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Definition of Terms

For better understanding of the study, the researchers constitute a mutual

scheme of reference bounded by the readers and the researchers. The terms

used in the whole study are hereby defined:

Assessment. The term refers to the act of gathering, analyzing, and

interpreting, evidence which describes institutional, departmental, divisional, or

agency effectiveness (Upcraft &Schuh, 2008). In this study, assessment is used

to describe total quality management practices on selected manufacturing

industries.

Asset Utilization. This measures the liquidity of specific assets and

efficiency in managing assets. This involves a system of reporting that is aligned

with organizational responsibilities (Cabrera, 2014). In this study, it refers on how

the selected manufacturing industries examine the need for and performance of

assets and asset systems to achieve the business objectives.

Capitalization. The term represents the equity funds invested in

enterprise which are used to reinvest in an on-going business operations

(Colquitt, 2007). In this study, it refers to the amount that the business owners

invested to start the business.

Continuous Improvement. It is designed to utilize the resources of the

organization to achieve a quality-driven culture.

Customer Satisfaction. The result of delivering a product or service that

meets the customer requirements it is vital to keeping customers and growing a

business.
Debt Utilization. This measures the extent of firms financing, with debt

relative to equity and its ability to cover interest and other fixed charges (Cabrera,

2014). In this study, it refers to the selected manufacturing industries use of

borrowed funds to improve their operation with the intention of repaying it before

it becomes due.

Employee Involvement. It is a means to better meet the organizations

goals for quality and productivity at all levels of an organization.

Financial Performance. It refers to the act of performing financial activity

and the degree to which financial objectives are being or has been accomplished

(Saunders, 2006). In this study, it was used to the measurement of selected

manufacturing industries overall financial health over a given period of time in

terms of its profitability, liquidity, asset utilization and debt utilization.

Leadership. It considers the needs of all interested parties including

customer, owners, employees, suppliers, financiers, local communities and

society as a whole.

Liquidity. This measures the firms ability to meet cash needs as they

arise. It refers to the ability of the firm to pay its bills on time or otherwise meet its

current obligations (Medina, 2014). In this study, it refers to the extent to which

the selected manufacturing industries have cash to immediate obligations, or

assets that can be quickly converted to cash.

Manufacturing Industry. It refers to any business that transforms raw

materials into finished or semi-finished goods using machines, tools and labor.

The manufacturing industry accounts for a significant share of the industrial


sector in developed countries. The final products can either serve as a finished

good for sale to customers or as intermediate goods used in the production

process. In this study, selected manufacturing industries was used as the

respondents.

Performance Measures. Used to establish baseline measures and reveal

trends, determine which processes need to be improved, indicate process gains

and losses, compare goals with actual performance and provide information for

individual and team evaluation.

Profitability. It is a relative measure of success for business and how well

a firm is performing in terms of its ability to generate profit (Rouse, 2011). In this

study, it refers to the ability of the selected manufacturing industries to earn profit

after paying all their expenses.

Supplier Partnership. It refers to the long-term relationships

characterized by teamwork and mutual confidence - represent an important

strategic alliance in achieving excellence and business success.

Total Quality Management. The continuous process of reducing or

eliminating errors in manufacturing, streamlining supply chain management,

improving the customer experience, and ensuring that employees are up-to-

speed with their training.

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