Application of Total Quality Management to the Operational Performance of the PT Arohera Company

Abstract

This research examines how Total Quality Management (TQM) dimensions—management support, customer focus, teamwork, and training education—affect the operational performance of PT Arohera, a recognized player in the EPCM industry. Despite its strong reputation, the company has not met its 95% operational efficiency target due to challenges such as inadequate management support and ineffective teamwork. This study aims to demonstrate how enhancing these TQM dimensions can improve productivity, quality, and customer satisfaction, thereby offering practical insights for optimizing operational performance. Findings reveal that management support is crucial for enhancing operational performance, with a significant sample value of 0.449, while customer focus shows a negative sample value of -0.067, indicating inefficiencies in addressing customer needs. Teamwork positively impacts outcomes, with a sample value of 0.486, highlighting the importance of employee collaboration; however, training education appears less effective, as indicated by a sample value of 0.095, suggesting deficiencies in current training programs. This study employs a quantitative approach, with data collected through a structured questionnaire distributed via Google Forms to all respondents in PT Arohera. The collected data were tabulated and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine the impact of TQM practices on operational performance. Limitations include the study's focus on PT Arohera, which affects generalizability, and the potential oversight of other relevant factors influencing performance by concentrating solely on four TQM dimensions. This research contributes to the field by focusing on the direct relationship between TQM dimensions and operational performance within a single organization and providing targeted insights to address PT Arohera’s specific challenges and opportunities.