacturers (OEMs) have chosen South Africa as one of the countries to establish their plants. Local vehicle sales are not the driving factor of this large investment in South Africa, as many vehicles are exported to other countries. South African assembled vehicles are now competing on a global market. A study was conducted in the automotive industry of South Africa, utilising the National Association of Automotive Component and Allied Manufacturers (NAACAM) database in South Africa, to investigate the differences in first tier and second tier suppliers in terms of the organisational profiles of these companies, the implementation of Total Quality Management (TQM) principles in their plants and how the companies missions and goals are structured around the customer´s needs. The research methodology comprised a literature review, and an empirical study based on a questionnaire forwarded to automotive companies in South Africa. A number of conclusions could be reached from the study as differences between first and second tier supplier in general irrespective of whether the suppliers uses TQM or not.