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QUALITY

Quality Management Execution WITHIN THE Indian Car Industry Management Essay

To examine the success degree of TQM implementation within an automobile industry by analysing the talents and weaknesses of its critical success factors.

2. Research Questions

What are the critical success factors of TQM execution in an auto industry?

To what extent possess the critical success factors of TQM been put in place in the automobile industry through the analysis of the strengths and weaknesses of the critical success factors of TQM?

3. Hypothesis

1. Within an automobile industry there exists a critical set of success factors for successful execution of total quality management.

2. The scope of TQM implementation is favorably and significantly associated with the talents of the Critical Success factors.

4. Introduction

"Total Quality Management is not really a vacation spot but a voyage toward improvement. "

V. Daniel Hunt.

Quality by no means is a fresh concept in modern business. In Oct 1887 William Cooper Procter, advised his employees, "The first job we have is to carefully turn out quality merchandise that consumers will buy and keep on buying. " While dealing with Daimler Chrysler to improve its quality several generations in the past, a Vice Chief executive of the United Vehicle Workers stated the importance of quality: "No quality, no sales. No sales, no earnings. No income no job. "

One of the key elements of Ford's 2002 Revitalization Plan was to "Continue Quality Improvements. " The most notable two "vital few priorities" set by Ford's chief executive for North America were "Improve Quality" and "Improve Quality".

Thus we can see that quality confidence has been an essential requirement of production businesses throughout record. Although preliminary initiatives focussed on minimizing defects and mistakes in products and services through the use of measurement, figures and other problem resolving methods, organizations began to recognise the sustained improvement cannot be accomplished without significant attention being directed at the critical success factors that donate to the grade of the management procedures used on a daily basis.

The real concern today is to ensure that managers continue steadily to apply the basic principles which quality management and performance quality is situated. The global current market and domestic and international competition have made organizations around the world realise that their survival is determined by high quality.

As the business world becomes more technical, quality must be contacted from a system, rather than a process point of view. Quality has transitioned from control, to assurance, futher to management. Thus it's important to understand the various critical success factors which are in charge of the effective implementation of TQM.

5. Books Review

5. 1 Background

The origins of TQM can be followed back to early 1920s when the idea was developed in Japan in the past due 1940's and 1950's and pioneered by Americans Scholars Freigenbum, Juran and Deming. Total quality management (TQM), in its total impact is to involve all stakeholders in company fully in programs that will increase organizational output, its profitability, effective work-place efficiency, better job satisfaction, employee morale, and continuous product quality improvement.

Quality is a term that has significant interpretation to both the company and customer. In today's global cut-throat marketplace, the demands of customers are consistently increasing as they require improved upon quality of products and services.

Total quality management (TQM) has become increasingly prevalent as one of the management strategies in companies today with the aim of ensuring customer satisfaction and devotion, besides increasing products and service quality and reinforcing ongoing improvement known as Kaizen. TQM is really the only device to either maintain competitive advantages or endure competitive disadvantage (Spitzer, 1995).

Total quality management is a significant factor in the business enterprise quality trend that has proven itself to be one of the 20th century's most effective designers of sales and earnings growth, honestly good new careers, and soundly established and lasting business growth (Feigenbaum, 1999).

5. 2 What's Quality?

In today's business there is absolutely no single classification for quality. A great way quality can be described is really as" the totality of features and characteristics of something or service that bears on its ability to fulfill the given needs" (North american National Standards Institute, 1978). Quality can be defined as the process to meet or go beyond a customer's expectation.

The term Total Quality Management originated by the Naval Air Systems Order to spell it out its Japanese - style approach to quality improvement and became popular with business in the United States through the 1980s. Total quality is based on 3 basics:

To concentrate on customers and stakeholders

Ensure participation and teamwork by everyone in the organization

Creating a process focus backed by ongoing improvement and learning

Total quality management is one of the measurements found in the automobile industry to ensure that the vehicles produced are reliable, gratifying the consumers at large also to ensure competitiveness on the market, as well as conformance to the international standard.

All the existing automotive business have reduced costs, increased process efficiency and make an effort to increase the quality of these products and services by getting together with the needs of the individuals they provide through the use of total quality management (TQM) rules.

As your competition is increasing globally quality management is steadily becoming important to the authority and management of automotive industry. By putting into action the following quality management tools, organizations will produce benefits for owners, employees, customers, suppliers and world as a whole.

6. Concepts of TQM Philosophy

Many companies like Ford Motor unit Company, Motorola and Toyota Electric motor Company have implemented TQM to be able to meet customer requirements. A couple of six main principles of TQM viewpoint (J Juran, G Merli):

Concept

Main Idea

Customer Focus

Goal is to identify and meet customer needs

Continuous Improvement

A beliefs of never ending improvement

Employee Empowerment

Employees are expected to seek out, identify, and correct quality problems

Use of quality tools

Ongoing employee training in the use of quality tools

Product Design

Quality should maintain built in the process, sources of quality should be identified and corrected

Managing Company Quality

Quality principles must stretch to a company's suppliers

Measurement &Feedback

Process performance in financial and non financial conditions should be assessed and feedback provision should are present.

Training &Development

Training programs along with education for the suppliers and subcontractors are covered

6. 1 Customer Focus

For every company customer is the king. The auto industry also depends on their customers and strives to meet their needs and also go beyond their targets (ISO) by providing a perfect product. It is never easy to determine what a client wishes because of their changing likes and choices for cars. The automobile companies must constantly collect information constantly, by research categories, market studies, and meetings with clients, in order to remain near to clients' preferences.

Customer Motivated Quality Cycle

The customer influenced quality cycle provides a view of the process in which customer needs and expectations are translated into perceptions through the design, production, and delivery operations (Bruce T. Barkley, Adam H Sailor, 2001).

6. 2 Constant Improvement

The term "continuous improvement" means incremental improvement of products, operations, or services over time, with the goal of reducing waste to improve workplace functionality, customer support, or product performance (Suzaki, 1987).

Customer's anticipations are always shifting to an increased level due to raised and better results.

When customers examine quality, not only do they compare companies with their previous year's performance but also to every other competition that company has (B. Abohimed, 2001).

TQM can be involved with ongoing improvement in all spheres of work like strategic planning and decision-making, to precise execution of work elements on the shop floor.

Kaizen as it is known in Japanese means 'change' or 'the action to correct' while 'Zen' means 'good' implying that Kaizen means an alteration for good or an action to improve something to make it better. Kaizen is designed to eliminate waste products by improving standardized activities and operations. One of solutions that help car companies is to constantly improve is the program -do- analysis - act (PDSA) pattern which describes the actions a company needs to perform in order to incorporate constant constant improvement in its procedure (Deming, 1950).

Source: Chicago Tribune

PDCA cycle's first rung on the ladder is to plan. Management must measure the current strategies and make future procedures to judge performance implementation projects predicated on any problems they find.

The next step is to Do which means applying the plan by documenting all changes made and collecting the data for evaluation. The 3rd step is to check on, i. e. research the data accumulated in the previous stage. The info is evaluated to see if the plan is obtaining the goals founded in the plan stage or not. The past phase of the routine is to Act based on the results within the first three stages.

"Over the long run, superior performance will depend on superior learning. " (Peter Senge, 1960). Continuous improvement should be a part of the daily work by being practised at personal, work unit, and organizational levels.

6. 3 Worker Empowerment

Empowerment as a process of decentralizing decision making in an organization, whereby professionals give more discretion and autonomy to the front collection (Brymer, 1991). Continual and extensive trained in quality way of measuring tools is provided to the employees in order to empower them to make decisions in accordance with quality in the production process and their contributions are highly appreciated.

Source: Employee Empowerment: The Rhetoric and the Reality

(Pearson, 1995)

One good strategy that improves the thoughts of empowerment in employees is expressing self confidence in them as well as creating a realistic high performance on their behalf by creating chance for employees to participate in decision making and giving them the autonomy to create bureaucratic constraints. Employees are always in the best position to detect problems and impose advancements if they're equipped to take steps to make improvements (Wilkinson, 1997).

6. 4 Usage of Quality Tools

TQM requires the employees to recognize and right quality problems using certain visual and statistical solutions to plan work activities, gather data, analyse results, screen improvement, and solve. They are also called the seven opportinity for quality control which can be:

Cause and effect diagrams

Scatter diagram

Flowcharts

Pareto chart

Histogram

Control charts

Checklist

6. 5 Product Design

Every company should ensure that while building quality into something it should meet a customer's expectation which is not a simple task as customers often speak in everyday language. Something that is intended to be "attractive, " "strong" or "safe" can have different meanings to different customers. It's important to convert customers' each day terms into specific technical requirements to be able to produce a product that customers want.

A valuable tool to translate the tone of voice of the customer into specific technical requirements is Quality Function Deployment (QFD). QFD started in 1972 at Mitsubishi's Kobe shipyard site. It benefits companies through improved communication and team work between all constituencies in the worthiness chain, such as between marketing and design, or between design and making. For example an automobile manufacturer would evaluate how changes in materials could have an impact on the customer basic safety requirements.

Designing Creation Systems for Quality

These three will be the important creation system design aims. After Ford obtained Jaguar, Jaguar's quality improved upon rapidly scheduled to production system changes. This was due to Ford adopting Toyota's production process at the Jaguar flower which proven that production system influences quality (Smith, 2001).

Also Ford analysed incidents when defective purchased parts triggered Ford to halt shipments of vehicles which made Ford conclude that 'processing problems triggered 83 percent of the occurrences, while design problems brought on17 percent. ' (Wilson and Sedgwick, 2002)

QFD is a systematic procedure which is utilized to help build quality into the upstream procedures and also into new product development while steering clear of problems in the downstream development and delivery processes.

6. 6 Managing Supplier Quality

TQM extends the concept of quality to a company's suppliers. The school of thought of TQM stretches the idea of quality to suppliers and ensures that they take part in the same quality techniques. If suppliers meet preset quality criteria, materials don't need to be inspected after arrival.

With the shift in emphasis from price to quality, vehicle manufacturers have had to restructure their ties with their suppliers. Spokespeople for the auto manufacturers generally point out how they want to build more cooperative romantic relationships with suppliers, structured upon long-term agreements, information posting, and trust (Gardner, 1993).

Some of the benefits of developing permanent business collaboration include:

Reduction and elimination of the inspection of provided parts and materials.

Improved product and service quality, and delivery performance and responsiveness.

Value for the money purchases

Security and steadiness of suppliers

Transfer of ideas, experience and technology between customer and supplier and dissemination and execution of best practise.

Exposure of the distributor to new tools, techniques, systems and business procedures.

Deming has given extreme importance to the actual fact that business procedures should become a part of a measurement system along with a feedback structure. The feedback received should be studied by managers to identify the sources of variant at each part of an activity, and then focus on improving that subset of processes. (Paul Arveson, 1998)

This construction translates the 'tone of the customer' into actions of performance which the company can identify and improve. It also deals with inner actions of performance, diagnosis of the suppliers and development of rewards and acceptance.

Companies committed to quality and high performance invest heavily in training and education so investments add value to organizational features. The leaders in quality like Deming, Juran, and Crossby positively promoted quality training and education.

Training generally includes quality awareness, leadership, job management, communications, teamwork, problem resolving, interpreting and using data, getting together with customer requirements, process evaluation, process simplification, waste materials reduction, mistake proofing efficiency and safe practices.

7. Studies on TQM

As the Indian current economic climate is globalising, obtaining quality excellence is now one of the essential goals of all companies specially the auto companies. Many companies are trying their finest to get their practical the Deming Honor awarded for obtaining for quality expectations in their processing activities.

According to some studies done around the world by the few companies on TQM, it's been discovered that TQM offers a positive effect on the company's growth and success. When the financial performance of 600 quality prize champion companies was analysed, it lead to the conclusion that whenever TQM is executed effectively, the financial performance also enhances considerably (Singhal and Hendricks, 1999). TQM also helps companies to increase their market talk about and enhance their competitiveness as within a study done by Mohrman and Powell in 1995. TQM is known as to be a direct factor in influencing the corporate performance of any company.

According to a report carried out on the efficiency degrees of TQM in India, it was discovered that TQM execution in Mahindra & Mahindra, one of the most notable India auto companies considerably improved upon its performance. An identical survey carried out in Larsen & Toubro figured TQM has a substantial impact on the business's financial performance (Singh, 2000). TQM execution in Indian sectors even though is at its growth level, is causing outstanding changes in the performance of the organizational employees and helps in increasing the productivity and lowering costs.

Total Quality Management has gained for itself a substantial popularity in Indian automobile industry with the aim to improve the performance expectations if Indian companies to top notch level (Dinesh Sethi, Deepak Tripathy, 2006).

But execution of TQM is not a simple task. Many companies still do not commit themselves to its implementation complete heartedly (Downs and Mohr, 1980, Miller, 1993). One of the major success factors for implementation of TQM is a solid level of organizational determination.

Four more indispensible questions required for every company to answer for the successful implementation of TQM are:

1) Is there a presence of top management involvement?

2) Does the company face opposition from workers' organizations?

3) May be the middle/higher management included and interested?

4) Does indeed there exist an organizational quality culture?

A Total Quality strategy is effective only through the long-term dedication and devoted appliance by the very best and middle management. The top management is performed responsible for preparing goals, strategically planning and allocating resources to aid implementation of all programs and initiatives. (Deming, 1982 & Oarvin, 1987).

Another important aspect for successful TQM execution is employee involvement promoted at all levels. Individual responsibility can be discharged only when vitality is delegated in different degree in any way levels over the firm. Also the quest, vision and insurance policies of an company should be regular with those of TQM. Visionary command of the very best management and complete involvement of the center management along with the support of employees leads to TQM being truly a successful endeavour in the business.

It is has been discovered that 62% of the Indian auto sector believes to check out TQM as a guiding idea while 38% has still not implemented TQM as a guiding viewpoint (Caravatta, 1997, Sharma, 1997, Agrawal, 1999). It is estimated that 70 percent70 % of the India automobile sector promises promptly delivery more than 80 % of times. According to the world standards, Indian vehicle industry is lagging behind. Only 52 % of the automobile companies are working towards achieving a cost reduction of more than 5% while shockingly still 48% of the organizations do not consider cost lowering as an essential requirement.

Unfortunately only 10-15% Indian vehicle companies are employing quality cost as way of measuring their quality performance in so doing loosing an possibility to spot critical areas for improvement (Harrington, 1997)

8. Six Sigma

Motorola pioneered the concept of Intimacy Sigma as a procedure for calculating product and service quality in the entire year 1987. Six Sigma provides an outline for implementation of a complete quality system. The word "Sigma" in Six Sigma indicates process performance. Six Sigma functions as a differentiator between world class and average making companies with benefits in scrap and rework costs, reject rates, achieved through teamwork and by removing organizational restrictions.

It is a statistical unit used for calculating a unit's quality, with only 3. 4 flaws per million opportunities which imply attaining a quality standard of 99. 99966%. Six Sigma protects the whole company, including suppliers and customers (Quality Times, 1998).

Six Sigma way focuses on minimizing variability and achieving excellence by focusing on three key strategies:

Process optimization, standardization, and control

Part standardization and documentation of supplier

Following a design for Manufacturability

Six Sigma Alteration Table

Source: Journal of Management Research, 2006

Six Sigma has been applied in product development, new business acquisition, customer service, accounting, and a great many other business functions. It is not possible for all processes to operate at a Six Sigma level. The correct level is determined by the strategic need for the procedure and the cost of improvement relative to the benefit. It really is generally easy to go from 2 Sigma or 3 Sigma level to 4 Sigma levels, but moving beyond that requires a lot more effort and complex statistical tools (James Evans, 2008).

The problem handling methodologies utilized by Six Sigma are:

DMAIC - used for jobs aimed at bettering a preexisting business process.

DMADV - used for tasks targeted at creating new product or process designs.

8. 1 DMAIC

Source: wordpress. com

Define - The first step while utilizing Six Sigma is to determine the problem in operational conditions to aid further analysis. An excellent problem statement recognizes customers and the Critical to Quality (CTQ) factors that contain the most effect on service or product performance and identify the performance metrics and the cost implications of the job along with determining what is to be achieved by whom and when (Thomas Bertels, 2003)

Measure - This phase of DMAIC process focuses about how to measure the internal functions that influence CTQs. This requires a knowledge of the human relationships between process performance and customer value.

Analyse - This level targets why defects, mistakes, or excessive variant occur. Locating the answers requires identifying the key factors that are most likely to cause problems and excessive deviation - the main causes. Among the tools of identifying the primary cause is the 5 "Why" approach which forces one to redefine a problem as a string of causes and effects to identify the source of the symptoms by requesting why five times (George Patterson, 2003).

Improve - After the root cause of an problem is understood, the team must create ideas for taking away the challenge and increase the performance methods and CTQs. A number of the techniques used to help idea generation are brainstorming, checklists, etc (Osborn, 2003).

The ideas generated are then assessed and the most appealing ones are determined, confirming that the proposed solution will positively affect the key process factors and the CTQs.

Control - This part of DMAIC centers on how to keep the improvements, which includes putting tools in location to ensure that the key variables remain within the maximum acceptable ranges under the improved process. Handles might be as simple as using checklists or periodic status reviews to ensure that proper methods are adopted or using process control charts to screen the performance of key methods.

8. 2 DMADV

The DMADV project methodology, also known as DFSS ("Design for Six Sigma"), features five stages:

Source: SixSigmaTraining. net

Define design goals that are regular with customer demands and the organization strategy.

Measure and identify CTQs (characteristics that are Critical To Quality), product features, production process capability, and hazards.

Analyze to produce and design alternatives, develop a high-level design and evaluate design capacity to choose the best design.

Design details, boost the look, and arrange for design confirmation. This phase may require simulations.

Verify the look, set up pilot works, implement the development process and side it over to the procedure owner(s).

In India, only 5% of Indian car companies seem to implement the Six Sigma guideline due to that they have not been able to achieve stable level of quality predicated on ±3 Sigma limitations around the given focus on value. Six Sigma is a tool for constant improvement making a business to focus on certain requirements of customers, process position, and well-timed well prepared execution (Skaria, 1995). Thus to be able to contend internationally Indian car sector should follow Six Sigma program to be able to set up the TQM idea. This would in turn help them to map their performance overtime and take required prior actions.

Although vehicle sector in India integrated Six Sigma to gain competence in its quality aspect, it still failed to implement it in the right path. This was anticipated to lots of reasons like:

Absence of top management involvement & commitment

Practising an authoritarian behaviour and a hierarchical thinking.

Lack of adequate education and training for the employees.

No strategic goal setting and a vulnerable system of monitoring.

Inadequate knowledge in the field of Six Sigma and its own related tools.

Lack of passion to be the best in quality.

No building up of the practise of Kaizen, the culture of constant improvement.

Not paying enough focus on the needs of the clients.

Impatience to build up a new technique to achieve quality and thus resorting to a quick unreliable way of repairing things.

Lack of collaboration, integrity, superiority and respect for every single other.

During the 1970s and early on 1980s there have been not many vehicle manufacturers in India the growth of this sector was slow. But in 1983 a remarkable change in the situation took place when Maruti was bought out by the Indian federal government and Maruti moved into joint venture arrangement with Suzuki (Japan) which stirred a revolution in the Indian vehicle industry.

With the adoption of the insurance plan of monetary liberalization by Indian administration in 1991, major car supplier companies such as Basic Motors, Fiat and Honda, acquired a chance to create their production bases in India.

Even after 2 decades gone after applying TQM in the auto sector, India is still an extremely small player on the planet auto market creation. The overall economy of India is a primary factor influencing the development of the Indian automobile sector and still lot must be achieved by the firms to apply TQM tools like Kaizen, Six Sigma, 5S and TPM. Since growth of automobile in virtually any country is an sign of overall economy, thus lot have to be done by the auto sector in putting into action TQM quality tools particularly 5S, Kaizen, Quality Function Deployment and Business Process Re engineering.

9. Lean Organizations

Lean development was a thought developed by the Toyota Motor unit Corporation to concentrate on the removal of waste in every forms, including defects requiring rework, unneeded process steps, and unnecessary motion of materials or people, waiting time, unwanted inventory, and overproduction.

One of the main element tools found in lean development is the 5 S's :

Seiri - Identifies making certain each item in a work area is at its proper place

Seiton - Identifies organizing materials and machines so that they are easy to find and use.

Seiso - Identifies a clean working area to be able to reduce maintenance problems.

Seiketsu - Identifies formalize types of procedures and practices to make steadiness and ensure that steps are performed effectively.

Shitsuke - Implies keeping the procedure going through training, communication and organizational buildings.

10. Conclusion

All types of motor vehicle industries aim to have reduced costs, increased process efficiency and better quality of the products and services by working towards obtaining the needs of these customers through the use of TQM. With growing cut throat competition, TQM is becoming an essential requirement of the management of automotive industry. Using the implementation of the quality principles discussed above, companies will produce gains for themselves and also fulfill the needs of owners, employees, suppliers and society all together.

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