INTRODUCTION 1. Define Total Quality?
TQM is an enhancement to the traditional way of doing business. It is the art of managing the whole to achieve excellence. It is defined both a philosophy and a set of guiding principles that represent the foundation of a continuously improving organization. It is the application of quantitative methods and human resources to improve all the processes within an organization and exceed customer needs now and in the future. It integrates fundamental manage managemen mentt techni techniques ques existi existing ng improv improveme ement nt effort efforts s and techni technical cal tools tools under under a disciplined approach.
!. Define Quality? Quality " #erformance x $xpectations
%. What are the Dimensions of Quality? & 'eatures & (onformance & )eliability & *urability
& +ervice & )esponse & ,esthetics & )eputation
-. Give the Basic Concepts of TQ? & , committed and involved management to provide longterm toptobottom organizational support. & ,n unwavering focuses on the customer both internally and externally. & $ffective involvement and utilization of the entire wor/ force. & (ontinuous improvement of the business and production process. & Treating suppliers as partners. & $stablish performance measures for the processes.
0. Give the !rinciples of TQ? (onstancy of purpose2 short range and long range ob3ectives aligned Identify the customer4s56 (ustomer (ustomer orientation Identification of internal and external customers (ontinuous improvement 7or/flow as customer transactions $mpower frontline wor/er as leader Quality is everybody8s business 'or a service industry some elements of quality are2
empathy trust6 i.e. expertise integrity courtesy cou rtesy responsiveness tangible product attractiveness 4curb appeal5 reliability on time no interruptions & (ustomer orientation to child care services a mar/eting perspective & 9arriers that exist to a customer orientation
:. Give the O"stacles associate# $ith TQ Implementation? & ;ac/ of management commitment & Inability to change organizational culture & Improper planning & ;ac/ of continuous training and education & Incompatible organizational structure and isolated individuals and departments & Ineffective measurement techniques and lac/ of access to data and results. & #aying inadequate attention to internal and external customers. & Inadequate use of empowerment and teamwor/ . <. Give the %nalysis Techni&ues for Quality Costs? i. Trend ,nalysis ii. #areto ,nalysis
=. Define Quality Costs?
Quality (osts are defined as those costs associated with the nonachievemen t of product or service quality as defined by the requirements established by the organization and its contracts with customers and society.
>. Give the primary cate'ories of Quality cost? & #reventive cost category & ,ppraisal cost category & Internal failure cost category & $xternal failure cost category
1?. Give the typical cost "ases? & ;abor & #roduction & @nit & +ales
11( )o$ $ill you #etermine the optimum cost? & Ma/e comparison with other organizations & Aptimize the individual categories & ,nalyze the relationships among the cost categories
1!. *tate the Quality Improvement *trate'y? & )educe failure costs by problem solving & Invest in the BrightC prevention activities & )educe appraisal costs where appropriate and in a statistically sound manner & (ontinuously evaluate and redirect the prevention effort to gain further quality improvement.
1%( Define Quality !lannin'? , quality plan sets out the desired product qualities and how these are assessed and define the most significant quality attributes. It should define the quality assessment process. It should set out which organizational standards should be applied and if necessary define new standards.
1-. Give the O"+ectives of TQ? To develop a conceptual understanding of the basic principles and methods associated with TQM6 & To develop an understanding of how these principles and methods have been put into effect in a variety of organizations6 & To develop an understanding of the relationship between TQM principles and the theories and models studied in traditional management6 & To do the right things right the first time every time.
10. What is nee#e# for a lea#er to "e effective? To be effective a leader needs to /now and understand the following2 & #eople paradoxically need security and independence at the same time. & #eople are sensitive to external rewards and punishments and yet are also strongly selfmotivated. & #eople li/e to hear a /ind word of praise. & #eople can process only a few facts at a time6 thus a leader needs to /eep things simple. & #eople trust their gut reaction more than statistical data. & #eople distrust a leader8s rhetoric if the words are inconsistent with the leader8s actions.
1:. What is the important role of senior mana'ement? D ;istening to internal and external customers and suppliers through visits focus groups and surveys. D (ommunication. D To drive fear out of the organization brea/ down barriers remove system roadbloc/s anticipate and minimize resistance to change and in general change the culture.
1<. What are the 'eneral #uties of a &uality council? 4i5*evelop with input from all personnel the core values v ision statement
mission statement and quality policy statement. 4ii5*evelop the strategic longterm plan with goals and the annu al quality improvement program with ob3ectives. 4iii5(reate the total education and training plan. 4iv5*etermine and continually monitor the cost of poor quality. 4v5*etermine the performance measures for the organization approve those for the functional areas and monitor them. 4vi5(ontinually determine those pro3ects that improve the processes particularly those that affect external and internal customer satisfaction. 4vii5$stablish multifunctional pro3ect and departmental or wor/ group teams and monitor their progress. 4viii5$stablish or revise the recognition and reward system to account for the ne w way of doing business.
1=. What #oes a typical meetin' a'en#a contain after esta"lishin' the TQ? D #rogress report on teams D (ustomer satisfaction report D #rogress on meeting goals D Eew pro3ect teams D )ecognition dinner D 9enchmar/ing report
1>. What are the various &uality statements?
o Fision +tatement o Mission +tatement o Quality #olicy +tatement
!?. Give the "asic steps to strate'ic &uality plannin'? & (ustomer needs & (ustomer positioning & #redict the future & Gap analysis & (losing the gap & ,lignment & Implementation !1. What is a &uality policy? The Quality #olicy is a guide for everyone in the organization as to how they should provide products and service to the customers. The common characteristics are & Quality is first among equals. & Meet the needs of the internal and external customers. & $qual or exceed the competition. & (ontinually improve the quality. & Include business and production practices. & @tilize the entire wor/ force.
T), ,IG)T ,-,,NT* O. TQ/
Total Quality Management is a management approach that originated in the 1>0?Hs and has steadily become more popular since the early 1>=?Hs. Total Quality is a description of the culture attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the companyHs operations with processes being done right the first time and defects and waste eradicated from operations. To be successful implementing TQM an organization must concentrate on the eight /ey elements2 $thics Integrity Trust Training Teamwor/ ;eadership )ecognition (ommunication This paper is meant to describe the eight elements comprising TQM. 0ey ,lements
TQM has been coined to describe a philosophy that ma/es quality the driving force behind leadership design planning and improvement initiatives. 'or this TQM requires the help of those eight /ey elements. These elements can be divided into four groups according to their function. The groups are2 I. 'oundation It includes2 $thics Integrity and Trust. II. 9uilding 9ric/s It includes2 Training Teamwor/ and ;eadership. III. 9inding Mortar It includes2 (ommunication. IF. )oof It includes2 )ecognition. I( .oun#ation
TQM is built on a foundation of ethics integrity and trust. It fosters openness fairness and sincerity and allows involvement by everyone. This is the /ey to unloc/ing the ultimate potential of TQM. These three elements move together however each element offers something different to the TQM concept. 1. $thics $thics is the discipline concerned with good and bad in any situation. It is a twofaceted sub3ect represented by organizational and individual ethics. Arganizational ethics establish a business code of ethics that outlines guidelines that all employees are to adhere to in the performance of their wor/. Individual ethics include personal rights or wrongs. !. Integrity Integrity implies honesty morals values fairness and adherence to the facts and sincerity. The characteristic is what customers 4internal or external5 expect and deserve to receive. #eople see the opposite of integrity as duplicity. TQM will not wor/ in an atmosphere of duplicity.
%. Trust Trust is a byproduct of integrity and ethical conduct. 7ithout trust the framewor/ of TQM cannot be built. Trust fosters full participation of all members. It allows empowerment that encourages pride ownership and it encourages commitment. It allows decision ma/ing at appropriate levels in the organization fosters individual ris/ ta/ing for continuous improvement and helps to ensure that measurements focus on improvement of process and are not used to contend people. Trust is essential to ensure customer satisfaction. +o trust builds the cooperative environment essential for TQM. II.9ric/s 9asing on the strong foundation of trust ethics and integrity bric/s are placed to reach the roof of recognition. It includes2 -. Training Training is very important for employees to be highly productive. +upervisors are solely responsible for implementing TQM within their departments and teaching their employees the philosophies of TQM. Training that employees require are interpersonal s/ills the ability to function within teams problem solving decision ma/ing 3ob management performance analysis and improvement business economics and technical s/ills. *uring the creation and formation of TQM employees are trained so that they can become effective employees for the company. 0. Teamwor/ To become successful in business teamwor/ is also a /ey element of TQM. 7ith the use of teams the business will receive quic/er and better solutions to problems. Teams also provide more permanent improvements in processes and operations. In teams people feel more comfortable bringing up problems that may occur and can get help from other wor/ers to find a solution and put into place. There are mainly three types of teams that TQM organizations adopt2
,. Quality Improvement Teams or $xcellence Teams 4QIT+5 These are temporary teams with the purpose of dealing with specific problems that often reoccur. These teams are set up for period of three to twelve months. 9. #roblem +olving Teams 4#+Ts5 These are temporary teams to solve certain problems and also to identify and overcome causes of problems. They generally last from one wee/ to three months. (. Eatural 7or/ Teams 4E7Ts5 These teams consist of small groups of s/illed wor/ers who share tas/s and responsibilities. These teams use concepts such as employee involvement teams selfmanaging teams and quality circles. These teams generally wor/ for one to two hours a wee/. :. ;eadership It is possibly the most important element in TQM. It appears everywhere in organization. ;eadership in TQM requires the manager to provide an inspiring vision ma/e strategic directions that are understood by all and to instill values that guide subordinates. 'or TQM to be successful in the business the supervisor must be committed in leading his employees. , supervisor must understand TQM believe in it and then demonstrate their belief and commitment through their daily practices of TQM. The supervisor ma/es sure that strategies philosophies values and goals are transmitted down through out the organization to provide focus clarity and direction. , /ey point is that TQM has to be introduced and led by top management. (ommitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the ob3ectives of the company and in creating and deploying well defined systems methods and performance measures for achieving those goals.
III(Bin#in'ortar
<. (ommunication It binds everything together. +tarting from foundation to roof of the TQM house everything is bound by strong mortar of communication. It acts as a vital lin/ between all elements of TQM. (ommunication means a common understanding of ideas between the sender and the receiver. The success of TQM demands communication with and among all the organization members suppliers and customers. +upervisors must /eep open airways where employees can send and receive information about the TQM process. (ommunication coupled with the sharing of correct information is vital. 'or communication to be credible the message must be clear and receiver must interpret in the way the sender intended. There are different ways of communication such as2 ,. *ownward communication This is the dominant form of communication in an organization. #resentations and discussions basically do it. 9y this the supervisors are able to ma/e the employees clear about TQM. 9. @pward communication 9y this the lower level of employees are able to provide suggestions to upper management of the affects of TQM. ,s employees provide insight and constructive criticism supervisors must listen effectively to correct the situation that comes about through the use of TQM. This forms a level of trust between supervisors and employees. This is also similar to empowering communication where supervisors /eep open ears and listen to others. (. +ideways communication This type of communication is important because it brea/s down barriers between departments. It also allows dealing with customers and suppliers in a more professional manner.
IF.)oof =. )ecognition )ecognition is the last and final element in the entire system. It should be provided for both suggestions and achievements for teams as well as individuals. $mployees strive to receive recognition for themselves and their teams. *etecting and recognizing contributors is the most important 3ob of a supervisor. ,s people are recognized there can be huge changes in selfesteem productivity quality and the amount of effort exhorted to the tas/ at hand. )ecognition comes in its best form when it is immediately following an action that an employee has performed. )ecognition comes in different ways places and time such as 7ays It can be by way of personal letter from top management. ,lso by award
banquets plaques trophies etc. #laces Good performers can be recognized in front of departments on performance boards and also in front of top management. Time )ecognition can given at any time li/e in staff meeting annual award banquets etc. 7e can conclude that these eight elements are /ey in ensuring the success of TQM in an organization and that the supervisor is a huge part in developing these elements in the wor/ place. 7ithout these elements the business entities cannot be successful TQM implementers. It is very clear from the above discussion that TQM without involving integrity ethics and trust would be a great remiss in fact it would be incomplete. Training is the /ey by which the organization creates a TQM environment. ;eadership and teamwor/ go hand in hand. ;ac/ of communication between departments supervisors and employees create a burden on the whole TQM process. ;ast but not the
least recognition should be given to people who contributed to the overall completed tas/. ence lead by example train employees to provide a quality product create an environment where there is no fear to share /nowledge and give credit where credit is due is the motto of a successful TQM organization
T), TQ OD,-/
,t the century close the creation of the global mar/et international orientation of management that sweeps national boundaries introduction of new technologies and shift towards customer focused strategies ma/e the competition stronger than ever. The criteria for success in this global internationally oriented mar/et have been changing rapidly. In order to expand business enter new mar/ets and set realistic competitive longterm ob3ectives excellence became an imperative. ManagementHs effort has been directed towards discovering what ma/es a company excellent. To achieve excellence companies must develop a corporate culture of treating people as their most important asset and provide a consistent level of high quality products and services in every mar/et in which they operate. +uch an environment has supported the wide acceptance of Total Quality Management 4TQM5 which emerged recently as a new challenging mar/etable philosophy. It involves three spheres of changes in an organization people technology and structure. There is also a need for a systematic approach so that each element of TQM$J can be bonded together smoothly. Aa/land K1>=>L originated the idea of a %cornerstone model. The proposed -pillar model 4'igure %.15 brings the customerHs requirement into the system. This ma/es the approach to TQM more complete. The additional pillar
satisfying customers is vital because it explicitly addresses customers requirements. 7ithout it TQM would have no ob3ective.
The 'our #illars of TQM
The role of top management in implementation of total quality is crucial and its input on people farreaching. TQM therefore should be understood as management of the system through systems thin/ing which means understanding all the elements in the company and putting them to wor/ together towards the common goal. The TQM$J Model advocates an integrated approach in order to support the transition to systems management which is an ongoing process of continuous improvement that begins when the company commits itself to managing by quality. The Model illuminates the elements that form a base to the understanding of TQM philosophy and implementation of the process companywide.
The *tructure of TQ,1/
The -o'ic of TQ,1/
In order to have a systematic approach to TQM it is necessary to develop a conceptual model. Generally a model is a sequence of steps arranged logically to serve as a guideline for implementation of a process in order to achieve the ultimate goal. The model should be simple logical and yet comprehensive enough for TQM implementation. It also has to sustain the changes in business environment of the new era. The Model also reflects teachings of the contemporary quality gurus. The idea was to develop a universally applicable stepbystep guideline by including recognized practices in TQM2 •
apanese 0+ #ractice 40+5
•
9usiness #rocess )eengineering 49#)5
•
Quality (ontrol (ircles 4Q((s5
•
I+A >??1N! Quality Management +ystem 4I+A5
•
Total #roductive Maintenance 4T#M5
,s Asada pointed out 0+ is the /ey to total quality environment. Therefore it should be the first step. 9#) is concerned with redefining and designing your business process in order to meet the needs of your customers effectively. It is more concerned with the business ob3ectives and systems and should follow as +tep !. Q((s are concerned with encouraging the employees to participate in continuous improvement and guide them through. They improve human resources capability to achieve the business ob3ectives. Therefore this should be +tep %. I+A >??? is to develop a quality management system based on the good practices in the previous three steps. T#M is a result of applying 0+ to equipment based on a sound quality management system. In fact I+A >??1 requires procedures for process control and inspection and testing equipment which are part of T#M. Therefore T#M should be implemented in +tep 0.
If the above five steps have been implemented successfully the organization is already very close towards achieving TQM.
TQM$J is a sequential model which is easy to remember and simple to implement. This is in line with the quality principle of Oeep It +hort and +imple 4OI++5 although it is not simple to ma/e a model simpleP
(ompanies starting to implement TQM should follow TQM$J stepbystep. (ompanies which have already gone through some degree of improvement using some of the steps should review what have not been done and do it as their next step of improvement. In order to maximize your benefits from TQM$J you have to start early too.
T), ,**,NTI%-* O. TQ TQM is the way of managing for the future and is far wider in its application than 3ust assuring product or service quality it is a way of managing people and business processes to ensure complete customer satisfaction at every stage internally and externally. TQM combined with effective leadership results in an organization doing the right things right first time.
The core of TQM is the customer-supplier interfaces both externally and internally and at each interface lie a number of processes. This core must be surrounded by
commitment to quality communication of the quality message and recognition of the
need to change the culture of the organisation to create total quality. These are the foundations of TQM and they are supported by the /ey management functions of people processes and systems in the organisation.
This section discusses each of these elements that together can ma/e a total quality organisation. Ather sections explain people processes and systems in greater detail all having the essential themes of commitment culture and communication running through them.
What is &uality?
, frequently used definition of quality is “Delighting the customer by fully meeting their needs and expectations”. These may include performance appearance availability delivery reliability maintainabilitycost effectiveness and price. It is therefore imperative that the organisation /nows what these needs and expectations are. In addition having identified them the organisation must understand them and measure its own ability to meet them. Quality starts with mar/et research to establish the true requirements for the product or service and the true needs of the customers. owever for an organisation to be really effective quality must span all functions all people all departments and all activities and be a common language for improvement. The cooperation of everyone at every interface is necessary to achieve a total quality organization in the same way that the apanese achieve this with company wide quality control.
Customers an# suppliers
There exists in each department each office each home a series of customers suppliers and customer supplier interfaces. These are Bthe quality chainsC and they can be bro/en at any point by one person or one piece of equipment not meeting the requirements of the customer internal or external. The failure usually finds its way to the interface between the organization and its external customer or in the worst case actually to the external customer. 'ailure to meet the requirements in any part of a quality chain has a way of multiplying and failure in one part of the system creates problems elsewhere leading to yet more failure and problems and so the situation is exacerbated. The ability to meet customers8 4external and internal5 requirements is vital. To achieve quality throughout an organization every person in the quality chain must be trained to as/ the following questions about every customersupplier interface2 Customers 2internal an# e3ternal4
& 7ho are my customersR & 7hat are their true needs and expectationsR & ow do or can I find out what these areR & ow can I measure my ability to meet their needs and expectationsR & *o I have the capability to meet their needs and expectationsR 4If not what must I do to improve this capabilityR5
& *o I continually meet their needs and expectationsR 4If not what prevents this from happening when the capability existsR5 & ow do I monitor changes in their needs and expectationsR
*uppliers 2internal an# e3ternal4
& 7ho are my internal suppliersR & 7hat are my true needs and expectationsR & ow do I communicate my needs and expectations to my suppliersR & *o my suppliers have the capability to measure and meet these needs and expectationsR & ow do I inform them of changes in my needs and expectationsR ,s well as being fully aware of customers8 needs and expectations each person must respect the needs and expectations of their suppliers. The ideal situation is an open partnership style relationship where both parties share and benefit. !oor practices
To be able to become a total quality organization some of the bad practices must be recognized and corrected. These may include2 & ;eaders not giving clear direction & Eot understanding or ignoring competitive positioning & $ach department wor/ing only for itself & Trying to control people through systems & (onfusing quality with grade & ,ccepting that a level of defects or errors is inevitable
& 'irefighting reactive behaviour & The “It’s not my problem” attitude ow many of these behaviours do you recognize in your organizationR The essential components of TQ 5 commitment 6 lea#ership
TQM is an approach to improving the competitiveness effectiveness and flexibility of an organization for the benefit of all sta/eholders. It is a way of planning organizing and understanding each activity and of removing all the wasted effort and energy that is routinely spent in organizations. It ensures the leaders adopt a strategic overview of quality and focus on prevention not detection of problems. 7hilst it must involve everyone to be successful it must start at the top with the leaders of the organization. ,ll senior managers must demonstrate their seriousness and commitment to quality and middle managers must as well as demonstrating their commitment ensure they communicate the principles strategies and benefits to the people for whom they have responsibility. Anly then will the right attitudes spread throughout the organization. , fundamental requirement is a sound quality policy supported by plans and facilities to implement it. ;eaders must ta/e responsibility for preparing reviewing and monitoring the policy plus ta/e part in regular improvements of it and ensure it is understood at all levels of the organization. $ffective leadership starts with the development of a mission statement followed by a strategy which is translated into action plans down through the organization. These
combined with a TQM approach should result in a quality organization with satisfied customers and good business results. The 0 requirements for effective leadership are2 & *eveloping and publishing corporate beliefs values and ob3ectives often as a mission statement & #ersonal involvement and acting as role models for a culture of total quality & *eveloping clear and effective strategies and supporting plans for achieving the mission and ob3ectives & )eviewing and improving the management system & (ommunicating motivating and supporting people and encouraging effective employee participation The tas/ of implementing TQM can be daunting. The following is a list of points that leaders should consider6 they are a distillation of the various beliefs of some of the quality gurus2 & The organisation needs a longterm commitment to continuous improvement. & ,dopt the philosophy of zero errorsNdefects to change the culture to right first time & Train people to understand the customer7supplier relationships & *o not buy products or services on price alone loo/ at the total cost & )ecognise that improvement of the systems must be managed & ,dopt modern methods of supervisin' an# trainin' eliminate fear & $liminate barriers between departments by managing the process improve communications
and team$or8
& $liminate goals without methods standards based only on numbers barriers to pride of wor/manship and fiction get facts by studying processes & (onstantly educate and retrain develop e3perts in the organisation & *evelop a systematic approach to manage the implementation of TQM
Culture chan'e
The failure to address the culture of an organisation is frequently the reason for many management
initiatives
either
having
limited
success
or
failing
altogether.
@nderstanding the culture of an organisation and using that /nowledge to successfully map the steps needed to accomplish a successful change is an important part of the quality 3ourney. The culture in any organisation is formed by the beliefs behaviours norms dominant values rules and the BclimateC. , culture change e.g from one of acceptance of a certain level of errors or defects to one of right first time every time needs two /ey elements2 & (ommitment from the leaders & Involvement of all of the organisation8s people There is widespread recognition that ma3or change initiatives will not be successful without a culture of good teamwor/ and cooperation at all levels in an organisation as discussed in the section on #eople.
The "uil#in' "loc8s of TQ/ processes9 people9 mana'ement systems an# performance measurement
$verything we do is a #rocess which is the transformation of a set of inputs which can include action methods and operations into the desired outputs which satisfy the customers8 needs and expectations.
In each area or function within an organisation there will be many processes ta/ing place and each can be analysed by an examination of the inputs and outputs to determine the action necessary to improve quality. In every organisation there are some very large processes which are groups of smaller processes called /ey or core business processes. These must be carried out well if an organisation is to achieve its mission and ob3ectives. The section on #rocesses discusses processes and how to improve them and Implementation covers how to prioritise and select the right process for improvement.
The only point at which true responsibility for performance and quality can lie is with the !eople who actually do the 3ob or carry out the process each of which has one or several suppliers and customers. ,n efficient and effective way to tac/le process or quality improvement is through teamwor/. owever people will not engage in improvement activities without commitment and recognition from the organisation8s leaders a climate for improvement and a strategy that is implemented thoughtfully and effectively. The section on #eople expands on these issues covering roles within teams team selection and development and models for successful teamwor/. ,n appropriate documented Quality ana'ement *ystem will help an organisation not only achieve the ob3ectives set out in its policy and strategy but also and equally importantly sustain and build upon them. It is imperative that the leaders ta/e
responsibility for the adoption and documentation of an appropriate management system in their organisation if they are serious about the quality 3ourney. The +ystems section discusses the benefits of having such a system how to set one up and successfully implement it. Ance the strategic direction for the organisation8s quality 3ourney has been set it needs !erformance easures to monitor and control the 3ourney and to ensure the desired
level of performance is being achieved and sustained. They can and should be established at all levels in the organisation ideally being cascaded down and most effectively underta/en as team activities and this is discussed in the section on #erformance.
*CO!, 6 I!ORT%NC,
Total quality management provides a needed change initiative along with others. TQM is very important in terms of company profit base because TQM is maintaining the product quality standards and specification. TQM provide better quality control of the product. TQM in T,T, Motors it is basically depends on product range timely
delivery and product standardization. The scope TQM in a very long term base. It is included some important point which is related to the TQM. 1 It is the only way to give organization a competitive advantage. ! TQM
fit for the services sectors is discussed with emphasis on customer
satisfaction. ,lso covered are some limitations of TQM including empowerment times of paradigm shifts ma3or process changes and reward system.
-IT,R%TUR, R,:I,W T), ,..,CT* O. TQ
Improvin' .inancial *ervices throu'h TQ
The wor/ described in this case study was underta/en in a young rapidly expanding company in the financial services sector with no previous experience with Total Quality Management 4TQM5. The quality pro3ect began with a twoday introductory awareness program covering concepts cases implementation strategies and imperatives of TQM. The program was conducted for the senior management team of the company. This program used interactive exercises and real life case studies to explain the concepts of TQM and to interest them in committing resources for a demonstration pro3ect. The demonstration pro3ect which used the +even +teps of #roblem +olving 4similar to *M,I(5 was to show them how TQM concepts wor/ed in practice before they committed resources for a companywide program.
*tep ;( Define the !ro"lem
;(;4 *electin' the theme/ , meeting of the senior management of the company was
held. 9rainstorming produced a list of more than !? problems. The list was prioritized using the weighted average table followed by a structured discussion to arrive at a consensus on the two most important themes customer service and sales productivity.
@nder the customer service theme S)educing the Turnaround Time from an Insurance #roposal to #olicyS was selected as the most obvious and urgent problem. The company was young and therefore had few claims to process so far. The proposaltopolicy process therefore impacted the greatest number of customers.
,n appropriate cross functional group was set up to tac/le this problem.
;(<4
!ro"lem
=
customer
#esire
5
current
status/
Current status/ 7hat did the individual group members thin/ the turnaround is
currentlyR ,s each member began thin/ing questions came up. S7hat type of policies do we addressRS Medical policies or nonmedicalR The latter are ta/e longer because of the medical examination of the client required. S9etween what stages do we consider turnaroundRS #erceptions varied with each person thin/ing about the turnaround within their department. The /ey process stages were mapped2
+everal sales branches in different parts of the country sent proposals into the (entral #rocessing (enter. ,fter considerable debate it was agreed at first to consider turnaround between entry into the computer system at the (ompany +ales 9ranch and dispatch to the customer from the (entral #rocessing (enter 4(#(5. ;ater the entire cycle could be included. The perception of the length of turnaround by different members of the team was recorded. It averaged2
EonMedical #olicies Medical #olicies
1< days %0 days
Invo/ing the slogan from the awareness program SIn God we trust the rest of us bring dataS the group was as/ed to collect data and establish reality. ,rmed with a suitably designed chec/ sheet they set about the tas/.
Customer #esire/ 7hat was the turnaround desired by the customerR +ince a customer
survey was not available individual group members were as/ed to thin/ as customers imagine they had 3ust given a completed proposal form to a sales agent. 7hen would they expect the policy in handR 'rom the customerHs point of view they realized that they did not differentiate between medical and nonmedical policies. Their perception averaged out six days for the required turnaround.
SIs this the average time or maximum time that you expectRS they were as/ed. SMaximumS they responded. It was clear therefore that the average must be less than six days. The importance of SvariabilityS had struc/ home. The concept of sigma was explained and was rapidly internalized. 'or >>.< percent delivery within the customer limit the metric was defined.
Customer #esire/
,verage% +igma turnaround " less than : days
Current status/
Eonmedical policies 4,verage 1>N+igma 105 ,verage% sigma" :- days Medical 4,verage %
The !ro"lem $as therefore #efine#/ Re#uce %vera'e> si'ma of turnaroun# for/
EonMedical #olicies 'rom :- to : days Medical #olicies 'rom 11= to : days
The performance requirement appeared daunting. Therefore the initial target ta/en in the Mission +heet 4pro3ect charter5 was to reduce the turnaround by 0? percent to %! and 0> days respectively.
*tep <( %nalysis of the !ro"lem
In a session the factors causing large turnaround times from the principles of IT were explained. These were2Input arrival patterns
•
7aiting times in process 9atching of wor/ Imbalanced processing line Too many handovers Eonvalue added activities etc.
•
#rocessing times
•
+cheduling
•
Transport times
•
*eployment of manpower
Typically it was found that waiting times constitute the bul/ of processing turnaround times. #rocess Mapping 4Falue +tream Mapping in ;ean5 was underta/en. The aggregate results are summarized below2
Eumber of operations = Eumber of handovers 1% Inhouse processing time 4estimated5 1!: manmins. )ange of individual stage time ! to 1% mins.
(ould this be trueR (ould the turnaround be 1!: minutes for internal processing without waitingR The group started to question of the status quo. The change process had begun. To chec/ this estimate it was decided to collect data run two policies without waiting and record the time at each stage. The trial results amazed everyone2 #olicy Eo. 1 too/ 1?? minutes and #olicy Eo. ! too/ >< minutes. ,lmost instantly the mindset changed from doubt to desire2 S7hy canHt we process every proposal in this wayRS
*tep ( Generatin' I#eas
In the introductory program of TQM during the IT session the advantages of flow versus batch processing had been dramatically demonstrated using a simple exercise. @sing that bac/ground a balanced flow line was designed as follows2
1. *etermine the station with the maximum time cycle which cannot be split up by reallocation = minutes. !. 9alance the line to ma/e the time ta/en at each stage equal = minutes as far as possible. %. )educe the stages and handovers 1% to =. -. $liminate nonvalue added activities transport ma/e personnel sit next to each other. 0. ,gree processing to be done in batch of one proposal.
(hanging the mindset of the employees so they will accept and welcome change is critical to building a selfsustaining culture of improvement. In this case the line personnel were involved in a Quality Mindset #rogram so that they understood the reasons for change and the concepts behind them and are /een to experiment with new methods of wor/ing. The line was ready for a test run.
*tep @( Testin' the I#ea
Testing in stages is a critical stage. It allows modification of ideas based upon practical experience and equally importantly ensures acceptance of the new methods gradually by the operating personnel.
*ta'e ;/ )un five proposals flowing through the system and confirm results. The test
produced the following results2
,verage turnaround time2 U 1 day Inhouse processing time2 <: mins.
There was 3ubilation in the team. The productivity had increased by !- percent. The head of the (#( summarized2 SI gave five files for processing and went for a meeting. $merging from the meeting about %? minutes later I was greeted by the dispatch cler/ 3ubilantly reporting SHMadam the TQM files are ready for dispatch.HS The mindset was dramatically changed and line personnel were now /een to push the implementation.
*ta'e
and sigma of the turnaround to measure the improvement. It was agreed that only in house processing was covered at this stage and that the test would involve all policies at the (#( but only one branch as a model. This model once proved could be replicated at other branches.
The test results showed a significant reduction in turnaround2
1. 'or all nonmedical policies 'rom :- to -! days or %-V !. 'or policies of the model branch 'rom :- to !< days of :?V
The Mission +heet goal of 0? percent reduction had been bettered for the combined model branch and (#(. 'urther analysis of the data revealed other measures which could reduce the turnaround further. Averall reduction reached an amazing <0 percent. Turnaround which had been pegged at :- days was now happening at >>.< percent on time delivery in 10 days.
*tep A( Implementin' the I#eas
)egular operations with the new system was planned to commence. owever two wee/s later it was still not implemented. Ane of the personnel on the line in (#( had been released by his department for the fiveday trial to sit on the line but was not released on a regular basis. The departmental head had not attended the TQM awareness program and therefore did not understand why this change was required.
There were two options mandate the change or change the mindset to accept the change. +ince the latter option produces a robust implementation that will not brea/ down under pressures it was agreed that the group would summarize TQM the 3ourney and the results obtained in the pro3ect so far and also simulate the process with a simple exercise in front of the department head. This session was highly successful and led to the release of the person concerned on a regular basis.
*tep ( Chec8 the Result
The process was run for one month with regular chec/s. The results obtained were marginally better than the trials conducted in +tep 02
,verage 11 days +igma > days ,verage% sigma %= days
*tep ( *tan#ar#ie Control7Document the Improvement *tory
•
$ssentially the inhouse processes in two centers of processing the (#( and one sales branch had been impacted so far. To ma/e sure that the gains were held control charts were introduced in both locations. +ample xbar and sigma
control charts for the (#( are shown below2
•
, special SGrind It InS session was conducted for line personnel to ensure that the control chart was updated every day and any deterioration was dealt with by finding and /illing the root causes of the problems.
•
(ustomer reaction2 +ales management and sales agents 4internal customers5 clearly noticed the difference. 'or instance one sales manager reported that a customer had received a policy within a wee/ of giving a proposal and was so amazed that he said SIf you give such service I will give you the next policy alsoPS
•
,doption of a similar process at the (#( and the model branch for medical policies has already reduced the average% sigma of turnaround time by
•
The pro3ect ob3ective of 0? percent in the first stage has been achieved.
•
, quality improvement story was compiled by the pro3ect ;eader for training and motivating all employees.
.uture %ctions
NonEme#ical policies/ Goal to reduce turnaround from -! days to about 10 days.
1. )oll out process to branches to achieve !- days throughout the country. !. Minimize rewor/ by analyzing prioritizing and training sales branches to avoid the causes of rewor/. %. 7or/ing with the ban/ to improve the turnaround time of ban/ing chec/s. -. (onsidering processing proposals while chec/ clearance is in progress.
e#ical policies/ Goal to reduce turnaround from <1 days to about !- days.
1. )oll oll out out proc proces esss to bran branch ches es to redu reduce ce turna urnaro roun und d from rom <1 to %< days days.. !. +treamline the process of medical exam of the client from %< to !- days.
I!-,,NT%TION O. TQ
Implementation !rinciples an# !rocesses
, preliminary step in TQM implementation is to assess the organizationHs current reality. )elevant preconditions have to do with the organizationHs history its current needs precipitating events leading to TQM and the existing employee quality of wor/ing life. If the current reality does not include important preconditions TQM implementation should be delayed until the organization o rganization is in a state in which TQM is li/ely to succeed. If an organization has a trac/ record of effective responsiveness to the environment and if it has been able to successfully change the way it operates when needed TQM will be easier to implement. If an organization has been historically reactive and has no s/ill at improving its operating systems there will be both employee s/epticism and a lac/ of s/il s/ ille led d ch chang angee ag agen ents ts.. If th this is co condi nditi tion on pr preva evail ils s a co comp mpre rehe hens nsiv ivee pr prog ogra ram m of management and leadership development may be instituted. , management audit is a good assessment tool to identify current levels of organizational functioning and areas in need of change. ,n organization should be basically healthy before beginning TQM. If it has significant problems such as a very unstable funding base wea/ administrative syst sy stem ems s la lac/ c/ of ma manag nager eria iall s/ s/il ill l or poo poorr em empl ploy oyee ee mo mora rale le TQ TQM M wo woul uld d not be appropriate.
owever a certain level of stress is probably desirable to initiate TQM. #eople need to feell a nee fee need d for a cha change. nge. Oanter Oanter 41> 41>=%5 =%5 addresses addresses this phen phenome omenon non be des descri cribin bing g building bloc/s which are present in effective organizational change. These forces include inclu de depart departures ures from tradi tradition tion a cris crisis is or galvanizing galvanizing event strategic strategic decis decisions ions individual Sprime moversS and action vehicles. *epartures from tradition are activities usuall usu ally y at low lower er lev levels els of the org organi anizat zation ion whi which ch occ occur ur whe when n ent entrep repren reneur eurss mov movee outside the normal ways of operating to solve a problem. , crisis if it is not too disabling can also help create a sense of urgency which can mobilize people to act. In the case of TQM this may be a funding cut or threat or demands from consumers or other sta/eholders for improved quality of service. ,fter a crisis a leader may intervene strategically by articulating a new vision of the future to help the organization deal with it. , plan to implement implement TQM may be such a stra strategic tegic decision. decision. +uch a leader may then become a prime mover who ta/es charge in championing the new idea and showing others how it will help them get where they want to go. 'inally action vehicles are need ne eded ed an and d me mech chan anis isms ms or st stru ruct ctur ures es to ena enabl blee th thee ch chan ange ge to oc occur cur and be beco come me institutionalized.
*teps
in
ana'in'
the
Transition
9ec/hard and #ritchard 41>>!5 have outlined the basic steps in managing a transition to a new system such as TQM2 identifying tas/s to be done creating necessary management structures developing strategies for building commitment designing mechanisms to communicate the change and assigning resources. Tas/ Tas / ide identi ntific ficati ation on wou would ld inc includ ludee a stu study dy of pre presen sentt con condit dition ionss 4as 4asses sessin sing g cur curren rentt reality as described above56 assessing readiness such as through a force field analysis6
creating a model of the desired state in this case implementation of TQM6 announcing the change goals to the organization6 organization6 and assigning responsibil responsibilities ities and resour resources. ces. This final fi nal ste step p woul would d inc includ ludee sec securi uring ng out outsi side de cons consult ultati ation on and tr train aining ing and ass assign igning ing someone within the organization to oversee the effort. This should be a responsibility of top management. In fact the next step designing transition management structures is also a responsibility of top management. In fact (ohen and 9rand 41>>%5 and yde 41>>!5 assert that management must be heavily involved as leaders rather than relying on a separate staff person or function to shepherd the effort. ,n organization wide steering committee to oversee the effort may be appropriate. *eveloping commitment strategies was discussed above in the sections on resistance and on visionary leadership. To communicate the change mechanisms beyond existing processes will need to be developed. +pecial allstaff meetings attended by executives sometimes designed as input or dialog sessions may be used to /ic/ off the process and TQM newsletters may be an effective ongoing communication tool to /eep employees aware of activities and accomplishments. Management of resources for the change effort is important with TQM because outside consultants will almost always be required. (hoose consultants based on their prior rele re leva vant nt ex exper perie ienc ncee and th thei eirr co comm mmit itme ment nt to ad adapt aptin ing g th thee pr proce ocess ss to fi fitt uni unique que organization organi zational al needs. 7hile consul consultants tants will be inval invaluable uable with initi initial al trai training ning of staf stafff and TQM sys system tem des design ign emp employ loyees ees 4ma 4manag nageme ement nt and oth others ers55 sho should uld be act active ively ly invol in volve ved d in TQ TQM M im impl plem emen enta tati tion on pe perh rhap apss af afte terr re recei ceivi ving ng tr trai aini ning ng in cha chang ngee manag ma nagem ement ent wh whic ich h th they ey ca can n th then en pas passs on to ot othe herr em empl ploye oyees es.. , co coll llabo abora rati tive ve
relationship with consultants and clear role definitions and specification of activities must be established. In summary first assess preconditions and the current state of the organization to ma/e sure the need for change is clear and that TQM is an appropriate strategy. ;eadership styles and organizational culture must be congruent with TQM. If they are not this should be wor/ed on or TQM implementation should be avoided or delayed until favorable conditions exist. )emember that this will be a difficult comprehensive and longterm process. ;eaders will need to maintain their commitment /eep the process visible provide necessary support and hold people accountable for results. @se input from sta/eholder 4clients referring agencies funding sources etc.5 as possible6 and of course maximize employee involvement in design of the system. ,lways /eep in mind that TQM should be purpose driven. 9e clear on the organizationHs vision for the future and stay focused on it. TQM can be a powerful technique for unleashing employee creativity and potential reducing bureaucracy and costs and improving service to clients and the community. The
Concept
of
Continuous
Improvement
"y
TQ
TQM is mainly concerned with continuous improvement in all wor/ from high level strategic planning and decisionma/ing to detailed execution of wor/ elements on the shop floor. It stems from the belief that mista/es can be avoided and defects can be prevented. It leads to continuously improving results in all aspects of wor/ as a result of continuously improving capabilities people processes technology and machine capabilities.
(ontinuous improvement must deal not only with improving results but more importantly with improving capabilities to produce better results in the future. The five ma3or areas of focus for capability improvement are demand generation supply generation technology operations and people capability. , central principle of TQM is that mista/es may be made by people but most of them are caused or at least permitted by faulty systems and processes. This means that the root cause of such mista/es can be identified and eliminated and repetition can be prevented by changing the process. There are three ma+or mechanisms of prevention/
1. #reventing mista/es 4defects5 from occurring 4Mista/e proofing or #o/aWo/e5. !. 7here mista/es canHt be absolutely prevented detecting them early to prevent them being passed down the value added chain 4Inspection at source or by the next operation5. %. 7here mista/es recur stopping production until the process can be corrected to prevent the production of more defects. 4+top in time5. ( TQ is the foun#ation for activities9 $hich inclu#e/ •
(ommitment by senior management and all employees
•
Meeting customer requirements
•
)educing development cycle times
•
ust In TimeN*emand 'low Manufacturing
•
Improvement teams
•
)educing product and service costs
•
+ystems to facilitate improvement
•
;ine Management ownership
•
$mployee involvement and empowerment
•
)ecognition and celebration
•
(hallenging quantified goals and benchmar/ing
•
'ocus on processes N improvement plans
•
+pecific incorporation in strategic planning
This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing, Engineering, R&, !ales, "urchasing, #R, etc.
TQ in manufacturin'
Quality assurance through statistical methods is a /ey component in a manufacturing organization where TQM generally starts by sampling a random selection of the product. The sample can then be tested for things that matter most to the end users. The causes of any failures are isolated secondary measures of the production process are designed and then the causes of the failure are corrected. The statistical distributions of important measurements are trac/ed. 7hen partsH measures drift into a defined Serror bandS the process is fixed. The error band is usually a tighter distribution than the Sfailure bandS so that the production process is fixed before failing parts can be produced. It is important to record not 3ust the measurement ranges but what failures caused them to be chosen. In that way cheaper fixes can be substituted later 4say when the product is redesigned5 with no loss of quality. ,fter TQM has been in use itHs very common for parts to be redesigned so that critical measurements either cease to exist or become much wider.
It too/ people a while to develop tests to find emergent problems. Ane popular test is a Slife testS in which the sample product is operated until a part fails. ,nother popular test is called Ssha/e and ba/eS in which the product is mounted on a vibrator in an environmental oven and operated at progressively more extreme vibration and temperatures until something fails. The failure is then isolated and engineers design an improvement. , commonlydiscovered failure is for the product to disintegrate. If fasteners fail the improvements might be to use measuredtension nutdrivers to ensure that screws donHt come off or improved adhesives to ensure that parts remain glued. If a gearbox wears out first a typical engineering design improvement might be to substitute a brushless stepper motor for a *( motor with a gearbox. The improvement is that a stepper motor has no brushes or gears to wear out so it lasts ten or more times as long. The stepper motor is more expensive than a *( motor but cheaper than a *( motor combined with a gearbox. The electronics are radically different but equally expensive. Ane disadvantage might be that a stepper motor can hum or whine and usually needs noiseisolating mounts. Aften a STQMedS product is cheaper to produce because of efficiencyNperformance improvements and because thereHs no need to repair deadonarrival products which represents an immensely more desirable product. TQ an# contin'encyE"ase# research
TQM has not been independent of its environment. In the context of management accounting systems 4M(+s5 +im and Oillough 41>>=5 show that incentive pay enhanced the positive effects of TQM on customer and quality performance. Ittner and ;arc/er
41>>05 demonstrated that product focused TQM was lin/ed to timely problem solving information and flexible revisions to reward systems. (hendall 4!??%5 summarizes the findings from contingencybased research concerning management control systems and TQM by noting that BTQM is associated with broadly based M(+s including timely flexible externally
focused
information6 close
interactions between advanced
technologies and strategy6 and nonfinancial performance measurement.C TQM 3ust another management fadR ,brahamson 41>>:5 argued that fashionable management discourse such as Quality (ircles tends to follow a lifecycle in the form of a bell curve. #onzi and Ooenig 4!??!5 showed that the same can be said about TQM which pea/ed between 1>>! and 1>>: while rapidly losing popularity in terms of citations after these years. *ubois 4!??!5 argued that the use of the term TQM in management discourse created a positive utility regardless of what managers meant by it 4which showed a large variation5 while in the late 1>>?s the usage of the term TQM in implementation of reforms lost the positive utility attached to the mere fact of using the term and sometimes associations with TQM became even negative. Eevertheless management concepts such as TQM leave their traces as their core ideas can be very valuable. 'or example *ubois 4!??!5 showed that the core ideas behind the two management fads )eengineering and TQM without explicit usage of their names can even wor/ in a synergistic way. Total Quality Management is an approach to the art of management that originated in apanese industry in the 1>0?Hs and has become steadily more popular in the 7est since the early 1>=?Hs.
Total Quality is a description of the culture attitude and organization of a company that aims to provide and continue to provide its customers with products and services that satisfy their needs. The culture requires quality in all aspects of the companyHs operations with things being done right first time and defects and waste eradicated from operations.
Many companies have difficulties in implementing TQM. +urveys by consulting firms have found that only !?%:V of companies that have underta/en TQM have achieved either
significant
or
even
tangible
improvements
in
quality
productivity
competitiveness or financial return. ,s a result many people are sceptical about TQM. owever when you loo/ at successful companies you find a much higher percentage of successful
TQM
implementation.
+ome useful messages from results of TQM implementations2 if you want to be a firstrate company donHt focus on the secondrate companies who canHt handle TQM loo/ at the worldclass companies that have adopted it •
the most effective way to spend TQM introduction funds is by training top management people involved in new product development and people involved with customers
•
itHs much easier to introduce $*MN#*M in a company with a TQM culture than in one without TQM. #eople in companies that have implemented TQM are more li/ely to have the basic understanding necessary for implementing $*MN#*M. 'or example they are more li/ely to view $*MN#*M as an information and
wor/flow management system supporting the entire product life cycle then as a departmental solution for the management of (,* data Important aspects of TQM include customerdriven quality top management leadership and commitment continuous improvement fast response actions based on facts employee participation and a TQM culture.
CustomerE#riven &uality
TQM has a customerfirst orientation. The customer not internal activities and constraints comes first. (ustomer satisfaction is seen as the companyHs highest priority. The company believes it will only be successful if customers are satisfied. The TQM company is sensitive to customer requirements and responds rapidly to them. In the TQM context Xbeing sensitive to customer requirementsH goes beyond defect and error reduction and merely meeting specifications or reducing customer complaints. The concept of requirements is expanded to ta/e in not only product and service attributes that meet basic requirements but also those that enhance and differentiate them for competitive advantage. $ach part of the company is involved in Total Quality operating as a customer to some functions and as a supplier to others. The $ngineering *epartment is a supplier to downstream functions such as Manufacturing and 'ield +ervice and has to treat these internal customers with the same sensitivity and responsiveness as it would external customers.
TQ lea#ership from top mana'ement
TQM is a way of life for a company. It has to be introduced and led by top management. This is a /ey point. ,ttempts to implement TQM often fail because top management doesnHt lead and get committed instead it delegates and pays lip service. (ommitment and personal involvement is required from top management in creating and deploying clear quality values and goals consistent with the ob3ectives of the company and in creating and deploying well defined systems methods and performance measures for achieving those goals. These systems and methods guide all quality activities and encourage participation by all employees. The development and use of performance indicators is lin/ed directly or indirectly to customer requirements and satisfaction and to management and employee remuneration. Continuous improvement
(ontinuous improvement of all operations and activities is at the heart of TQM. Ance it is recognized that customer satisfaction can only be obtained by providing a highquality product continuous improvement of the quality of the product is seen as the only way to maintain a high level of customer satisfaction. ,s well as recognizing the lin/ between product quality and customer satisfaction TQM also recognizes that product quality is the result of process quality. ,s a result there is a focus on continuous improvement of the companyHs processes. This will lead to an improvement in process quality. In turn this will lead to an improvement in product quality and to an increase in customer satisfaction. Improvement cycles are encouraged for all the companyHs activities such as product development use of $*MN#*M and the way customer relationships are
managed. This implies that all activities include measurement and monitoring of cycle time and responsiveness as a basis for see/ing opportunities for improvement. $limination of waste is a ma3or component of the continuous improvement approach. There is also a strong emphasis on prevention rather than detection and an emphasis on quality at the design stage. The customerdriven approach helps to prevent errors and achieve defectfree production. 7hen problems do occur within the product development process they are generally discovered and resolved before they can get to the
next
internalcustomer.
.astresponse
To achieve customer satisfaction the company has to respond rapidly to customer needs. This implies short product and service introduction cycles. These can be achieved with customerdriven and processoriented product development because the resulting simplicity and efficiency greatly reduce the time involved. +implicity is gained through concurrent product and process development. $fficiencies are realized from the elimination of nonvalueadding effort such as redesign. The result is a dramatic improvement in the elapsed time from product concept to first shipment.
%ctions "ase# on facts
The statistical analysis of engineering and manufacturing facts is an important part of TQM. 'acts and analysis provide the basis for planning review and performance trac/ing improvement of operations and comparison of performance with competitors. The TQM approach is based on the use of ob3ective data and provides a rational rather than an emotional basis for decision ma/ing. The statistical approach to process
management in both engineering and manufacturing recognizes that most problems are systemrelated and are not caused by particular employees. In practice data is collected and put in the hands of the people who are in the best position to analyze it and then ta/e the appropriate action to reduce costs and prevent nonconformance. @sually these people are not managers but wor/ers in the process. If the right information is not available then the analysis whether it be of shop floor data or engineering test results canHt ta/e place errors canHt be identified and so errors canHt be corrected. ,mployee participation
, successful TQM environment requires a committed and welltrained wor/ force that participates fully in quality improvement activities. +uch participation is reinforced by reward and recognition systems which emphasize the achievement of quality ob3ectives. Angoing education and training of all employees supports the drive for quality. $mployees are encouraged to ta/e more responsibility communicate more effectively act creatively and innovate. ,s people behave the way they are measured and remunerated
TQM
lin/s
remuneration
to
customer
satisfaction
metrics.
% TQ culture
ItHs not easy to introduce TQM. ,n open cooperative culture has to be created by management. $mployees have to be made to feel that they are responsible for customer satisfaction. They are not going to feel this if they are excluded from the development of visions strategies and plans. ItHs important they participate in these activities. They are unli/ely to behave in a responsible way if they see management behaving irresponsibly saying one thing and doing the opposite. !ro#uct #evelopment in a TQ environment
#roduct development in a TQM environment is very different to product development in a nonTQM environment. 7ithout a TQM approach product development is usually carried on in a conflictual atmosphere where each department acts independently. +hort term results drive behavior so scrap changes wor/arounds waste and rewor/ are normal practice. Management focuses on supervising individuals and firefighting is necessary and rewarded. #roduct development in a TQM environment is customerdriven and focused on quality. Teams are processoriented and interact with their internal customers to deliver the required results. ManagementHs focus is on controlling the overall process and rewarding
teamwor/.
%$ar#s for Quality achievement
The *eming #rize has been awarded annually since 1>01 by the apanese @nion of +cientists and $ngineers in recognition of outstanding achievement in quality strategy management and execution. +ince 1>== a similar award 4the Malcolm 9aldrige Eational Quality ,ward5 has been awarded in the @+. $arly winners of the 9aldrige ,ward include ,TYT 41>>!5 I9M 41>>?5 Milli/en 41>=>5 Motorola 41>==5 Texas Instruments 41>>!5 and Jerox 41>=>5.
CO!%NF !RO.I-, T%T% otor
Tata Motors ;imited is India8s largest automobile company with revenues of )s. %0:01.-= crores 4@+* =.= billion5 in !??<?=. It is the leader in commercial vehicles in each segment and among the top three in passenger vehicles with winning products in the compact midsize car and utility vehicle segments. The company is the world8s fourth largest truc/ manufacturer and the world8s second largest bus manufacturer. The company8s !%??? employees are guided by the vision to be Bbest in the manner in which we operate best in the products we deliver and best in our value system and ethics.C $stablished in 1>-0 Tata Motors8 presence indeed cuts across the length and breadth of India. Aver - million Tata vehicles ply on Indian roads since the first rolled out in
1>0-. The company8s manufacturing base in India is spread across amshedpur 4har/hand5 #une 4Maharashtra5 ;uc/now 4@ttar #radesh5 #antnagar 4@ttara/hand5 and *harwad 4Oarnata/a5. 'ollowing a strategic alliance with 'iat in !??0 it has set up an industrial 3oint venture with 'iat Group ,utomobiles at )an3angaon 4Maharashtra5 to produce both 'iat and Tata cars and 'iat powertrains. The company is establishing a new plant at +anand 4Gu3arat5. The company8s dealership sales services and spare parts networ/ comprises over %0?? touch points6 Tata Motors also distributes and mar/ets 'iat branded cars in India. Tata Motors the first company from India8s engineering sector to be listed in the Eew Wor/ +toc/ $xchange 4+eptember !??-5 has also emerged as an international automobile company. Through subsidiaries and associate companies Tata Motors has operations in the @O +outh Oorea Thailand and +pain. ,mong them is aguar ;and )over a business comprising the two iconic 9ritish brands that was acquired in !??=. In !??- it acquired the *aewoo (ommercial Fehicles (ompany +outh Oorea8s second largest truc/ ma/er. The rechristened Tata *aewoo (ommercial Fehicles (ompany has launched several new products in the Oorean mar/et while also exporting these products to several international mar/ets. Today twothirds of heavy commercial vehicle exports out of +outh Oorea are from Tata *aewoo. In !??0 Tata Motors acquired a !1V sta/e in ispano (arrocera a reputed +panish bus and coach manufacturer with an option to acquire the remaining sta/e as well. ispano8s presence is being expanded in other mar/ets. In !??: it formed a 3oint venture with the 9razilbased Marcopolo a global leader in bodybuilding for buses and coaches to manufacture fullybuilt buses and coaches for India and select international mar/ets. In
!??: Tata Motors entered into 3oint venture with Thonburi ,utomotive ,ssembly #lant (ompany of Thailand to manufacture and mar/et the company8s pic/up vehicles in Thailand. The new plant of Tata Motors 4Thailand5 has begun production of the Jenon pic/up truc/ with the Jenon having been launched in Thailand at the 9ang/o/ Motor +how !??=. Tata Motors is also expanding its international footprint established through exports since 1>:1. The company8s commercial and passenger vehicles are already being mar/eted in several countries in $urope ,frica the Middle $ast +outh $ast ,sia +outh ,sia and +outh ,merica. It has franchiseeN3oint venture assembly operations in Oenya 9angladesh @/raine )ussia and +enegal. The foundation of the company8s growth over the last 0? years is a deep understanding of economic stimuli and customer needs and the ability to translate them into customerdesired offerings through leading edge )Y*. 7ith over !0?? engineers and scientists the company8s $ngineering )esearch (entre established in 1>:: has enabled pioneering technologies and products. The company today has )Y* centres in #une amshedpur ;uc/now in India and in +outh Oorea +pain and the @O. It was Tata Motors which developed the first indigenously developed ;ight (ommercial Fehicle India8s first +ports @tility Fehicle and in 1>>= the Tata Indica India8s first fully indigenous passenger car. 7ithin two years of launch Tata Indica became India8s largest selling car in its segment. In !??0 Tata Motors created a new segment by launching the Tata ,ce India8s first indigenously developed minitruc/ In anuary !??= Tata Motors unveiled its #eople8s (ar the Tata Eano which India and the world have been loo/ing forward to. The Tata Eano has been subsequently
launched as planned in India in March !??>. , development which signifies a first for the global automobile industry the Eano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at )s.1????? 4excluding F,T and transportation cost5. *esigned with a family in mind it has a roomy passenger compartment with generous leg space and head room. It can comfortably seat four persons. Its monovolume design will set a new benchmar/ among small cars. Its safety performance exceeds regulatory requirements in India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of overall pollutants it has a lower pollution level than twowheelers being manufactured in India today. The lean design strategy has helped minimise weight which helps maximise performance per unit of energy consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that the car has low carbon dioxide emissions thereby providing the twin benefits of an affordable transportation solution with a low carbon footprint. The years to come will see the introduction of several other innovative vehicles all rooted in emerging customer needs. 9esides product development )Y* is also focussing on environmentfriendly technologies in emissions and alternative fuels. Through its subsidiaries the company is engaged in engineering and automotive solutions construction equipment manufacturing automotive vehicle components manufacturing and supply chain activities machine tools and factory automation solutions highprecision tooling and plastic and electronic components for automotive and computer applications and automotive retailing and service operations.
True to the tradition of the Tata Group Tata Motors is committed in letter and spirit to (orporate +ocial )esponsibility. It is a signatory to the @nited Eations Global (ompact and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global (ompact. In accordance with this it plays an active role in community development serving rural communities ad3acent to its manufacturing locations. 7ith the foundation of its rich heritage Tata Motors today is etching a refulgent future. %N%G,,NT Boar# of Directors
Mr. )atan E Tata 4(hairman5 Mr. E , +oonawala *r. Irani Mr. ) Gopala/rishnan Mr. Eusli E 7adia Mr. + M #alia *r. ) , Mashel/ar Mr. Easser Mun3ee Mr. +ubodh 9hargava Mr F O airath Mr. )avi Oant Mr. # M Telang *enior ana'ement
Mr. )avi Oant
Managing *irector
Mr. # M Telang
$xecutive *irector 4(ommercial Fehicles5
Mr. )a3iv *ube
#resident 4#assenger (ars5
Mr. ( )ama/rishnan
(hief 'inancial Afficer
Mr. + E ,mbarde/ar
#lant ead 4(F9@ #une5
Mr. + 9 9orwan/ar
ead 4amshedpur #lant5
Mr. , M Man/ad
ead 4(ar #lant5
Mr. @ O Mishra
Fice #resident 4,** and Materials(F9@5
Mr. + Orishnan
Fice #resident 4(ommercial #(9@5
Mr. # W Gurav
Fice #resident 4(orp. 'inance ,Nc and Taxation5
Mr. + Tambe
Fice #resident 4uman )esources5
Mr. ) #isharody
Fice #resident 4+ales and Mar/eting (F9@5
Mr Eagesh #inge
(hief Internal ,uditor
Company *ecretary
Mr. O +ethna Corporate Communications
Mr. *ebasis )ay
ead (orporate (ommunications
%NU.%CTURING
Tata Motors owes its leading position in the Indian automobile industry to its strong focus on indigenisation. This focus has driven the (ompany to set up worldclass manufacturing units with stateoftheart technology. $very stage of product evolution design development manufacturing assembly and quality control is carried out meticulously. Aur manufacturing plants are situated at amshedpur in the $ast #une in the 7est and ;uc/now in the Eorth. amshe#pur/
$stablished in1>-0 the amshedpur unit was the companyHs first unit and is spread over an area of =!! acres. It consists of - ma3or divisions Truc/ 'actory $ngine 'actory (ab Y (owl 'actories and the Eovus. !une/
The #une unit is spread over ! geographical regions #impri 4=?? acres5 and (hinchwad 41%? acres5. It was established in 1>:: and has a #roduction $ngineering *ivision which has one of the most versatile tool ma/ing facilities in the Indian sub
continent. -uc8no$/
Tata Motors ;uc/now is one of the youngest production facilities among all the Tata Motors locations and was established in 1>>! to meet the demand for (ommercial Fehicles in the Indian mar/et... 4 Uttara8han#
The company has set up a plant for its minitruc/ ,ce and the passenger carrier Magic 4based on the ,ce platform5 at #antnagar in @ttara/hand. The plant began... %W%RD*
Tata Motors wins award at the 9ang/o/ International Motor $xpo... Tata Motors Investor )elations ran/ed first in India... Eirmal Gram #uras/ar awarded to #ot/a panchayat... Tata Motors bags the E*TF #rofit 9usiness ;eadership ,ward !??=... Tata Motors awarded the Top $xporter Trophy by $$#(... (F9@ #une wins )a3iv Gandhi Eational Quality ,ward for !??<... #(9@ bags anda Golden Oey ,ward... Tata Motors receives @ptime (hampion ,ward !??<... ,ggregates 9usiness (F9@ bags H9est +upplier ,wardH from $($;... HE*TF #rofitH 9usiness ;eadership ,ward... Tata Motors bags Eational ,ward for $xcellence in (ost Management... Tata MotorsH T),OIT bags silver award for H$xcellence in *esignH...
Tata Motors #une (F9@ has bagged the SGolden #eacoc/ Eational Quality ,w... Tata Motors was awarded four prestigious honours at the H(E9( TF1= ,utocar ,u... Tata Motors chosen as IndiaHs Most Trusted 9rand in (ars... 9usiness Today selects Mr. #.#. Oadle as IndiaHs 9est ('A in !??0... #une 'oundry *ivision bags prestigious Green 'oundry ,ward... Tata Motors is H(ommercial Fehicle Manufacturer of the WearH... ,($ bags H9est (ommercial Fehicle *esignH at the 99(Top Gear ,wards.... amshedpur bags Eational $nergy (onservation ,ward for the fourth consecutive ye... Tata Motors bags the prestigiousH (II$JIM 9an/ awardH for business excellence... Tata Motors receives )* QF awards for 9usiness $xcellence... H(ar Ma/er of the WearH ,ward for Tata Motors... Tata Motors is H(ommercial Fehicle Manufacturer of the WearH... TE+ Foice of the (ustomer ,ward for Indica *iesel... H('A of the Wear ,ward !??-H awarded to Mr #raveen # Oadle $xecutive *irector ... Tata Motors wins the prestigious H(orporate #latinumH ,ward at the India Manuf... Tata Motors wins HGolden #eacoc/ ,wardH for (orporate +ocial )esponsibility... Tata Motors (F9@ #une wins Eational $nergy ,ward... Tata Motors amshedpur wins H$nergy $fficient @nit ,wardH... Tata Motors wins the first (+I) *iamond ubilee Technology ,ward... Tata Motors Training *ivision 7ins SGolden #eacoc/ Eational Training ,ward !??-S...
Tata Motors amshedpur Y ;uc/now win awards... T,T, MATA)+ (,+$ +T@*W 7IE+ 'I)+T #)IZ$ IE III$ #)A*@(TIFITW (AET$+T... T,T, MATA)+ 7IE+ ,7,)* 'A) ',I) 9@+IE$++ #),(TI($+... Tata Indica and Tata +afari $Ji win awards... Tata Motors(ar plant gets two I+A certifications... Tata Motors bags awards at 1-th Eational (onvention of IE+,,E... Indica and +afari win accolades... T,T, MATA)+ #@E$ ,7,)*$* +$(AE* #;,($ IE E,TIAE,; ;$F$; (AM#$TITIAE IE $E$)GW (A... Tata Motors )eceives SIndiaHs 9est $mployerS ,ward 'rom The $mploye... Tata Motors (F9@ #une has won the prestigious anda Golden Oey award institute... (F9@ )$($IF$+ (AMM$E*,TIAE ($)TI'I(,T$ 'A) H+T)AEG (AMMITM$ET TA TQMH... Tata Motors team wins The )unners @p #osition at The ,sian 9usiness +imulation (... T$ #)$+TIGIA@+ 9,;,E($* +(A)$(,)* (A;;,9A),TIF$ ,;; A' ',M$ ,7,)*... Tata Motors receives all India trophy for Top $xp orters... Tata Indigo ad campaign wins $ffie award... Golden #eacoc/ $nvironment Management ,ward !??%... Industry and Technology ,ward !??!... ,dvertising ,wards... Tata Indigo Most $xciting Eew (ar of the Wear I(I(I 9an/ Y Averdrive ,wa... Tata $ngineering , +ocially )esponsible (orporate says T$)I...
H#rof. Fasant )ao )olling TrophyH for Falue $ngineering !??!... Tata $ngineering was conferred 9harat Gaurav #uras/ar... 9est Falue for Money (ar of the Wear Tata Indigo (E9( ,uto (ar ,uto ,wards !... HFoice of the (ustomer ,wardH for H9est *iesel +mall (arH Tata Indica by E'A ,... India ('A ,ward !??!... Tata $ngineering bags IE+,,E awards... Eational 9est Training $stablishment ,ward... $nvirointernational... Good (orporate (itizen award... Eational ,ward for +uccessful (ommercialisation of Indigenous Technology... Eational ,ward for )Y* $fforts... )egional Top $xporterHs Trophy... 9est (ompany ,ward at 7or/s/ills (ompetition... $$#( ,ward for Tata $ngineering...
!RODUCT !RO.I-, T%T% OTOR*
Tata *umo
anufacturer
Tata Motors
!ro#uction
1>>-present
%ssem"ly
India
Class
M@F +@F 4+umo Grande5
Bo#y style2s4
-door station wagon
,n'ine2s4
!.! ; *I(A)
Transmission2s4
0speed manual
Tata *afari
anufacturer
Tata Motors
!arent company
Tata +ons
!ro#uction
1>>=present
*uccessor
Tata +umo
Class
+@F
Bo#y style2s4
-door station wagon
,n'ine2s4
!.! ; I!.? ; turbodiesel I%.? ; common rail turbodiesel I!.! ; vtt *i(A) I-
Transmission2s4
0speed manual
Wheel"ase
!:0? mm 41?-.% in5
-en'th
-:0? mm 41=%.1 in5
Wi#th
1>1= mm 4<0.0 in5
)ei'ht
1>!0 mm 4<0.= in5
0er" $ei'ht
1>!? /g 4-!%% lb5
.uel capacity
:0 ; 41- imp gal6 1< @+ gal5
Relate#
Mahindra +corpio yundai Terracan Mitsubishi #a3ero
Tata In#ica
Tata Indica V2 anufacturer
Tata Motors
!ro#uction
1>>=present
%ssem"ly
#une Maharashtra India
Class
+upermini car
-ayout
'' layout
Relate#
Tata Indigo )over (ity)over
Tata In#i'o
anufacturer
Tata Motors
!ro#uction
!??!present
Class
+ubcompact car
Bo#y style2s4
-door sedan -door station wagon
-ayout
'' layout
,n'ine2s4
1.- ; I1.- ; turbodiesel I1.- ; *I(A) I-
Transmission2s4
0speed manual
Relate#
Tata Indica
Desi'ner
I.*$., Institute
Tata Nano
anufacturer
Tata Motors
!arent company
Tata +ons
%lso calle#
The #eopleHs (ar
!ro#uction
!??=[present
%ssem"ly
(harodi near +anand,hmedabad Gu3arat India
!re#ecessor
none
Class
(ity car @nlocalized Tier ?
Bo#y style2s4
-door hatchbac/ sedan
-ayout
)) layout
,n'ine2s4
! cylinder +A( petrol 9osch multipoint fuel in3ection 4single in3ector 5 all aluminium :!% cc 4%= cu in5
Transmission2s4
- speed synchromesh with overdrive in -th
Wheel"ase
!!%? mm 4=<.= in5
-en'th
%1?? mm 41!! in5K1L
Wi#th
10?? mm 40>.1 in5K1L
)ei'ht
1:?? mm 4:% in5K1L
0er" $ei'ht
0=? /g 41%?? lb5:?? /g 41%?? lb5K!L
.uel capacity
10 ; 4- @+ gal6 % imp gal5K!L
Relate#
Maruti ,lto (hevrolet +par/
Desi'ner
Girish 7agh ustin Eore/ of Trilix #ierre (astinelK%L
T%T% 1enon
%lso calle#
Tata Jenon Tata T; +print
Tata #ic/@p !ro#uction
!??<present
,n'ine2s4
!.! ; *I(A) common rail turbodiesel I-
Relate#
Tata +umo Grande
R,*,%RC) ,T)ODO-OGF
Research Desi'n
BThe research design is the conceptual structure with in which research is conducted it consist the blue print of the collection measurement and analysis of data.C In that pro3ect the research design was adopted for the B*escriptive cum ,nalyticalC The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the wor/ing hypothesis from an operational point of view
)esearch design is simply the framewor/ or plan for a study used as a guide in collecting and analyzing data. There are three types of )esearch *esign2 1. ,3ploratory Research Desi'n/E The ma3or emphasis in exploratory )esearch design is on discovery of ideas and insights. !. Descriptive Research Desi'n/E The *escriptive )esearch *esign +tudy is typically concerned with determining the frequency with which something occurs or the relationship between two variables. %. Causal Research Desi'n/E
, (ausal )esearch *esign is concerned with
determining cause and effect relationship. *escriptive cum ,nalytical )esearch *esign is used in my pro3ect report .
D%T% CO--,CTION
Type of #ata !rimary/E The primary data are those which are collected a fresh and for the
first time as these happen to be original in character. D%T% *OURC, •
Abservation Method
•
Questionnaire
•
Interview
*econ#ary/ The +econdary data are those data which have already being
collected by some one else and which have already been passed through the statistical process I have ta/en the secondary data for this pro3ect report since the data is secondary nature so test of sampling have not underta/ing D%T% *OURC, •
*,COND%RF D%T% CO--,CTION
+econdary data were collected from the following sources2 a. 9oo/s related to topic b. ournal c. Magazines d. 7ebsites
.INDING* 6 %N%-F*I* *o you thin/ the organization is quality conscious toward employeesR
Option Fes No
!ercenta'e HJ <J
INT,R!R,T%TION/
Aut of 1?? respondents =?V say Wes and rest !?V say Eo.
*oes the organization have the certification of I+A >???R Option Fes No
!ercenta'e HJ <J
INT,R!R,T%TION/
Aut of 1?? respondents =?V say Wes and rest !?V say Eo.
Is the organization providing quality assurance system Y operationR
Option Fes No
!ercenta'e AJ
INT,R!R,T%TION/
Aut of 1?? respondents =?V say Wes and rest !?V say Eo.
*oes the organization have quality circleR Option Fes
!ercenta'e HJ
No
<J
INT,R!R,T%TION/
Aut of 1?? respondents =?V say Wes and rest !?V say Eo.
ow many people are involved in quality circleR Option Belo$ ; %"ove ; %"ove ;A
!ercenta'e @J <J ;AJ
CanKt *ay
INT,R!R,T%TION/
Aut of 1?? respondents -?V below 1? !?V above 1? 10V below 10 !0V can8t say.
ow frequently the organizations have the meeting of quality circleR Option Wee8ly onthly Fearly
!ercenta'e AJ
INT,R!R,T%TION/
Aut of 1?? respondents %0V say wee/ly !0V say monthly -?V yearly
*o you about the agenda of information or any other informationR Option Fes No
!ercenta'e HJ <J
INT,R!R,T%TION/
Aut of 1?? respondents =?V say Wes and rest !?V say Eo.
,re the organization is going for the quality auditR Option Fes No CanKt *ay
!ercenta'e J <J <J
INT,R!R,T%TION/
Aut of 1?? respondents :?V say Wes and rest !?V say Eo and !?V say (an8t +ay.
*oes your organization have quality information systemR Option Fes No CanKt *ay
!ercenta'e J <J <J
INT,R!R,T%TION/
Aut of 1?? respondents :?V say Wes and rest !?V say Eo and !?V say (an8t +ay.
,re the information system is regularly updatedR Option Fes No CanKt *ay
!ercenta'e AJ <J J
INT,R!R,T%TION/
Aut of 1?? respondents 0?V say Wes and rest !?V say Eo and %?V say (an8t +ay.
*o you thin/ the organization used bench mar/ing if any please tell me the name of the benchmar/ organizationR Option Fes No CanKt *ay
!ercenta'e AJ <J J
INT,R!R,T%TION/
Aut of 1?? respondents 0?V say Wes and rest !?V say Eo and %?V say (an8t +ay.
If yes then Arg. a. b.
,rea
*oes the organization is going for the brain storming sessionR Option Fes No DonKt 0no$
!ercenta'e AJ <J J
INT,R!R,T%TION/
Aut of 1?? respondents 0?V say Wes and rest !?V say Eo and %?V say *on8t Onow. *oes the organization have the certification of I+A 1-??? or any other if any please mentionR
Option Fes No DonKt 0no$
!ercenta'e AJ <J J
INT,R!R,T%TION/
Aut of 1?? respondents 0?V say Wes and rest !?V say Eo and %?V say *on8t Onow.
,re you practicing the six sigma for the error controlR Option Fes No DonKt 0no$
!ercenta'e AJ <J J
INT,R!R,T%TION/
Aut of 1?? respondents 0?V say Wes and rest !?V say Eo and %?V say *on8t Onow.
, formal career planning process exist in the organization Option *tron'ly %'ree *tron'ly Disa'ree DonKt 0no$ %'ree Disa'ree
!ercenta'e @J <J J ;J
INT,R!R,T%TION/
Aut of 1?? respondents -?V say strongly agree !?V say strongly disagree %?V say don8t /now agree 1?V disagree.
There is a shared vision of where your business is growingR Option *tron'ly %'ree *tron'ly Disa'ree DonKt 0no$ %'ree Disa'ree
!ercenta'e @J <J J ;J
INT,R!R,T%TION/
Aut of 1?? respondents -?V say strongly agree !?V say strongly disagree %?V say don8t /now agree 1?V disagree. $mployees are /ept updated with changes in 3ob s/ills Y 3ob designsR Option *tron'ly %'ree *tron'ly Disa'ree DonKt 0no$ %'ree Disa'ree
!ercenta'e @J <J J ;J
INT,R!R,T%TION/
Aut of 1?? respondents -?V say strongly agree !?V say strongly disagree %?V say don8t /now agree 1?V disagree.
'ormal or informal method is followed for employees feedbac/ and acting on that feedbac/R Option *tron'ly %'ree *tron'ly Disa'ree DonKt 0no$ %'ree Disa'ree
!ercenta'e @J <J J ;J
INT,R!R,T%TION/
Aut of 1?? respondents -?V say strongly agree !?V say strongly disagree %?V say don8t /now agree 1?V disagree.
*oes the organization provide right environment to apply your /nowledge from new programs to the 3obR Option :ery uch *ome $hat little Not at all
!ercenta'e AJ <J J
INT,R!R,T%TION/
Aut of 1?? respondents 0?V say very much !?V say some what little Y %?V not at all
*o you feel that the organization is a good place to wor/R
Option Fes No *ometimes
!ercenta'e AJ <J J
INT,R!R,T%TION/
Aut of 1?? respondents 0?V say Wes and rest !?V say Eo and %?V say sometimes
*o you feel comfortable with rules and policy of the organizationR
Option Fes No *ometimes
!ercenta'e AJ <J J
INT,R!R,T%TION/
Aut of 1?? respondents 0?V say Wes and rest !?V say Eo and %?V say sometimes
*o you feel that you can get ahead in the org. if you ma/e an effortR Option Fes No *ometimes
!ercenta'e AJ <J J
INT,R!R,T%TION/
Aut of 1?? respondents 0?V say Wes and rest !?V say Eo and %?V say sometimes
*o you get any reward on your good performanceR Option Fes No *ometimes
!ercenta'e AJ <J J
INT,R!R,T%TION/
Aut of 1?? respondents 0?V say Wes and rest !?V say Eo and %?V say sometimes
*o you find that your performance is properly measured in the organizationR Option Fes No *ometimes
!ercenta'e AJ <J J
INT,R!R,T%TION/
Aut of 1?? respondents 0?V say Wes and rest !?V say Eo and %?V say sometimes
*o you find that your 3ob ma/es the best use of your abilitiesR Option Fes No *ometimes
!ercenta'e AJ <J J
INT,R!R,T%TION/
Aut of 1?? respondents 0?V say Wes and rest !?V say Eo and %?V say sometimes
Than/ you for your /ind cooperation.
.INDING*
T,T, Motors has been dynamic in inventing new manufacturing strategies owning to prevailing high level of competition. 7ith this scenario the challenges faced by Ariginal $quipment Manufacturers 4A$M5 have also multiplied over the years.
(ustomers are demanding individualized final products. This is especially true of the A$M. 7hile the organizations will have some standard base products the total number of options that they have to offer to the consumers should be plenty. $)# will allow management of these configurations.
Through the supply chain there is need for innovation and new product development with much reduced life cycle for development. ence the E#I 4Eew #roduct Introduction5 will greatly help in promoting concurrent engineering.
,utomotive industry is characterized by the presence of dedicated customersupplier relationships and the competition in the mar/et is between supply chains and not individual organizations. ence supply chain efficiency is thus very important. The principles of ustinTime 4IT5 ;ean Manufacturing and others become very important here. $)# will help in promoting these concepts.
,nother challenge faced by automotive industry is the pressure to reduce delivery time and cost. , comprehensive supply chain solution that crosses the organization boundaries 49!95 is required. *ifferent elements of the supply chain interact very closely.
Quality Management module with support for advanced features li/e TQM will help to promote quality at source. This receives significance owing to the continuous pressure exerted to cut cost and improve quality.
,s the automotive mar/et is extremely price sensitive the features of comprehensive costing and /aizen costing will be of special relevance here. @nderstanding the accurate
cost of manufacturing and identifying all potential areas for reduction of costs is one of the /eys to success.
CONC-U*ION This pro3ect concludes that Total Quality Management 4TQM5 has many benefits but implementing TQM is not a bed of roses. It cannot be left to its own fate after the launch and requires constant nurturing and followup by the management. Management must /eep its fingers on the pulse of TQM efforts as bringing a change in culture attitudes
and beliefs in a sensitive and delicate matter. #roblems in implementation are therefore to be expected and are universal in nature. owever patience and loyal efforts are required to solve these problems. TQM can lead to a drastic change in the productivity of an org. if implemented properly. In recent years TQM has bee n the most focused area of research as compared to other disciplines both in the industrial and academic world. The literature is abundant with theories and applications. +ince the benefits of TQM are many therefore it doesn8t pervade only to all the sectors of the business but also to the society.
R,CO,ND%TION*
The different aspects of an export contract are enumerated as under 2
•
#roduct +tandards and +pecifications
•
Quantity
•
Inspection
•
Total Falue of (ontract
•
Terms of *elivery
•
Taxes *uties and (harges
•
#eriod of *eliveryN+hipment
•
#ac/ing ;abeling and Mar/ing
•
Terms of #ayment ,mountNMode Y (urrency
•
*iscounts and (ommissions
•
;icenses and #ermits
(onsider the points listed below when appointing an ,gent 2
•
+ize of the agentHs company
•
*ate of foundation of the agentHs company
•
(ompanyHs ownership and control
•
(ompanyHs capital funds available and liabilities
•
Eame age and experience of the companyHs senior executives
•
Eumber age and experience of the companyHs salesman
•
Aher agencies that the company holds including those of competing products and turnover of each
•
•
;ength of companyHs association with other principal Eew agencies that the company obtained or lost during the past year
+ome source of information on agents are2
•
Government *epartments Trade ,ssociations
•
(hambers of (ommerce
•
9an/s
•
Independent (onsultants
•
$xport #romotion (ouncils
•
,dvertisement ,broad.
-IIT%TION*
Total quality management programs are based in part on the idea that employees performing the wor/ can create more efficient and effective processes to produce a higherquality product. Total quality management programs typically establish formal structures such as labormanagement committees for sharing decision ma/ing between managers and frontline employees.
TQM focuses on the needs and wants of two types of customers2 SinternalS customers[ the next people down the line in the wor/ process[and SexternalS customers[those who purchase or utilize a good or service. TQM see/s to improve the quality of both the product and the process by identifying the type and quality of good desired by both internal and external customers and providing what each customer wants. This can be difficult since in the public sector external customers include the people using a good or service but also the people paying for the good 4taxpayers5 and their representatives 4elected officials5.
Total quality management encourages steady data collection and rational decision ma/ing based on data rather than on impressions or uninformed opinions. ;abor management committees are one way to collect data about many facets of a complex issue. Athers include customer surveys and careful trac/ing and documentation of any cost or time savings. The second component a philosophy of continual improvement encourages employees and managers to exceed current standards. (ontinuous improvement is achieved through constant experimentation learning from mista/es and diffusing learning throughout the organization.
9oth middle managers and elected officials may resist the total quality management culture change because it devolves supervisory and decisionma/ing power to TQM teams and committees. 7hile middle managers and elected officials are formally involved in several levels of the TQM program in Tomp/ins (ounty they are absent from the committees in Antario (ounty and have understandably been more resistant to the process. Middle managers may also fear for their 3obs. Tomp/ins (ounty is dealing with this issue by retaining middle managers as toplevel technical employees and ensuring their representation on the TQM committees.
,nother limitation of total quality management as a tool for restructuring is its internal focus. The difficulty in identifying the ScustomerS for public sector goods and services and the focus on internal wor/ processes ma/e it hard to truly involve citizens in these TQM efforts. 9oth counties see/ to identify external customer needs with surveys and Tomp/ins (ounty includes elected representatives on committees but neither county includes citizens on committees. In Antario (ounty citizen involvement in the TQM program is slightly greater than in Tomp/ins since it includes an advisory council made up of a select group of local business owners.
Tomp/ins and Antario (ounties both seem to focus more attention on internal customers 4through surveys and participation in labormanagement committees5 in the belief that process improvements will result in product and service improvements. This is not an unreasonable assumption though it can be difficult to document. (ustomer satisfaction surveys in Antario and Tomp/ins (ounties indicate external customers are
generally satisfied with service improvements generated by total quality management programs.
The substantial cost of total quality management training and implementation as well as the time required to reap benefits are also limitations of total quality management as a tool for local government restructuring. 'inally because total quality management focuses primarily on internal wor/ processes policy about external factors is outside its purview. The inability to address broader policy issues may limit the ultimate impact of investments in total quality management.
BIB-IOGR%!)F BOO0*/E
15 *avid ,. *e(enzo +tephen #. )obbins .un#amentals of )uman Resource ana'ement 4$ighth $dition5 ohn 7iley Y +ons 4,sia5 #te ;td chapter :
pg 1--
!5 *essler Gary )uman Resource ana'ement 4Tenth $dition5 #renticeall of India
#vt ;td chapter 0:<
%5 *ubrin . ,ndrew The !ractice of *upervision 4+econd $dition5 9usiness #ublications IE(. 1>=< pg !!:
-5 *wivedi ).+ ana'in' )uman Resources 9 !ersonnel ana'ement Galgotia #ublishing (ompany )eprint !??! pg>0.
05 7illium '. Gluee/ !ersonnel 2 % Dia'nostic %pproach 4Third $dition5 #lano Tex.2 9usiness #ublications pg!0:
W,B*IT,*/E
15 www.tatamotor.com
QU,*TIONN%IR,
*o you thin/ the organization is quality conscious toward employeesR W$+
EA
*oes the organization have the certification of I+A >???R W$+
EA
Is the organization providing quality assurance system Y operationR W$+
EA
*oes the organization have quality circleR W$+
EA
ow many people are involved in quality circleR 9elow 1?
above 1?
above 10
can8t say
ow frequently the organizations have the meeting of quality circleR 7ee/ly
biwee/ly
monthly
yearly
*o you about the agenda of information or any other informationR W$+
EA
,re the organization is going for the quality auditR W$+
EA
can8t say
*oes your organization have quality information systemR W$+
EA
can8t say
,re the information system is regularly updatedR W$+
EA
can8t say
*o you thin/ the organization used bench mar/ing if any please tell me the name of the benchmar/ organizationR W$+
EA
can8t say
If yes then Arg.
,rea
a. b.
*oes the organization is going for the brain storming sessionR W$+
EA
don8t/now
,re you practicing the 08s apanese philosophy R W$+
EA
*oes the organization have the certification of I+A 1-??? or any other if any please mentionR W$+
EA
don8t/now
,re you practicing the six sigma for the error controlR
W$+
EA
don8t/now
, formal career planning process exist in the organization +trongly ,gree *on8t /now ,gree
+trongly disagree *isagree
There is a shared vision of where your business is growingR +trongly ,gree *on8t /now ,gree
+trongly disagree *isagree
$mployees are /ept updated with changes in 3ob s/ills Y 3ob designsR +trongly ,gree *on8t /now ,gree
+trongly disagree *isagree
'ormal or informal method is followed for employees feedbac/ and acting on that feedbac/R +trongly ,gree *on8t /now ,gree
+trongly disagree *isagree
*oes the organization provide right environment to apply your /nowledge from new programs to the 3obR Fery much Eot at all
+ome what;ittle
*o you feel that the organization is a good place to Wes
Eo
wor/R
+ometimes
*o you feel comfortable with rules and policy of the organizationR Wes
Eo
+ometimes
7hat types of relations are you having with your superior peers and Good
,verage
subordinatesR
#oor
If bad then why it is soR
They are not cooperating.
Their behavior is not good
There is no proper communication.
,ll above
*o you feel that you can get ahead in the org. if you ma/e an effortR Wes
Eo
+ometimes
*o you get any reward on your good performanceR Wes
Eo
+ometimes
*o you find that your performance is properly measured in the organizationR Wes
Eo
+ometimes
