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
management techniques, existing improvement efforts, and technical tools under a
disciplined
approach.
2. Define Quality?
Quality = Performance x Expectations
3. What are the Dimensions of Quality?
• Features
• Conformance
• Reliability
• Durability
• Service
• Response
• Aesthetics
• Reputation
4. Give the Basic Concepts of TQM?
• A committed and involved management to provide long-term top-to-bottom
organizational support.
• An unwavering focuses on the customer, both internally and externally.
• Effective involvement and utilization of the entire work force.
• Continuous improvement of the business and production process.
• Treating suppliers as partners.
• Establish performance measures for the processes.
5. Give the Principles of TQM?
_ Constancy of purpose: short range and long range objectives aligned
_ Identify the customer(s); Customer orientation
_ Identification of internal and external customers
_ Continuous improvement
_ Workflow as customer transactions
_ Empower front-line worker as leader
_ Quality is everybody’s business
_ For a service industry, some elements of quality are:
- empathy
- trust; i.e. expertise, integrity, courtesy
- responsiveness
- tangible product attractiveness (curb appeal)
- reliability, on time, no interruptions
• Customer orientation to child care services, a marketing perspective
• Barriers that exist to a customer orientation
6. Give the Obstacles associated with TQM Implementation?
• Lack of management commitment
• Inability to change organizational culture
• Improper planning
• Lack of continuous training and education
• Incompatible organizational structure and isolated individuals and departments
• Ineffective measurement techniques and lack of access to data and results.
• Paying inadequate attention to internal and external customers.
• Inadequate use of empowerment and teamwork
.
7. Give the Analysis Techniques for Quality Costs?
i. Trend Analysis
ii. Pareto Analysis
8. Define Quality Costs?
Quality Costs are defined as those costs associated with the nonachievement of product
or service quality as defined by the requirements established by the organization and its
contracts
with customers and society.
9. Give the primary categories of Quality cost?
• Preventive cost category
• Appraisal cost category
• Internal failure cost category
• External failure cost category
10. Give the typical cost bases?
• Labor
• Production
• Unit
• Sales
11. How will you determine the optimum cost?
• Make comparison with other organizations
• Optimize the individual categories
• Analyze the relationships among the cost categories
12. State the Quality Improvement Strategy?
• Reduce failure costs by problem solving
• Invest in the “right” prevention activities
• Reduce appraisal costs where appropriate and in a statistically sound manner
• Continuously evaluate and redirect the prevention effort to gain further quality
improvement.
13. Define Quality Planning?
A 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.
14. Give the Objectives of TQM?
To develop a conceptual understanding of the basic principles and methods
associated with TQM;
• To develop an understanding of how these principles and methods have been put into
effect in a variety of organizations;
• To develop an understanding of the relationship between TQM principles and the
theories and models studied in traditional management;
• To do the right things, right the first time, every time.
15. What is needed for a leader to be effective?
To be effective, a leader needs to know and understand the following:
• People, paradoxically, need security and independence at the same time.
• People are sensitive to external rewards and punishments and yet are also strongly
selfmotivated.
• People like to hear a kind word of praise.
• People can process only a few facts at a time; thus, a leader needs to keep things
simple.
• People trust their gut reaction more than statistical data.
• People distrust a leader’s rhetoric if the words are inconsistent with the leader’s
actions.
16. What is the important role of senior management?
§ Listening to internal and external customers and suppliers through visits, focus
groups and surveys.
§ Communication.
§ To drive fear out of the organization, break down barriers, remove system
roadblocks, anticipate and minimize resistance to change and in general, change
the culture.
17. What are the general duties of a quality council?
(i)Develop, with input from all personnel, the core values, vision statement,
mission statement, and quality policy statement.
(ii)Develop the strategic long-term plan with goals and the annual quality
improvement program with objectives.
(iii)Create the total education and training plan.
(iv)Determine and continually monitor the cost of poor quality.
(v)Determine the performance measures for the organization, approve those for the
functional areas, and monitor them.
(vi)Continually, determine those projects that improve the processes, particularly
those that affect external and internal customer satisfaction.
(vii)Establish multifunctional project and departmental or work group teams and
monitor their progress.
(viii)Establish or revise the recognition and reward system to account for the new
way of doing business.
18. What does a typical meeting agenda contain after establishing the TQM?
§ Progress report on teams
§ Customer satisfaction report
§ Progress on meeting goals
§ New project teams
§ Recognition dinner
§ Benchmarking report
19. What are the various quality statements?
o Vision Statement
o Mission Statement
o Quality Policy Statement
20. Give the basic steps to strategic quality planning?
• Customer needs
• Customer positioning
• Predict the future
• Gap analysis
• Closing the gap
• Alignment
• Implementation
21. What is a quality policy?
The Quality Policy 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.
• Equal or exceed the competition.
• Continually improve the quality.
• Include business and production practices.
• Utilize the entire work force.
THE EIGHT ELEMENTS OF TQM:
Total Quality Management is a management approach that originated in the 1950's and
has steadily become more popular since the early 1980's. 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 company's 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 key
elements:
Ethics
Integrity
Trust
Training
Teamwork
Leadership
Recognition
Communication
This paper is meant to describe the eight elements comprising TQM.
Key Elements
TQM has been coined to describe a philosophy that makes quality the driving force
behind leadership, design, planning, and improvement initiatives. For this, TQM
requires the help of those eight key elements. These elements can be divided into four
groups according to their function. The groups are:
I. Foundation - It includes: Ethics, Integrity and Trust.
II. Building Bricks - It includes: Training, Teamwork and Leadership.
III. Binding Mortar - It includes: Communication.
IV. Roof - It includes: Recognition.
I. Foundation
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 key to unlocking the
ultimate potential of TQM. These three elements move together, however, each element
offers something different to the TQM concept.
1. Ethics - Ethics is the discipline concerned with good and bad in any situation. It is a
two-faceted subject represented by organizational and individual ethics. Organizational
ethics establish a business code of ethics that outlines guidelines that all employees are
to adhere to in the performance of their work. Individual ethics include personal rights or
wrongs.
2. Integrity - Integrity implies honesty, morals, values, fairness, and adherence to the
facts and sincerity. The characteristic is what customers (internal or external) expect and
deserve to receive. People see the opposite of integrity as duplicity. TQM will not work
in an atmosphere of duplicity.
3. Trust - Trust is a by-product of integrity and ethical conduct. Without trust, the
framework 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 making at appropriate levels in the organization, fosters individual risktaking 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. So, trust builds the cooperative environment essential for TQM.
II.Bricks
Basing on the strong foundation of trust, ethics and integrity, bricks are placed to reach
the roof of recognition. It includes:
4. Training - Training is very important for employees to be highly productive.
Supervisors are solely responsible for implementing TQM within their departments, and
teaching their employees the philosophies of TQM. Training that employees require are
interpersonal skills, the ability to function within teams, problem solving, decision
making, job management performance analysis and improvement, business economics
and technical skills. During the creation and formation of TQM, employees are trained
so that they can become effective employees for the company.
5. Teamwork - To become successful in business, teamwork is also a key element of
TQM. With the use of teams, the business will receive quicker 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 workers to find a solution and put into place. There
are mainly three types of teams that TQM organizations adopt:
A. Quality Improvement Teams or Excellence Teams (QITS) - These are temporary
teams with the purpose of dealing with specific problems that often re-occur. These
teams are set up for period of three to twelve months.
B. Problem Solving Teams (PSTs) - These are temporary teams to solve certain
problems and also to identify and overcome causes of problems. They generally last
from one week to three months.
C. Natural Work Teams (NWTs) - These teams consist of small groups of skilled
workers who share tasks and responsibilities. These teams use concepts such as
employee involvement teams, self-managing teams and quality circles. These teams
generally work for one to two hours a week.
6. Leadership - It is possibly the most important element in TQM. It appears everywhere
in organization. Leadership in TQM requires the manager to provide an inspiring vision,
make strategic directions that are understood by all and to instill values that guide
subordinates. For TQM to be successful in the business, the supervisor must be
committed in leading his employees. A supervisor must understand TQM, believe in it
and then demonstrate their belief and commitment through their daily practices of TQM.
The supervisor makes sure that strategies, philosophies, values and goals are transmitted
down through out the organization to provide focus, clarity and direction. A key point is
that TQM has to be introduced and led by top management. Commitment and personal
involvement is required from top management in creating and deploying clear quality
values and goals consistent with the objectives of the company and in creating and
deploying well defined systems, methods and performance measures for achieving those
goals.
III.BindingMortar
7. Communication - It binds everything together. Starting from foundation to roof of the
TQM house, everything is bound by strong mortar of communication. It acts as a vital
link between all elements of TQM. Communication 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.
Supervisors must keep open airways where employees can send and receive information
about the TQM process. Communication coupled with the sharing of correct information
is vital. For 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 as:
A. Downward communication - This is the dominant form of communication in an
organization. Presentations and discussions basically do it. By this the supervisors are
able to make the employees clear about TQM.
B. Upward communication - By this the lower level of employees are able to provide
suggestions to upper management of the affects of TQM. As 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
keep open ears and listen to others.
C. Sideways communication - This type of communication is important because it
breaks down barriers between departments. It also allows dealing with customers and
suppliers in a more professional manner.
IV.Roof
8. Recognition - Recognition 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.
Employees strive to receive recognition for themselves and their teams. Detecting and
recognizing contributors is the most important job of a supervisor. As people are
recognized, there can be huge changes in self-esteem, productivity, quality and the
amount of effort exhorted to the task at hand. Recognition comes in its best form when it
is immediately following an action that an employee has performed. Recognition comes
in different ways, places and time such as,
 Ways - It can be by way of personal letter from top management. Also by award
banquets, plaques, trophies etc.
Places - Good performers can be recognized in front of departments, on performance
boards and also in front of top management.
Time - Recognition can given at any time like in staff meeting, annual award banquets,
etc.
We can conclude that these eight elements are key in ensuring the success of TQM in an
organization and that the supervisor is a huge part in developing these elements in the
work place. Without 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 key by which the organization creates a TQM environment. Leadership
and teamwork go hand in hand. Lack of communication between departments,
supervisors and employees create a burden on the whole TQM process. Last but not the
least, recognition should be given to people who contributed to the overall completed
task. Hence, lead by example, train employees to provide a quality product, create an
environment where there is no fear to share knowledge, and give credit where credit is
due is the motto of a successful TQM organization
THE TQM MODEL:
At the century close, the creation of the global market, international orientation of
management that sweeps national boundaries, introduction of new technologies, and
shift towards customer focused strategies, make the competition stronger than ever. The
criteria for success in this global, internationally oriented market have been changing
rapidly. In order to expand business, enter new markets, and set realistic, competitive
long-term objectives, excellence became an imperative. Management's effort has been
directed towards discovering what makes 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 market in which they operate. Such an environment has supported the
wide acceptance of Total Quality Management (TQM) which emerged recently as a
new, challenging, marketable 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 TQMEX can be
bonded together smoothly. Oakland [1989] originated the idea of a 3-cornerstone model.
The proposed 4-pillar model (Figure 3.1) brings the customer's requirement into the
system. This makes the approach to TQM more complete. The additional pillar --
satisfying customers -- is vital because it explicitly addresses customers requirements.
Without it TQM would have no objective.
The Four Pillars of TQM
The role of top management in implementation of total quality is crucial and its input on
people far-reaching. TQM, therefore, should be understood as management of the
system through systems thinking, which means understanding all the elements in the
company and putting them to work together towards the common goal. The TQMEX
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 company-wide.
 The Structure of TQMEX:
 The Logic of TQMEX:
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 step-by-step guideline by including recognized
practices in TQM:
•
Japanese 5-S Practice (5-S)
•
Business Process Re-engineering (BPR)
•
Quality Control Circles (QCCs)
•
ISO 9001/2 Quality Management System (ISO)
•
Total Productive Maintenance (TPM)
As Osada pointed out, 5-S is the key to total quality environment. Therefore, it should be
the first step. BPR is concerned with re-defining and designing your business process in
order to meet the needs of your customers effectively. It is more concerned with the
business objectives and systems, and should follow as Step 2. QCCs are concerned with
encouraging the employees to participate in continuous improvement and guide them
through. They improve human resources capability to achieve the business objectives.
Therefore, this should be Step 3. ISO 9000 is to develop a quality management system
based on the good practices in the previous three steps. TPM is a result of applying 5-S
to equipment based on a sound quality management system. In fact ISO 9001 requires
procedures for process control and inspection and testing equipment which are part of
TPM. Therefore TPM should be implemented in Step 5.
If the above five steps have been implemented successfully, the organization is already
very close towards achieving TQM.
TQMEX is a sequential model which is easy to remember and simple to implement. This
is in line with the quality principle of Keep It Short and Simple (KISS), although it is not
simple to make a model simple!
Companies starting to implement TQM should follow TQMEX step-by-step. Companies
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 TQMEX, you have to start early too.
THE ESSENTIALS OF TQM
TQM is the way of managing for the future, and is far wider in its application than just
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 key management functions of
people, processes and systems in the organisation.
This section discusses each of these elements that, together, can make a total quality
organisation. Other sections explain people, processes and systems in greater detail, all
having the essential themes of commitment, culture and communication running through
them.
What is quality?
A frequently used definition of quality is “Delighting the customer by fully meeting
their needs and expectations”. These may include performance, appearance, availability,
delivery, reliability, maintainability,cost effectiveness and price. It is, therefore,
imperative that the organisation knows 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 market research – to establish the true requirements for the product or
service and the true needs of the customers. However, 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
Japanese achieve this with company wide quality control.
Customers and suppliers
There exists in each department, each office, each home, a series of customers, suppliers
and customer supplier interfaces. These are “the quality chains”, and they can be broken
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.
Failure 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 customers’
(external and internal) requirements is vital. To achieve quality throughout an
organization, every person in the quality chain must be trained to ask the following
questions about every customer-supplier interface:
Customers (internal and external)
• Who are my customers?
• What are their true needs and expectations?
• How do, or can, I find out what these are?
• How can I measure my ability to meet their needs and expectations?
• Do I have the capability to meet their needs and expectations?
(If not, what must I do to improve this capability?)
• Do I continually meet their needs and expectations?
(If not, what prevents this from happening when the capability exists?)
• How do I monitor changes in their needs and expectations?
Suppliers (internal and external)
• Who are my internal suppliers?
• What are my true needs and expectations?
• How do I communicate my needs and expectations to my suppliers?
• Do my suppliers have the capability to measure and meet these needs and
expectations?
• How do I inform them of changes in my needs and expectations?
As well as being fully aware of customers’ 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.
Poor practices
To be able to become a total quality organization, some of the bad practices must be
recognized and corrected. These may include:
• Leaders not giving clear direction
• Not understanding, or ignoring competitive positioning
• Each department working only for itself
• Trying to control people through systems
• Confusing quality with grade
• Accepting that a level of defects or errors is inevitable
• Firefighting, reactive behaviour
• The “It’s not my problem” attitude
How many of these behaviours do you recognize in your organization?
The essential components of TQM – commitment & leadership
TQM is an approach to improving the competitiveness, effectiveness and flexibility of
an organization for the benefit of all stakeholders. 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. Whilst it must involve
everyone, to be successful, it must start at the top with the leaders of the organization.
All 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. Only then will the right attitudes spread throughout the organization.
A fundamental requirement is a sound quality policy, supported by plans and facilities to
implement it.
Leaders must take responsibility for preparing, reviewing and monitoring the policy,
plus take part in regular improvements of it and ensure it is understood at all levels of
the organization.
Effective 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 5 requirements for effective leadership are:
• Developing and publishing corporate beliefs, values and objectives, often as a mission
statement
• Personal involvement and acting as role models for a culture of total quality
• Developing clear and effective strategies and supporting plans for achieving the
mission and objectives
• Reviewing and improving the management system
• Communicating, motivating and supporting people and encouraging effective
employee participation
The task of implementing TQM can be daunting. The following is a list of points that
leaders should consider; they are a distillation of the various beliefs of some of the
quality gurus:
• The organisation needs a long-term commitment to continuous improvement.
• Adopt the philosophy of zero errors/defects to change the culture to right first time
• Train people to understand the customer/supplier relationships
• Do not buy products or services on price alone – look at the total cost
• Recognise that improvement of the systems must be managed
• Adopt modern methods of supervising and training – eliminate fear
• Eliminate barriers between departments by managing the process – improve
communications
and teamwork
• Eliminate goals without methods, standards based only on numbers, barriers to pride of
workmanship and fiction – get facts by studying processes
• Constantly educate and retrain – develop experts in the organisation
• Develop a systematic approach to manage the implementation of TQM
 Culture change
The failure to address the culture of an organisation is frequently the reason for many
management
initiatives
either
having
limited
success
or
failing
altogether.
Understanding the culture of an organisation, and using that knowledge to successfully
map the steps needed to accomplish a successful change, is an important part of the
quality journey.
The culture in any organisation is formed by the beliefs, behaviours, norms, dominant
values, rules and the “climate”. A 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 key
elements:
• Commitment from the leaders
• Involvement of all of the organisation’s people
There is widespread recognition that major change initiatives will not be successful
without a culture of good teamwork and cooperation at all levels in an organisation, as
discussed in the section on People.
 The building blocks of TQM: processes, people, management systems and
performance measurement
Everything we do is a Process, which is the transformation of a set of inputs, which can
include action, methods and operations, into the desired outputs, which satisfy the
customers’ needs and expectations.
In each area or function within an organisation there will be many processes taking
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 key or core business processes. These must be carried out well if an
organisation is to achieve its mission and objectives. The section on Processes 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 People who actually do the job or carry out the process, each of which has one or
several suppliers and customers.
An efficient and effective way to tackle process or quality improvement is through
teamwork. However, people will not engage in improvement activities without
commitment and recognition from the organisation’s leaders, a climate for improvement
and a strategy that is implemented thoughtfully and effectively. The section on People
expands on these issues, covering roles within teams, team selection and development
and models for successful teamwork.
An appropriate documented Quality Management System will help an organisation not
only achieve the objectives set out in its policy and strategy, but also, and equally
importantly, sustain and build upon them. It is imperative that the leaders take
responsibility for the adoption and documentation of an appropriate management system
in their organisation if they are serious about the quality journey. The Systems section
discusses the benefits of having such a system, how to set one up and successfully
implement it.
Once the strategic direction for the organisation’s quality journey has been set, it needs
Performance Measures to monitor and control the journey, 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 undertaken as team activities and this is discussed in the section on
Performance.
SCOPE & IMPORTANCE
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 TATA 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.
2- TQM
fit for the services sectors is discussed with emphasis on customer
satisfaction. Also covered are some limitations of TQM including empowerment,
times of paradigm shifts major process changes and reward system.
LITERATURE REVIEW
THE EFFECTS OF TQM
 Improving Financial Services through TQM
The work described in this case study was undertaken in a young, rapidly expanding
company in the financial services sector with no previous experience with Total Quality
Management (TQM). The quality project began with a two-day 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 project. The
demonstration project, which used the Seven Steps of Problem Solving (similar to
DMAIC), was to show them how TQM concepts worked in practice before they
committed resources for a company-wide program.
Step 1. Define the Problem
1.1) Selecting the theme: A meeting of the senior management of the company was
held. Brainstorming produced a list of more than 20 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.
Under the customer service theme, "Reducing the Turnaround Time from an Insurance
Proposal to Policy" was selected as the most obvious and urgent problem. The company
was young, and therefore had few claims to process so far. The proposal-to-policy
process therefore impacted the greatest number of customers.
An appropriate cross functional group was set up to tackle this problem.
1.2)
Problem
=
customer
desire
–
current
status:
Current status: What did the individual group members think the turnaround is
currently? As each member began thinking questions came up. "What type of policies do
we address?" Medical policies or non-medical? The latter are take longer because of the
medical examination of the client required. "Between what stages do we consider
turnaround?" Perceptions varied, with each person thinking about the turnaround within
their department. The key process stages were mapped:
Several sales branches in different parts of the country sent proposals into the Central
Processing Center. After considerable debate it was agreed at first to consider
turnaround between entry into the computer system at the Company Sales Branch and
dispatch to the customer from the Central Processing Center (CPC). Later the entire
cycle could be included. The perception of the length of turnaround by different
members of the team was recorded. It averaged:
Non-Medical Policies
Medical Policies
17 days
35 days
Invoking the slogan from the awareness program "In God we trust, the rest of us bring
data" the group was asked to collect data and establish reality. Armed with a suitably
designed check sheet they set about the task.
Customer desire: What was the turnaround desired by the customer? Since a customer
survey was not available, individual group members were asked to think as customers -imagine they had just given a completed proposal form to a sales agent. When would
they expect the policy in hand? From the customer's point of view they realized that they
did not differentiate between medical and non-medical policies. Their perception
averaged out six days for the required turnaround.
"Is this the average time or maximum time that you expect?" they were asked.
"Maximum," they responded. It was clear therefore that the average must be less than
six days. The importance of "variability" had struck home. The concept of sigma was
explained and was rapidly internalized. For 99.7 percent delivery within the customer
limit the metric was defined.
Customer desire:
Average+3 Sigma turnaround = less than 6 days
Current status:
Non-medical policies (Average 19/Sigma 15) Average+3 sigma= 64 days
Medical (Average 37/Sigma 27) Average+3 sigma= 118 days
The Problem was therefore defined:
Reduce Average+3 sigma of turnaround for:
Non-Medical Policies From 64 to 6 days
Medical Policies From 118 to 6 days
The performance requirement appeared daunting. Therefore the initial target taken in the
Mission Sheet (project charter) was to reduce the turnaround by 50 percent -- to 32 and
59 days respectively.
Step 2. Analysis of the Problem
In a session the factors causing large turnaround times from the principles of JIT were
explained. These were:Input arrival patterns
•
Waiting times in process
- Batching of work
- Imbalanced processing line
- Too many handovers
- Non-value added activities, etc.
•
Processing times
•
Scheduling
•
Transport times
•
Deployment of manpower
Typically it was found that waiting times constitute the bulk of processing turnaround
times. Process Mapping (Value Stream Mapping in Lean) was undertaken. The
aggregate results are summarized below:
Number of operations 84
Number of handovers 13
In-house processing time (estimated) 126 man-mins.
Range of individual stage time 2 to 13 mins.
Could this be true? Could the turnaround be 126 minutes for internal processing without
waiting? The group started to question of the status quo. The change process had begun.
To check this estimate it was decided to collect data -- run two policies without waiting
and record the time at each stage. The trial results amazed everyone: Policy No. 1 took
100 minutes and Policy No. 2 took 97 minutes. Almost instantly the mindset changed
from doubt to desire: "Why can't we process every proposal in this way?"
Step 3. Generating Ideas
In the introductory program of TQM during the JIT session the advantages of flow
versus batch processing had been dramatically demonstrated using a simple exercise.
Using that background a balanced flow line was designed as follows:
1. Determine the station with the maximum time cycle which cannot be split up by
reallocation -- 8 minutes.
2. Balance the line to make the time taken at each stage equal 8 minutes as far as
possible.
3. Reduce the stages and handovers -- 13 to 8.
4. Eliminate non-value added activities -- transport -- make personnel sit next to each
other.
5. Agree processing to be done in batch of one proposal.
Changing the mindset of the employees so they will accept and welcome change is
critical to building a self-sustaining culture of improvement. In this case, the line
personnel were involved in a Quality Mindset Program so that they understood the
reasons for change and the concepts behind them and are keen to experiment with new
methods of working. The line was ready for a test run.
Step 4. Testing the Idea
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.
Stage 1: Run five proposals flowing through the system and confirm results. The test
produced the following results:
Average turnaround time: < 1 day
In-house processing time: 76 mins.
There was jubilation in the team. The productivity had increased by 24 percent. The
head of the CPC summarized: "I gave five files for processing, and went for a meeting.
Emerging from the meeting about 30 minutes later I was greeted by the dispatch clerk
jubilantly reporting, "'Madam, the TQM files are ready for dispatch.'" The mindset was
dramatically changed and line personnel were now keen to push the implementation.
Stage 2: It was agreed to run the new system for five days -- and compute the average
and sigma of the turnaround to measure the improvement. It was agreed that only inhouse processing was covered at this stage and that the test would involve all policies at
the CPC 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 turnaround:
1. For all non-medical policies From 64 to 42 days or 34%
2. For policies of the model branch From 64 to 27 days of 60%
The Mission Sheet goal of 50 percent reduction had been bettered for the combined
model branch and CPC. Further analysis of the data revealed other measures which
could reduce the turnaround further. Overall reduction reached an amazing 75 percent.
Turnaround, which had been pegged at 64 days, was now happening at 99.7 percent ontime delivery in 15 days.
Step 5. Implementing the Ideas
Regular operations with the new system was planned to commence. However, two
weeks later it was still not implemented. One of the personnel on the line in CPC had
been released by his department for the five-day 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. Since the latter option produces a robust implementation that will not break
down under pressures it was agreed that the group would summarize TQM, the journey
and the results obtained in the project 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.
Step 6. Check the Result
The process was run for one month with regular checks. The results obtained were
marginally better than the trials conducted in Step 5:
Average 11 days
Sigma 9 days
Average+3 sigma 38 days
Step 7. Standardize Control/Document the Improvement Story
•
Essentially the in-house processes in two centers of processing -- the CPC and
one sales branch -- had been impacted so far. To make sure that the gains were
held, control charts were introduced in both locations. Sample x-bar and sigma-
control charts for the CPC are shown below:
•
A special "Grind It In" 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 killing the root causes of the problems.
•
Customer reaction: Sales management and sales agents (internal customers)
clearly noticed the difference. For instance one sales manager reported that a
customer had received a policy within a week of giving a proposal and was so
amazed that he said, "If you give such service I will give you the next policy
also!"
•
Adoption of a similar process at the CPC and the model branch for medical
policies has already reduced the average+3 sigma of turnaround time by 70
percent -- from 118 days to 37 days. The corresponding all-India reduction was
from 118 days to 71 days -- a 60 percent reduction.
•
The project objective of 50 percent in the first stage has been achieved.
•
A quality improvement story was compiled by the project Leader for training and
motivating all employees.
Future Actions
Non-medical policies: Goal to reduce turnaround from 42 days to about 15 days.
1. Roll out process to branches to achieve 24 days throughout the country.
2. Minimize rework by analyzing, prioritizing and training sales branches to avoid the
causes of rework.
3. Working with the bank to improve the turnaround time of banking checks.
4. Considering processing proposals while check clearance is in progress.
Medical policies: Goal to reduce turnaround from 71 days to about 24 days.
1. Roll out process to branches to reduce turnaround from 71 to 37 days.
2. Streamline the process of medical exam of the client from 37 to 24 days.
IMPLEMENTATION OF TQM
 Implementation Principles and Processes
A preliminary step in TQM implementation is to assess the organization's current reality.
Relevant preconditions have to do with the organization's history, its current needs,
precipitating events leading to TQM, and the existing employee quality of working life.
If the current reality does not include important preconditions, TQM implementation
should be delayed until the organization is in a state in which TQM is likely to succeed.
If an organization has a track 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 skill at
improving its operating systems, there will be both employee skepticism and a lack of
skilled change agents. If this condition prevails, a comprehensive program of
management and leadership development may be instituted. A management audit is a
good assessment tool to identify current levels of organizational functioning and areas in
need of change. An organization should be basically healthy before beginning TQM. If it
has significant problems such as a very unstable funding base, weak administrative
systems, lack of managerial skill, or poor employee morale, TQM would not be
appropriate.
However, a certain level of stress is probably desirable to initiate TQM. People need to
feel a need for a change. Kanter (1983) addresses this phenomenon be describing
building blocks which are present in effective organizational change. These forces
include departures from tradition, a crisis or galvanizing event, strategic decisions,
individual "prime movers," and action vehicles. Departures from tradition are activities,
usually at lower levels of the organization, which occur when entrepreneurs move
outside the normal ways of operating to solve a problem. A 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 stakeholders for improved quality of service. After a crisis, a leader may intervene
strategically by articulating a new vision of the future to help the organization deal with
it. A plan to implement TQM may be such a strategic decision. Such a leader may then
become a prime mover, who takes charge in championing the new idea and showing
others how it will help them get where they want to go. Finally, action vehicles are
needed and mechanisms or structures to enable the change to occur and become
institutionalized.
 Steps
in
Managing
the
Transition
Beckhard and Pritchard (1992) have outlined the basic steps in managing a transition
to a new system such as TQM: identifying tasks to be done, creating necessary
management structures, developing strategies for building commitment, designing
mechanisms to communicate the change, and assigning resources.
Task identification would include a study of present conditions (assessing current
reality, as described above); assessing readiness, such as through a force field analysis;
creating a model of the desired state, in this case, implementation of TQM; announcing
the change goals to the organization; and assigning responsibilities and resources. This
final step would include securing outside consultation and training and assigning
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, Cohen and Brand (1993) and Hyde
(1992) assert that management must be heavily involved as leaders rather than relying
on a separate staff person or function to shepherd the effort. An organization wide
steering committee to oversee the effort may be appropriate. Developing 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. Special all-staff meetings attended by executives, sometimes designed as
input or dialog sessions, may be used to kick off the process, and TQM newsletters may
be an effective ongoing communication tool to keep 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. Choose consultants based on their prior
relevant experience and their commitment to adapting the process to fit unique
organizational needs. While consultants will be invaluable with initial training of staff
and TQM system design, employees (management and others) should be actively
involved in TQM implementation, perhaps after receiving training in change
management which they can then pass on to other employees. A collaborative
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 make
sure the need for change is clear and that TQM is an appropriate strategy. Leadership
styles and organizational culture must be congruent with TQM. If they are not, this
should be worked on or TQM implementation should be avoided or delayed until
favorable conditions exist.
Remember that this will be a difficult, comprehensive, and long-term process. Leaders
will need to maintain their commitment, keep the process visible, provide necessary
support, and hold people accountable for results. Use input from stakeholder (clients,
referring agencies, funding sources, etc.) as possible; and, of course, maximize
employee involvement in design of the system.
Always keep in mind that TQM should be purpose driven. Be clear on the organization's
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
by
TQM
TQM is mainly concerned with continuous improvement in all work, from high level
strategic planning and decision-making, to detailed execution of work elements on the
shop floor. It stems from the belief that mistakes can be avoided and defects can be
prevented. It leads to continuously improving results, in all aspects of work, as a result
of continuously improving capabilities, people, processes, technology and machine
capabilities.
Continuous improvement must deal not only with improving results, but more
importantly with improving capabilities to produce better results in the future. The five
major areas of focus for capability improvement are demand generation, supply
generation, technology, operations and people capability.
A central principle of TQM is that mistakes 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 mistakes can be identified and eliminated, and repetition can be
prevented by changing the process.
There are three major mechanisms of prevention:
1. Preventing mistakes (defects) from occurring (Mistake - proofing or Poka-Yoke).
2. Where mistakes can't be absolutely prevented, detecting them early to prevent
them being passed down the value added chain (Inspection at source or by the
next operation).
3. Where mistakes recur, stopping production until the process can be corrected, to
prevent the production of more defects. (Stop in time).
. TQM is the foundation for activities, which include:
•
Commitment by senior management and all employees
•
Meeting customer requirements
•
Reducing development cycle times
•
Just In Time/Demand Flow Manufacturing
•
Improvement teams
•
Reducing product and service costs
•
Systems to facilitate improvement
•
Line Management ownership
•
Employee involvement and empowerment
•
Recognition and celebration
•
Challenging quantified goals and benchmarking
•
Focus on processes / improvement plans
•
Specific incorporation in strategic planning
This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing,
Engineering, R&D, Sales, Purchasing, HR, etc.
TQM in manufacturing
Quality assurance through statistical methods is a key 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 tracked. When parts' measures drift into a defined "error
band", the process is fixed. The error band is usually a tighter distribution than the
"failure band", so that the production process is fixed before failing parts can be
produced.
It is important to record not just the measurement ranges, but what failures caused them
to be chosen. In that way, cheaper fixes can be substituted later (say, when the product is
redesigned) with no loss of quality. After TQM has been in use, it's very common for
parts to be redesigned so that critical measurements either cease to exist, or become
much wider.
It took people a while to develop tests to find emergent problems. One popular test is a
"life test" in which the sample product is operated until a part fails. Another popular test
is called "shake and bake", 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.
A commonly-discovered failure is for the product to disintegrate. If fasteners fail, the
improvements might be to use measured-tension nutdrivers to ensure that screws don't
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 DC 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 DC motor, but cheaper than a DC
motor combined with a gearbox. The electronics are radically different, but equally
expensive. One disadvantage might be that a stepper motor can hum or whine, and
usually needs noise-isolating mounts.
Often, a "TQMed" product is cheaper to produce because of efficiency/performance
improvements and because there's no need to repair dead-on-arrival products, which
represents an immensely more desirable product.
TQM and contingency-based research
TQM has not been independent of its environment. In the context of management
accounting systems (MCSs), Sim and Killough (1998) show that incentive pay enhanced
the positive effects of TQM on customer and quality performance. Ittner and Larcker
(1995) demonstrated that product focused TQM was linked to timely problem solving
information and flexible revisions to reward systems. Chendall (2003) summarizes the
findings from contingency-based research concerning management control systems and
TQM by noting that “TQM is associated with broadly based MCSs including timely,
flexible, externally focused information; close interactions between advanced
technologies and strategy; and non-financial performance measurement.”
TQM, just another management fad?
Abrahamson (1996) argued that fashionable management discourse such as Quality
Circles tends to follow a lifecycle in the form of a bell curve. Ponzi and Koenig (2002)
showed that the same can be said about TQM, which peaked between 1992 and 1996,
while rapidly losing popularity in terms of citations after these years. Dubois (2002)
argued that the use of the term TQM in management discourse created a positive utility
regardless of what managers meant by it (which showed a large variation), while in the
late 1990s 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. Nevertheless, management concepts such as TQM leave their
traces, as their core ideas can be very valuable. For example, Dubois (2002) showed that
the core ideas behind the two management fads Reengineering and TQM, without
explicit usage of their names, can even work in a synergistic way.
Total Quality Management is an approach to the art of management that originated in
Japanese industry in the 1950's and has become steadily more popular in the West since
the early 1980's.
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 company's
operations, with things being done right first time, and defects and waste eradicated from
operations.
Many companies have difficulties in implementing TQM. Surveys by consulting firms
have found that only 20-36% of companies that have undertaken TQM have achieved
either
significant
or
even
tangible
improvements
in
quality,
productivity,
competitiveness or financial return. As a result many people are sceptical about TQM.
However, when you look at successful companies you find a much higher percentage of
successful
TQM
implementation.
Some useful messages from results of TQM implementations:
if you want to be a first-rate company, don't focus on the second-rate companies who
can't handle TQM, look at the world-class 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
•
it's much easier to introduce EDM/PDM in a company with a TQM culture than
in one without TQM. People in companies that have implemented TQM are more
likely to have the basic understanding necessary for implementing EDM/PDM.
For example, they are more likely to view EDM/PDM as an information and
workflow management system supporting the entire product life cycle then as a
departmental solution for the management of CAD data
Important aspects of TQM include customer-driven quality, top management leadership
and commitment, continuous improvement, fast response, actions based on facts,
employee participation, and a TQM culture.
Customer-driven quality
TQM has a customer-first orientation. The customer, not internal activities and
constraints, comes first. Customer satisfaction is seen as the company's 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, `being sensitive to customer requirements' goes beyond defect and error
reduction, and merely meeting specifications or reducing customer complaints. The
concept of requirements is expanded to take in not only product and service attributes
that meet basic requirements, but also those that enhance and differentiate them for
competitive advantage.
Each part of the company is involved in Total Quality, operating as a customer to some
functions and as a supplier to others. The Engineering Department is a supplier to
downstream functions such as Manufacturing and Field Service, and has to treat these
internal customers with the same sensitivity and responsiveness as it would external
customers.
TQM leadership from top management
TQM is a way of life for a company. It has to be introduced and led by top management.
This is a key point. Attempts to implement TQM often fail because top management
doesn't lead and get committed - instead it delegates and pays lip service. Commitment
and personal involvement is required from top management in creating and deploying
clear quality values and goals consistent with the objectives 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 linked, directly or indirectly, to customer requirements and satisfaction, and
to management and employee remuneration.
Continuous improvement
Continuous improvement of all operations and activities is at the heart of TQM. Once it
is recognized that customer satisfaction can only be obtained by providing a high-quality
product, continuous improvement of the quality of the product is seen as the only way to
maintain a high level of customer satisfaction. As well as recognizing the link between
product quality and customer satisfaction, TQM also recognizes that product quality is
the result of process quality. As a result, there is a focus on continuous improvement of
the company's 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 company's activities such as
product development, use of EDM/PDM, 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 seeking opportunities for improvement.
Elimination of waste is a major 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 customer-driven approach helps to prevent errors and
achieve defect-free production. When problems do occur within the product
development process, they are generally discovered and resolved before they can get to
the
next
internalcustomer.
Fastresponse
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
customer-driven and process-oriented product development because the resulting
simplicity and efficiency greatly reduce the time involved. Simplicity is gained through
concurrent product and process development. Efficiencies are realized from the
elimination of non-value-adding effort such as re-design. The result is a dramatic
improvement in the elapsed time from product concept to first shipment.
Actions based on facts
The statistical analysis of engineering and manufacturing facts is an important part of
TQM. Facts and analysis provide the basis for planning, review and performance
tracking, improvement of operations, and comparison of performance with competitors.
The TQM approach is based on the use of objective data, and provides a rational rather
than an emotional basis for decision making. The statistical approach to process
management in both engineering and manufacturing recognizes that most problems are
system-related, 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 take
the appropriate action to reduce costs and prevent non-conformance. Usually these
people are not managers but workers in the process. If the right information is not
available, then the analysis, whether it be of shop floor data, or engineering test results,
can't take place, errors can't be identified, and so errors can't be corrected.
Employee participation
A successful TQM environment requires a committed and well-trained work force that
participates fully in quality improvement activities. Such participation is reinforced by
reward and recognition systems which emphasize the achievement of quality objectives.
On-going education and training of all employees supports the drive for quality.
Employees are encouraged to take more responsibility, communicate more effectively,
act creatively, and innovate. As people behave the way they are measured and
remunerated,
TQM
links
remuneration
to
customer
satisfaction
metrics.
A TQM culture
It's not easy to introduce TQM. An open, cooperative culture has to be created by
management. Employees 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. It's important they participate in these activities. They are
unlikely to behave in a responsible way if they see management behaving irresponsibly saying one thing and doing the opposite.
Product development in a TQM environment
Product development in a TQM environment is very different to product development in
a non-TQM environment. Without a TQM approach, product development is usually
carried on in a conflictual atmosphere where each department acts independently. Shortterm results drive behavior so scrap, changes, work-arounds, waste, and rework are
normal practice. Management focuses on supervising individuals, and fire-fighting is
necessary and rewarded.
Product development in a TQM environment is customer-driven and focused on quality.
Teams are process-oriented, and interact with their internal customers to deliver the
required results. Management's focus is on controlling the overall process, and
rewarding
teamwork.
Awards for Quality achievement
The Deming Prize has been awarded annually since 1951 by the Japanese Union of
Scientists and Engineers in recognition of outstanding achievement in quality strategy,
management and execution. Since 1988 a similar award (the Malcolm Baldrige National
Quality Award) has been awarded in the US. Early winners of the Baldrige Award
include AT&T (1992), IBM (1990), Milliken (1989), Motorola (1988), Texas
Instruments (1992) and Xerox (1989).
COMPANY PROFILE
TATA Motor
Tata Motors Limited is India’s largest automobile company, with revenues of Rs.
35651.48 crores (USD 8.8 billion) in 2007-08. 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 world’s
fourth largest truck manufacturer, and the world’s second largest bus manufacturer.
The company’s 23,000 employees are guided by the vision to be “best in the manner in
which we operate, best in the products we deliver, and best in our value system and
ethics.”
Established in 1945, Tata Motors’ presence indeed cuts across the length and breadth
of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in
1954. The company’s manufacturing base in India is spread across Jamshedpur
(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand)
and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set
up an industrial joint venture with Fiat Group Automobiles at Ranjangaon
(Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is
establishing a new plant at Sanand (Gujarat). The company’s dealership, sales, services
and spare parts network comprises over 3500 touch points; Tata Motors also distributes
and markets Fiat branded cars in India.
Tata Motors, the first company from India’s engineering sector to be listed in the New
York Stock Exchange (September 2004), has also emerged as an international
automobile company. Through subsidiaries and associate companies, Tata Motors has
operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land
Rover, a business comprising the two iconic British brands that was acquired in 2008.
In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea’s
second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles
Company has launched several new products in the Korean market, while also
exporting these products to several international markets. Today two-thirds of heavy
commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata
Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach
manufacturer, with an option to acquire the remaining stake as well. Hispano’s
presence is being expanded in other markets. In 2006, it formed a joint venture with
the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to
manufacture fully-built buses and coaches for India and select international markets. In
2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly
Plant Company of Thailand to manufacture and market the company’s pickup vehicles
in Thailand. The new plant of Tata Motors (Thailand) has begun production of the
Xenon pickup truck, with the Xenon having been launched in Thailand at the Bangkok
Motor Show 2008.
Tata Motors is also expanding its international footprint, established through exports
since 1961. The company’s commercial and passenger vehicles are already being
marketed in several countries in Europe, Africa, the Middle East, South East Asia,
South Asia and South America. It has franchisee/joint venture assembly operations in
Kenya, Bangladesh, Ukraine, Russia and Senegal.
The foundation of the company’s growth over the last 50 years is a deep understanding
of economic stimuli and customer needs, and the ability to translate them into
customer-desired offerings through leading edge R&D. With over 2,500 engineers and
scientists, the company’s Engineering Research Centre, established in 1966, has
enabled pioneering technologies and products. The company today has R&D centres in
Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain, and the UK. It was
Tata Motors, which developed the first indigenously developed Light Commercial
Vehicle, India’s first Sports Utility Vehicle and, in 1998, the Tata Indica, India’s first
fully indigenous passenger car. Within two years of launch, Tata Indica became India’s
largest selling car in its segment. In 2005, Tata Motors created a new segment by
launching the Tata Ace, India’s first indigenously developed mini-truck
In January 2008, Tata Motors unveiled its People’s Car, the Tata Nano, which India
and the world have been looking forward to. The Tata Nano has been subsequently
launched, as planned, in India in March 2009. A development, which signifies a first
for the global automobile industry, the Nano brings the comfort and safety of a car
within the reach of thousands of families. The standard version has been priced at
Rs.100,000 (excluding VAT and transportation cost).
Designed 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 mono-volume
design will set a new benchmark 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 two-wheelers 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. Besides product development, R&D is also
focussing on environment-friendly 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, high-precision 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
Corporate Social Responsibility. It is a signatory to the United Nations Global
Compact, and is engaged in community and social initiatives on labour and
environment standards in compliance with the principles of the Global Compact. In
accordance with this, it plays an active role in community development, serving rural
communities adjacent to its manufacturing locations.
With the foundation of its rich heritage, Tata Motors today is etching a refulgent
future.
MANAGEMENT
Board of Directors
Mr. Ratan N Tata (Chairman)
Mr. N A Soonawala
Dr. J J Irani
Mr. R Gopalakrishnan
Mr. Nusli N Wadia
Mr. S M Palia
Dr. R A Mashelkar
Mr. Nasser Munjee
Mr. Subodh Bhargava
Mr V K Jairath
Mr. Ravi Kant
Mr. P M Telang
Senior Management
Mr. Ravi Kant
Managing Director
Mr. P M Telang
Executive Director (Commercial Vehicles)
Mr. Rajiv Dube
President (Passenger Cars)
Mr. C Ramakrishnan
Chief Financial Officer
Mr. S N Ambardekar
Plant Head (CVBU, Pune)
Mr. S B Borwankar
Head (Jamshedpur - Plant)
Mr. A M Mankad
Head (Car Plant)
Mr. U K Mishra
Vice President (ADD and Materials-CVBU)
Mr. S Krishnan
Vice President (Commercial - PCBU)
Mr. P Y Gurav
Vice President (Corp. Finance - A/c and Taxation)
Mr. S J Tambe
Vice President (Human Resources)
Mr. R Pisharody
Vice President (Sales and Marketing - CVBU)
Mr Nagesh Pinge
Chief Internal Auditor
Company Secretary
Mr. H K Sethna
Corporate Communications
Mr. Debasis Ray
Head - Corporate Communications
MANUFACTURING
Tata Motors owes its leading position in the Indian automobile industry to its strong
focus on indigenisation. This focus has driven the Company to set up world-class
manufacturing units with state-of-the-art technology. Every stage of product evolutiondesign, development, manufacturing, assembly and quality control, is carried out
meticulously. Our manufacturing plants are situated at Jamshedpur in the East, Pune in
the West and Lucknow in the North.
Jamshedpur:
Established in1945, the Jamshedpur unit was the company's first unit and is spread
over an area of 822 acres. It consists of 4 major divisions - Truck Factory, Engine
Factory, Cab & Cowl Factories, and the Novus.
Pune:
The Pune unit is spread over 2 geographical regions- Pimpri (800 acres) and
Chinchwad (130 acres). It was established in 1966 and has a Production Engineering
Division, which has one of the most versatile tool making facilities in the Indian sub-
continent.
Lucknow:
Tata Motors Lucknow is one of the youngest production facilities among all the Tata
Motors locations and was established in 1992 to meet the demand for Commercial
Vehicles in the Indian market... (
Uttarakhand
The company has set up a plant for its mini-truck Ace and the passenger carrier Magic
(based on the Ace platform) at Pantnagar in Uttarakhand. The plant began...
AWARDS
Tata Motors wins award at the Bangkok International Motor Expo...
Tata Motors - Investor Relations ranked first in India...
Nirmal Gram Puraskar awarded to Potka panchayat...
Tata Motors bags the NDTV Profit Business Leadership Award 2008...
Tata Motors awarded the Top Exporter Trophy by EEPC...
CVBU Pune wins Rajiv Gandhi National Quality Award for 2007...
PCBU bags Handa Golden Key Award...
Tata Motors receives Uptime Champion Award 2007...
Aggregates Business, CVBU, bags 'Best Supplier Award' from ECEL...
'NDTV Profit' Business Leadership Award...
Tata Motors bags National Award for Excellence in Cost Management...
Tata Motors' TRAKIT bags silver award for 'Excellence in Design'...
Tata Motors Pune - CVBU has bagged the "Golden Peacock National Quality Aw...
Tata Motors was awarded four prestigious honours, at the 'CNBC TV18- Autocar
Au...
Tata Motors chosen as India's Most Trusted Brand in Cars...
Business Today selects Mr. P.P. Kadle as India's Best CFO in 2005...
Pune Foundry Division bags prestigious Green Foundry Award...
Tata Motors is 'Commercial Vehicle Manufacturer of the Year'...
ACE bags 'Best Commercial Vehicle Design' at the BBC-Top Gear Awards....
Jamshedpur bags National Energy Conservation Award for the fourth consecutive
ye...
Tata Motors bags the prestigious' CII-EXIM Bank award' for business excellence...
Tata Motors receives JRD QV awards for Business Excellence...
'Car Maker of the Year' Award for Tata Motors...
Tata Motors is 'Commercial Vehicle Manufacturer of the Year'...
TNS Voice of the Customer Award for Indica Diesel...
'CFO of the Year Award 2004' awarded to Mr Praveen P Kadle, Executive Director
-...
Tata Motors wins the prestigious 'Corporate Platinum' Award at the India Manuf...
Tata Motors wins 'Golden Peacock Award' for Corporate Social Responsibility...
Tata Motors CVBU Pune wins National Energy Award...
Tata Motors - Jamshedpur wins 'Energy Efficient Unit Award'...
Tata Motors wins the first CSIR Diamond Jubilee Technology Award...
Tata Motors Training Division Wins "Golden Peacock National Training Award
2004"...
Tata Motors Jamshedpur & Lucknow win awards...
TATA MOTORS CASE STUDY WINS FIRST PRIZE IN IIIE PRODUCTIVITY
CONTEST...
TATA MOTORS WINS AWARD FOR FAIR BUSINESS PRACTICES...
Tata Indica and Tata Safari EXi win awards...
Tata Motors-Car plant gets two ISO certifications...
Tata Motors bags awards at 14th National Convention of INSAAN...
Indica and Safari win accolades...
TATA MOTORS PUNE AWARDED SECOND PLACE IN NATIONAL LEVEL
COMPETITION IN ENERGY CO...
Tata Motors Receives "India's Best Employer" Award From The Employe...
Tata Motors, CVBU, Pune has won the prestigious Handa Golden Key award
institute...
CVBU RECEIVES COMMENDATION CERTIFICATE FOR 'STRONG
COMMITMENT TO TQM'...
Tata Motors team wins The Runners Up Position at The Asian Business Simulation
C...
THE PRESTIGIOUS BALANCED SCORECARD COLLABORATIVE HALL OF
FAME AWARD...
Tata Motors receives all India trophy for Top Exporters...
Tata Indigo ad campaign wins Effie award...
Golden Peacock Environment Management Award - 2003...
Industry and Technology Award, 2002...
Advertising Awards...
Tata Indigo - Most Exciting New Car of the Year - ICICI Bank & Overdrive Awa...
Tata Engineering - A Socially Responsible Corporate, says TERI...
'Prof. Vasant Rao Rolling Trophy' for Value Engineering - 2002...
Tata Engineering was conferred Bharat Gaurav Puraskar...
Best Value for Money Car of the Year - Tata Indigo CNBC Auto Car Auto Awards 2...
'Voice of the Customer Award' for 'Best Diesel Small Car' - Tata Indica by NFO A...
India CFO Award 2002...
Tata Engineering bags INSAAN awards...
National Best Training Establishment Award...
Envirointernational...
Good Corporate Citizen award...
National Award for Successful Commercialisation of Indigenous Technology...
National Award for R&D Efforts...
Regional Top Exporter's Trophy...
Best Company Award at Workskills Competition...
EEPC Award for Tata Engineering...
PRODUCT PROFILE
TATA MOTORS
Tata Sumo
Manufacturer
Tata Motors
Production
1994–present
Assembly
India
Class
MUV, SUV (Sumo Grande)
Body style(s)
4-door station wagon
Engine(s)
2.2 L DICOR
Transmission(s)
5-speed manual
Tata Safari
Manufacturer
Tata Motors
Parent company
Tata Sons
Production
1998–present
Successor
Tata Sumo
Class
SUV
Body style(s)
4-door station wagon
Engine(s)
2.2 L I4
2.0 L turbodiesel I4
3.0 L common rail turbodiesel I4
2.2 L vtt DiCOR I4
Transmission(s)
5-speed manual
Wheelbase
2,650 mm (104.3 in)
Length
4,650 mm (183.1 in)
Width
1,918 mm (75.5 in)
Height
1,925 mm (75.8 in)
Kerb weight
1,920 kg (4,233 lb)
Fuel capacity
65 L (14 imp gal; 17 US gal)
Related
Mahindra Scorpio
Hyundai Terracan
Mitsubishi Pajero
Tata Indica
Tata Indica V2
Manufacturer
Tata Motors
Production
1998–present
Assembly
Pune, Maharashtra, India
Class
Supermini car
Layout
FF layout
Related
Tata Indigo
Rover CityRover
Tata Indigo
Manufacturer
Tata Motors
Production
2002–present
Class
Subcompact car
Body style(s)
4-door sedan
4-door station wagon
Layout
FF layout
Engine(s)
1.4 L I4
1.4 L turbodiesel I4
1.4 L DICOR I4
Transmission(s)
5-speed manual
Related
Tata Indica
Designer
I.DE.A Institute
Tata Nano
Manufacturer
Tata Motors
Parent company
Tata Sons
Also called
The People's Car
Production
2008—present
Assembly
Charodi, near Sanand-Ahmedabad, Gujarat, India
Predecessor
none
Class
City car, Unlocalized, Tier 0
Body style(s)
4-door hatchback sedan
Layout
RR layout
Engine(s)
2 cylinder SOHC petrol Bosch multi-point fuel
injection (single injector) all aluminium 623 cc
(38 cu in)
Transmission(s)
4 speed synchromesh with overdrive in 4th
Wheelbase
2,230 mm (87.8 in)
Length
3100 mm (122 in)[1]
Width
1500 mm (59.1 in)[1]
Height
1600 mm (63 in)[1]
Kerb weight
580 kg (1,300 lb)-600 kg (1,300 lb)[2]
Fuel capacity
15 L (4 US gal; 3 imp gal)[2]
Related
Maruti Alto
Chevrolet Spark
Designer
Girish Wagh, Justin Norek of Trilix, Pierre
Castinel[3]
TATA Xenon
Also called
Tata Xenon
Tata TL Sprint
Tata Pick-Up
Production
2007–present
Engine(s)
2.2 L DICOR common rail turbodiesel I4
Related
Tata Sumo Grande
RESEARCH METHODOLOGY
Research Design
“The 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.”
In that project the research design was adopted for the “Descriptive cum
Analytical” The main purpose of such studies is that of formulating a problem for more
precise investigation or of developing the working hypothesis from an operational point
of view
Research design is simply the framework or plan for a study, used as a guide in
collecting and analyzing data. There are three types of Research Design:1. Exploratory Research Design:- The major emphasis in exploratory
Research design is on discovery of ideas and insights.
2. Descriptive Research Design:- The Descriptive Research Design Study is
typically concerned with determining the frequency with which something
occurs or the relationship between two variables.
3. Causal Research Design:- A Causal Research Design is concerned with
determining cause and effect relationship.
Descriptive cum Analytical Research Design is used in my project report .
DATA COLLECTION
Type of data
Primary:- The primary data are those which are collected a fresh and for the
first time as these happen to be original in character.
DATA SOURCE
•
Observation Method
•
Questionnaire
•
Interview
Secondary: - The Secondary 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 taken the secondary data for this project report since the data is
secondary nature so test of sampling have not undertaking
DATA SOURCE
•
SECONDARY DATA COLLECTION
Secondary data were collected from the following sources:
a. Books related to topic
b. Journal
c. Magazines
d. Websites
FINDINGS & ANALYSIS
Do you think the organization is quality conscious toward employees?
Option
Yes
No
Percentage
80%
20%
INTERPRETATION:
Out of 100 respondents 80% say Yes and rest 20% say No.
Does the organization have the certification of ISO 9000?
Option
Yes
No
Percentage
80%
20%
INTERPRETATION:
Out of 100 respondents 80% say Yes and rest 20% say No.
Is the organization providing quality assurance system & operation?
Option
Yes
No
Percentage
75%
25%
INTERPRETATION:
Out of 100 respondents 80% say Yes and rest 20% say No.
Does the organization have quality circle?
Option
Yes
Percentage
80%
No
20%
INTERPRETATION:
Out of 100 respondents 80% say Yes and rest 20% say No.
How many people are involved in quality circle?
Option
Below 10
Above 10
Above 15
Percentage
40%
20%
15%
Can’t Say
25%
INTERPRETATION:
Out of 100 respondents 40% below 10, 20% above 10, 15% below 15, 25% can’t say.
How frequently the organizations have the meeting of quality circle?
Option
Weekly
Monthly
Yearly
Percentage
35%
25%
40%
INTERPRETATION:
Out of 100 respondents 35% say weekly, 25% say monthly, 40% yearly
Do you about the agenda of information or any other information?
Option
Yes
No
Percentage
80%
20%
INTERPRETATION:
Out of 100 respondents 80% say Yes and rest 20% say No.
Are the organization is going for the quality audit?
Option
Yes
No
Can’t Say
Percentage
60%
20%
20%
INTERPRETATION:
Out of 100 respondents 60% say Yes and rest 20% say No and 20% say Can’t Say.
Does your organization have quality information system?
Option
Yes
No
Can’t Say
Percentage
60%
20%
20%
INTERPRETATION:
Out of 100 respondents 60% say Yes and rest 20% say No and 20% say Can’t Say.
Are the information system is regularly updated?
Option
Yes
No
Can’t Say
Percentage
50%
20%
30%
INTERPRETATION:
Out of 100 respondents 50% say Yes and rest 20% say No and 30% say Can’t Say.
Do you think the organization used bench marking, if any, please tell me the name of the
benchmark organization?
Option
Yes
No
Can’t Say
Percentage
50%
20%
30%
INTERPRETATION:
Out of 100 respondents 50% say Yes and rest 20% say No and 30% say Can’t Say.
If yes, then
Org.
a.
b.
Area
Does the organization is going for the brain storming session?
Option
Yes
No
Don’t Know
Percentage
50%
20%
30%
INTERPRETATION:
Out of 100 respondents 50% say Yes and rest 20% say No and 30% say Don’t Know.
Does the organization have the certification of ISO 14000 or any other, if any please
mention?
Option
Yes
No
Don’t Know
Percentage
50%
20%
30%
INTERPRETATION:
Out of 100 respondents 50% say Yes and rest 20% say No and 30% say Don’t Know.
Are you practicing the six sigma for the error control?
Option
Yes
No
Don’t Know
Percentage
50%
20%
30%
INTERPRETATION:
Out of 100 respondents 50% say Yes and rest 20% say No and 30% say Don’t Know.
A formal career planning process exist in the organization
Option
Strongly Agree
Strongly Disagree
Don’t Know Agree
Disagree
Percentage
40%
20%
30%
10%
INTERPRETATION:
Out of 100 respondents 40% say strongly agree, 20% say strongly disagree, 30% say
don’t know agree, 10% disagree.
There is a shared vision of where your business is growing?
Option
Strongly Agree
Strongly Disagree
Don’t Know Agree
Disagree
Percentage
40%
20%
30%
10%
INTERPRETATION:
Out of 100 respondents 40% say strongly agree, 20% say strongly disagree, 30% say
don’t know agree, 10% disagree.
Employees are kept updated with changes in job skills & job designs?
Option
Strongly Agree
Strongly Disagree
Don’t Know Agree
Disagree
Percentage
40%
20%
30%
10%
INTERPRETATION:
Out of 100 respondents 40% say strongly agree, 20% say strongly disagree, 30% say
don’t know agree, 10% disagree.
Formal or informal method is followed for employees feedback and acting on that
feedback?
Option
Strongly Agree
Strongly Disagree
Don’t Know Agree
Disagree
Percentage
40%
20%
30%
10%
INTERPRETATION:
Out of 100 respondents 40% say strongly agree, 20% say strongly disagree, 30% say
don’t know agree, 10% disagree.
Does the organization provide right environment to apply your knowledge from new
programs to the job?
Option
Very Much
Some what little
Not at all
Percentage
50%
20%
30%
INTERPRETATION:
Out of 100 respondents 50% say very much, 20% say some what little & 30% not at all
Do you feel that the organization is a good place to work?
Option
Yes
No
Sometimes
Percentage
50%
20%
30%
INTERPRETATION:
Out of 100 respondents 50% say Yes and rest 20% say No and 30% say sometimes
Do you feel comfortable with rules and policy of the organization?
Option
Yes
No
Sometimes
Percentage
50%
20%
30%
INTERPRETATION:
Out of 100 respondents 50% say Yes and rest 20% say No and 30% say sometimes
Do you feel that you can get ahead in the org. if you make an effort?
Option
Yes
No
Sometimes
Percentage
50%
20%
30%
INTERPRETATION:
Out of 100 respondents 50% say Yes and rest 20% say No and 30% say sometimes
Do you get any reward on your good performance?
Option
Yes
No
Sometimes
Percentage
50%
20%
30%
INTERPRETATION:
Out of 100 respondents 50% say Yes and rest 20% say No and 30% say sometimes
Do you find that your performance is properly measured in the organization?
Option
Yes
No
Sometimes
Percentage
50%
20%
30%
INTERPRETATION:
Out of 100 respondents 50% say Yes and rest 20% say No and 30% say sometimes
Do you find that your job makes the best use of your abilities?
Option
Yes
No
Sometimes
Percentage
50%
20%
30%
INTERPRETATION:
Out of 100 respondents 50% say Yes and rest 20% say No and 30% say sometimes
Thank you for your kind co-operation.
FINDINGS
TATA Motors has been dynamic in inventing new manufacturing strategies owning to
prevailing high level of competition. With this scenario the challenges faced by Original
Equipment Manufacturers (OEM) have also multiplied over the years.
Customers are demanding individualized final products. This is especially true of the
OEM. While the organizations will have some standard base products, the total number
of options that they have to offer to the consumers should be plenty. ERP 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. Hence, the NPI (New Product
Introduction) will greatly help in promoting concurrent engineering.
Automotive industry is characterized by the presence of dedicated customer-supplier
relationships and the competition in the market is between supply chains and not
individual organizations. Hence, supply chain efficiency is thus very important. The
principles of Just-in-Time (JIT), Lean Manufacturing and others become very important
here. ERP will help in promoting these concepts.
Another challenge faced by automotive industry is the pressure to reduce delivery time
and cost. A comprehensive supply chain solution that crosses the organization
boundaries (B2B) is required. Different elements of the supply chain interact very
closely.
Quality Management module with support for advanced features like TQM will help to
promote quality at source. This receives significance owing to the continuous pressure
exerted to cut cost and improve quality.
As the automotive market is extremely price sensitive, the features of comprehensive
costing and kaizen costing will be of special relevance here. Understanding the accurate
cost of manufacturing and identifying all potential areas for reduction of costs is one of
the keys to success.
CONCLUSION
This project concludes that Total Quality Management (TQM) 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 follow-up by the management. Management must
keep its fingers on the pulse of TQM efforts as bringing a change in culture, attitudes,
and beliefs in a sensitive and delicate matter. Problems in implementation are, therefore,
to be expected and are universal in nature. However 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 been 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. Since the benefits of TQM are many
therefore
it doesn’t pervade only to all the sectors of the business but also to the society.
RECOMMENDATIONS
The different aspects of an export contract are enumerated as under :
•
Product, Standards and Specifications
•
Quantity
•
Inspection
•
Total Value of Contract
•
Terms of Delivery
•
Taxes, Duties and Charges
•
Period of Delivery/Shipment
•
Packing, Labeling and Marking
•
Terms of Payment-- Amount/Mode & Currency
•
Discounts and Commissions
•
Licenses and Permits
Consider the points listed below when appointing an Agent :
•
Size of the agent's company
•
Date of foundation of the agent's company
•
Company's ownership and control
•
Company's capital, funds, available and liabilities
•
Name, age and experience of the company's senior executives
•
Number, age and experience of the company's salesman
•
Oher agencies that the company holds, including those of competing products
and turn-over of each
•
Length of company's association with other principal
•
New agencies that the company obtained or lost during the past year
Some source of information on agents are:
•
Government Departments Trade Associations
•
Chambers of Commerce
•
Banks
•
Independent Consultants
•
Export Promotion Councils
•
Advertisement Abroad.
LIMITATIONS
Total quality management programs are based in part on the idea that employees
performing the work can create more efficient and effective processes to produce a
higher-quality product. Total quality management programs typically establish formal
structures such as labor-management committees for sharing decision making between
managers and front-line employees.
TQM focuses on the needs and wants of two types of customers: "internal" customers—
the next people down the line in the work process—and "external" customers—those
who purchase or utilize a good or service. TQM seeks 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 (taxpayers) and their representatives
(elected officials).
Total quality management encourages steady data collection and rational decision
making based on data rather than on impressions or uninformed opinions. Labormanagement committees are one way to collect data about many facets of a complex
issue. Others include customer surveys and careful tracking and documentation of any
cost or time savings. The second component, a philosophy of continual improvement,
encourages employees and managers to exceed current standards. Continuous
improvement is achieved through constant experimentation, learning from mistakes, and
diffusing learning throughout the organization.
Both middle managers and elected officials may resist the total quality management
culture change because it devolves supervisory and decision-making power to TQM
teams and committees. While middle managers and elected officials are formally
involved in several levels of the TQM program in Tompkins County, they are absent
from the committees in Ontario County, and have understandably been more resistant to
the process. Middle managers may also fear for their jobs. Tompkins County is dealing
with this issue by retaining middle managers as top-level technical employees and
ensuring their representation on the TQM committees.
Another limitation of total quality management as a tool for restructuring is its internal
focus. The difficulty in identifying the "customer" for public sector goods and services
and the focus on internal work processes make it hard to truly involve citizens in these
TQM efforts. Both counties seek to identify external customer needs with surveys, and
Tompkins County includes elected representatives on committees, but neither county
includes citizens on committees. In Ontario County, citizen involvement in the TQM
program is slightly greater than in Tompkins, since it includes an advisory council made
up of a select group of local business owners.
Tompkins and Ontario Counties both seem to focus more attention on internal
customers, (through surveys and participation in labor-management committees), 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. Customer
satisfaction surveys in Ontario and Tompkins Counties 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. Finally, because total quality management
focuses primarily on internal work 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.
BIBLIOGRAPHY
BOOKS:-
1) David A. DeCenzo, Stephen P. Robbins – Fundamentals of Human Resource
Management (Eighth Edition), John Wiley & Sons (Asia) Pte Ltd, chapter 6,
pg 144
2) Dessler Gary – Human Resource Management (Tenth Edition), Prentice-Hall
of India
Pvt Ltd, chapter 5,6,7
3) Dubrin J. Andrew – The Practice of Supervision (Second Edition), Business
Publications, INC., 1987, pg- 226
4) Dwivedi R.S - Managing Human Resources , Personnel Management,
Galgotia Publishing Company , Reprint 2002, pg-95.
5) Willium F. Glueek - Personnel: A Diagnostic Approach, (Third Edition),
Plano Tex.: Business Publications, pg-256
WEBSITES:1) www.tatamotor.com
QUESTIONNAIRE
Do you think the organization is quality conscious toward employees?
YES
NO
Does the organization have the certification of ISO 9000?
YES
NO
Is the organization providing quality assurance system & operation?
YES
NO
Does the organization have quality circle?
YES
NO
How many people are involved in quality circle?
Below 10
above 10
above 15
can’t say
How frequently the organizations have the meeting of quality circle?
Weekly
biweekly
monthly
yearly
Do you about the agenda of information or any other information?
YES
NO
Are the organization is going for the quality audit?
YES
NO
can’t say
Does your organization have quality information system?
YES
NO
can’t say
Are the information system is regularly updated?
YES
NO
can’t say
Do you think the organization used bench marking, if any, please tell me the name of the
benchmark organization?
YES
NO
can’t say
If yes, then
Org.
Area
a.
b.
Does the organization is going for the brain storming session?
YES
NO
don’tknow
Are you practicing the 5’s Japanese philosophy ?
YES
NO
Does the organization have the certification of ISO 14000 or any other, if any please
mention?
YES
NO
don’tknow
Are you practicing the six sigma for the error control?
YES
NO
don’tknow
A formal career planning process exist in the organization
Strongly Agree
Don’t know Agree
Strongly disagree
Disagree
There is a shared vision of where your business is growing?
Strongly Agree
Don’t know Agree
Strongly disagree
Disagree
Employees are kept updated with changes in job skills & job designs?
Strongly Agree
Don’t know Agree
Strongly disagree
Disagree
Formal or informal method is followed for employees feedback and acting on that
feedback?
Strongly Agree
Don’t know Agree
Strongly disagree
Disagree
Does the organization provide right environment to apply your knowledge from new
programs to the job?
Very much
Not at all
Some whatLittle
Do you feel that the organization is a good place to
Yes
No
work?
Sometimes
Do you feel comfortable with rules and policy of the organization?
Yes
No
Sometimes
What types of relations are you having with your superior, peers and
Good
Average
subordinates?
Poor
If bad then why it is so?

They are not cooperating.

Their behavior is not good

There is no proper communication.

All above
Do you feel that you can get ahead in the org. if you make an effort?
Yes
No
Sometimes
Do you get any reward on your good performance?
Yes
No
Sometimes
Do you find that your performance is properly measured in the organization?
Yes
No
Sometimes
Do you find that your job makes the best use of your abilities?
Yes
No
Some Times
Thank you for your kind co-operation.