EVALUATION OF QUALITY MANAGEMENT CONSTRAINTS IN DEVELOPING ECONOMIES

Consumers in developing countries often complain that the quality of locally manufactured consumer goods is far below their expectations. The general remedies suggested to improve product quality are to adopt the latest quality control concepts that are being applied in more industrialised countries. However, few attempts have been made to understand the underlying causes of low product quality in developing economies. This article analyses the causes of low product quality in developing nations, first of all by examining the background factors influencing the setting up of import substitution industries. Shortcomings in the education policies in developing economies are identified, which have created a shortage of personnel qualified to perform the required quality management functions. It is also shown that the restrictions placed on imports to safeguard local industries have contributed to the development of monopoly industries in developing countries. In the analysis the quality assurance mechanism is considered to be made up of two separate components; one purely the internal quality assurance mechanism and the other, which takes into consideration the influence of external parameters. The internal mechanism is considered a static situation, where the quality levels are fixed on the short term and the main task is to ensure that internal resources are efficiently utilised to ensure compliance to the standards set. The external mechanism represents the dynamic situation, where the quality standards themselves are changed periodically, based on customer evaluation of product quality and competitor influence. The models developed show clearly that perfect competition is a key determinant in the quality assurance process and under conditions of monopoly this natural mechanism breaks down and product quality suffers.