Quality Management System and Environmental Management System: What is Its Role in Manufacturing Industry

Abstract

Management standards are internationally recognized and have been widely used by various manufacturing industries in industrial estate, which are environmental management systems and quality management systems. There is guarantee of product quality and existence of environmental performance guarantees in accordance with procedures that must be adhered to so that it can convince various parties related to stressed business professionals. Utilization of two types of standards is expected to increase business competitiveness, especially in manufacturing industry. In addition, quality management systems and environmental management systems are market demand in business competition to provide quality products, safe for consumers, and meet various safety and environmental preservation requirements. The company's efforts to develop management systems through monitoring and measurement, compliance obligations, operational controls, and environmental issues so as to improve environmental performance are an important part of the application of environmental management standards. Continuous improvement, customers focus and relationship management is an effort to increase customer satisfaction so as to improve competitiveness in the manufacturing industry through application of quality management. Commitment from various available resources is needed to be able to implement two management systems consistently. Research was conducted to test the effect of environmental management and quality management systems on corporate identity and its impact on the competitiveness of manufacturing industry. Hypothesis testing to answer this research is done through structural equation modelling. Findings obtained in this study that environmental management system and quality management system have significant effect on corporate identity and have significant impact on competitiveness of manufacturing industry. To strengthen the competitiveness of manufacturing industry by implementing environmental management system and quality management system consistently as a company's effort to have an identity to add value and be accepted by consumers.