EVALUATION OF THE IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT ON PT. AKSAKINDO MANUFACTURING

In this global era, only companies that are able to produce quality goods or services in accordance with customer demands can win the competition. Integrated quality management (total quality management) is a very appropriate strategy in the company's efforts to achieve world class performance. PT. Aksakindo Manufacturing has implemented TQM, but there are still defects or imperfections that require further research. The purpose of this study was to analyze the significance of the influence of the Strategic construct (leadership, organizational culture, continuous improvement, benchmarking, quality goals and policies), analyze the significance of the influence of the Tactical construct (team development and problem solving, employee empowerment, engagement and training, use of information technology, supplier management) as well as analyzing the significance of the influence of Operational constructs (design of goods and services, process control, consumer orientation) on the construct of product quality produced by PT. Aksakindo Manufacturing. Determination of the sample using purposive sampling method, namely the selection of samples with a specific goal or target. Based on the regression analysis that has been done, it can be concluded: Strategic, Tactical and Operational Constructs have a positive and significant effect on the quality of the resulting product. That is, the better the strategic, tactical and operational constructs run by the company, the better the quality of the products produced by PT. Aksakindo Manufacturing.

e-ISSN: 2961-712X DOI: 10.55299/ijec.v1i1.129 factors. First, strategic factors (leadership, organizational culture, continuous improvement, benchmarking, quality goals and policies). Second, tactical factors (team development and problem solving, employee empowerment, engagement and training, use of information technology, supplier management). Third, operational factors (design of goods and services, process control, customer orientation, value added resources in the process). The results show that there is a substantial effect in the implementation of TQM on operational performance (internal operations in terms of cost and waste reduction, improving product quality, flexibility, delivery, and productivity) and organizational performance (revenue growth, net profit, profit to revenue ratio and turnover). assets, investment in research and development, new product development, development and market orientation).
This finding also confirms the significant relationship between the operational and organizational performance of SMEs and the main role rather than strategic factors in the successful implementation of TQM in SMEs. PT. Aksakindo Manufacturing as one of the manufacturing companies engaged in the handicraft business and has a world market. The company is located on Jalan Raya Mas Ubud Gianyar, has started its business since 1972. Apart from being a producer of handicrafts, it also carries out export, packaging, and shipping activities (cargo business) for handicrafts. Marketing of this company's products, more than 90 percent for foreign markets, while 10 percent for the domestic market. The domestic market is marketed through retailers in various locations on the island of Java, especially in Jakarta. Of the 90 percent of overseas markets: 70 percent are marketed in the US, the remaining 30 percent are to Europe, such as Germany, Sweden, the Netherlands, France, the UK, and the Australian market. Up to now, the delivery of handicraft products has been able to reach more than 2000 m3 per year, which is quite a large amount. As an exportoriented manufacturing company, PT. Aksakindo Manufacturing has its own Quality Control Department which has been able to carry out quality control, for example in measuring the humidity of wood used with international standards of 14 percent, paint color standards.
In addition, PT. Aksakindo Manufacturing also has a product research and development department (Research & Development) which functions to monitor the development of foreign market interests or tastes and create products according to consumer desires. Creech (1995) says that the successful implementation of TQM must have four criteria: first, it must be based on quality awareness and quality-oriented in all its activities, including in every process and product; Second, must have a strong human nature to bring quality to the way employees are treated, included and inspired; third, it must be based on a decentralized approach that gives authority at all levels, especially at the front line (employees) so that enthusiastic engagement and common goals become a reality. Fourth, it must be applied thoroughly so that all principles, wisdom, and habits reach every nook and cranny of the organization. Thus, the role of employees on product quality is very important, especially employees of the production division who are at the forefront of the production process.
Blackburn and Rosen (1993) say that success in integrating human resource management and TQM implementation is due to reduced costs, increased product reliability, greater customer satisfaction, and shorter product development cycles. PT. Aksakindo Manufacturing has implemented TQM, but still found defective or imperfect products. In addition, there are also a number of products that can still be reprocessed (rework) and damaged or discarded products (scrap/waste). From the results of interviews with the head of the quality control department, a product is classified as imperfect if the product: 1) the size does not match the agreed order, both the thickness and length or width of the material, 2) the special moisture of the wood is not in accordance with the specifications. international standard, which is 14% so that the finished product appears in the form of mushrooms or the product is curved, 3) the color does not match the agreed order, 4) the ornament (carving motif) does not match the order, 5) the finished product does not match the buyer's design, 6 ) there are errors in the manufacturing process so as to make the product defective, such as errors in painting, sculpting and 7) delays in workmanship and delivery to the buyer. The product is classified into rework if the imperfection product has a fault that can be tolerated or can still be repaired. Meanwhile, products classified as scrap/waste are products that have a fatal error rate, such as broken, damaged paint, defective products that can no longer be repaired or made into other products. Of the imperfection products that occur, some can still be reworked, an average of 87 percent and 13 percent are scrap products. Although the products produced by PT. Aksakindo Manufacturing can still be reworked but that means that quality control still needs to be studied and then followed up so that the error rate can be eliminated.
According to the results of interviews with the quality control department on initial observations, operational factors (product design, product supervision in process, raw material inventory handling, and inspections), human resources, machinery and equipment factors are the causes of product quality errors. The human resource factor is caused because production employees do not understand the quality, the infrastructure or supporting equipment needed to overcome quality problems is not yet available properly. The active involvement of managers with employees is still lacking in terms of discussing quality issues. Employee training has not been going well. (Su et al. 2008) conducted a study of 151 ISO 9001 certified manufacturing and service companies in China. The results of the study state that quality management (such as consumer, employee training, leadership and top management commitment, cross-functional quality team, employee involvement in continuous improvement, innovation, information quality, performance measurement and statistical quality control) has a positive influence on company performance ( sales growth, market share, and market share growth) directly. e-ISSN: 2961-712X DOI: 10.55299/ijec.v1i1.129 However, it has an indirect effect on business performance mediated by performance quality (eg defective product, product quality, durability, reliability and on-time delivery) and R&D performance (rate of design errors, research and development time, competence and cost). From several previous research results where operational factors (product design, product supervision in process, handling of raw material inventory, machinery and equipment), and human resource factors are said to be the cause of quality errors. Seeing the phenomenon that occurred at PT. Aksakindo Manufacturing raises a strong suspicion of the effect of the application of TQM on the quality of the products produced by PT. Aksakindo Manufacturing, so further research is needed.

Methodology:
This research was conducted at PT. Aksakindo Manufacturing which is located at Jalan Raya KH. Ahmad Dahlan Sibolga Sambar. This location was chosen because this company is an export-oriented manufacturer and has implemented TQM.
Research Results and Discussion:

Research Instrument Test a) Validation Test
An instrument in research is said to be valid if it is able to measure what it wants to measure. An instrument is said to be valid if it has a correlation coefficient between items and the total score in the instrument is greater than 0.30 with an Alpha error rate of 0.05. Table 1 shows that the research instrument used to measure the strategy variable is valid because all indicators have a correlation value (r) above 0.3 with a significance below 0.05.

b) Reliability Test
The reliability test of this research instrument uses Cronbach's Alpha value, which is to determine the unidimensionality of the statement items on the latent variables studied (Strategy, Tactical, Operational and Product Quality). Cronbach's Alpha value is declared reliable if the value is greater than or equal to 0.60 (Ghozali, 2004). The recapitulation of the research instrument reliability test can be seen in Table 4.5.

Table 2. Recapitulation of Research Instruments Reliability Test
Table 2. shows that the value of Cronbach's Alpha for each variable is greater than 0.60. So it can be stated that all variables have met the requirements of reliability or reliability.

Description of Research Data
The description of the research data presents the respondent's assessment for each of the questions posed in the respondent's assessment questionnaire based on the variables Strategy, Tactical, Operational and Product quality using a measurement scale of 1 to 5. To describe the average assessment of respondents regarding the variables in the study , the results of respondents' answers are adjusted to the design of the measurement scale that has been determined and then formulated into several class intervals (Suharsono, 2010:21). e-ISSN: 2961-712X DOI: 10.55299/ijec.v1i1.129

Measurement Model
The measurement model test in this study uses a model validity test. The validity of the measurement model is to determine whether all loading factors have good validity. Confirmatory Factor Analysis was used to determine the validity of the model. Table 3 Table 3. above shows that all the assessment criteria regarding the validity of the Strategic model are met (valid) so that it can be concluded that the five indicators are valid in forming the Strategic model or construct.

Reporting Regression Analysis Results
Based on the results of data analysis in Appendix 7, the results of the regression analysis can be reported as follows: Based on the obtained regression equation, it can be explained that the independent variables Strategy (X1), Tactical (X2) and Operational (X3 Valid Valid 54) have a significant positive effect. This is indicated by the value of the regression coefficient with the significance value of the t-test all below 0.05. If the Strategic, Tactical and Operational variables have increased, then the Product Quality variable will also increase significantly.

Fulfillment of Classical Assumption Test
The regression model will be more appropriate to use and produce more accurate calculations, if the following assumptions can be met. Classical assumption tests that must be met in simple linear regression analysis include Normality Test, Multicollinearity Test and Heteroscedasticity Test. a) Data Normality Test Is a test that aims to test whether the residuals of the regression model made are normally distributed or not. A good regression model is one that has a normal or close to normal residual distribution. In this study, the normality test was carried out by testing the normality of the residuals by using the Kolmogorov-Smirnov test, namely by comparing the cumulative distribution of the relative observations with the cumulative distribution of the theoretical relative. If the significance probability of the residual value is greater than 0.05, it means that the residual is normally distributed. Vice versa, if the residual significance probability is lower than 0.05, it means that the residuals are not normally distributed. The significance value of the Kolmogorov-Smirnov test is above 0.05, so it can be concluded that the data is normally distributed. e-ISSN: 2961-712X DOI: 10.55299/ijec.v1i1.129 The multicollinearity test aims to test whether in one regression model there is a correlation between independent variables. A good regression model is that there is no correlation between the independent variables. To detect whether or not there is a correlation between independent variables, it can be seen from the tolerance value and the value of the variance inflation factor (VIF). If the VIF value is less than 10, it can be said that the model is free from multicollinearity. Based on data analysis, the strategic variable VIF value is 3.774, the Tactical Variable VIF value is 4.359 and the Operational variable VIF value is 2.572. Because the VIF value is less than 10, it can be said that the model is free from multicollinearity.

c) Heteroscedasticity Test
Is a test that aims to test whether in the regression model there is an inequality of variance from the residuals of one observation to another observation. A good regression model is one that does not contain symptoms of heteroscedasticity or has a homogeneous variance. To detect the presence or absence of heteroscedasticity, the Glejser test is carried out, by regressing the independent variable to the absolute residual. If the independent variables studied do not have a significant effect on absolute residuals, it means that the regression model does not contain symptoms of heteroscedasticity. Based on the Heteroscedasticity test in Appendix 9, the significance value of the t-test for the Strategic variable = 0.712, the Tactical variable = 0.226 and the Operational variable = 0.061. Because the significance value of the t test on the heteroscedasticity test is above 0.05, it can be concluded that the data does not contain heteroscedasticity.

Conclusions, Proposals, Recommendations:
Based on the analysis that has been done, the following conclusions can be drawn: 1. Strategic constructs have a positive and significant effect on product quality. The better the strategic construct, the better the quality of the product. 2. Tactical constructs have a positive and significant effect on product quality. The better the Tactical construct, the better the quality of the resulting product. 3. Operational Construct has a positive and significant effect on product quality. The better the Operational construct, the better the quality of the resulting product.