Improving the implementation of total quality management in small scale rural agroindustry to enhance Indonesian pepper competitiveness
Suci Wulandari

Indonesian Center for Estate Crops Research and Development, IAARD, Ministry of Agriculture

Abstract

The competitiveness of pepper from Indonesia in the global market tends to decrease. Its market share continues to decline and the attainment of quality standards is still low. Microorganism contamination is one of the issues in product quality assurance. Total Quality Management (TQM) is considered as a strategic resource that can generate competitiveness by achieving the required quality and providing the agroindustry with a sustainable competitive advantage. This study aims to analyze and formulate strategies to accelerate the TQM implementation in pepper agroindustry. The analyses used Quality Management Mapping and Interpretative Structural Modeling (ISM). Quality Management Mapping was completed by analyzing quality management conditions, and ISM was used to analyze the internal and external elements which are relevant to the system. Pepper agroindustry in Indonesia is characterized by individual farmers or group domination, rural-based small-scale agroindustry, traditional processing, pepper quality standards based on agreements between farmers and local buyers, limited access to mechanic processing technology, and incomplete implementation of a quality control system. The main elements of internal factors are training on the methods and concepts of quality, adopting technology, and use of appropriate methodology and tools are driving factors. The main element of external support is creating incentives linked to quality goods. The main strategies constructed by internal factors are training on the methods and concepts of quality, adopting technology, and use of appropriate methodology and tools are driving factors. The main strategy as external support is creating incentives linked to quality goods.

Keywords: quality, production system, rural agroindustry, support program.

Topic: AGROINDUSTRIAL PRODUCTION SYSTEM MANAGEMENT AND REGULATION