Chapter 4: TQM Implementation in the Selected Firmsshodhganga.inflibnet.ac.in/bitstream/10603/15886/11/11_chapter 3.pdf · India, Sundaram Brake ... manufacturer in India and among

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3.1. Introduction

Before the era of economic liberalization in India, i.e., till the late 1980s, the

automobile-manufacturing sector in India had been stagnant; there were few indigenous

auto manufacturers. One significant event – the start of a new era for Indian automobile

manufacturing – was when, in 1983, Maruti, the Government of India and Suzuki started

manufacturing small cars. The policy of economic liberalization initiated by the

Government of India in 1991 gave a further impetus to the growth of this sector. Major

manufacturers such as General Motors, Hyundai, Fiat, Honda, etc., set up manufacturing

bases in India. With liberalization came increased competition and manufacturers came

under pressure to improve quality – this was necessary for growth in this competitive

market, and, indeed, for survival, automakers begun to implement formal quality

improvement programs, including TQM.

The Indian automobile sector contributes only 5 per cent of the country’s

industrial output, as compared to the 8-10 per cent range in other developing countries

like Mexico and Brazil, and a much higher (15-17 per cent) range in developed countries

like the USA and Germany (Sharma, 2000). India’s car production is only 6.25 per 1000

head of population against 532, 514, 489, and 430 for Italy, the USA, Germany and

France respectively. The World Competitiveness Year Book reports that India remained

at 41st out of 46 countries covered in 1998. The sector thus has a tremendous potential

for growth provided the automobile sector can convince the world that it can produce

products that match those produced elsewhere. This needs an improvement in the quality

of those products – and this itself requires Indian auto companies to address the key

issues that form the core of the TQM philosophy. Bridging the wide gap between the

“best in class” and the present ranking of India on different competitive parameters

provides an enormous challenge, but is a challenge that must be faced if India is to realize

its potential for economic growth.

The present research is a multiple case study to investigate implementation of

TQM in some automotive and automotive components manufacturing firm. Each case is

a unit of analysis. So, within case analysis is performed based on data collected through

interview, questionnaire, documents and observation. As mentioned in chapter one, for

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each company 20 questionnaires were distributed. Five of them were to be completed by

the top managers (human resource manager, general manager, quality assurance manager,

production manager and manager of maintenance department) and the remaining 15

questionnaires were to be completed by the middle managers and supervisors from

different departments. The details of case analysis and then cross-case analysis are

presented in this chapter.

3.2. TVS Motor Company Limited

The TVS group, India's leading supplier of automotive components originated as

a transport company in 1911. Today it has grown to more than thirty three companies and

employs a workforce of over 25,000, grossing an annual aggregate sale in excess of US$

2.6 billion, with diverse range of operations that includes manufacturing and distribution.

With steady growth, expansion and diversification, TVS commands a strong presence in

manufacturing of two-wheelers, auto components and computer peripherals.

The TVS Group includes: Sundaram Fasteners, Lucas TVS, Brakes India, Wheels

India, Sundaram Brake Linings, TVS Motor Company and TVS Electronics. These

companies with their ability to deliver products of the right quality, at the right price and

at the right time have made a mark in the Indian and global markets. Underlying the

success of the group is its philosophy of Trust, Value and Service.

TVS Motor Company Limited, (hereafter referred to as TVS) the flagship

company of the USD 2.2 billion TVS Group, is the third largest two-wheeler

manufacturer in India and among the top ten in the world, with an annual turnover of

over USD 650 million. TVS is the first two-wheeler manufacturer in the world to be

honored with the hallmark of Japanese Quality - The Deming Prize for TQM.

The year 1980 is one to be remembered for the Indian two-wheeler industry, with

the roll out of TVS 50, India's first two-seater moped that ushered in an era of affordable

personal transportation. For the Indian Automobile sector, it was a breakthrough to be

etched in history.

TVS believes that the success of any enterprise is built on the solid foundation of

customer satisfaction. Continuous innovation and close customer interaction have

http://www.tvsmotor.in/article.asp?id=8&aid=1

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enabled TVS companies to stay ahead of competition. The group endeavors to be

competitive without compromising on quality. Quality at TVS determines not only the

end product but the systems, processes and operations at all levels.

Commitment to its people is a fundamental principle of the TVS management

philosophy. The group's concern for the development and welfare of its employees is

deep rooted. From providing drinking water to villages to setting up schools and

hospitals, TVS contributes actively to the development of local communities.

TVS has fully implemented TQM and awarded the prestigious Deming prize in

2002. But winning a Deming is not akin to becoming ISO-certified. It however has not

obtained ISO certificate. According to the Union of Japanese Scientists and Engineers

(JUSE), the Deming is awarded to companies or divisions, which practice TQM suitable

to their management practices, their business and the industry they operate in. On the

other hand, it has obtained ISO 14001, OHSAS and ISO/TS 16949. The company

received quality awards such as:

The Deming Prize -2002

Technology Award- 2002, from Ministry of Science, Government of India for the

successful commercialization of indigenous technology for TVS Victor.

TPM Excellence Award- First category by Japan Institute of Plant Maintenance

(JIPM).

Asian Network for Quality Award -2004

TVS Scooty Pep won the prestigious “Outstanding Design Excellence Award”

from Business World and National Institute of Design.

Having not obtained ISO certificate, it is not surprising that four out of five of the

top managers who were interviewed do not think that ISO is a prerequisite for

implementing TQM. TVS has implemented Japanese model and it took five years to

implement the model.

This company is following such quality programs as Quality Control Circle, Just-

in-time, Statistical Process Control, Quality Audit, Total Productivity Maintenance

http://www.tvsmotor.in/article.asp?id=15&aid=13

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(TPM), FMEA, the PDCA (Plan, Do, Check, Act) cycle, 5 ‘S’, Kaizen and QFD. The

quality tools include check list, flow chart, 7 QC tools and 7 new management tools.

According to JUSE, TQM is a set of systematic activities carried out by the entire

organization to achieve effectively its objectives to provide products or services at a

quality that satisfies customers at the appropriate time and price. And the shortest way to

Deming is to undertake only those activities that are really necessary for its business and

which are unique to its business and scale.

Implementation of TQM in this company has not led to any change in the

organization structure. Neither has any additional staff been employed for the purpose of

implementing TQM. Interestingly, the TVS group adapted to the TQM concepts and

assimilated them in its own 'TVS culture' to the extent that the auditors from JUSE

commended the TQM practices in the group as 'TVS TQM'. The company encourages

and allows its employees to identify and diagnose quality problems and to take corrective

actions without going through the management hierarchy.

Factors Facilitating Successful Implementation of TQM

There are certain factors considered and found by many experts and researchers to

be important and necessary for the successful implementation of TQM. Such factors

identified from survey of empirical studies were presented to the twenty employees who

were selected for interview. Their agreement on these factors as facilitating successful

implementation of TQM is presented in the following table.

Table 3.1. Success Factors of TQM Implementation

Facilitating Factors Strongly

Agree Agree Undecided Disagree Strongly

Disagree

Upper management commitment

and involvement 19 1

Developing employee

involvement 18 2

Employee empowerment 12 7 1

Improving communication

between management and labour 10 9 1

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Disagree

Quick decision making process 9 9 2

Close cooperation among

functions 11 9

Achieving positive change 9 9 2

Improving quality 18 2

Quality training 16 3 1

Use of quality tools 16 4

Role of the quality department 3 8 6 3

Teamwork 18 2

Increasing customer orientation 13 7

Identifying customer

requirements and needs 15 5

Fast response to customer needs 14 5 1

Improving productivity 7 12 1

Promoting export 1 5 10 3 1

Attracting more foreign

investments 5 9 4 2

Upper management commitment, developing employee involvement, close

cooperation among functions, orientation to improve quality, use of quality tools,

orientation to teamwork, increasing customer orientation, and identifying customer

requirements and needs are unequivocally accepted as facilitating factors for the

successful implementation of TQM in this company.

Next to the above, these respondents consider employee empowerment,

improving communication between management and labour, quality training, fast

response to customer needs and orientation to improve productivity as facilitators for the

successful implementation of TQM. While one out of ten is not sure, all others agree that

quick decision making process and achievement of a positive change orientation have

been important for the successful implementation of TQM.

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Role of the quality department as a facilitator for the successful implementation of

TQM is not agreed by three out of twenty; six are not sure about the role of the quality

department. Only three persons strongly agree on the facilitating role of the quality

department. Orientation towards exports and attracting foreign investments have not

been the facilitators or driving forces for the successful implementation of TQM, for only

six and five out of twenty agree respectively on these two factors. Disagreement and

equivocation are found on these two factors besides the role of the quality department.

Table 3.2 Success Factors Descriptive

Mean

Rank Facilitating Factors Minimum Maximum Mean Std.

Deviation

01 Upper management commitment and

involvement

1.00 2.00 1.9500 .2236

02 Developing employee involvement 1.00 2.00 1.9000 .3078

03 Improving quality 1.00 2.00 1.9000 .3078

04 Teamwork 1.00 2.00 1.9000 .3078

05 Use of quality tools 1.00 2.00 1.8000 .4104

06 Quality training .00 2.00 1.7500 .5501

07 Identifying customer requirements

and needs

1.00 2.00 1.7500 .4443

08 Increasing customer orientation 1.00 2.00 1.6500 .4894

09 Fast response to customer needs .00 2.00 1.6500 .5871

10 Employee empowerment .00 2.00 1.5500 .6048

11 Close cooperation among functions 1.00 2.00 1.5500 .5104

12 Improving communication between

management and labour

.00 2.00 1.4500 .6048

13 Quick decision making process .00 2.00 1.3500 .6708

14 Achieving positive change .00 2.00 1.3500 .6708

15 Improving productivity .00 2.00 1.3000 .5712

16 Role of the quality department -1.00 2.00 .5500 .9445

17 Promoting export -2.00 2.00 .1000 .9119

18 Attracting more foreign investments -2.00 1.00 -.1500 .9333

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The most important factors for the successful implementation of TQM at TVS

have been: upper management commitment and involvement, developing employee

involvement, orientation to quality improvement, teamwork, and use of quality tools,

identifying customer requirements and needs, and increasing customer orientation.

Top management commitment is the first prerequisite for a firm’s TQM

implementation efforts. Lack of management commitment is one of the reasons for the

failure of TQM efforts. Top managers need to demonstrate their commitment through

their actions rather than words. Top management commitment can positively affect

employees’ commitment to TQM and culturally change people involved. If top

management views quality as more important than cost, more important than meeting

production schedules, employees’ quality awareness is easily improved. To implement

TQM, top managers should be committed to establishing a firm that continually views

quality as a primary goal. If the organizational culture does not embody quality, any

quality improvement effort is probably shallow and short-lived.

Top management reported "It is a company-wide effort at continuous quality

improvement of all processes, products and services through total employee involvement

that results in increasing customer satisfaction and loyalty, and improved business

results”. Quality training is rated high, but there is a little equivocation as indicated by the

relatively higher standard deviation (one respondent neither agrees nor disagrees). The

manager interviewed reported that there is almost always some kind of employee quality

training going on in our plant.

Close cooperation among functions is agreed to be a facilitating factor by all. But

strong agreement is relatively less compared to the above factors, which is also indicated

by the relatively higher standard deviation. Fast response to customer needs, employee

empowerment, orientation to improve productivity, improving communication between

management and labour are also found to be important factors. Quick decision making

process, achievement of a positive change orientation and orientation to improvement in

productivity come next to these factors as facilitators for the successful implementation

of TQM.

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Barrier Factors in the Implementation of TQM

Successful implementation of TQM depends not only on the presence of

facilitating factors, but also on doing away with the impediments. The following factors

have been identified to be barriers for the implementation of TQM by many researchers.

These were presented to the twenty respondents and they were asked as to how far they

would agree that these factors had acted as barriers in their way to the successful

implementation of TQM. The results are presented along with the factors.

Table 3.3. Barrier Factors of TQM Implementation

Barrier Factors Strongly


Disagree

Fear and resistance to change 10 8 1 1

Costly and long-term study 6 7 6 1

Lack of government commitment 7 11 2

Lack of consistent top management

commitment 4 11 4 1

Lack of competent management 1 12 1 5 1

Lack of qualified quality consultants 7 5 5 3

Inadequate knowledge about TQM 12 8

Inadequate planning 8 9 1 2

Difficulty in developing company

specific models 2 10 4 4

Resource limitations 12 4 4

Lack of training 8 8 1 3

Lack of skills of workers 7 5 3 4 1

Reluctance of workers to involve in

decision making 9 3 7 1

Employee apathy 5 5 9 1

Lack of coordination between

departments 6 8 6

Ineffective maintenance programs 9 11

Poor condition of machines 5 13 12

90

Inadequate knowledge of TQM at the initial stages is unequivocally considered to

be the most important barrier in the implementation of it. Fear and resistance to change

has also been pointed as an important barrier to consider while implementing TQM. Nine

out of ten respondents agree on this. Inadequate planning is also agreed upon as a barrier

by seventeen out of twenty respondents; two disagree on this. Lack of training is agreed

to be a barrier by sixteen respondents; however, three disagree that this has been a barrier

in implementing TQM.

Implementing TQM involves long term study, which is costly and this has acted

as a barrier according to thirteen out of twenty respondents; however, six could not say

anything about this. Lack of consistent top management commitment has evoked

equivocal responses. While eleven agree on this four respondents strongly agree;

however, four disagree and one strongly disagrees that this has been a barrier. Lack of

skills on the part of workers has been a barrier according to twelve respondents; five do

not think this has been a barrier.

Difficulty in developing company specific models and resource limitations has

been barriers according to twelve respondents; four disagree. Reluctance of workers to

involve in decision making, employee apathy, lack of coordination between departments

and lack of qualified quality consultants have also been agreed as barriers, but by few.

Lack of government commitment, ineffective maintenance programs and poor condition

are not found to be barriers.

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Table 3.4. Barrier Factors Descriptive

Mean

Rank Barrier Factors Minimum Maximum Mean Std.

Deviation

01 Inadequate knowledge about TQM 1.00 2.00 1.6000 .5026

02 Fear and resistance to change -1.00 2.00 1.3500 .8127

03 Inadequate planning -1.00 2.00 1.1500 .9333

04 Lack of training -1.00 2.00 1.0500 1.0501

05 Costly and long-term study -1.00 2.00 .9000 .9119

06 Lack of consistent top management

commitment

-2.00 2.00 .6500 1.1821

07 Lack of skills of workers -2.00 2.00 .6500 1.3089

08 Difficulty in developing company

specific models

-1.00 2.00 .5000 .9459

09 Resource limitations -1.00 1.00 .4000 .8208

10 Lack of competent management -2.00 2.00 .3500 1.0894

11 Reluctance of workers to involve in

decision making

-2.00 1.00 .0000 1.0260

12 Lack of coordination between

departments

-1.00 1.00 .0000 .7947

13 Lack of qualified quality consultants -2.00 1.00 -.2000 1.1050

14 Employee apathy -2.00 1.00 -.3000 .9234

15 Ineffective maintenance programs -1.00 .00 -.5500 .5104

16 Lack of government commitment -2.00 .00 -.7500 .6387

17 Poor condition of machines -2.00 .00 -.8500 .5871

The high mean score and low standard deviation for the item, inadequate

knowledge about TQM, clearly shows that it has been accepted unequivocally as a barrier

while implementing TQM. Nobody has any doubt about this. Top managers need to

improve their managerial abilities through continuous learning. To implement TQM, they

must first know what it is. Learning TQM is an important step toward implementing it.

Top managers should be modest enough to learn from their employees and value the

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ability of their creativity. Top managers also need to learn from other organizations’

successful and unsuccessful experiences, as well as modern management methods from

foreign firms. Above all, top managers should combine these insights into an approach

that fits the specific conditions, problems, and challenges of their own firms. Through top

management learning, a learning organization can be established. The effectiveness of

leadership can be improved and the ability of decision-making enhanced.

Next important barrier to consider is fear and resistance to change. Inadequate

planning and lack of training are also important barriers in the way of implementing

TQM. However, there is some disagreement indecision about these factors as barriers as

shown by the relatively greater standard deviations as compared to the factor of

inadequate knowledge about TQM.

In that order come three more important factors to consider viz. costly and long

term study, lack of consistent top management commitment and lack of worker skills.

However, the responses with regard to these are not consistent; especially in the case of

lack of consistent top management commitment and lack of worker skills where the

standard deviations are greater. Difficulty in developing company specific model for

TQM is also an important barrier. Resource limitations and lack of competent

management are also considerable as barriers.

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Table 3.5. Achievements after TQM

Achievements Strongly


Disagree

Increase in customer satisfaction 12 8

On-time delivery 7 13

Decrease in defects 9 11

Decrease in work accidents 7 10 3

Decrease in work-in-progress 7 11 1 1

Increase in work satisfaction 6 11 3

Achieving teamwork 13 7

Improvement in productivity 9 11

Development of new products 5 3 9 3

Quality improvement 13 7

Decrease in internal quality costs 3 9 8

Decrease in external quality costs 1 11 8

Decrease in appraisal costs 2 6 11 1

Decrease in price 2 9 5 2 2

Increase in profitability 4 7 8 1

Increase in market share 2 4 13 1

Improvement in safety levels 1 7 12

Improvement in morale 5 13 2

When asked about the benefits that the company has derived from implementing

TQM, all the respondents agree that the company has experienced an increase in

customer satisfaction, on-time delivery, decrease in defects, achievement of teamwork

and quality improvement. Improvement in morale is an achievement according to

eighteen out of twenty whereas two are undecided about it. Decrease in work accidents

and increase in work satisfaction are also agreed to be achievements; three, however, are

undecided about these two achievements.

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Twelve out of twenty think that there is decrease in both internal as well as

external quality costs while eight are uncertain about it. While eight say that there is

improvement in safety levels, twelve are uncertain. Decrease in wok-in-progress is

another noteworthy achievement; one respondent however disagrees and another is

uncertain. There has been an increase in profitability after implementing TQM,

according to eleven respondents. However, eight are uncertain about this while one

strongly disagrees. According to eight respondents the company has successfully

developed new products as a result of implementation of TQM. Three disagree while nine

are undecided about this.

Eight respondents agree that there is decrease in appraisal costs. Eleven are

uncertain about this while one disagrees. While six say that there is an increase in market

share, many are uncertain and one disagrees. Difference of opinion is greater with regard

to decrease in price as an achievement. While eleven agree, of whom two strongly agree,

two disagree and two strongly disagree. Five are uncertain.

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Table 3.6. Achievements Descriptive

Mean

Rank Achievements Minimum Maximum Mean

Std.

Deviation

01 Achieving teamwork 1.00 2.00 1.6500 .4894

02 Quality improvement 1.00 2.00 1.6500 .4894

03 Increase in customer satisfaction 1.00 2.00 1.6000 .5026

04 Decrease in defects 1.00 2.00 1.4500 .5104

05 Improvement in productivity 1.00 2.00 1.4500 .5104

06 On-time delivery 1.00 2.00 1.3500 .4894

07 Decrease in work accidents .00 2.00 1.2000 .6959

08 Decrease in work-in-progress -1.00 2.00 1.2000 .7678

09 Increase in work satisfaction .00 2.00 1.1500 .6708

10 Improvement in morale .00 2.00 1.1500 .5871

11 Decrease in internal quality costs .00 2.00 .7500 .7164

12 Decrease in external quality costs .00 2.00 .6500 .5871

13 Increase in profitability -2.00 2.00 .6500 .9881

14 Development of new products -1.00 2.00 .5000 1.0513

15 Decrease in appraisal costs -1.00 2.00 .4500 .7592

16 Improvement in safety levels .00 2.00 .4500 .6048

17 Decrease in price -2.00 2.00 .3500 1.1367

18 Increase in market share -1.00 2.00 .3500 .7452

The managers believe that for all the TVS group winners, it was a hard grind

before they won the Deming. However, it has been worth it all as the benefits have

helped beef up the top and bottom lines of each of the recipients. Customer line rejections

and plant in process rejections significantly decreased after implementing TQM. Number

of employee suggestions went from 280 to 7500 during the period of implementation. In

other words, TQM represented a dramatic and measurable improvement across many

specific metrics that would impact the company.

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Analysis of the order of achievements in terms of the respondents’ agreement,

three benefits viz. achievement of teamwork, quality improvement and increase in

customer satisfaction top the list with far less equivocation as shown by the mean scores

and standard deviations. TVS implements Kaizen concepts for continuous improvement

for individual and group. Every department has Kaizen corner. For any improvement

done through suggestion scheme by employee (individual) and group of employees

(supervisors will be the facilitator), they are given cash awards. There are some other

team work activity such as SIT (Supervisor Improvement Team), CFT (Cross Functional

Team) and QCC (Quality Control Circle) for group of employees in this company.

TVS is using various quality tools and techniques such as statistical process

control, the seven QC tools, and the PDCA cycle, which had positive effects on

improving their product quality. Decrease in defects and improvement in productivity are

also noteworthy achievements. On-time delivery has also been achieved as a result of

implementation of TQM. The company successfully implemented TPM (Total Productive

Maintenance) for decreasing defects and improving productivity and received TPM

excellence award. The eight pillars of TPM implemented are:

Jishu Hozen

Planned maintenance

Quality maintenance

Kobetsu Kaizen

Education and training

Development management

Office TPM

Safety, healthy and environment

Other important achievements include decrease in work accidents, decrease in

work-in-progress, increase in work satisfaction and improvement in morale. There is

some difference of opinion with regard to the first three as shown by the relatively higher

standard deviations. In this regard, they use two types of Tags namely White tags and

Red tags. White tags for activities to be done by the operator e.g. tightening of loose

bolts, replacement of missing parts, filling up of lubrication, fixing of covers and red tags

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for activities to be done by PMD e.g. rerouting of cables, arresting oil leakages,

replacement of worn out machine parts. At the end of month, employees will get prize

based on the number of tags they have used.

In the same way, decrease in internal quality costs and decrease in external quality

costs have been achieved. Increase in profitability is another benefit, but with more

equivocation. Top management reports that “TVS Motor experienced significant increase

in sales after receiving the Deming medal. Company’s turnover, which was around

Rs. 1940 crore in 2001-02, went up over Rs. 2700 crore in 2002-03.

Table 3.7. Core Values for implementation of TQM

Core values Strongly


Disagree

Top management commitment 19 1

Everybody being committed 13 7

Continuous improvement 15 5

Decisions based on facts 12 8

Focus on customers 17 3

Focus on process 11 9

Decrease in quality costs 4 14 1 1

Improvement in productivity 10 9 1

Decrease in price 3 12 3 2

Promotion of export 5 7 4 1 3

Asked about the core values the organization focused on at the beginning of the

implementation of TQM, all the twenty respondents unequivocally agree on six core

values viz. top management commitment, everybody being committed, continuous

improvement, decisions based on facts, focus on customers and focus on process. With

one disagreement, improvement in productivity is another important core value. Decrease

in quality costs is another value with more agreement; one disagrees and one is

undecided. Decrease in price and promotion of export are also agreed upon as core values

by many. However, uncertainty and disagreement are also there to a considerable extent

with regard to these values.

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Table 3.8. Core Values Descriptive

Mean

Rank Core Values Minimum Maximum Mean

Std.

Deviation

01 Top management commitment 1.00 2.00 1.9500 .2236

02 Focus on customers 1.00 2.00 1.8500 .3663

03 Continuous improvement 1.00 2.00 1.7500 .4443

04 Everybody being committed 1.00 2.00 1.6500 .4894

05 Decisions based on facts 1.00 2.00 1.6000 .5026

06 Focus on process 1.00 2.00 1.5500 .5104

07 Improvement in productivity -1.00 2.00 1.4000 .7539

08 Decrease in quality costs -1.00 2.00 1.0500 .6863

09 Decrease in price -1.00 2.00 .8000 .8335

10 Promotion of export -2.00 2.00 .5000 1.3572

Among all the core values that were organization’s focus in the beginning of the

implementation of TQM, the most important have been top management commitment

and focus on customers. They top the means score rank order with smaller standard

deviations, which means that there is greater unanimity. Next to them are continuous

improvement and everybody being committed. The company also focused on the values

of decisions based on facts and focus on process.

Improvement in productivity and decrease in quality costs are also mostly agreed

upon as the core values with which the company started to implement TQM. But there is

some disagreement on this. Relatively more disagreement is there on decrease in price

and promotion of export as the core values.

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Table 3.9. TQM Goals

Goals Strongly

Agree Agree Undecided Disagree

Strongly

Disagree

To generate competitive power 9 10 1


To improve quality 15 5

To achieve a quality culture in

the long-term 18 2

To receive quality award 5 9 4 1 1

Satisfied customers 17 3

Satisfied employees 11 9

To improve productivity 7 10 3

To achieve lower costs 1 15 4

Business excellence 16 4

As for the goals with which the company started to implement TQM, nineteen

respondents felt it was to generate competitive power. All agree that it was to have

continuous improvement and to improve quality culture in the long term. Seventeen

respondents strongly agree that the goal was to achieve customer satisfaction. All agree

that it was also to achieve employee satisfaction. Sixteen out of twenty respondents

strongly agree that business excellence was the goal of the company. To improve

productivity was the goal according to seventeen respondents. The company

implemented TQM to achieve lower costs according to sixteen respondents; however

four are uncertain about it. Uncertainty and disagreement is relatively greater when asked

if the goal was to receive quality award.

100

Table 3.10. TQM Goals Descriptive

Mean

Rank TQM Goals Minimum Maximum Mean

Std.

Deviation

01 To achieve a quality culture in the long-term 1.00 2.00 1.9000 .3078

02 Satisfied customers 1.00 2.00 1.8500 .3663


04 Business excellence 1.00 2.00 1.8000 .4104

05 To improve quality 1.00 2.00 1.7500 .4443

06 Satisfied employees 1.00 2.00 1.5500 .5104

07 To generate competitive power .00 2.00 1.4000 .5982

08 To improve productivity .00 2.00 1.2000 .6959

09 To achieve lower costs .00 2.00 .8500 .4894

10 To receive quality award -2.00 2.00 .8000 1.0563

To achieve a quality culture in the long term and to have satisfied customers were

the most prioritized goals with which the company started to implement TQM, for these

two items rank the first and second in the mean score order with smaller standard

deviations. To achieve continuous improvement and business excellence and to improve

quality comes as the next prioritized goals. To have satisfied employees and to generate

competitive power were also important goals. With some equivocation improvement in

productivity is also agreed to have been a goal. To achieve lower costs was also a goal,

but it was not a prioritized one. There is no unanimity that the company started to

implement TQM to receive quality award.

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Table 3.11. Goals and Achievements

Major Goals

Satisfied customers

Business excellence

To improve quality

Satisfied employees

To improve productivity

Major Achievements

Quality improvement

Increase in customer satisfaction

Improvement in productivity

Increase in work satisfaction

Minor Goals

To achieve lower costs

Minor Achievements

Decrease in internal quality costs

Decrease in external quality costs

Decrease in appraisal costs

Increase in market share

Customer satisfaction has been a major goal for this company and one of its major

achievements is an increase in customer satisfaction after the implementation of TQM.

The company also had quality improvement, employee satisfaction and improvement in

productivity as major goals which have been realized by implementing TQM. It also had

business excellence as a major goal. However, increase in market share has not been a

major but minor achievement. Achieving lower costs has been a minor goal for this

company and it has witnessed decrease in internal and external quality costs as well as in

appraisal costs as minor achievements.

Table 3.12. Side Effects of TQM

Side effects Strongly


Strongly

Disagree

Decrease in productivity 3 12 5

Higher costs 3 15 2

More paper 5 6 8 1

Decrease in market share 3 10 7

Higher stock level 5 9 6

Higher staff turnover 7 8 5

Increase in number of staff 1 5 12 2

Weakened morale 3 10 7

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When presented with certain items as the probable side effects of the

implementation of TQM, the respondents largely dismissed almost all of them. Only five

respondents say that there has been more paper work after the implementation of TQM.

One respondent says that there has been an increase in the number of staff because of the

implementation of TQM. Obviously they have not experienced any decrease in

productivity, for they have already stated that they have experienced improvement in

productivity after the implementation of TQM. When they have largely agreed that

implementation of TQM has resulted in cutting down the internal as well as external

quality costs, they do not see any higher costs resulting because of it. The foremost

benefit of the implementation of TQM is achieving teamwork. Nobody thinks that morale

has in anyway been weakened. However there is some degree of uncertainty about all

these. For some respondents could not say decisively whether such side effects have

happened or whether they have happened as a result of the implementation of TQM.

Most of the respondents say that TQM has increased productivity and the overall opinion

is that TQM has a positive effect on the organization.

103

3.3. Rane (Madras) Limited

The Rane Group, amongst the oldest and most forceful group in the automotive

component industry was founded over six decades ago. Beginning modestly in 1929 as

“Rane Private Limited”- trading in automobiles and parts. Rane has moved over the years

to become a manufacturer and leader today in each of its major product lines. Rane

exports its products to over 20 countries.

Founded in 1929

Eight group companies

Global partnerships

Access to best technology

TQM - A way of life

Modern facilities

Supply to every segment of auto industry

Wide range of products

Preferred OEM supplier

Exports to 20 countries

Turnover: USD 271 million (for the year 2005-06)

Rane group comprises of a holding company and seven manufacturing companies

serving different segments:

1. Rane Holdings Limited (Holding Company)

2. Rane (Madras) Limited (Manual Steering & Suspension Systems)

3. Rane Engine Valves Limited (Engine Valves, Valve Guides, Tappets)

4. Rane Brake Linings Limited (Brake Linings, Disc Pads, Clutch Facings and

Composite Brake Blocks)

104

5. Rane TRW Steering Systems Limited (Power Steering Systems, Seat Belt

Systems)

6. Rane NSK Steering Systems Limited (Energy Absorbing Steering Columns)

7. Kar Mobiles Limited (Large Engine Valves for Automotive & Defence

Applications)

8. Rane Diecast Limited (High Pressure Die Casting Products)

Mission and Value:

Provide superior products and services to our customers and maintain market

leadership

Evolve as an institution that serves the best interests of all stakeholders

Pursue excellence through total quality management

Ensure the highest standards of ethics and integrity in all our actions

Rane (Madras) Limited, Mysore plant commenced manufacturing operations in

1960 and is a manufacturer of steering & suspension systems for every segment of

automobile industry, i.e., Passenger cars, Multi utility vehicles, Light commercial

vehicles, Heavy commercial vehicles and Farm tractors. The company has strategic

technical partnerships with M/s. TRW Inc, USA for Steering Gear Products & TRW

Ehrenreich GmbH & Co. and Germany for Steering Linkage Products. RML holds major

market share in India both in Manual steering gear systems & suspension systems. RML,

Mysore interacts with Marketing and Research and Development at Chennai for Product

design, Customer interfacing process and Product functional testing.

Vision:

To position RML as a global ball joint supplier through customer focus

To retain leadership in the domestic steering gear market and penetrate

chosen export markets

105

Rane group embraces TQM as a way of life. Three of the group companies

namely Rane Engine Valves Limited, Rane Brake Linings Limited and Rane TRW

Steering Systems Limited have been conferred the coveted Deming prize for successful

implementation of TQM in their organizations. With passage of time RML, Mysore

found it difficult to meet the growing market demand and it became increasingly difficult

to meet customer demands. As the automobile industry kept pace with the international

scenario, customer expectations of quality, price and delivery was on the rise.

Competition was also fierce. So, implementation of TQM became essential for RML.

RML has fully implemented TQM and has applied for Deming award. Diagnosis

part of plant’s activities, a step before announcing of the award has completed by the

Union of Japanese Scientists and Engineers (JUSE). The company has taken appropriate

steps to incorporate the suggestions made by JUSE during the audit for the Deming

medal. The company has obtained ISO-9001 certificate. It also has obtained certificates

of ISO-14001, OHSAS and ISO/TS16949-2002.

Unlike the Case one (TVS) organization (which has not obtained ISO certificate

and where four out of five of the top managers do not think that ISO is a prerequisite for

implementing TQM), in the present organization four out of five top managers assert that

ISO is a prerequisite for implementing TQM. In this company TQM was introduced by

the parent company, and it is modeled upon the Japanese Model. It has taken 5 years to

implement TQM.

This company is following such quality programmers as Quality Control Circle

(QCC), Just-in-time (JIT), Statistical Process Control (SPC), Quality Audit, Total

Productivity Maintenance (TPM), FMEA, the PDCA (Plan, Do, Check, Act) cycle,

Kaizen and QFD. The quality tools include check list, flow chart, seven QC tools and

seven new management tools. Implementation of TQM in this company has not led to

any change in the organization structure. Neither has any additional staff been employed

for the purpose of implementing TQM. The company encourages and allows its

employees to identify and diagnose quality problems and to take corrective actions

without going through the management hierarchy.

106




Strongly

Disagree



Developing employees

involvement 15 5



between management and labour 6 14

Quick decision making process 1 19


functions 8 12


Improving quality 13 6 1


Use of quality tools 11 8 1

Role of the quality department 1 11 7 1

Teamwork 13 7




Fast response to customer needs 10 10


Promoting export 3 11 5 1


investments 1 9 9 1

As for the facilitating factors for the successful implementation of TQM in this

company, upper management commitment and involvement, developing employee

involvement, improving communication between management and labour, quick decision

making process, close cooperation among functions, teamwork, increasing customer

107

orientation, identifying customer requirements and needs and fast response to customer

needs are held to be the facilitating factors without any doubt. All of the twenty

respondents either agree or strongly agree on these factors as facilitators. Of these, upper

management commitment and involvement and developing employee involvement have

much of strong agreement.

With little equivocation where one respondent is undecided, improving quality,

quality training and use of quality tools are also essential facilitators for the successful

implementation of TQM in this organization. Achieving positive change and improving

productivity are also important facilitators, with two respondents being undecided about

these. Employee empowerment has been a facilitating factor for the successful

implementation of TQM in this organization according to nineteen out of twenty

respondents; one respondent disagrees on this.

With five respondents being uncertain and one disagreeing, promoting export is

also held to be a facilitating factor by fourteen of the respondents. It is noteworthy that a

considerable number of the respondents, seven, are not sure if the role of the quality

department has anything to do with the successful implementation of TQM; one even

disagrees. Attracting more foreign investments has been a facilitator according to ten

respondents, of whom only one strongly agrees on this. Nine are uncertain and one

strongly disagrees.

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Table 3.14. Success Factors Descriptive

Mean

Rank Facilitating Factors Minimum Maximum Mean

Std.

Deviation


involvement

1.00 2.00 1.8000 .4104

02 Developing employees involvement 1.00 2.00 1.7500 .4443

03 Teamwork 1.00 2.00 1.6500 .4894

04 Improving quality .00 2.00 1.6000 .5982



07 Use of quality tools .00 2.00 1.5000 .6070

08 Identifying customer requirements and

needs

1.00 2.00 1.5000 .5130

09 Fast response to customer needs 1.00 2.00 1.5000 .5130

10 Employee empowerment -1.00 2.00 1.4000 .7539





1.00 2.00 1.3000 .4702


15 Quick decision making process 1.00 2.00 1.0500 .2236



18 Attracting more foreign investments -2.00 2.00 .4500 .8256

The rank ordered mean scores in the above table shows that the most essential

facilitating factors for the successful implementation of TQM in this organization have

been upper management commitment and involvement, developing employee

involvement and teamwork. Unanimity on these factors is far more with far less standard

deviations. This supposes that when top management engages in implementing new

109

innovative managerial tools, the need and opportunity of introduction of TQM strategy is

increased to improve the whole operations performance. It is very difficult to improve

product quality and quality management if top managers do not lead and participate.

Quality improvement involves making decisions and creates something that did not exist

before. There is no way that a manufacturing firm can implement quality improvement

activities if the top managers are bystanders. Top management participation is crucial to a

firm’s quality improvement efforts; it obviously helps in spreading quality consciousness

throughout a firm. Based on the observation of the documents released by this company it

has come out that, as part of continuous improvement plan it was imperative to involve

employees to tap their potential in experience, ideas and creativity. Two major activities

were introduced: Suggestion scheme and QCC.

In suggestion scheme the operators are encouraged to give suggestions on all

facets of plant activities. These suggestions are scrutinized by a committee. Cash awards

are given to all accepted suggestions in the monthly communication meetings.

Implemented suggestions have resulted in quality improvement, cost savings, machine

related improvements, safety improvements etc.

All operators are trained in the QC story steps and seven QC tools. Teams are

formed by the operators working in the same area and facilitated by shop supervisor. They

select problems that occur in their work area and solve them, using the QC story

methodology. Each completed QCC project, is evaluated by the management and cash

award is distributed in the monthly communication meeting.

Orientation to improving quality and increasing customer orientation are also

important facilitating factors. Quality improvement plans are activities that establish the

objectives and requirements for quality and the application of quality system elements.

The plans should be made in such a way that they can be implemented in practice, and

should focus on eliminating the major problem areas. When quality improvement plans

are drawn up, how to implement them should be well developed. Next to them,

achieving positive change, use of quality tools, identifying customer requirements and

needs and fast response to customer needs are also important factors with no

110

disagreement or uncertainty. Only the degree of agreement is slightly less than that of the

previously stated factors.

Apart from these factors, the other notable factors are employee empowerment,

close cooperation among functions, quality training, and improving communication

between management and labour. Orientation to improving productivity and quick

decision making process have also facilitated the successful implementation of TQM.




Strongly

Disagree

Fear and resistance to change 12 8

Costly and long-term study 13 6 1

Lack of government commitment 2 10 6 2


commitment 5 10 2 3

Lack of competent management 5 9 1 5

Lack of qualified quality

consultants 1 6 3 10

Inadequate knowledge about TQM 11 8 1



specific models 4 6 2 7 1



Lack of skills of workers 2 8 3 7

Reluctance of workers to involve

in decision making 8 4 8



departments 2 9 9

Ineffective maintenance programs 3 9 8


111

Fear and resistance to change has been the most important barrier this

organization has encountered while introducing TQM. All agree on this, with three out of

five strongly agreeing. Nineteen out of twenty respondents agree that implementation of

TQM involved costly and long term study which had been a barrier. Thirteen are strong

in their opinion while one is uncertain.

One important barrier encountered by the organization while implementing TQM

is their inadequate knowledge about TQM; nineteen agree on this while one disagrees.

Inadequate planning has also been mentioned as a barrier by eighteen of the respondents

of whom eleven strongly agree on this; one disagrees while one is uncertain.

Lack of consistent top management commitment and lack of competent

management are mentioned to have been barriers with some equivocation. Three disagree

with regard to the former and five with regard to the latter. While ten respondents agree

that difficulty in developing company specific model was a barrier, eight disagree.

Whereas ten agree that resource limitation was a barrier, five disagree and five are

uncertain.

Lack of training and lack of worker skills were also barriers according to ten

respondents. However, nine disagree over the former and seven over the latter. The

respondents are equally divided in their opinion on reluctance of workers to involve in

decision making as a barrier; while eight agree eight disagree and four are uncertain.

Lack of qualified quality consultants has been a barrier according to seven; however ten

disagree on this. While most are uncertain and five disagree, only three respondents say

that employee apathy was a barrier in implementing TQM in their company. All other

factors are more disagreed than agreed as barriers.

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Mean

Rank Barrier Factors Minimum Maximum Mean

Std.

Deviation

01 Fear and resistance to change 1.00 2.00 1.6000 .5026

02 Costly and long-term study .00 2.00 1.6000 .5982

03 Inadequate knowledge about TQM -1.00 2.00 1.4500 .7592

04 Inadequate planning -1.00 2.00 1.4000 .8208


commitment

-1.00 2.00 .8500 .9881



specific models

-2.00 2.00 .2500 1.2927



10 Lack of training -1.00 2.00 .1000 1.0712


decision making

-1.00 1.00 .0000 .9177

12 Lack of qualified quality consultants -1.00 2.00 -.1000 1.0208

13 Employee apathy -2.00 1.00 -.1500 .7452

14 Ineffective maintenance programs -1.00 1.00 -.2500 .7164


departments

-1.00 1.00 -.3500 .6708

16 Poor condition of machines -1.00 1.00 -.3500 .6708

17 Lack of government commitment -2.00 1.00 -.4000 .8208

When the mean scores are rank ordered, fear and resistance to change and costly

and long term study are ahead of the barriers list with more unanimity as evidenced by

the low standard deviations. The decision to implement TQM affects areas such as

product design, which needs to incorporate customer-defined quality. Processes are then

redesigned in order to produce products with higher quality standards. Job design is

affected, as workers need to be trained in quality tools and become responsible for

rooting out quality problems. Also, supply chain management is affected as their

113

commitment to quality translates into partnering with suppliers. Virtually every aspect of

the operations function may change to support the commitment toward total quality

management. Middle managers and employees may get fear to loose their position.

Inadequate knowledge about TQM and inadequate planning are also important

barriers while implementing TQM. This company has experienced these four as

considerable impediments in their way to TQM. Other notable barriers include lack of

consistent top management commitment and lack of competent management. The rest of

the factors as shown in the bottom rows of the table are less agreed to have been barriers

in implementing TQM in this company.




Strongly

Disagree



Decrease in defects 7 10 3

Decrease in work accidents 4 12 3 1

Decrease in work-in-progress 1 14 3 2

Increase in work satisfaction 3 14 2 1



Development of new products 1 11 8


Decrease in internal quality costs 1 15 3 1

Decrease in external quality costs 1 15 3 1

Decrease in appraisal costs 14 4 2


Increase in profitability 2 17 1

Increase in market share 2 14 4



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After implementing TQM, this company has achieved an increase in customer

satisfaction according to all the respondents interviewed; eleven of them strongly agree

on this. All agree that on-time delivery has also been achieved by the company.

Achieving teamwork has also been mentioned as a benefit of TQM by all the

respondents. Obviously as a result of the implementation of TQM quality improvement

has been realized as agreed by all the respondents.

Improvement in productivity is another major achievement of the company as a

result of TQM. Increase in profitability and improvement in morale are also significant

achievements. With regard to these three factors as achievements after the

implementation of TQM, only one respondent is unsure in each case. Three respondents

are undecided whether decrease in defects has been an achievement resulting from TQM;

the rest all agree that it is an achievement. Sixteen of the respondents think that the

company has experienced an increase in market share after implementing TQM; four are

uncertain. There has been an improvement in safety levels according to fourteen

respondents; however, six are not sure about this. While twelve respondents state that

implementation of TQM has led to development of new products, eight are uncertain

about this.

With some equivocation it is generally agreed that after implementing TQM the

company has experienced decrease in work accidents, decrease in work-in-progress,

increase in work satisfaction, and decrease in internal and external quality costs and also

decrease in price. There is some disagreement and uncertainty with regard to these factors

as resultants of the implementation of TQM.

115


Mean


Std.

Deviation




04 On-time delivery 1.00 2.00 1.4000 .5026

05 Improvement in productivity .00 2.00 1.3500 .5871


07 Decrease in defects .00 2.00 1.2000 .6959

08 Increase in profitability .00 2.00 1.0500 .3940

09 Decrease in work accidents -1.00 2.00 .9500 .7592

10 Increase in work satisfaction -1.00 2.00 .9500 .6863

11 Increase in market share .00 2.00 .9000 .5525

12 Decrease in internal quality costs -1.00 2.00 .8000 .6156

13 Decrease in external quality costs -1.00 2.00 .8000 .6156


15 Decrease in work-in-progress -1.00 2.00 .7000 .7327

16 Development of new products .00 2.00 .6500 .5871

17 Decrease in appraisal costs -1.00 1.00 .6000 .6806


The rank ordered mean scores in the above table show that there are four

significant achievements or benefits the company has experienced after implementing

TQM, viz. quality improvement, increase in customer satisfaction, achieving teamwork

and on-time delivery. TQM stresses that quality is an organizational effort. Based on the

documents collected, before the introduction of TQM in this company the customer OE

Line rejections were greater than 8000ppm. These rejections were solved using a reactive

116

approach and not a proactive one. Corrective actions were not monitored for continued

effectiveness.

To facilitate the solving of quality problems, it places great emphasis on

teamwork. In the pre-TQM period, machine shop rejections were in excess of 15000

PPM. The manufacturing department lacked a sense of ownership for quality issues as it

was seen as an issue for the QA. Problem solving was based only on intuition and was

not structured. In addition to this the operators were not involved in problem solving.

After introduction of TQM, DRM is practiced in the shop floor in every Module.

There are 9 DRM locations and each location consists of the monitoring charts for

Quality, Cost, Delivery, Safety and Morale (QCDSM). Performance monitoring and root

cause analysis, for the gaps, is done by the Module leaders. This practice has significantly

improved Quality and Productivity. All manufacturing processes are completely

documented with respect to procedural instructions.

1. Steps to start the machines.

2. Steps to how to set the job.

3. Steps to how to run the process - What parameters and what tools?

4. How to check with what gauges and instruments?

5. Safety instructions.

These Standard Operating Procedures (SOPs) were introduced with a view to

standardize the processes and improve product quality. It was very evident that SOPs

were not static documents. Quality improvements achieved from QITs/QCCs, Analysis of

Rejections and Non Conformances, Kaizen and Standardization activities, triggers the

SOP revisions. The history of changes is recorded for future reference. This system is a

part of the “Continuous Improvement” program.

The contributions of teams are considered vital to the success of the company. For

this reason, the company sets aside time in the workday for team meetings. Teams vary in

their degree of structure and formality, and different types of teams solve different types

of problems. One of the most common types of teams is the quality circle, a team of

volunteer production employees and their supervisors whose purpose is to solve quality

117

problems. The teams usually meet weekly during work hours in a place designated for

this purpose. They follow a preset process for analyzing and solving quality problems.

Two other prominent achievements are improvement in productivity and improvement in

morale. Other remarkable benefits that follow the order are decrease in defects and

increase in profitability. In the pre-TQM period, even though the equipment availability

was less than 70 per cent no corrective steps were initiated. Machine-breakdowns were

addressed by plant engineering, while other losses were ignored. No structured approach

was adopted to improve the availability of capacity critical machines. Focus on general

Productivity Improvements was less and not systematically planned and deployed.

Productivity improvements were driven through cellular manufacturing, operation cycle

time reduction, set up time reduction, multi machine manning (optimized through use of

man machine charts), use of time standards, Equipment and Tool up-gradation, cost

effective new technology, and LPS (with SPF) introduction. Capacity Critical areas were

selected for improvements. Improvements were achieved through systematic planning

and deployment of targets & measurement of achievements. Productivity improvements

are included in DRM practices followed in the plant.

Machine breakdowns affected the productivity of the plant. TQM practices helped

RML move from a reactive mode of handling the situation to a preventive mode.

Machine breakdowns are effectively analyzed through why - why analysis approach.

Interim and permanent corrective actions are implemented. The effectiveness of

countermeasures is monitored. Planned maintenance activities are carried out through

Preventive maintenance and Predictive maintenance. They are carried out with the help

of checklists. PM schedules/Checklists are revised based on lessons.

Decrease in work accidents, increase in work satisfaction, increase in market

share are also largely agreed to be as benefits of the implementation of TQM in this

company. The company has also experienced decrease in internal as well as external

quality costs. Following suit in the order of achievements are improvement in safety

levels, decrease in work-in-progress, development of new products, decrease in appraisal

costs and decrease in price. As far as these latter items are concerned, the level of

agreement by the respondents on these as benefits of implementation of TQM is

relatively less with relatively low mean scores.

118

Employee relationship and morale is also improved through rewards,

participation in forums and get-together events like sports day and picnic. However, the

previous table shows the respondents largely agree on all these items as achievements or

benefits.




Strongly

Disagree


Everybody being committed 10 8 2


Decisions based on facts 7 12 1



Decrease in quality costs 2 14 4



Promotion of export 3 9 7 1

Of the core values the company focused on at the beginning of the

implementation of TQM, top management commitment, focus on customers and focus on

process are unequivocally held to the core values by the respondents who either agree or

strongly agree on these items without any disagreement or uncertainty. With a little

uncertainty, decisions based on facts, everybody being committed and improvement in

productivity are also held to be the core values the company focused on. Decrease in

quality costs is another value agreed upon, but with little more uncertainty. The values

concerning decrease in price and promotion of export are also largely agreed, but

uncertainty and disagreement are relatively more compared to other values.

119


Mean


Std.

Deviation


02 Focus on process 1.00 2.00 1.7500 .4443



05 Everybody being committed .00 2.00 1.4000 .6806


07 Decisions based on facts .00 2.00 1.3000 .5712

08 Decrease in quality costs .00 2.00 .9000 .5525


10 Promotion of export -2.00 2.00 .6500 .9333

The level of agreement on the core values with which the company started to

implement TQM suggests the prioritization of these values. The rank ordered mean

scores reveal such prioritization the company has had while focusing upon the core

values. Top management commitment, focus on process and focus on customers are

vastly held by the respondents as to be the much attention paid core values at the

beginning of the implementation of TQM. The low standard deviations point to the

greater unanimity of opinion with regard to these items as the important core values. Next

to these, come the values of continuous improvement and everybody being committed in

order for the successful implementation of TQM.

Improvement in productivity and decisions based on facts are other important

core values the company paid attention to while starting to implement TQM. In addition

to these, decrease in quality costs is another core value the company had. There is,

however, more uncertainty as well as some disagreement with regard to decrease in price

and promotion of export as core values focused on by the company at the beginning of

the implementation of TQM.

120


Goals Strongly


Strongly

Disagree



To improve quality 13 6 1


the long-term 14 6

To receive quality award 2 12 4 2



To improve productivity 10 8 2


Business excellence 14 5 1

As seen from the frequency distribution in the above table, there is no uncertainty

or disagreement among the respondents that the company had its goals for TQM

implementation as continuous improvement, achieving a quality culture in the long term,

satisfied customers and satisfied employees. With one respondent being undecided, all

agree that the company aimed to generate competitive power, improve quality and

achieve business excellence.

For eighteen out of twenty respondents TQM implementation was to improve

productivity; two are uncertain about this. For seventeen it was to achieve lower costs;

the remaining three respondents are uncertain about this. Twelve respondents agree that

the company thought about receiving quality award in its effort to implement TQM and

two strongly agree on this. However, two respondents disagree and four are uncertain.

121


Mean


Std.

Deviation



03 To achieve a quality culture in

the long-term

1.00 2.00 1.7000 .4702


05 Business excellence .00 2.00 1.6500 .5871

06 To improve quality .00 2.00 1.6000 .5982

07 To improve productivity .00 2.00 1.4000 .6806



10 To receive quality award -1.00 2.00 .7000 .8013

It was primarily to have satisfied customers that the company implemented TQM

as shown by the highest mean score and the lowest standard deviation. The next

prioritized goal was to establish continuous improvement. The respondents also agree

that the company aimed to achieve a quality culture in the organization in the long term.

To have satisfied employees and to achieve business excellence are also important goals

at the time of the implementation of TQM. It is surprising that one respondent is

uncertain that the company aimed to improve quality by way of implementing TQM,

while all others are sure about this as a goal. Next in the order come the goals of

improving productivity and generating competitive power.

Though the goals of achieving lower costs and receiving quality award are

generally agreed, the degree of agreement is less as evidenced from the mean scores.

Especially in the case of receiving quality award there is greater difference of opinion as

revealed by the relatively higher standard deviation.

122


Major Goals

Satisfied customers

Satisfied employees

Business excellence

To improve quality


Major Achievements

Quality improvement



Minor Goals


Minor Achievements






To have satisfied customers and employees, to improve quality and productivity

and to achieve business excellence have been the major goals for this company, and after

the implementation of TQM it has remarkably achieved improvement in quality and

productivity as well as customer satisfaction. Employee satisfaction and increase in

market share have also been achieved, but only to some extent, though this company has

been implementing TQM for the past five years. To achieve lower costs has been a

minor goal for this company and there has been decrease in internal and external quality

costs as well as in appraisal costs.

123


Side Effects Strongly


Strongly

Disagree


Higher costs 1 1 13 5

More paper 5 5 10




Increase in number of staff 1 4 9 6


As far as the side effects of the implementation of TQM are concerned, only three

are acknowledged by a few respondents. Implementation of TQM involves more paper

work according to five respondents whereas ten disagree with this; five are uncertain.

There has been an increase in the number of staff as result of the implementation of TQM

according to one respondent; four are not sure about this. Implementation of TQM

involves higher costs according to one respondent. No other item as mentioned in the

above table is recognized as a side effect of implementation of TQM.

Table 3.25. Side Effects Descriptive

Mean Rank Side Effects Minimum Maximum Mean Std. Deviation

01 Decrease in productivity -2.00 .00 -1.1500 .4894

02 Higher costs -2.00 1.00 -1.1000 .7182

03 More paper -1.00 1.00 -.2500 .8507

04 Decrease in market share -2.00 .00 -1.2500 .5501

05 Higher stock level -2.00 .00 -1.2500 .5501

06 Higher staff turnover -2.00 .00 -1.0000 .7255

07 Increase in number of staff -2.00 1.00 -1.0000 .8584

08 Weakened morale -2.00 .00 -1.3000 .5712

Except for two respondents, all the other eighteen say that the company has

witnessed an increase in productivity after the implementation of TQM. All agree that on

the whole implementation of TQM has an overall positive effect in the organization.

124

3.4. Toyota Kirloskar Motor Ltd.

Towards the end of the nineteenth century, Sakichi Toyoda invented Japan’s first

power loom, revolutionizing the country’s textile industry. January 1918 saw him create

the Toyoda Spinning and Weaving Company, and with the help of his son, Kiichiro

Toyoda, Sakichi fulfilled his lifelong dream of building an automatic loom in 1924. The

establishment of Toyoda Automatic Loom Works followed in 1926. Kiichiro was also an

innovator, and visits he made to Europe and the USA in the 1920s introduced him to the

automotive industry. With the £100,000 that Sakichi Toyoda received for selling the

patent rights of his automatic loom, Kiichiro laid the foundations of Toyota Motor

Corporation, which was established in 1937. Since the company manufactured its first

passenger vehicle in 1936, Toyota has continuously pursued the number one position for

total customer satisfaction in all areas, ranging from manufacturing and products to sales

and service. One of the greatest legacies left by Kiichiro Toyoda, apart from TMC itself,

is the Toyota Production System (TPS). Kiichiro’s "just- in-time" philosophy – producing

only precise quantities of already ordered items with the absolute minimum of waste –

was a key factor in the system’s development. Progressively, the Toyota Production

System began to be adopted by the automotive industry across the world.

Rising from the ashes of industrial upheaval in post-war Japan, Toyota has

become the largest vehicle manufacturer in Japan with over 40 percent market share.

Toyota began to make inroads into foreign markets in the late 1950s. The first Crown

models arrived in the USA in 1957, and by 1965, with models such as the Corolla,

Toyota began to build its reputation and sales to rival those of domestic producers. The

first Toyota imported into Europe was via Denmark in 1963. Toyota has continued to

grow in Europe’s sophisticated and complex market, and in 2000 the company delivered

its ten millionth car to a customer in Germany. In fact, growth is currently one of the

main words in Toyota’s European vocabulary, and the company plans to reach annual

sales of 800,000 in Europe by 2005. Toyota is number one for customer satisfaction in

the majority of European countries and has built an excellent reputation across Europe for

reliability and customer service. This enviable reputation, along with the support of a

network of more than 25 distributors and 3,500 sales outlets, are important factors in

supporting Toyota’s European sales growth in the coming years.

125

As a joint venture between Kirloskar Group and Toyota Motor Corporation,

Toyota Kirloskar Motor Private Limited (TKM) aims to play a major role in the

development of the automotive industry and the creation of employment opportunities,

not only through its dealer network, but also through ancillary industries. TKM's growth

since inception can be attributed to one simple, yet important aspect of its business

philosophy - "Putting Customer First". While managing growth, TKM has maintained its

commitment to provide quality products at a reasonable price and has made every effort

to meet changes in customer needs.

TKM firmly believes that the success of this venture depends on providing high

quality products and services to all valued customers through the efforts of its team

members. TMK aims to provide a wide selection of innovative, reasonable priced and

high quality products through an exclusive dealer network with the best sales and after-

sales service at global Toyota standards. Timely customer feedback through the service

network also allows the company to respond to emerging customer needs and introduce

new products tailored to the Indian market. TMK has developed an exclusive 3S dealer

network, integrating “Sales,” (after sales) Services and “Spare parts (storage).” Placing

customer satisfaction first, the service network will feature modern showrooms and

speedy and efficient service centers, allowing customers to experience the convenience

and pleasure of owing a Toyota automobile.

TKM, along with its dedicated dealers and suppliers, has adopted the "Growing

Together" philosophy of its parent company TMC to create long-term business growth. In

this way, TKM aims to further contribute to progress in the Indian automotive industry,

realise greater employment opportunities for local citizens, improve the quality of life of

the team members and promote robust economic activity in India.

126

Vision of Toyota Kirloskar Motor:

1. Contribute to Indian industry and economy through technology transfer, human

resource development and vehicles that meet global standards at competitive

price.

2. Contribute to the well-being and stability of team members.

3. Contribute to the overall growth for our business associates and the automobile

industry.

Mission of Toyota Kirloskar Motor:

“To design, manufacture and market automobiles in India and overseas while

maintaining the high quality that meets global Toyota quality standards, to offer superior

value and excellent after-sales service. We are dedicated to providing the highest possible

level of value to customers, team members, communities and investors in India”.

TKM is committed to manufacture technically advanced products. Today has

always believed that best way to serve society is to ensure the safety and development of

employees, especially those who work on the shop floor. The Toyota Production System

(TPS) has achieved worldwide renown amongst both car makers and manufacturers of

other products. Often better known through one of its key elements, the "just-in-time"

production philosophy, TPS has proved its worth as a powerful response to changing

market demands. It is also a vital force for harmonizing and integrating the complexity of

making vehicles.

Table 3.26. Toyota Production System

Customer First

Jidoka Just -in- Time

-Building quality into the production process

-Defective items must not proceed to the next

stage

-Making only what is needed, only when it

is needed, and only in the amount that is

needed

127

The keystone to the TPS is a vision of production whereby the end product is

literally “pulled” through the system, starting with the raw materials and ending with the

final assembly of the vehicle. As the product is drawn along the manufacturing line, parts

and materials are called up from suppliers only as necessary. The Toyota Production

System is now widely accepted as a proven approach to more resource-effective,

environmentally responsible production. By empowering employees to expose problems

as they arise - by stopping the production line in case of a problem, for instance - the

system clearly shows that lasting gains in productivity and quality are possible.

From the beginning TQM is followed by Toyota Kirloskar Motors Ltd. The

manager who interviewed said “Toyota has its own quality assurance system and

standard which is oriented around. Individual team member, honesty and discipline are

main factors for the same. TKM does not follow ISO 9000, QS 9000 or ISO/TS 16949.

The company has taken only ISO 14001”. TKM obtained quality award from JD Power

(IQS) No.1.

Having not obtained ISO, it is not surprising that four out of five top managers

who were interviewed do not agree that ISO is a prerequisite for Total Quality

Management. Total Quality Management in this company was introduced by its parent

company Toyota Motor Company (TMC) and it is modeled upon the Japanese model. It

took about five years to implement TQM in this company.

This company is following such quality programmes as Quality Control Circle,

Just-in-time, Statistical Process Control, Quality Audit, Total Productivity Maintenance

(TPM), FMEA, Toyota in-built quality system, the PDCA (Plan, Do, Check, Act) cycle,

kanban and Kaizen. The quality tools include check list, flow chart, 7 QC tools and 7 new

management tools. As mentioned, TKM implemented TQM from the beginning. So, the

company has not experienced any structural change as a result of the implementation of

TQM. Neither has it employed any new staff on account of TQM. The company

encourages and allows its employees to identify and diagnose quality problems and take

corrective action without going through the management hierarchy.

128




Strongly

Disagree




involvement 16 2

Employee empowerment 11 7



Quick decision making process 5 10 2 1

Close cooperation among functions 4 12 2


Improving quality 18


Use of quality tools 5 11 2

Role of the quality department 3 13 2

Teamwork 13 5


Identifying customer requirements

and needs 13 5


Improving productivity 16 2

Promoting export 4 9 4 1


investments 5 4 8 1

129

Implementation of TQM in this company had such facilitating factors as upper

management commitment and involvement, developing employee involvement,

employee empowerment, improving communication between management and labour,

orientation to improving quality, teamwork, increasing customer orientation, identifying

customer requirements and needs, fast response to customer needs and orientation to

improving productivity. All these factors are agreed by all the eighteen respondents

unequivocally as facilitators.

With two respondents in each case being uncertain, all agree that close

cooperation among functions, achieving positive change, quality training, use of quality

tools and role of the quality department as facilitators for the successful implementation

of TQM. With one respondent disagreeing and two being uncertain, quick decision

making process is also agreed to have been a facilitator. Four respondents are not sure

whether orientation to promoting export has been a facilitator and one disagrees while

others agree that it has been a facilitator.

Orientation to attracting more foreign investment has been a facilitator according

to nine respondents whereas eight are undecided about this and one disagrees. Strong

agreement on the role of the facilitating factors is observed more in the case of upper


employee empowerment, improving communication between management and labour,

orientation to improving quality, teamwork, increasing customer orientation identifying

customer requirements and needs, fast response to customer needs and orientation to

improving productivity.

130


Mean


Std.

Deviation




involvement

1.00 2.00 1.8889 .3234


05 Improving productivity 1.00 2.00 1.8889 .3234


07 Teamwork 1.00 2.00 1.7222 .4609


and needs

1.00 2.00 1.7222 .4609



1.00 2.00 1.6667 .4851

10 Employee empowerment 1.00 2.00 1.6111 .5016



13 Use of quality tools .00 2.00 1.1667 .6183

14 Close cooperation among functions .00 2.00 1.1111 .5830

15 Quick decision making process -1.00 2.00 1.0556 .8024

16 Role of the quality department .00 2.00 1.0556 .5393


18 Attracting more foreign investments -1.00 2.00 .7222 .9583

As seen from the rank ordered mean scores in the above table, orientation to

improving quality is held unequivocally by all the respondents as the most important

facilitating factor in the successful implementation of TQM. The mean score for this item

is the highest possible, that is 2, and the standard deviation is the lowest possible, that is

0. A quality policy is overall intentions and direction of an organization with regard to

131

quality, as formally expressed by top management. To realize high quality vehicle

production at a reasonable price, TKM seeks the best balance human resources and

advanced robot technology. The quality policy involves statements that should be brief,

clear, and believable. It can be used as a touchstone for all employees to gauge whether

actions are in conformance with the standards and values of the firm’s quality policy. The

firm sets quality goals based on its quality policy, which is not too often changed.

Otherwise, employees may get frustrated.

During the implementation of TQM the company used various quality techniques

and programs such as statistical process control, the seven QC tools, the PDCA cycle,

brainstorming, kaizen, QCC and discussion which had positive effects on improving their

product quality and teams work regularly to correct problems. Next to this factor,

increasing customer orientation is considered as another important facilitator with much

unanimity; the mean score is high and the standard deviation is low. The manager who

interviewed said “TQM should start right from the initial stages of supply chain till the

last point (end customer). Today, in this competition world, firms will not succeed by

satisfying the customers. They must delight customers”.

Three other factors viz. upper management commitment and involvement,

developing employee involvement and orientation to improving productivity have

identical high mean scores and low standard deviations indicating that the respondents

largely agree that these factors have facilitated the successful implementation of Total

Quality Management in this company. The aim of improving employee commitment is to

encourage employees to make more contributions to the success of the firm. TKM firmly

believes that employees are the main source of strength for the organization. The human

resources management in Toyota seeks to create a corporate culture where values such as

"Continuous Improvement" and "Respect for People" are fully reflected in all actual

corporate and individual activities. The company takes maximum care to ensure stability

of employment and strives to improve working conditions.

Employee commitment can be established only on the basis of confidence among

employees and management. Top management and supervisors should encourage and

motivate employees to develop and utilize their full potential, trust and care for

132

employees, encourage and support employees in job- and career-related

development/learning objectives, respect and value employees’ talents and creativity, and

treat employees as valuable resources of the firm. Every employee should be encouraged

to function as a supervisor. Thus, employee commitment can be increased through

responsibility. More importantly, they should be treated equally, fairly, and rationally.

Employee commitment can be cultivated step by step; it is an incremental process.

Fast response to customer needs, teamwork and identifying customer

requirements and needs are other three important facilitators in that order, which are

followed by employee empowerment and quality training. TKM believes in continuously

improving its products and practices. Every team member is encouraged to give

suggestions to improve the product, efficiency of processes or working conditions. They

are also appropriately rewarded for the same. Thus TKM seeks to progress by

empowering its employees.

Apart from the above, achieving positive change, use of quality tools, close

cooperation among functions, quick decision making process and role of the quality

department are also considered as important for the successful implementation of TQM.

However, these are not as highly rated as the above mentioned factors as facilitators.

Relatively there is less agreement and more equivocation with regard to orientation to

promoting export and attracting more foreign investments as facilitators for the

successful implementation of TQM.

133




Strongly

Disagree


Costly and long-term study 13 5

Lack of government commitment 2 7 8 1

Lack of consistent top

management commitment 2 7 2 7



consultants 6 4 8

Inadequate knowledge about

TQM 4 13 1




Resource limitations 2 10 5 1

Lack of training 6 12

Lack of skills of workers 6 12



Employee apathy 12 6


departments 11 6 1

Ineffective maintenance

programs 5 8 5

Poor condition of machines 2 7 8 1

134

The most significant barrier factors in the way to implement TQM in this

company have been recognized as to be fear and resistance to change, costly and long

term study, lack of training and lack of skills of workers. Of the eighteen respondents

interviewed, fifteen strongly agree that it was fear and resistance to change that had been

a barrier in implementing TQM; the remaining three agree. Thirteen of the respondents

firmly assert that costly and long term study inherent in the implementation of TQM

acted as a barrier; the rest five agree. While one-third of the respondents strongly agree

that lack of training and lack of skills of the workers had acted as barriers, two-thirds

agree about this. As far as these factors are concerned, there is no uncertainty or

disagreement that these had been barriers.

Except for one, all the respondents agree that inadequate knowledge about TQM

was a barrier in the successful implementation of TQM. Inadequate planning has been

agreed upon as a barrier by fifteen of the respondents, while two disagree on this. Fifteen

of the respondents recognize difficulty in developing company specific model as a

barrier. Resource limitation has been mentioned as a barrier by twelve of the respondents.

According to two-thirds of the respondents employee apathy was a barrier; the

remaining respondents could not say anything about this. With regard to reluctance of

workers to involve in decision making, eleven agree that it was a barrier; one disagrees

and six are uncertain. This is the same in the case of lack of coordination between

departments as barrier in implementing TQM.

Lack of consistent top management commitment and lack of competent

management are recognized to have been barriers by nine respondents in each case;

however, seven disagree and two are uncertain.

135


Mean

Rank Barrier Factors Minimum Maximum Mean

Std.

Deviation


02 Costly and long-term study 1.00 2.00 1.7222 .4609

03 Lack of training 1.00 2.00 1.3333 .4851

04 Lack of skills of workers 1.00 2.00 1.3333 .4851

05 Inadequate knowledge about TQM .00 2.00 1.1667 .5145

06 Inadequate planning -1.00 2.00 .8889 .8324


specific models

-1.00 2.00 .8333 .6183


09 Employee apathy .00 1.00 .6667 .4851


decision making

-1.00 1.00 .5556 .6157


departments

-1.00 1.00 .5556 .6157


commitment

-1.00 2.00 .2222 1.1144


14 Ineffective maintenance programs -1.00 1.00 .0000 .7670

15 Lack of qualified quality consultants -1.00 1.00 -.1111 .9003

16 Poor condition of machines -2.00 2.00 -.3333 1.0290

17 Lack of government commitment -2.00 1.00 -.4444 .7838

Of all the barriers experienced by the company in its way to implementing TQM,

fear and resistance to change is held to be the most important one. That is not surprising,

because some employees still think that any change will threaten their current positions.

Therefore, it should be hindered. This result supports Moreno-Luzon (1993) concerning

the main difficulties that impede any attempt to develop a quality culture. Next to it is the

costly and long term study involved in the beginning of the implementation of TQM

136

Other important factors that have acted as barriers are lack of training, lack of

skills of workers and inadequate knowledge about TQM. The firm’s education and

training plan should be drawn up in line with the firm’s strategies, objectives, available

resources, current employees’ skills, and employee job requirements. To develop human

resources and improve the technical skills of its employees, TKM's young team members

are regularly sent to Japan, Indonesia and Taiwan for training programs. More than 425

team members have benefited from such programs at various Toyota plants worldwide.

The firm needs to identify its short- and long-term training needs, design training

programs that address technical and behavioral issues, and have an evaluation system in

place to check whether the training and development programs meet its objectives. It is

important to arrange sufficient resources to implement the plan; otherwise, it is useless.

In short-term, education and training costs money, while in long-term, it saves money.

Inadequate planning is also mentioned as a barrier, but there is some equivocation

about it as shown by the relatively higher standard deviation compared to the previous

factors. In the same way difficulty in developing company specific model is also

considered to have been a barrier. Some other barriers in the order of recognition by the

respondents include resource limitation, employee apathy, reluctance of workers to

involve in decision making and lack of coordination between departments. Other factors

are less agreed with more disagreement and uncertainty.

137




Strongly

Disagree




Decrease in work accidents 9 9

Decrease in work-in-progress 9 9

Increase in work satisfaction 9 9





Decrease in internal quality costs 6 12



Decrease in price 8 9 1





As for the achievements or benefits attained as a result of the implementation of

TQM, all the respondents agree without any second opinion that after the implementation

of TQM the company has witnessed increase in customer satisfaction, on-time delivery,

decrease in defects, decrease in work accidents, decrease in work-in-progress, increase in

work satisfaction, achieving teamwork, improvement in productivity, quality

improvement and decrease in internal quality costs.

138

With two respondents uncertain, all others agree that there has been decrease in

external quality costs as well. Except for one respondent in each case, who is uncertain,

all the respondents agree that there has been decrease in price, increase in profitability

and improvement in morale. While twelve respondents agree that the company has

witnessed an increase in market share, six have no idea about it. As half of the

respondents agree that there has been improvement in safety level, the other half are

uncertain. Only three agree that implementation of TQM has led to development of new

products whereas six disagree and nine are uncertain. Strong agreement is found among

many respondents with regard to certain items as achievements after the implementation

of TQM. They are increase in customer satisfaction, on-time delivery, and decrease in

defects, achieving teamwork, improvement in productivity and quality improvement.


Mean


Std.

Deviation


02 On-time delivery 1.00 2.00 1.6667 .4851


04 Decrease in work accidents 1.00 2.00 1.5000 .5145

05 Decrease in work-in-progress 1.00 2.00 1.5000 .5145

06 Increase in work satisfaction 1.00 2.00 1.5000 .5145



09 Development of new products -2.00 1.00 -.2778 .8948


11 Decrease in internal quality costs 1.00 2.00 1.3333 .4851

12 Decrease in external quality costs .00 2.00 1.1111 .5830

13 Decrease in appraisal costs .00 2.00 1.0000 .6860

14 Decrease in price .00 2.00 1.3889 .6077





139

Of all the benefits, the most outstanding ones are quality improvement and

increase in customer satisfaction, for they have high mean scores with low standard

deviations. To meet customer expectations on quality, Customer Line Rejections were

identified as an important focus area. This was addressed through Policy Deployment

(PD) and specific targets were assigned. Operator Awareness programs were regularly

planned and executed. This brought about customer sensitivity. Customer fitment

characteristics were a major source of customer line rejections. To address this, a

proactive approach was adopted where all customer fitment characteristics were

identified and Poka Yoke plan was drawn-up for the same. Most characteristics required

simple Poka Yoke’s.

Next to them, improvement in productivity and achieving teamwork are

considered to be important benefits. In TKM, as technology constantly evolves,

employees improve themselves through daily work and training programs and, as a result,

productivity increases. The vital agents in TPS process are the line employees, called

“team members” in TKM plant. By ensuring their full involvement as a team, they can

identify new solutions (kaizen, or continuous improvement), respond to immediate

problems in a standardized way (jidoka, or autonomous defects control), and continually

focus their attention on ensuring that quality and throughput rates are optimized.

As a proactive part of continuous improvement, to reduce the chances of potential

process failures occurring, failure modes are identified and RPNs are computed, based on

Severity, Occurrence and Detection with reference to the rating table. Improvement

actions are planned and implemented, to continuously reduce the RPNs. This is achieved

by proactively identifying Poka Yokes, eliminating causes of potential failures and

improving gauging system etc. Other steps planned and implemented to improve asset

productivity include:

Product rationalization and standardization.

Outsourcing of non-core operations

Disposal of unused/underutilized assets.

Up-gradation of selected machines

140

These initiatives have resulted in capacity release, increased production and cost

reduction. On-time delivery, decrease in defects, decrease in work accidents, decrease in

work-in –progress, and increase in work satisfaction follow the above said benefits in the

rank order based on the respondents’ agreement. TPS introduced effective techniques to

streamline the production process, and avoid waste in inventory and employee time

usage. The overall aim is to direct all of the resources of a production line toward on-time

delivering a top-quality product for the customer.

Decrease in price, decrease in internal quality costs, decrease in external quality

costs improvement in morale and decrease in appraisal costs are also agreed to be the

achievements besides others.


Core Values Strongly


Strongly

Disagree









Decrease in price 9 9

Promotion of export 5 13

Asked about the core values the company focused on while beginning to

implement TQM, every respondent has decisively stated that it was customer focus. All

core values mentioned in the above table agreed to have been the foci of the company;

nobody disagrees or is uncertain. Besides customer focus, the other important values with

greater number of strong agreement include top management commitment, everybody

being committed, continuous improvement and improvement in productivity.

141

Decisions based on facts, focus on process and decrease in price are other values

with some strong agreement. Strong agreement is relatively less in the case of decrease in

quality costs and promotion of export.


Mean


Std.

Deviation







07 Decrease in price 1.00 2.00 1.5000 .5145

08 Focus on process 1.00 2.00 1.3889 .5016

09 Promotion of export 1.00 2.00 1.2778 .4609

10 Decrease in quality costs -1.00 2.00 1.0556 .6391

The rank ordered mean scores in the above table shows the relative importance

given to the core values while implementing TQM. With the highest possible mean and

the lowest possible standard deviation, focus on customers was held important and vital

as the company went on to implement TQM. This is not surprising while one of the most

important aspects of TKM's business philosophy is "Putting Customer First". Toyota

branded vehicles rank annually among the world's highest quality cars in third party

surveys of customer satisfaction. Toyota's activities are highly appreciated around the

world, a result of the company's devotion to customer-oriented activities and social

contributions in every market it operates.

The other cherished values are continuous improvement and improvement in

productivity. Apart from the above, the company also focused on the values of everybody

being committed and top management commitment. Decisions based on facts and

decrease in price were also paid attention to.

142


Goals Strongly


Strongly

Disagree

To generate competitive power 11 7


To improve quality 18

To achieve a quality culture in the

long-term 13 5

To receive quality award 3 10 5

Satisfied customers 18


To improve productivity 14 4



As for the goals with which the company started to implement Total Quality

Management, almost all the items mentioned in the above table are agreed to have been

the goals, except for the item of receiving quality award where five of the respondents are

uncertain about it. One is uncertain about the goal of achieving lower costs. Strong

agreement by many number of respondents is found with regard to the goals of

generating competitive power, continuous improvement, improving quality, achieving

quality culture in the long term, having satisfied customers and employees and improving

productivity.

143


Mean


Std.

Deviation




04 To improve productivity 1.00 2.00 1.7778 .4278


the long-term

1.00 2.00 1.7222 .4609

06 To generate competitive power 1.00 2.00 1.6111 .5016



09 To achieve lower costs .00 2.00 1.2222 .5483

10 To receive quality award .00 2.00 .8889 .6764

The rank ordered mean scores in the above table shows that the most important

goals with which the present company started to implement TQM are improving quality

and having satisfied customers. These two items have the maximum possible means and

minimum possible standard deviations. Besides these, continuous improvement,

improving quality and achieving a quality culture in the long term have also been stated

as important goals. Generating competitive power and having satisfied employees are the

next important goals. Achieving business excellence and lower costs are also mentioned

to have been the goals of the company as it started to implement TQM.

144


Major Goals

To improve quality

Satisfied customers


Satisfied employees

Business excellence


Major Achievements

Quality improvement







Minor Achievements


Since TKM has started to implement TQM from the beginning, all the major

goals of this company have been realized with the implementation of TQM. While the

goals of improving quality, customer satisfaction, improving productivity, employee

satisfaction and achieving lower costs have been achieved to a greater extent with the

respondents stating that there have been major achievements in these areas, the goal of

business excellence has been realized as a minor achievement.

145




Strongly

Disagree

Decrease in productivity 18

Higher costs 1 17

More paper 2 6 4 6

Decrease in market share 5 13

Higher stock level 7 11


Increase in number of staff 7 11


Of all the possible side effects the implementation of TQM could have on the

organization, only more paper work is mentioned by two respondents as a side effect. Six

are uncertain about this while ten disagree. Except for this, no other item is said to have

been a side effect of TQM. All agree that the company has witnessed an increase in

productivity as result of the implementation of TQM and that TQM has had a positive

effect on the organization overall.

146

3.5. Harita Seating Systems Ltd.

Harita Grammer Ltd incorporated as a joint venture with Grammer AG of

Germany in 1986. In 1988, the company started manufacturing of commercial production

and was first to launch foam-in-place technology in India. The company was first to

launch tractor seats in India with foam-in-place technology and static seats for

commercial vehicles in 1990. In 1991, the company launched driver seats for off-road,

commercial vehicles, car seats and MUV seats (Tata Estate, Tata Sierra and Tatamobile).

The company was first to launch deluxe bus passenger seats in India too from 1992. In

1996, the company adopted cellular manufacturing techniques to improve productivity.

Roloforms Polymer merged operations with Harita Grammer Ltd in 1997 and launched

range of driver seats suitable to semi-arid climate conditions. In 1998, the company

opened R&D center and launched new platform for deluxe bus seats and millennium

series of deluxe bus passenger seats with new features. In 2002, the company renamed as

Harita Seating Systems Limited after terminating joint venture with Grammer AG and

entered railways segment for luxury passenger and driver seats. The company launched

“Innova” plastic seats for city buses for first time in India in 2002. In 2005, the company

launched new platform for deluxe bus passenger seats and “Elite” series of bus seat with

new features and crossed annual turnover of Rs one billion.

Harita Seating Systems specializes in manufacture & supply of safe, comfortable,

durable seats for various types of vehicles. The company provides seating solutions to the

commercial vehicles, buses/coaches, agriculture tractors, construction machinery, two

wheelers, three wheelers, cars, multi-utility vehicles etc. The company’s leadership in

Indian market comes from years of experience in design, development and manufacture

of these products.

On the basis of vast experience together with state of the art technology and

manufacturing techniques, Harita Seating Systems has also developed public seating for

auditoriums and theatres. Harita Seating Systems has two manufacturing locations in

India. The head quarter is located at Hosur, Tamilnadu. It has established manufacturing

facility at Ranjangaon (near Pune) to cater to the needs of customers in Western India.

147

Managers and employees at Harita Seating Systems Ltd. believe that TQM will be way of

the life and guide all their endeavors.

Harita Seating Systems Ltd. started implementation of TQC during 1996-97. The

company started its total quality management (TQM) processes in 2000. Prior to

introducing TQM, the company had a traditional manufacturing layout and hierarchical

organizational structure leading to inefficiencies and waste. A series of steps began with

the diagnosis of the problems and challenges before the company led to a resolution in

favour of the strategic direction to be adopted.

Harita Seating Systems is committed to provide quality product and continually

improve its products as new innovations and manufacturing technologies develop. The

TQM process is carried out through a PDCA cycle — plan, do, check, act — in the

company. They had gone through the awareness, promotional and implementation

phases. The problems remaining at the end of each phase are taken on as the objectives in

the next phase besides other additions.

This company has fully implemented TQM and it has obtained ISO9001

certificate. It has also obtained the certificate of TS 16949, QS 9000, OHSAS and ISO

14001. This company has got quality award. A series of awards, recognitions and

certifications are testimonies of this company's effort towards becoming a TQM

company. They received:

Productivity Award from ACMA- 1998

OHSAS 18001: 1999, Recertified: 2005

QS 9000: 2000

Quality Award from ACMA- 2001

ISO 14001:2001, Recertified: 2005

Manufacturing Excellence Award from ACMA- 2003

ISO/TS 16949: 2004

Energy Conservation Award from Government of India- 2004 & 2005

148

With regard to specific quality initiatives implemented to date by Harita Seating

Systems Ltd., the managers indicated almost all the items listed in the questionnaires.

Different types of measures are collected for quality performance monitoring and

improvement. Examples include scrap percentage, and quality costs. Numerous quality

tools and techniques are utilized for different processes. For example, FMEA and design

of experiments are mainly used in the design and development process, while control

charting, statistical process control, quality audit and Total Productive Maintenance

(TPM) are used in controlling production processes. Other quality techniques such as

Quality Circle Control (QCC), Supervisors Improvement Team (SIT) and Kaizen are

used for team work and quality improvement. Other initiatives include Cause and Effect

Diagram, Quality Function Deployment (QFD) and Just-in-Time (JIT).

Having obtained ISO certificate, all the five top managers agree that ISO is a

prerequisite for the implementation of Total Quality Management. TQM in this company

was introduced by its parent company and is modeled upon the European model, i.e.

EFQM. Implementation of TQM in this company took about 5 years.

Implementation of TQM in this company has not resulted in any change in the

organization structure. In this company employees are allowed and encouraged to

identify and diagnose quality problems and take corrective action without going through

the management hierarchy. No additional staff has been employed as a result of the

implementation of TQM.

149




Strongly

Disagree




involvement 16 3





Close cooperation among functions 5 14

Achieving positive change 16 3


Quality training 10 9



Teamwork 19

Increasing customer orientation 19


and needs 17 2



Promoting export 3 8 8


investments 6 13

Regarding the facilitating factors that contributed for the successful

implementation of TQM in this company, the respondents agree almost all items as found

in the above table, except for some of them being uncertain about three factors. One

respondent is uncertain about the role of the quality department; eight are uncertain about

150

orientation to promoting export; and thirteen are uncertain about orientation to attracting

foreign investments.

Strong agreement is total with regard to teamwork and increasing customer

orientation as facilitators. It is also found high with regard to upper management

commitment and involvement, developing employee involvement, achieving positive

change, orientation to improving quality, use of quality tools, identifying customer

requirements and needs and with regard to fast response to customer needs. Strong

agreement is more also in the case of improving communication between management

and labour and quality training.

151


Mean


Std.

Deviation

01 Teamwork 2.00 2.00 2.0000 .0000


03 Identifying customer requirements and

needs

1.00 2.00 1.8947 .3153


involvement

1.00 2.00 1.8421 .3746


06 Achieving positive change 1.00 2.00 1.8421 .3746






1.00 2.00 1.5789 .5073

11 Quality training 1.00 2.00 1.5263 .5130






17 Promoting export .00 2.00 .7368 .7335

18 Attracting more foreign investments .00 1.00 .3158 .4776

We have seen in the previous table that strong agreement is total with regard to

teamwork and increasing customer orientation as facilitating factors for the successful

implementation of TQM. That is reflected in the highest possible means and lowest

possible standard deviations in the above table. Unequivocally these two factors are held

to be the most important facilitators. The firm needs to provide necessary assistance for

152

the customers before purchasing, during the process of purchasing, and after purchasing.

In order to improve sales efficiency and customer service quality, it is crucial that the

firm computerizes its sales system and establishes its service standards. Customers are at

a great advantage today. They are more knowledgeable about the availability and quality

of products and services. They demand ever more detailed information about products

and services. The firm caters to the market and makes timely adjustments in accordance

with the customers’ needs and wants through continuous flow of information on customer

requirements and expectations.

The other factors that are more recognized as facilitators for the successful

implementation of TQM are identifying customer requirements and needs, upper


achieving positive change and fast response to customer needs. Managers in Harita

Seating Systems Limited believe that they achieve the objectives through continuous

improvement and total employee involvement. Orientation to improving quality and use

of quality tools are also held to be nearly equally important facilitators. Top management

believes in customer satisfaction through a continuous improvement culture. This

perception has been translated into good management practices such as participating in

improvement activities, improving communication, solving problems on the systems,

taking care of the welfare of employees, team working at management level, having a

clear mission regarding the business, and management as the key driver in continuous

improvement. Various systems and procedures including quality assurance, training and

human resource development are already in place and key business processes such as

production, delivery, and purchasing have been identified. Clearly, the quality practices

in this company correspond to one that understands and values TQM. Continuous

improvement has been made possible through an improvement coordinating body at

company level. In terms of the quality improvement structure cross-function team and

kaizen exist.

Next to the above, improving communication between management and labour,

quality training and orientation to improving productivity are recognized as important

facilitators. This firm has education and training programs related to quality management.

153

These programs covered ISO 9000, quality consciousness, working discipline, statistical

process control, and special job skills. Employee empowerment, quick decision making

process, close cooperation among functions and the role of the quality department have

also contributed to the successful implementation of TQM in this organization.




Strongly

Disagree



Lack of government commitment 8 11


commitment 3 10 3 2 1

Lack of competent management 17 2

Lack of qualified quality consultants 16 3


Inadequate planning 5 11 3


specific models 9 4 6


Lack of training 10 9



decision making 10 6 3



departments 9 7 3

Ineffective maintenance programs 11 8

Poor condition of machines 11 8

154

Fear and resistance to change and inadequate knowledge about TQM are agreed

to have been the barriers of successful implementation of TQM by all the nineteen

respondents without any degree of disagreement or uncertainty. Inadequate knowledge

about TQM is most strongly agreed to have been a barrier.

Lack of consistent top management commitment is identified as a barrier by

thirteen of the respondents while three disagree and three are uncertain. Seventeen

respondents agree that lack of competent management has been a barrier while two are

uncertain. Whereas three respondents disagree that inadequate planning has been a

barrier, sixteen agree among whom five strongly agree.

While nine respondents agree that difficulty in developing company specific

model has been a barrier, six disagree and four are uncertain about it. Only three

respondents agree that resource limitation has been a barrier. Whereas ten respondents

hold that lack of training has been a barrier nine disagree. According to three respondents

lack of skills of workers has been a barrier.

No respondent thinks that lack of government commitment has been a barrier;

while eleven disagree eight are uncertain. Neither there is any agreement on employee

apathy, reluctance of workers to involve in decision making and lack of coordination

between departments as barriers. Ineffective maintenance programs and poor condition

of machines are totally disagreed that they have been barriers.

155


Mean


Deviation



03 Costly and long-term study .00 2.00 1.0526 .5243

04 Inadequate planning -1.00 2.00 .9474 .9703

05 Lack of competent management .00 1.00 .8947 .3153


commitment

-2.00 2.00 .6316 1.0651


specific models

-1.00 1.00 .1579 .8983

08 Lack of training -1.00 1.00 .0526 1.0260

09 Lack of qualified quality consultants -2.00 .00 -.3158 .7493

10 Resource limitations -1.00 1.00 -.3158 .7493

11 Employee apathy -2.00 .00 -.3158 .7493

12 Lack of skills of workers -2.00 1.00 -.4737 .9643



decision making

-2.00 .00 -.6316 .7609


departments

-2.00 .00 -.6842 .7493

16 Ineffective maintenance programs -2.00 -1.00 -

1.4211

.5073

17 Poor condition of machines -2.00 -1.00 -

1.4211

.5073

156

The most important barrier this company has encountered while implementing

TQM has been inadequate knowledge about TQM. Another important barrier has been

fear and resistance to change in the organization. Employees need to accept education

and training on quality management knowledge. This includes, for example, TQM, ISO

9000, the seven QC tools, the seven management tools, statistical process control, quality

function deployment, and experimental design. To achieve a good training result, the

training program should be well designed. Different types of employees require different

levels of training. Even for the same quality tool or technique, the learning objective is

also different. Employees can use quality management knowledge that they have learned

in their practical work.

Costly and long term study inherent in TQM, inadequate planning and lack of

competent management are also widely recognized barriers. There is however some

equivocation with regard to inadequate planning as revealed by the relatively larger

standard deviation.

Lack of consistent top management commitment comes next in the order of

barriers, but with more equivocation as seen from the large standard deviation. Other

barriers with difference of opinion with larger standard deviations are lack of training and

difficulty in developing company specific model. The other items in the barrier list are

more rejected than agreed upon as barriers in the implementation of TQM as revealed by

the negative mean scores.

157




Disagree

Increase in customer satisfaction 19






Achieving teamwork 19






Decrease in appraisal costs 13 6


Increase in profitability 3 16


Improvement in safety levels 17 2

Improvement in morale 4 15

All the nineteen respondents strongly agree that the company has achieved

increase in customer satisfaction as result of the implementation of TQM. Without any

disagreement or uncertainty, all agree that after the implementation of TQM the company

has witnessed on-time delivery, decrease in defects, decrease in work accidents, decrease

in work-in-progress, increase in work satisfaction, improvement in productivity, quality

improvement and improvement in morale.

158

With two respondents uncertain, all others agree that there is improvement in

safety levels after TQM. It is also the same in the case of increase in the company’s

market share as a benefit; three strongly agree about this. While three respondents

strongly agree and tem agree that there has been decrease in both internal and external

quality costs, six are undecided about it. Thirteen respondents agree that there has been

decrease in the appraisal costs while six are uncertain.

While three respondents agree that there has been development of new products

as a result of TQM, three respondents disagree with this and thirteen are undecided.

Uncertainty is more whether the company has achieved decrease in price and increase in

profitability as a result of the implementation of TQM; only three agree while sixteen are

uncertain.

159


Mean

Rank Achievements Minimum Maximum Mean Std.

Deviation




04 On-time delivery 1.00 2.00 1.7368 .4524



07 Decrease in work accidents 1.00 2.00 1.2105 .4189


09 Improvement in morale 1.00 2.00 1.2105 .4189


11 Increase in market share .00 2.00 1.0526 .5243




15 Decrease in appraisal costs .00 1.00 .6842 .4776

16 Decrease in price .00 1.00 .1579 .3746

17 Increase in profitability .00 1.00 .1579 .3746

18 Development of new products -1.00 1.00 .0000 .5774

There is total agreement, that too strong, that increase in customer satisfaction and

achieving teamwork are benefits arising out of the implementation of TQM. This

company is implementing customer survey, customer complaint and formal feedback

systems in order to improve their quality of products and services. These customer-

oriented measures contributed to customer satisfaction. The firm uses some type of teams

as part of their TQM efforts. These teams included, for example, cross-functional teams

160

and QC circles. Cross-functional teams are usually appointed by top management, while

QC circles are formed by different functional departments.

Next to these two, improvement in productivity and on-time delivery are the most

important achievements. Other significant achievements in the order of their recognition

by the respondents are decrease in defects, increase in work satisfaction, decrease in work

accidents, decrease in work-in-progress, improvement in morale, quality improvement

and increase in market share. The respondents also largely agree that there has been

improvement in safety levels, decrease in internal and external quality costs and decrease

in appraisal costs.

3.45. Core Values for implementation of TQM



Disagree





Focus on customers 19

Focus on process 19

Decrease in quality costs 1 18




The above table clearly shows that all the core values mentioned above are said to

have been focused on by the organization when it started to implement TQM. There is no

disagreement or uncertainty. Of all the values focus on customers and focus on process

were of the prime focus for all the respondents strongly agree on these two.

161

Strong agreement is also found more with regard to top management

commitment, everybody being committed, continuous improvement and decisions based

on facts. The other values viz. decrease in quality costs, improvement in productivity,

decrease in price and promotion of export are also agreed to have been the values of

focus when the company started to implement TQM.

3.46. Core Values Descriptive

Mean Rank Core values Minimum Maximum Mean Std.

Deviation


02 Focus on process 2.00 2.00 2.0000 .0000






08 Decrease in price 1.00 2.00 1.1579 .3746


10 Decrease in quality costs 1.00 2.00 1.0526 .2294

The rank ordered mean scores in the above table reveal the prioritization of the

core values of the company while implementing TQM. As it has been observed in the

previous table, focus on customers and focus on process have the highest possible means

and lowest possible standard deviations which point to total agreement with no

equivocation.

Continuous improvement, top management commitment, everybody being

committed and decisions based on facts are the other important core values that were paid

attention to when TQM was started to be implemented. Appearing in the lower rungs of

the rank order though, improvement in productivity, decrease in price, promotion of

export and decrease in quality costs are also said to have been focused upon by the

organization.

162

3.47. TQM Goals

Goals Strongly


Disagree





the long-term 17 2


Satisfied customers 19



To achieve lower costs 6 13


As for the goals with which the company started to implement TQM, except for

that of receiving quality award, all mentioned in the above table are agreed by the

respondents. There is much of uncertainty and disagreement with regard to receiving

quality award as a goal of TQM with only three out of the nineteen respondents agreeing

to it.

All other items are agreed to have been the goals of the company. To have

satisfied customers is strongly agreed by all the respondents as the goal. Strong

agreement is found more with regard to the goals continuous improvement, improving

quality, achieving a quality culture in the long term, having satisfied employees,

improving productivity and achieving business excellence.

163

3.48. TQM Goals Descriptive

Mean

Rank TQM Goals Minimum Maximum Mean Std.

Deviation



03 To achieve a quality culture in the

long-term

1.00 2.00 1.8947 .3153






09 To achieve lower costs 1.00 2.00 1.3158 .4776

10 To receive quality award -1.00 1.00 -.0526 .6213

To have satisfied customers has been the most important goal for the company to

implement TQM as revealed by the highest possible mean and lowest possible standard

deviation. The managers who were interviewed reported that “Customer satisfaction is, of

course, the objective of TQM. We have made extensive improvements in the supply

chain by taking on additional responsibilities and integrated ourselves much better with

the customer”. To improve quality and to achieve quality culture in the long term have

been the next most important goals. The goals of continuous improvement, improving

productivity and achieving business excellence follow next in the order of goal

prioritization. The managers of this company reported that “Our objective is to achieve

business excellence through technological leadership”. Next in the order come the goals

of having satisfied employees, generating competitive power and achieving lower costs.

164

3.49. Goals and Achievements

Major Goals

Satisfied customers

To improve quality


Business excellence

Satisfied employees


Major Achievements




Quality improvement


Minor Achievements




This company started to implement TQM five years ago. All the major goals of

this company, except for achieving lower costs, have been realized in a major way, as the

respondents state that the achievements pertaining to these goals have been remarkable.

As for the goal of achieving lower costs, decrease in internal quality costs, decrease in

external quality costs and decrease in appraisal costs have been minor achievements.

165

3.50. Side Effects of TQM

Side effects Strongly


Disagree

Decrease in productivity 15 4

Higher costs 14 5

More paper 5 12 2

Decrease in market share 12 7

Higher stock level 12 7

Higher staff turnover 14 5


Weakened morale 12 7

It is clear from the above table that these respondents do not see any side effect of

the implementation of TQM, except that there is more paper work after the

implementation of TQM according to five of the respondents. Twelve are uncertain about

it. All the nineteen respondents say that implementation of TQM has led to increased

productivity and it has an overall positive effect on the organization.

166

3.6. Motor Industries Company Limited (MICO)

Motor Industries Company Limited (MICO) is a subsidiary of Robert Bosch

GmbH, Germany. Founded in 1951, MICO has been a pioneer and a leader in the Indian

automotive segment for the last 54 years, and is the largest manufacturer of diesel fuel

injection equipment in the country and among the world’s largest. In India, the Bosch

Group has about 15,044 employees, and in business year 2005 achieved total

consolidated sales of Rs 40 billion. It is the largest Indo-German company and a

household name in India today. Bosch has grown phenomenally in India, way back since

1922 when the Illies company established a Bosch agency in British India. The founding

of Motor Industries Company Limited in 1951 spurred off an accelerated growth in the

automotive industry segment which has not stopped till date. Bosch has a strong and

voracious presence in the country today, in diverse industry segments at numerous

locations.

With access to the international technology of Bosch, conscious commitment to

quality and over 10,000 employees, MICO currently has four plants in the country,

including two in Bangalore and one each in Jaipur and Nashik. All four plants are TS

16949 and ISO 14001 certified.

MICO businesses include common rail injectors and components, diesel fuel

injection equipment, industrial equipment, electrical equipment, gear pumps for tractor

applications, electric power tools, packaging machines, security technology products and

Blaupunkt car multimedia systems. MICO has developed excellence R&D manufacturing

capabilities, a strong customer base and its market leadership is testimony to the high

quality of its technology and products. MICO also has a strong presence in the Indian

automotive service sector. The service network of MICO spans 1000 towns and cities,

with over 4000 authorized representatives who ensure widespread availability of both

products and after-sales services.

Spread over an area of 10,000 sq m (approx.), Technical Center India is located in

Bangalore. The futuristic Technical Center India is the first-of-its-kind in the country,

dedicated to providing world-class technological solutions for the auto industry. It has

over 250 qualified and experienced engineers and technicians.

167

The Technical Center India is the first Global Development Centre in the Bosch

group, outside Europe. It works in tandem with the automotive industry to develop

products to match specific needs. With the infusion of new international automotive

technology in the last decade, it has swiftly responded to match the needs of new

generation vehicles. MICO BOSCH has received the 2006 “Safety & Technology

Award” conferred by NDTV Profit and CAR INDIA. Subsequent to winning the ‘Auto

Component Manufacturer of the year 2005’ award previous year, MICO BOSCH has

once again proved its prowess in the automotive arena. This award recognizes the best in

the industry, and has been instituted by the newest automotive magazine in the Indian

scene - CAR INDIA. The jury focused on the advances made in automotive technology

which also have bearing on safety.

Due to increased globalization, it is becoming more important to react quickly to

changing markets and rising standards with quality concepts and new technologies. The

quality principles at MICO, in keeping with Bosch, are:

1. Our goal is to fully satisfy our customers’ expectations through the quality of our

products and services.

2. Quality and quality improvement are every associate’s responsibility and ultimate

goal from the board of directors to the apprentices.

3. Our directives, processes, systems and goals are based on requirements from

international standards, customer expectations and our knowledge and experience.

Knowledge of and compliance with these directives and processes are the

foundation of our quality.

4. Quality means doing things right in the beginning, thus preventing failures in the

end. Continuous improvement of the quality of processes lower costs increases

productivity.

5. Avoiding failures is more important than eliminating defects. We systematically

apply methods and tools for preventive quality assurance, learn from mistakes and

eliminate their root causes without delay.

168

6. Our suppliers contribute substantially to the quality of our products and services.

Therefore, our suppliers must live up to the same high quality standards we have

adopted.

The list of certificates that company achieved toward its quality programs are:

ISO 9001- 1992

QS 9000- 1997

ISO 9001:2000 certification for industrial equipment, packaging technology and

power tools divisions- 2002

ISO 14001- 2002

ISO/TS 16949- 2003

ISO 9001:2000 certification for car multimedia division- 2003

Implementation of Total Quality Management in this company is underway for

the past two years. While three out of the five top managers interviewed agree that ISO

is a prerequisite for the implementation of Total Quality Management, two do not agree.

The manager who interviewed said, initially, ISO 9000 certification was a competitive

tool because it was still a novelty. However, today, certification is no longer a

competitive advantage, but a prerequisite to play in the market and useful in the initial

stage of quality management implementation.

Total Quality Management in this company was introduced by the parent

company and is modeled upon the European model, EFQM. This company is following

such quality programs as Quality Control Circle, Statistical Process Control, Quality

Audit, Total Productivity Maintenance (TPM), FMEA, Brainstorming, the PDCA cycle

and Kaizen. The quality tools include check list, flow chart, 7 QC tools and 7 new

management tools.

There has been no change in the organization structure after the implementation

of TQM. Neither has any additional staff been employed as a result of the

implementation of TQM. The employees are allowed and encouraged to identify and

diagnose quality problems and take corrective action without going through the

management hierarchy.

169

3.51. Success Factors of TQM Implementation



Disagree

Upper management commitment and

involvement 17 2

Developing employees involvement 9 10


Improving communication between

management and labour 2 17


Close cooperation among functions 11 6 2





Role of the quality department 10 9

Teamwork 15 4



and needs 15 4



Promoting export 10 9

Attracting more foreign investments 6 13

All the nineteen respondents who were interviewed agree that the factors that

facilitated the successful implementation of TQM have been upper management

commitment and involvement, developing employee involvement, employee

empowerment, improving communication between management and labour, achieving

positive change, improving quality, quality training, use of quality tools, teamwork,

increasing customer orientation, identifying customer requirements and needs and fast

response to customer needs. No one disagrees on any of the factors, but some are

uncertain about quick decision making process, close cooperation among functions and

170

improving productivity as having facilitated the implementation of TQM in the company.

Such uncertainty is more with regard to the role of the quality department, orientation to

promoting export and attracting more foreign investments.

Strong agreement is found more in the case of upper management commitment

and involvement, quick decision making process, close cooperation among functions, use

of quality tools, teamwork, increasing customer orientation, identifying customer

requirements and needs and orientation to improving quality.

3.52. Success Factors Descriptive

Mean

Rank Facilitating Factors Minimum Maximum Mean Std.

Deviation


involvement

1.00 2.00 1.8947 .3153

02 Quick decision making process .00 2.00 1.7895 .6306

03 Teamwork 1.00 2.00 1.7895 .4189



and needs

1.00 2.00 1.7895 .4189




09 Close cooperation among functions .00 2.00 1.4737 .6967






1.00 2.00 1.1053 .3153



16 Role of the quality department .00 1.00 .5263 .5130

17 Promoting export .00 1.00 .5263 .5130


171

The rank-ordered mean scores show the relative degree of recognition by the

respondents of the factors as having facilitated the implementation of TQM. The most

important facilitating factor for the implementation of TQM in this company has been

upper management commitment and involvement. Top management accepts the

responsibility for commitment to a quality policy that deals with the organization for

quality and the satisfaction of customer needs. This commitment to quality and leadership

is demonstrated by developing and communicating the vision organization-wide. As

evident from the findings from the interviews, commitment of top management is

achieved when the rewards of implementing TQM are realized. That is, the tangible

business and operating benefits of TQM must be realized by top management as a

prerequisite for their serious commitment.

Next to it quick decision making process adopted by the company is mentioned to

have been a facilitator, but with some equivocation as shown by the standard deviation.

We have seen in the previous table that while seventeen respondents strongly agree with

this, two are undecided. With less equivocation, teamwork, increasing customer

orientation, identifying customer requirements and needs and fast response to customer

needs are mentioned as important facilitators. The managers said that “our customer

choose us for our innovative strength and efficiency, for our reliability and quality of

work”.

Use of quality tools and developing employee involvement are also important

facilitators. In order to ensure the commitment and involvement of everyone in the

organization in the quality improvement, top management must enable all employees in

the preparation, implementation and evaluation of improvement activities. This company

follows continuous improvement by implementing kaizen concepts. Kaizen is promoted

through suggestion schemes and training, and frequent through relatively modest rewards

are given for suggestions even if they result in very small improvements. Practical

assistance, training, recognition and participation should be given to ensure that all

employees, in order to attain the quality goals of the organization, acquire the relevant

knowledge and experience. The issue of employee commitment and involvement as a

critical quality factor for successful TQM implementation is unanimously addressed by

writers (see for example Zairi, 1999; Kanji, 1996, 1998; Oakland, 2000; Rao et al., 1999;

172

Zhang et al., 2000; Mak, 2000; Sun, 2000; Dale et al., 2001; Claver et al., 2001; Buck &

Rivers, 2002; McAdam & Kelly, 2002).

Close cooperation among functions is another important facilitator, but with some

doubt as shown by the relatively higher standard deviation; two respondents are not sure

about it as a facilitator. Employee empowerment, orientation to achieving positive

change and improving quality are also recognized as significant facilitators. Some other

significant factors next to these include improving communication between management

and labour, quality training and orientation to improving productivity.

3.53. Barrier Factors of TQM Implementation



Disagree


Costly and long-term study 2 14 2 1

Lack of government commitment 13 6


commitment 2 9 2 6

Lack of competent management 5 10 4

Lack of qualified quality consultants 2 2 11 4

Inadequate knowledge about TQM 3 15 1

Inadequate planning 4 13 2





Lack of skills of workers 2 2 11 2 2


decision making 13 6



departments 2 6 2 9



173

The most important barrier factor that has been experienced by this company in

its way towards implementing TQM is fear and resistance to change; all the respondents

agree on this. With one respondent disagreeing, all agree that inadequate knowledge

about TQM has also been an important barrier. Inadequate planning is considered to have

been a barrier in implementing TQM by seventeen respondents; two are uncertain about

it.

Implementation of TQM involved costly and long term study and that acted as a

barrier according to sixteen respondents; however one disagrees with this and two are

uncertain. With six respondents disagreeing and two uncertain, eleven hold that lack of

consistent top management commitment has been a barrier. According to five, it was also

lack of competent management that impeded the implementation of TQM; but four

disagree with this and ten are uncertain. Four respondents agree that lack of qualified

quality consultants has been a barrier; two are strong in such a conviction. However an

equal number of respondents disagree with this.

Difficulty in developing company specific model has been a barrier according to

five among whom two are strong in their opinion. Four however disagree. Four

respondents say firmly that resource limitation has been a barrier and nine others also

believe so. Two however disagree with this and four are uncertain. Eight out of the

nineteen respondents agree that lack of training has been a barrier for implementation of

TQM. Whereas four agree that lack of skills of workers has been a barrier, four disagree;

eleven are uncertain. According to eight respondents, lack of coordination between

departments has been a barrier; two are strong in their opinion. Nine however disagree

with this.

Fear and resistance to change, costly and long term study inherent in TQM, lack

of consistent top management commitment, inadequate knowledge about TQM,

inadequate planning and resource limitation are generally held to have acted as barriers in

implementing TQM in this company.

174

3.54. Barrier Factors Descriptive

Mean


Deviation


02 Inadequate planning .00 2.00 1.1053 .5671

03 Inadequate knowledge about

TQM

-1.00 2.00 1.0526 .6213

04 Costly and long-term study -1.00 2.00 .8947 .6578


06 Lack of training -1.00 2.00 .4211 .8377

07 Lack of consistent top

management commitment

-1.00 2.00 .3684 1.0651


specific models

-1.00 2.00 .1579 .8983

09 Lack of qualified quality

consultants

-1.00 2.00 .1053 .8753

10 Lack of competent management -1.00 1.00 .0526 .7050


departments

-1.00 2.00 .0526 1.1291


13 Employee apathy -1.00 .00 -.1053 .3153


15 Reluctance of workers to involve

in decision making

-1.00 .00 -.3158 .4776

16 Ineffective maintenance programs -2.00 .00 -.8421 .5015

17 Poor condition of machines -2.00 .00 -

1.0526

.5243

The rank-ordered mean scores in the above table clearly shows that the most

important barriers experienced by this company in its way to implementing TQM have

been fear and resistance to change, inadequate planning and inadequate knowledge about

175

TQM. With the lack of knowledge about TQM concepts and principals and the lack of

sharing of implementation experiences among practitioners, prospects are dim for the

full-scale development of TQM programs.

A successful TQM program requires management to change their thinking and

attitudes. Every program must be initiated and must be supported by the top management,

with the full commitment from all members or employees. It also requires changes in the

relationship between management and employees. Management must be willing to

delegate its authority to employees as needed. Employees need to know what changes are

being made, how they affect operations, and how each member must be involved in the

implementation process of TQM programs.

The other important barriers that have been encountered include costly and long

term study inherent in the implementation of TQM and resource limitation. Lack of

training and lack of consistent top management commitment are also significant barriers.

Lack of training and education definitely creates serious problems during the

implementation stage. The result shows that employees throughout the organization

require training to understand the philosophy and principles of TQM as well as specific

skills to handle quality issues. Interviewees reported that training helped create a

common language throughout the organization which enabled management to

communicate effectively the company’s mission statement and the importance of TQM to

the rest of the organization. Difficulty in developing company specific model and lack of

qualified quality consultants are also notable barriers. There is more uncertainty and

disagreement with regard to the other items in the barrier list.

176

3.55. Achievements after TQM



Disagree












Decrease in external quality costs 4 15




Increase in market share 2 17



As for the achievements of the company as a result of the implementation of

TQM, all the respondents agree that there has been an increase in customer satisfaction.

The company has also achieved on-time delivery, decrease in defects, decrease in work-

in-progress, increase in work satisfaction, achieving teamwork, improvement in

productivity, quality improvement, decrease in internal and external quality costs,

increase in market share and improvement in morale.

177

With two respondents being uncertain, all agree that the company has achieved

decrease in work accidents, improvement in safety levels and increase in profitability.

There is more uncertainty with regard to decrease in appraisal costs and decrease in price

as achievements after the implementation of TQM. While eight respondents agree eleven

are uncertain. Strong agreement is found more in the case of increase in customer

satisfaction, on-time delivery, achieving teamwork and improvement in productivity as

benefits arising out of the implementation of TQM.

3.56. Achievements Descriptive

Mean

Rank Achievements Minimum Maximum Mean Std.

Deviation




04 On-time delivery 1.00 2.00 1.5789 .5073




08 Decrease in external quality costs 1.00 2.00 1.2105 .4189



11 Increase in market share 1.00 2.00 1.1053 .3153



14 Decrease in work accidents .00 1.00 .8947 .3153





178

The rank-ordered mean scores show that there have been three outstanding

benefits the company has realized after the implementation of TQM. They are increase in

customer satisfaction, achieving teamwork and improvement in productivity. One of the

managers reported that MICO has a strong presence in the Indian automotive service

sector. The service network of MICO spans 1000 towns and cities with over 4000

authorized representatives who ensure wide spread availability of both products and

after-sale services.

Three other important achievements have been on-time delivery, decrease in

defects and increase in work satisfaction. Other significant achievements include

decrease in external quality costs, decrease in external quality costs, decrease in work-in-

progress, quality improvement, Increase in market share, improvement in morale and

Increase in profitability in that order.




Disagree




Decisions based on facts 15 2 2






Promotion of export 2 9 8

179

As for the core values which the company focused on when it started to

implement TQM, five are outstanding with all the respondents agree on them. They are

top management commitment, everybody being committed, continuous improvement,

focus on customers and focus on process. Seventeen of the nineteen respondents agree

that the company focused on the values of decisions based on facts, while two are

uncertain about it. It is the same with regard to the value of improvement in productivity.

While sixteen respondents agree that decrease in price was focused on by the

company, three are uncertain about it. Eleven respondents agree that promotion of export

was a core value the company paid attention to, eight respondents is uncertain about it.

Uncertainty is more in the case of decrease in quality costs as a core value. Indeed it is

the only item about which there is disagreement. Three disagree while four agree.


Mean

Rank Core values Minimum Maximum Mean Std.

Deviation





05 Focus on process 1.00 2.00 1.7895 .4189

06 Decisions based on facts .00 2.00 1.6842 .6710


08 Promotion of export .00 2.00 .6842 .6710

09 Decrease in quality costs -1.00 1.00 .0526 .6213

10 Decrease in price -1.00 1.00 -.0526 .5243

The most important core values this company focused on while implementing

TQM have been top management commitment, everybody being committed and

continuous improvement. In this company committed leadership was a core value that to

180

a great extent permeated the organizations even before the implementation process

started. This emphasizes that committed leadership should be the first core value that

needs to be addressed in an effort to implement TQM.

Top management believes, if employees are confident that senior management

strongly supports a TQM initiative they are more likely to become involved in that

organization’s TQM efforts. Successful employee involvement and commitment are

essential components of any TQM program. The concept of continuous improvement is a

critical success factor of any organization and should be used as the foundation stone

upon which every successful TQM initiative should be built.

Next to them are the values of focus on customers and focus on process. The other

recognized values are decisions based on facts and improvement in productivity.

3.59. TQM Goals

Goals Strongly


Disagree





the long-term 9 10







While starting to implement TQM, the company’s goals have been continuous

improvement, improving quality, achieving quality culture in the long term, having

satisfied customers and employees, improving productivity, achieving lower costs and

business excellence. As far as the goal of generating competitive power is concerned, two

181

are undecided whether it has been a goal of the company for implementing TQM.

Thirteen of the nineteen respondents have no idea as to whether receiving quality award

has been a goal of the company. Strong agreement is found more with regard to

generating competitive power, continuous improvement, having satisfied customers and

employees and business excellence as the goals for implementing TQM.


Mean

Rank TQM Goals Minimum Maximum Mean Std.

Deviation







07 To achieve a quality culture in the

long-term

1.00 2.00 1.4737 .5130




The ordered means in the above table show that the most important goals with

which the company started to implement TQM are to have satisfied customers, to have

satisfied employees, to achieve business excellence and continuous improvement. Other

recognized goals in their order of importance are generating competitive power,

improving quality, achieving quality culture in the long term, improving productivity and

achieving lower costs.

182


Major Goals

Satisfied customers

Satisfied employees

Business excellence

To improve quality



Major Achievements






Quality improvement


Minor Achievements


Whatever this company had as its major goals before the implementation of TQM

have been remarkably attained with the respondents stating these achievements as major

ones. With regard to the goal of achieving lower costs, while the company has witnessed

decrease in internal and external quality costs in a major way, decrease in appraisal costs

has been realized only to some extent. It is noteworthy that this company has been

implementing TQM only for the past two years.

183




Disagree


Higher costs 8 9 2

More paper 4 13 2






No side effect of the implementation of TQM is recognized by the respondents

except for four respondents saying that there has been more paper work after the

implementation of TQM. All the respondents agree that implementation of TQM in the

organization has increased productivity and that it has an overall positive effect in the

organization.

184

3.7. Automotive Axles Ltd.

The Kalyani Group is one of the leading Industrial Houses in India, having

diverse business interests in Engineering Steel, Forgings, Auto Components, Non

Conventional Energy & Speciality Chemicals. The Group’s Annual Turnover is over

USD 1.5 billion and has joint ventures with some of the world leaders such as Meritor,

USA, Carpenter Technology Corporation, USA, Hayes Lemmerz, Germany, Faw

Corporation, China etc.

Automotive Axles Limited (AAL), established in 1981, is a joint venture of Arvin

Meritor Inc., USA (formerly the automotive division of Rockwell International

Corporation), and the Kalyani Group. With manufacturing facilities located at Mysore,

the company is currently the largest independent manufacturer of Rear Drive Axle

Assemblies in the country. Over the years, AAL has developed an impressive domestic

OEM clientele that includes Ashok Leyland, Telco, Vehicle Factory, Jabalpur, Mahindra

& Mahindra, Volvo and Bharat Earth Movers. AAL exports axle parts to USA, and Italy.

The infrastructure at AAL spans highly specialized manufacturing processes involving

Friction Welding, Flash Butt Welding, CO2 Welding, CNC Machining, Flexible Machine

Centres and a range of specially built machines for production of Axles and Brakes. The

facilities also comprise Gleason Gear Manufacturing Equipment backed by a modern

Heat Treatment Shop including Continuous Carburising and Sealed Quench Furnaces.

The organization has a Quality Management System that is certified to ISO

9001:1998 and QS 9000:1998 International standards. AAL is also certified to ISO/TS

16949:2002 standard and also Environmental Management System that is certified to ISO

14001:2004 standard. The top manager believes AAL shall be a world class automotive

Tier I organization through total Employee involvement by exceeding business plan

objectives, providing value to customers through innovative solution, product quality and

exceptional services and continual improvement of QMS. To deploy the quality policy of

the organization, the following quality objectives are identified and measurements

defined in the business plan and are reviewed from time to time for ensuring consistency

with the quality policy.

185

Customer Satisfaction – Supply state-of-the-art products/services to customers

that meet their expectations for Quality, Technology, Delivery and

Responsiveness.

Quality – Continually improve effectiveness and efficiency of quality

management system to maintain a distinguishable competitive edge as viewed by

Customers.

Product Development and Innovation – Continually lead in the development of

innovative solutions, products and services to meet our customer expectations.

Human Resources Development - Continually improve Human Resource Systems

and practices through training, empowerment and motivation to achieve total

employee involvement.

Competition - Out perform competitors’ strategies by enhancing customer loyalty

with differentiated products, superior services and competitive pricing.

Financial Performance - Exceed our financial and growth objectives through

aggressive implementation of our business plan.

Environment, Health & Safety - Continually improve environment, health and

safety related practices.

This company is in its way to TQM. The effort to implement TQM is underway

for the past two years. It has not received any quality award. All the five top managers

interviewed agree that ISO is a prerequisite for the implementation of TQM. TQM in this

company was introduced by the top management and the company is following the

Japanese model. This company is following such quality programs as Statistical Process

Control, Quality Audit, Total Productivity Maintenance (TPM), Failure Mode and Effect

Analysis (FMEA) and Kaizen. The quality tools include check list, flow chart and seven

QC tools. There has been no change in the organization structure because of the

implementation of TQM. The company has not employed any additional staff after the


Employees in this company are allowed and encouraged to identify and diagnose

quality problems and take corrective action without going through the management

hierarchy.

186

3.63. Success Factors of TQM Implementation



Disagree

Upper management

commitment and involvement 14 6


involvement 5 15



between management and

labour

1 15 4

Quick decision making

process 8 9 3


functions 2 17 1






Teamwork 10 10

Increasing customer

orientation 5 11 4



Fast response to customer

needs 10 7 3




investments 2 14 4

187

As far as the factors that have contributed to the successful implementation of

TQM are concerned, all the twenty respondents who were interviewed agree that upper

management commitment and involvement, developing employees involvement,

achieving positive change, improving quality, quality training, use of quality tools, role of

the quality department, teamwork, identifying customer requirements and needs and

improving productivity have facilitated for the successful implementation of TQM.

While two respondents are uncertain, all agree that orientation to promoting

export was a facilitator for the successful implementation of TQM. Seventeen

respondents hold that employee empowerment in the organization has been a facilitator;

three are however uncertain about it. It is the same in the case of fast response to

customer needs as a facilitator. While four respondents are uncertain, all others think that

improving communication between management and labour, increasing customer

orientation, and orientation to attracting more foreign investments have been facilitating

factors.

According to seventeen respondents quick decision making process has been a

contributing factor; three disagree with this. While nineteen hold that close cooperation

among functions has been a facilitator, one disagrees. Eighteen respondents say that the

role of the quality department has been a facilitator whereas two disagree on this. Strong

agreement is found more with regard to upper management commitment and

involvement, teamwork and fast response to customer needs as facilitators for the

successful implementation of TQM.

188

3.64. Success Factors Descriptive

Mean


Std.

Deviation

01 Upper management commitment

and involvement

1.00 2.00 1.7000 .4702

02 Teamwork 1.00 2.00 1.5000 .5130


and needs

1.00 2.00 1.4500 .5104

04 Fast response to customer needs .00 2.00 1.3500 .7452

05 Developing employees

involvement

1.00 2.00 1.2500 .4443



08 Promoting export .00 2.00 1.2000 .6156



11 Quick decision making process -1.00 2.00 1.1000 1.0208


13 Increasing customer orientation .00 2.00 1.0500 .6863

14 Employee empowerment .00 2.00 1.0000 .5620

15 Close cooperation among functions -1.00 2.00 1.0000 .5620


17 Attracting more foreign

investments

.00 2.00 .9000 .5525



.00 2.00 .8500 .4894

The rank order of the mean scores in the above table shows that the most

important facilitating factor for the successful implementation of TQM in this

organization has been upper management commitment and involvement. Top

management commitment and involvement is essential in the TQM implementation and

plays an important role as an advocate, teacher and leader to encourage the improvement

and expansion of an organization. Top management in this company reported that, the

purpose of TQM implementation is to evidence the management’s commitment to the

development, implementation and continually improve the effectiveness of the TQM by

defining the structure of the organization, the responsibility, authority and

189

interrelationship of various processes/personnel to implement and review the quality

management. It covers all activities and functions affecting quality of the company’s

product and to review product realization processes/support processes to assure their

effectiveness and efficiency by:

Management Commitment

Customer Focus

Quality Policy

Responsibility, Authority and communication

Management Reviews

Next to this, teamwork is recognized as an important facilitating factor.

Identifying customer requirements and needs and fast response to customer needs follow

the above factors in the order of importance as facilitators of TQM. Continuous, or never-

ending, improvement is a powerful concept related to the pursuit of never-ending

improvement in meeting external and internal customer needs. This concept must be

firmly tied to a continuous assessment of customer needs and depends on a flow of ideas

on how to make improvements, reduce variation and generate greater customer

satisfaction. It also requires a high level of commitment and a sense of personal

responsibility in those operating the processes. Continuous improvement requires

management by facts and commitment of all employees with an emphasis on teamwork

to promote a bottom-up thrust for quality improvement.

Developing employee involvement, quality training and improving productivity

and promoting export are other significant facilitators in that order. Top managers should

strongly encourage employee involvement in quality management and improvement

activities, attach great importance to employees’ suggestions, take responsibility for

employees’ actions as well as those of the people who report to them, and be open and

willing to listen to the voices of employees. Adequate training is the key foundation of a

successful TQM implementation. In this company training is taken as a tool to add value

to an employee’s job with better job knowledge and productivity.

Orientation to improving quality, use of quality tools, quick decision making

process, achieving positive change, increasing customer orientation, employee

empowerment and close cooperation among functions are other significant facilitating

factors.

190

3.65. Barrier Factors of TQM Implementation



Disagree



Lack of government

commitment 2 10 7 1


management commitment 6 6 4 4

Lack of competent

management 7 7 6


consultants 2 8 9 1


TQM 7 9 2 2


Difficulty in developing

company specific models 12 3 5


Lack of training 2 3 7 6 2

Lack of skills of workers 3 8 9

Reluctance of workers to

involve in decision making 10 1 9



departments 2 4 5 8 1


programs 4 3 11 2


191

As far as the barrier factors in the implementation of TQM are concerned, the

single most important barrier that has been encountered in this organization has been fear

and resistance to change. Fifteen out of the twenty respondents agree that the costly and

long term study inherent in TQM has been a barrier; five are uncertain about it.

Twelve respondents agree that lack of consistent top management commitment

has been a barrier; six are strong in such an opinion. Four however disagree with this and

four are uncertain. Nine respondents agree and seven strongly agree that inadequate

knowledge about TQM has been a barrier whereas two disagree and two are uncertain. In

the case of inadequate planning as a barrier, thirteen agree while five disagree and two

are uncertain.

According to twelve respondents, difficulty in developing company specific

model has been a barrier; five however disagree with this and three are uncertain. Six

respondents say that resource limitation has been a barrier, but eight disagree with this

and six are uncertain. While five of the respondents agree that lack of training has been a

facilitator, eight disagree and seven are undecided. For ten of the respondents reluctance

of workers to involve in decision making has been a barrier whereas nine disagree with

this. While eight respondents say that there has been employee apathy impeding the

implementation of TQM, five disagree and seven are uncertain. Four respondents agree

and two strongly agree that lack of coordination between departments has been a barrier,

nine disagree and five are uncertain.

192

3.66. Barrier Factors Descriptive

Mean


Deviation


02 Inadequate knowledge about

TQM

-1.00 2.00 1.0500 .9445

03 Costly and long-term study .00 2.00 .8000 .5231

04 Lack of consistent top


-1.00 2.00 .7000 1.1286

05 Inadequate planning -1.00 2.00 .5500 1.0501

06 Difficulty in developing

company specific models

-1.00 1.00 .3500 .8751

07 Lack of competent management -1.00 1.00 .0500 .8256

08 Reluctance of workers to

involve in decision making

-1.00 1.00 .0500 .9987

09 Employee apathy -2.00 1.00 .0500 .9987


departments

-2.00 2.00 -.1000 1.1192

11 Lack of training -2.00 2.00 -.1500 1.1367

12 Resource limitations -2.00 1.00 -.2000 1.0052

13 Lack of skills of workers -1.00 1.00 -.3000 .7327

14 Lack of government

commitment

-2.00 1.00 -.3500 .7452

15 Lack of qualified quality

consultants

-2.00 1.00 -.4500 .7592

16 Ineffective maintenance

programs

-2.00 1.00 -.5500 .9445

17 Poor condition of machines -2.00 .00 -.9500 .6863

193

As seen from the rank-ordered mean scores in the above table, fear and resistance

is the most important barrier factor the company had to contend with while implementing

TQM. One of the resistances to TQM is typical resistance to any change. This resistance

may be more severe if the organization is successful, if there is a particularly deep-seated

culture, if there has been a great deal of change already, or if the change lacks legitimacy,

training and communication.

Besides this, inadequate knowledge about TQM is said to have been a barrier; but

there is some equivocation about it as shown by the relatively higher standard deviation.

Managers and employees need to be aware of the TQM concepts, trained to improve

interactive skills, problem identification and solving skills, and technical skills.

Employees need to be informed about the quality initiative and participate in the

improvement activities and through top-down and bottom-up communication.

The costly and long term study involved in the implementation of TQM has also

been an important barrier. Lack of consistent top management commitment has also been

a barrier; but there is more difference of opinion about it as shown by the high standard

deviation. In the case of inadequate planning as a barrier also there is difference of

opinion, by it is held by many as an important barrier. One more important factor that has

acted as a barrier in that order is difficulty in developing company specific model.

194

3.67. Achievements after TQM



Disagree





Decrease in work-in-progress 1 18 1

Increase in work satisfaction 3 15 1 1













Certain benefits are mentioned as achievements after the implementation of TQM

by all the respondents. They are increase in customer satisfaction, on-time delivery, and

decrease in defects, achieving teamwork, improvement in productivity and quality

improvement. Except for one respondent who is uncertain, all hold that there has been

decrease in work accidents, decrease in work-in-progress and improvement in morale.

While eighteen of the twenty respondents agree that there has been increase in work

satisfaction, one disagrees and one is uncertain about it. While fourteen respondents

agree that there has been decrease in internal quality costs, six are uncertain. As far as

195

decrease in external quality costs is concerned, thirteen agree whereas seven are

uncertain.

According to eleven, the company has realized an increase in market share; nine

however are uncertain about it. For fifteen there has been improvement in safety level

after the implementation of TQM; five are uncertain about it. Uncertainty is found more

with regard to decrease in appraisal costs, decrease in price and increase in profitability

as achievements as a result of TQM. Strong agreement is observed with regard to

increase in customer satisfaction, on-time delivery, achieving teamwork and

improvement in productivity as benefits arising out of the implementation of TQM.

3.68. Achievements Descriptive

Mean


Std.

Deviation




04 On-time delivery 1.00 2.00 1.6500 .4894





09 Decrease in work-in-progress .00 2.00 1.0000 .3244

10 Increase in work satisfaction -1.00 2.00 1.0000 .6489






16 Increase in profitability .00 1.00 .4000 .5026



196

The outstanding achievements realized in this company as a result of the

implementation of TQM are increase in customer satisfaction, achieving teamwork,

improvement in productivity and on-time delivery. These items have high mean scores

with low standard deviations. Next to the above, the other important achievements have

been decrease in defects, quality improvement, improvement in morale, decrease in work

accidents, decrease in work-in-progress and increase in work satisfaction in that order.

There are also some other significant benefits which include improvement in safety level,

decrease in internal and external quality costs and increase in market share.




Disagree


Everybody being committed 12 7 1








Promotion of export 3 12 5

The core values which the company focused on when it started to implement

TQM are mainly top management commitment, continuous improvement, decisions

based on facts, focus on customers and focus on process. All respondents agree on these.

197

With one respondent being uncertain, all agree that the company focused on the

value of everybody being committed. In the case of improvement in productivity as a

core value, two are uncertain while all others agree on it. Whereas fifteen of the

respondents agree that the company focused on the value of promotion of export, five are

uncertain about it. As far as the values concerning decrease in quality costs and decrease

in price are concerned, there is more uncertainty than assertion that they have been the

values of focus. Strong agreement is found with regard to top management commitment,

everybody being committed, continuous improvement and focus on customers as the

important core values focused on while implementing TQM.


Mean

Rank Core Values Minimum Maximum Mean Std.

Deviation



03 Everybody being committed .00 2.00 1.5500 .6048


05 Focus on process 1.00 2.00 1.4500 .5104



08 Promotion of export .00 2.00 .9000 .6407

09 Decrease in quality costs .00 2.00 .5500 .7592


The implementation of TQM should begin with the acceptance of the core values

that should characterize the culture of the organization. The next step is to continuously

choose techniques that are suitable as support for the selected values. Ultimately, suitable

tools have to be identified and used in an efficient way in order to support the chosen

techniques.

198

The rank-ordered mean scores reflect the prioritization of the core values that

were focused on while the company started to implement TQM as per the degree of

agreement by the respondents. Accordingly the most important core values have been top

management commitment and focus on customers. TQM must be built with the

management’s continuous involvement as a basis. A strategy for TQM in an organization

must be built on the management’s continuous commitment for questions concerning

quality. The management must establish a quality policy and support quality activities

morally and by providing resources. The core values are important parts of this work.

Next to these two, the values of everybody being committed, continuous

improvement, focus on process and decisions based on facts have also been focused on

along with the value of improvement in productivity.

3.71. TQM Goals

Goals Strongly


Disagree




To achieve a quality culture in the

long-term 7 13

To receive quality award 6 3 10 1


Satisfied employees 10 7 3




As for the goals with which the company started to implement TQM, all

respondents agree that the goal have been generating competitive power, continuous

199

improvement, improving quality, achieving a quality culture in the long term, having

satisfied customers, improving productivity and business excellence. It was also to have

satisfied employees according to seventeen of the respondents, but three are uncertain

about it. Fourteen respondents agree that achieving lower costs has been a goal, but six

are uncertain. There is more uncertainty with regard to receiving quality award as a goal;

ten are uncertain and one disagrees. Strong agreement is found more with regard to

having satisfied customers and employees and business excellence as goals of TQM.


Mean


Std.

Deviation






the long-term

1.00 2.00 1.3500 .4894

06 Satisfied employees .00 2.00 1.3500 .7452




10 To receive quality award -1.00 2.00 .7000 .9787

The mean score rank order shows that the most important goals of TQM have

been to have satisfied customers and achieving business excellence. The next important

goals have been continuous improvement and improving quality. Apart from these,

achieving quality culture in the long term, having satisfied employees, improving

productivity and generating competitive power have also been the goals of TQM in this

company.

200


Major Goals

Satisfied customers

Business excellence

To improve quality

Satisfied employees


Major Achievements



Quality improvement


Minor Goals


Minor Achievements





This company had customer satisfaction, business excellence, improvement in

quality, employee satisfaction and improvement in productivity as its major goals while

implementing TQM. All have been attained in a remarkable manner, except for the goal

of achieving business excellence, which has been realized in an increase of market share

to some extent. Achieving lower costs had been a minor goal and the company has

achieved decrease in internal and external quality costs as well as in appraisal costs to

some extent.

201




Disagree


Higher costs 4 8 8

More paper 6 10 4




Increase in number of staff 10 6 4


As far as the side effects of the implementation of TQM are concerned, only one

item is agreed by six respondents, that is, more paper work. All other items are largely

disagreed as to have been the side effects of TQM or the respondents are uncertain about

them. All the respondents agree that implementation of TQM has resulted in increased

productivity in the organization and that it has an overall positive effect in the

organization.

202

3.8. J.K. Tyres Ltd.

J.K. organization founded over 100 years ago ranks within the elite private groups

in India in terms of assets and sales. The Group's operations can best be characterized as

multi-business, multi-product and multi-location. The Group has a distinguished record

of being pioneers in introducing several new products and processes into India for the

first time.

It comprises of a number of industrial and commercial companies, exceeding 70

in number, most of them public limited, in which J.K. Organization has controlling

interest ranging from 35 to 70%. In the major public limited companies, there are a large

number of public shareholders aggregating over 8,00,000.

J.K. organization has achieved a number of important technological break-

through and has an impressive record of FIRSTS in India, prominent among them being:

1944 - First in India to produce Aluminiurn Virgin Metal from Indian Bauxite.

The Company was nationalized in 1973.

1949 - First in India to manufacture Steel Engineering Files.

1969 - First to manufacture Acrylic Fibres in India.

1977 - First to produce Steel Belted Radial Tyres for passenger cars, trucks and

buses in India.

1980 - First in the World to make Steel Belted Radial Tyres for 3 wheelers.

1984 - First to produce White cement in India using dry processed technology,

etc.

J.K. Organisation has very diversified manufacturing activities such as Synthetic

Fibres like: Nylon, Polyester, Acrylic; Paper & Boards; Cement; Automobile Tyres &

Tubes; Cotton, Woollen and Jute Textiles; Engineering; Plastic Processing;

Agrochemicals; Hybrid Seeds; Cosmetics; Audio & Video magnetic tapes; Power

transmission including V-Belts and Conveyor Beltings, Automotive Belts, Oil Seals;

System Engineering, Industrial, Electronics and Material handling systems, etc.

The Group is further diversifying in other fields like Petrochemicals, Steel, Drugs

& Pharmaceuticals, Food & Dairy Products, Electronics, Computer Software, Power

generation, Rubber hoses, etc.

The Group exports number of products including Jute Textiles, Woolen Textiles,

Readymade Garments, Engineering Files, Tyres and Tubes, Synthetic Fibres, Paper,

203

Marine products, Spices, etc. JK Tyre, the pioneer in radial technology is the India's

largest radial manufacturer. JK Tyre manufactures over 15 lakh (1.5 million) truck tyres

annually, at its own state-of-the-art plants. JK Tyre painstakingly pursues the path of

innovation and quality, to give customers tyres they are proud to have.

JK Tyre is the first tyre company in the world to get ISO 9001 certification for its

entire operations. It is also the very first to set up state-of-the-art Research Center -

HASETRI. JK Tyre is in technical collaboration with Continental of German. Vikrant

Tyres Limited set up a Bias Tire plant in city of Mysore, in state of Karnataka, in

technical collaboration with Techno export Foreign Trade Company Ltd,

Czechoslovakia, in early 80's.

Vikrant Tyres, in later expansions pioneered for the first time to put up new plant

in another location, to manufacture All Steel Radial Truck Tires, with a capacity to

produce 200,000 truck and bus tires per annum. The collaboration with Techno Export

Foreign Trade Company Limited Czechoslovakia ended in February 1981. On 1982 May

the company did enter in to a technical collaboration agreement with AVON technical

services of England for manufacturing of Radial Tyres. The company in December 1994

secured the prestigious ISO 9001 certification for design, manufacturing and sale of

automobile tyres, tubes, flaps and tread rubber. It has also got ISO 9000 and ISO 14001.

On May 1997, was the year where the J.K Tyres Ltd. inducted as a strategic Alliance

Partner in to the company and took controlling interest in the company and Vikrant Tyres

Ltd., an ISO 9002 company became its subsidiary, as a result Vikrant Tyres is know

under the control of J.K.LTD., has remained a separate entity. The company obtained

QS9000 certificate in 1999 and it has also obtained ISO/TS16949:2002 certificate in

2003. JK soon launched a series of measures to streamline the operations and made a

strategic move to modernize the bias and radial plants by infusing fresh investment of

Rs. 275 crores. Next important step of J.K. Tyres was that JK brought on the table the

technical collaboration with Continental AG, of Germany, world's fourth largest Tyre

Manufacturer. Under new collaboration, Vikrant receives the State-of-the-Art latest

technology and enables Vikrant to produce good quality tires.

204

In the Vikrant plants, JK expects to produce both JK and Vikrant brand of tires,

with introduction of Radial truck tires sizes specially manufactured to cater to North,

South and Central American markets.

Vision of J.K. Tyre

“To be amongst the most admired companies in India committed to excellence”.

Mission of J.K. Tyre

To be the largest and most profitable tyre company in India. To retain No.1

position in Truck and Bus segment and be amongst top two in all other 4-wheeler

tyres.

To make Truck/Bus radial operations profitable and retain leadership in the

passenger radial market.

To be the largest Indian tyre exporter, continue to be a significant player in the

world in truck and bias market.

To be a customer obsessed company.

To enhance value to shareholders and services to all stakeholders.

To develop highly motivated team with a sense of Ananda.

To excel as a values driven organization.

To be the most preferred tyre brand in India.

J.K. Tyres Ltd. has obtained the Rajiv Gandhi National Quality Award (RGNQA) for

quality product in 2005.

Quality Policy

We employees of J.K. Tyres Ltd., shall assures that the quality of our products by

ensuring strict compliance with the approved quality standards and documented system,

use of quality raw materials and components and also proper up keep of out machinery.

The principal goal of every employee of J.K. Tyres is total customer satisfaction. This

company is in its way towards implementing TQM. Implementation of TQM is underway

for the past two years. It has obtained ISO9001 certificate. It has also obtained the

certificates of QS9000, 14001 and TS. It has received quality award.

TQM in this company was introduced by the top manager and it is modeled upon

EFQM. There has been no change in the organization structure as a result of the

implementation of TQM. Neither has any additional staff been employed. Employees in

this company are allowed and encouraged to identify and diagnose quality problems and

take corrective action without going through the management hierarchy. All the five top

managers interviewed agree that ISO is a prerequisite for the implementation of TQM.

205

Managers agree that certification was useful in the initial stages of quality system

implementation, mainly because they improved their production process through the

development of work procedures, creating an atmosphere in which quality played an

important role and defining responsibilities and duties.

This company is following such quality programmes as Quality Control Circle,

Statistical Process Control, Quality Audit, Total Productivity Maintenance (TPM),

FMEA, Advance Product Quality Planning (APQP), Design of Experiment (DoE),

Benchmarking and Business Process Reengineering (BPR). The quality tools include

check list, flow chart and seven QC tools.




Disagree

Upper management commitment and

involvement 20

Developing employees involvement 18 2


Improving communication between

management and labour 12 8


Close cooperation among functions 16 4






Teamwork 16 4


Identifying customer requirements and

needs 16 4




Attracting more foreign investments 2 12 6

206

Among all the facilitating factors that contribute for the successful

implementation of TQM, upper management commitment and involvement is considered

to be the most important one. All the twenty respondents interviewed strongly agree on

this. All the respondents agree that developing employee involvement, employee

empowerment, improving communication between management and labour, quick

decision making process, close cooperation among functions, achieving positive change,

orientation to improving quality, quality training, use of quality tools, teamwork,

increasing customer orientation, identifying customer requirements and needs, fast

response to customer needs and orientation to improving productivity have all been

facilitators. Only the degree of agreement varies in these cases. With five respondents

being uncertain, all agree that the role of the quality department has been a facilitator.

With two being uncertain, orientation to promoting export has also been a facilitator.

Uncertainty is relatively more with regard to the factor, attracting foreign investments;

six are uncertain while others agree that it is a facilitator.

207


Mean


Std.

Deviation


involvement

2.00 2.00 2.0000 .0000







08 Teamwork 1.00 2.00 1.8000 .4104


and needs

1.00 2.00 1.8000 .4104








1.00 2.00 1.6000 .5026


17 Promoting export .00 2.00 1.1000 .5525


While all the respondents agree about almost all factors as facilitators for the

successful implementation of TQM, the mean score rank order shows the relative

importance given to these factors. According to this order, upper management

commitment and involvement is considered to be the most important one, with the

highest possible mean and lowest possible standard deviation. Next to this, developing

employee involvement, employee empowerment and fast response to customer needs are

considered as important facilitators. The role of management is very important in

building an organization’s TQM culture. For TQM programs to be successful,

participation of all levels of employees is needed. Furthermore, aligning human resources

practices with total quality initiatives requires revolutionary changes in the way an

208

organization trains, empowers and rewards individuals and teams. At the time of

interview the HR manager was asked about the HR department’s activities, he pointed

out the following functions:

Functions of HR Department:

Training

Effectiveness evaluation

Performance Management

Induction

Employee satisfaction survey

HR policy compliance

Employee motivation and empowerment

Communication

Home Magazines

Having good management practices that promote human resource development

differentiates between a TQM and a non-TQM company. Numerous practices to promote

job satisfaction and continuous improvement exist in this company. They include a

system for job advancement, suggestion schemes, a reward system and training for

employees. So, the company attempt to employee involvement and continuous

improvement through participation, teamwork, and empowerment provided managers

truly believe in the value of employees as intelligent human beings.

Close cooperation among functions, achieving positive change, improving

quality, teamwork and identifying customer requirements and needs are agreed upon as

important facilitators. Effective HRM or management programs and policies must be

adopted with the change towards adopting the quality concept in achieving business

objectives. Next in the order is quick decision making process, quality training, use of

quality tools, increasing customer orientation, improving productivity and improving

communication between management and labour. Role of the quality department appears

in the lower rungs of importance.

209




Disagree


Costly and long-term study 2 18

Lack of government commitment 10 9 1


commitment 2 5 5 6 2



consultants 2 6 12


Inadequate planning 19 1








Employee apathy 2 8 10


departments 4 14 2



As far as the factors that have acted as barriers in the implementation of TQM are

concerned, fear and resistance to change, costly and long term study and inadequate

knowledge about TQM are outstanding. All the respondents agree on theses three factors

as barriers. With one respondent uncertain, all agree that inadequate planning has been a

barrier. While seven respondents agree that lack of consistent top management

commitment has been a barrier, eight disagree on this. While six agree that lack of

competent management has been a barrier, nine disagree with this. Whereas thirteen

respondents agree that difficulty in developing company specific model has acted as a

barrier, five disagree with that. While eight respondents agree that reluctance of workers

210

to involve in decision making has been a barrier, an equal number of respondents

disagree with this. With regard to other factors there is more disagreement and

uncertainty than agreement that they have acted as barriers in the successful



Mean


Deviation



03 Costly and long-term study 1.00 2.00 1.1000 .3078

04 Inadequate planning .00 1.00 .9500 .2236


specific models

-2.00 1.00 .3000 1.0809


decision making

-1.00 1.00 .0000 .9177


commitment

-2.00 2.00 -.0500 1.1910

08 Lack of competent management -2.00 1.00 -.3000 1.0809

09 Employee apathy -1.00 1.00 -.4000 .6806


11 Lack of skills of workers -2.00 1.00 -.6000 1.0463

12 Lack of training -2.00 1.00 -.7000 1.0311

13 Ineffective maintenance programs -1.00 1.00 -.7000 .6569


departments

-2.00 .00 -.9000 .5525

15 Poor condition of machines -2.00 .00 -

1.0500

.5104

16 Resource limitations -2.00 1.00 -

1.2000

1.0052

17 Lack of qualified quality consultants -2.00 1.00 -

1.4000

.9403

211

The rank-ordered mean scores in the above table clearly show that only a few

factors have been identified as barriers in the implementation of TQM. Most are rather

disagreed to have been barriers. The most important barriers in this company have been

inadequate knowledge about TQM, fear and resistance to change and the costly and long

term study inherent in TQM. Managers and employees should be more educated and

trained. Some employees perceived TQM as a threat to their power and position and

resisted the introduction of TQM.

Inadequate knowledge of middle managers and employees about TQM, its

concepts and principals was seen during the observation made through a site visit. If

TQM is successful employees will have to learn new techniques that can help them to

think statistically and be capable of measuring the success of the TQM initiative.

Inadequate planning is also recognized as an important barrier. To some extent difficulty

in developing company specific model has also been a barrier.

212




Strongly

Disagree





Decrease in work-in-progress 6 12 2







Decrease in external quality costs 12 8




Increase in market share 4 16



It is clear from the above table that except for certain items where there is some

degree of uncertainty, all other items are agreed by all the respondents as achievements

arising out of the implementation of TQM. As a result of the implementation of TQM,

the company has witnessed increase in customer satisfaction, on-time delivery, decrease

in defects, increase in work satisfaction, achieving teamwork, improvement in

productivity, quality improvement, decrease in internal and external quality costs,

increase in profitability, increase in market share, improvement in safety level and

improvement in morale.

213

With two respondents being uncertain, all agree that the implementation of TQM

has resulted in decrease in work accidents, decrease in work-in-progress and decrease in

price. Four being uncertain, all agree decrease in appraisal costs has been achieved.

While five are uncertain, fifteen agree that the company has witnessed development of

new products. Strong agreement is found more in the case of increase in customer

satisfaction, decrease in defects, increase in work satisfaction, achieving teamwork,

improvement in productivity, quality improvement, decrease in internal and external

quality costs, decrease in appraisal costs, increase in profitability and improvement in

morale as achievements.


Mean


Std.

Deviation





05 Decrease in external quality costs 1.00 2.00 1.6000 .5026

06 Increase in profitability 1.00 2.00 1.5500 .5104





11 Improvement in safety levels 1.00 2.00 1.3500 .4894

12 On-time delivery 1.00 2.00 1.3000 .4702

13 Decrease in appraisal costs .00 2.00 1.3000 .8013



16 Increase in market share 1.00 2.00 1.2000 .4104

17 Decrease in work-in-progress -1.00 2.00 1.1000 .8522

18 Development of new products .00 2.00 .8500 .5871

214

As seen from the mean scores in the above table, the most important

achievements the company has experienced after the implementation of TQM are quality

improvement, increase in customer satisfaction and achieving teamwork. To implement

TQM, top managers committed to establishing a firm that continually views quality as a

primary goal. If the organizational culture does not embody quality, any quality

improvement effort is probably shallow and short-lived. The implementation of TQM,

coupled with the adoption of a quality conscious culture, causes a cyclical effect to take

place in this company. Top manager in this company believes, improved quality can lead

to improved customer satisfaction, which in turn leads to improved product reputation,

which in turn can lead to increased sales and profits.

The responsibility for TQM is shared amongst all members of the organization.

Employees therefore are able to trust, and work with, each other. This element of trust

makes teamwork especially applicable to TQM. Employees regularly receive training in

team working techniques and communication skills. So, implementation of TQM brings

team work culture to the company.

J.K. Tyres Ltd. has been ranked highest in customer satisfaction according to JD

Power Asia Pacific in 2005 and it confirms the result of this study in which the company

achieved more customer satisfaction during the implementation of TQM. The company

has also realized improvement in productivity, decrease in external quality costs, increase

in profitability, decrease in defects, increase in work satisfaction decrease in internal

quality costs and improvement in morale.

Other significant benefits in that order are improvement in safety level, on-time

delivery, decrease in appraisal costs and decrease in price. Besides these the company has

also experienced decrease in work accidents, increase in market share and decrease in

work-in-progress.

215




Disagree

Top management commitment 20






Decrease in quality costs 6 14




All the twenty respondents, except for two in the case of decrease in price

wherein they are uncertain, agree about all the core values as to have been focused on by

the company while starting to implement TQM. In the case of top management

commitment as a focused value, the agreement is total and strong. Strong agreement is

also found more with regard to everybody being committed, continuous improvement,

decisions based on facts, focus on customers, focus on process, improvement in

productivity and promotion of export.

216


Mean

Rank Core values Minimum Maximum Mean

Std.

Deviation



03 Focus on process 1.00 2.00 1.8000 .4104






09 Decrease in quality costs 1.00 2.00 1.3000 .4702


The ordered mean scores show that the most important core value focused on by

this company has been top management commitment. Top management is responsible for

developing the philosophy, policies and procedure to shift the organization’s emphasis

toward quality oriented goals and process improvements. In addition, leadership helps

create a culture that fosters the philosophies of TQM. Top management commitment can

positively affect employees’ commitment to TQM and culturally change people involved.

If top management views quality as more important than cost, more important than

meeting product schedules, employees’ quality awareness is easily improved. So,

commitment of top management has been considered the most important core value

toward implementation of TQM in this company.

Next to this are the values of focus on customers and focus on process. The values

of everybody being committed and continuous improvement follow the above values in

the order of agreement. Other important values include decisions based on facts,

improvement in productivity and promotion of export.

217


Goals Strongly


Disagree





the long-term 16 4







It is obvious from the above table that all the items mentioned are agreed to have

been the goals of the company for implementing TQM, except for the goal of receiving

quality award about which seven are uncertain. Strong agreement is found more in the

case of generating competitive power, continuous improvement, improving quality,

achieving quality culture in the long term, having satisfied customers and employees,

improving productivity and achieving business excellence.

218


Mean


Std.

Deviation





the long-term

1.00 2.00 1.8000 .4104







As shown by the rank-ordered mean scores to have satisfied customers has been

the most important goal of the company to implement TQM. Generating competitive

power, improving quality and achieving quality culture in the long term have also been

important goals. Other goals in the order of agreement are business excellence, improving

productivity, continuous improvement, to have satisfied employees and to achieve lower

costs.

219

Table 3.85. Goals and Achievement

Major Goals

Satisfied customers

To improve quality

Business excellence


Satisfied employees


Major Achievements

Quality improvement








It is noteworthy that in spite of the fact that it has been only two years since this

company started to implement TQM, all the major goals it had at the beginning of the

implementation of TQM have been realized in a major way.




Disagree


Higher costs 2 8 10

More paper 4 5 11




Increase in number of staff 4 8 8


As for the side effects of the implementation of TQM, none is mentioned, except

for more paper work. Only four respondents agree that there has been more paper work

after the implementation of TQM. All the twenty respondents agree that implementation

of TQM has resulted in increased productivity and that on the whole it has a positive

effect in the organization.

220

3.9. Cross-Case Analysis

Cross-case analysis was performed to find out similarities and differences

between the companies in approach to TQM.

Table 3.87. ISO Certification

Company ISO9000 ISO9001 ISO9002 ISO9003

1

2 Obtained

3

4

5 Obtained Obtained

6 Obtained

7 Obtained Obtained Obtained

According to Sun (1999), European companies usually implement ISO 9000 more

often than TQM, while in the United States, Japan, Brazil, and Canada ISO 9000

certification is not so accepted.

Using a sample of companies from Singapore, Quazi and Padibjo (1998) state that

companies often start with an ISO system and later slowly move toward TQM. The result

of this research also shows all companies except companies 1, 3 and 4 first adopted ISO

certification and later moved toward TQM. This is because companies get results from

registration and this prompts managers to pursue higher levels of quality. Of the seven

companies studied, companies 2, 5, 6 and 7 have obtained ISO9001; companies 5 and 7

have also obtained ISO9002.

221

Table 3.88. Other certifications

Company QS9000 ISO14001 OHSAS TS 16949



3 Obtained

4 obtained Obtained Obtained Obtained

5 obtained Obtained Obtained

6 Obtained Obtained


As far as the certificate of ISO14001 is concerned, all the seven companies have

obtained. Except for company 3, all have obtained ISO/TS16949 certificate which is

specific for automotive or automotive ancillary sector. Companies 1, 2 and 4 have

obtained OHSAS18001 certificate. Companies 4, 5 and 7 have obtained QS9000

certificate.

Table 3.89. Agreement on ISO as prerequisite

Company

Agreement on ISO as

prerequisite Total

Not agree Agree

1 4 1 5

2 1 4 5

3 4 1 5

4 0 5 5

5 2 3 5

6 0 5 5

7 0 5 5

222

Apart from any influence derived from implementation, some authors advocated

that certification could be a good first step toward a TQM system, raising awareness of

quality among workers and a good climate in which to implement it (Taylor 1995;

Tummala, Rao, and Tang 1996; Skrabec 1999; Escanciano, Fernandez and Vazquez

2001). Regarding this point, implementation of the standard was advised with the aim of

implementing TQM in order to obtain maximum benefits from the registration.

Sun (1999) analyzed differences in performance depending on the chosen quality

system and found that the group with better results was composed of companies that were

using ISO 9000 and TQM jointly, supporting the findings of Ismail and Hashmi (1999).

Both studies agree that the order of implementation is not relevant at the time of

obtaining better results, which could contradict the accepted wisdom of ISO as a good

first step toward TQM.

All the top managers interviewed in companies 4, 6 and 7 agree that ISO is a

prerequisite for the implementation of TQM. Four out of five in company 2 agree on the

same while three out of five in company 5 agree. Four out of five in companies 1 and 3

do not agree that ISO is a prerequisite for the implementation of TQM. It is noteworthy

that companies 1 and 3 have not obtained any ISO certificate. Though company 4 has not

obtained any ISO certificate, all the five top managers agree that ISO is a prerequisite for

the implementation of TQM.

From the result of this study it can be concluded that the certification

complements the TQM approach, and the decision on the convenience of which system to

implement first should be taken according to the company’s situation. Although adopting

ISO certification will ensure that a company’s products meet customer specifications,

having a quality assurance system may not be sufficient if there is no continuous

improvement strategy which represents the core of TQM implementation.

Numerous quality tools and techniques are utilized for different processes by all

companies. The various quality initiatives implemented by the companies are

summarized in Table 3.90.

223

Table 3.90. The various quality initiatives implemented by the companies

Company QCC JIT SPC QA TPM FMEA QFD

1 Yes Yes Yes Yes Yes Yes Yes


3 Yes Yes Yes Yes Yes Yes


5 Yes Yes Yes Yes Yes



The table shows some quality programs such as Statistical Process Control (SPC),

Quality Audit (QA), Total Productive Maintenance (TPM) and Failure Mode and Effect

Analysis (FMEA) are the most quality programs undertaken by all companies during the


Company 5 follows all these except for JIT and QFD. Company 6 follows SPC,

QA, TPM and FMEA, while it does not follow QCC and JIT. Company 7 follows all

quality programs except for QCC and QFD. From the table, it can be observed that

companies 1, 2, 3 and 4 have implemented all quality programs listed except for QFD

which company 3 is not following it.

Table 3.91. Person introduced TQM

Company

Person introduced TQM

Total Top

management

External

consultant

Parent

company

1 5 5

2 5 5

3 5 5

4 5 5

5 1 4 5

6 4 1 5

7 5 5

The result of interview with five top managers shows, in companies 1, 6 and 7, it

was the top management that introduced TQM. In companies 2, 3, 4 and 5, it was the

parent company. In company 5, four out of the five top managers say that it was the

parent company that introduced TQM, while one says that it was the external consultant.

224

In company 6, four out of five say that it was the top management that introduced TQM,

while one says that it was the parent company.

Table 3.92. Model followed

Company Model followed

Total Japanese EFQM

1 5 5

2 5 5

3 5 5

4 5 5

5 5 5

6 5 5

7 5 5

While four companies, viz. 1, 2, 3 and 6, follow the Japanese model (Deming

Award) of TQM, three, viz. 4, 5 and 7 follow the European model i.e. EFQM.

Table 3.93. Implementation Time

Company Implementation Time (Years)

1 4 to 6

2 4 to 6

3 4 to 6

4 4 to 6

5 Implementation is not completed



The respondents were asked about the time taken to implement TQM. Almost all

respondents from the companies 1, 2, 3 and 4 which have fully implemented TQM

indicated that the average implementation time of TQM was between four to six years.

The result of this study is similar to others. Agus and Abdullah (2000) reported that the

average duration of implementation of TQM in Malaysian manufacturing companies is 6

years. A study performed based on a survey of 73 Taiwanese companies by Huang and

lin (2002) indicated that TQM implementation time had been one to five years.

Companies 5, 6 and 7 started implementation of TQM almost two years ago and they are

in process of implementing TQM.

225

No company has experienced any significant structural change in the organization

as a result of TQM implementation. Neither has any company employed any additional

staff because of TQM. All the seven companies allow and encourage their employees to

identify and diagnose quality problems and take corrective action without going through

the management hierarchy.

It is felt appropriate at this point to evaluate the level of TQM adoption as

evidenced by case studies conducted and the quality initiative data. It is not the purpose

here to conduct performance appraisals but merely to show the differences that exist

between them. “Fully implemented TQM” are those which have implemented a broad

range of quality initiatives tools with longer years in implementation while, “Partially

implemented TQM” are the ones which have shorter experience and have adopted fewer

initiatives.

226

Table 3.94. Company-Wise Mean Scores for Success Factors

Facilitating Factors Company

1 2 3 4 5 6 7

Upper management

commitment and involvement

1.9500 1.8000 1.8889 1.8421 1.8947 1.7000 2.0000


involvement

1.9000 1.7500 1.8889 1.8421 1.4737 1.2500 1.9000

Employee empowerment 1.5500 1.4000 1.6111 1.2632 1.3684 1.0000 1.9000


between management and

labour

1.4500 1.3000 1.6667 1.5789 1.1053 .8500 1.6000

Quick decision making process 1.3500 1.0500 1.0556 1.2632 1.7895 1.1000 1.7500


functions

1.5500 1.4000 1.1111 1.2632 1.4737 1.0000 1.8000

Achieving positive change 1.3500 1.5500 1.1667 1.8421 1.3684 1.1000 1.8000

Improving quality 1.9000 1.6000 2.0000 1.7895 1.2632 1.1500 1.8000

Quality training 1.7500 1.4000 1.3889 1.5263 1.1053 1.2000 1.7000

Use of quality tools 1.8000 1.5000 1.1667 1.7895 1.5789 1.1500 1.7000

Role of the quality department .5500 .6000 1.0556 1.2105 .5263 .9000 1.3000

Teamwork 1.9000 1.6500 1.7222 2.0000 1.7895 1.5000 1.8000

Increasing customer

orientation

1.6500 1.6000 1.9444 2.0000 1.7895 1.0500 1.7000


requirements and needs

1.7500 1.5000 1.7222 1.8947 1.7895 1.4500 1.8000

Fast response to customer

needs

1.6500 1.5000 1.7778 1.8421 1.7895 1.3500 1.9000

Improving productivity 1.3000 1.1500 1.8889 1.4737 1.1053 1.2000 1.7000

Promoting export .0100 .8000 .8889 .7368 .5263 1.2000 1.1000


investments

-.1500 .4500 .7222 .3158 .3158 .9000 .8000

227

Upper management commitment and involvement, developing employee

involvement, employee empowerment, quick decision making process, close cooperation

among functions, achieving positive change, improving quality, quality training, use of

quality tools, teamwork, increasing customer orientation, identifying customer needs and

requirements, fast response to customer needs and improving productivity have been

important facilitating factors for the successful implementation of TQM in all the seven

companies. The findings support previous studies (e.g. Mann and Kehoe (1995); Mersha

(1997); Ugboro and Obeng (2000); Motwani (2001); Ghobadian and Gallear (2001); and

Ozden Bayazit (2003)) where they found upper management commitment and

involvement, employee involvement, customer focus, quality education and training,

team work and use of quality tools are regarded as critical success factors for

implementing TQM.

It is very difficult to improve product quality and quality management if top

managers do not lead and participate. Quality improvement involves making decisions

and creates something that did not exist before. Top management participation is crucial

to a firm’s quality improvement efforts; it obviously helps in spreading quality

consciousness throughout a firm. Top management commitment is the first step and

prerequisite for a firm’s TQM implementation efforts. Lack of management commitment

is one of the reasons for the failure of TQM efforts.

Employee involvement strategies like quality circles, employee suggestion

scheme and cross-functional teams have been used successfully by the all case companies

to realize gains in different phases of quality improvement. Top managers should

strongly encourage employee involvement in quality management and improvement

activities and attach great importance to employees’ suggestions. When TQM is

implemented, top managers must have more enthusiasm than their employees. This

enthusiasm should be demonstrated by a positive attitude, especially when employees are

unwilling. Top managers should trust employees and believe that they can do things

better, as well as encourage them to list the firm’s shortcomings and report their own

working problems.

228

Employee training at all levels is seen as a particularly important part of

successful quality efforts in all cases. Formal training in statistical tools, group problem

solving, and communication techniques help employees to participate more effectively in

quality management. Including employees from different levels of the hierarchy in

training also breaks down communication barriers and thus helps improve quality efforts.

Most employees in all cases are trained to use quality tools and quality problem solving

techniques during the implementation of TQM.

Quality improvement plans are activities that establish the objectives and

requirements for quality and the application of quality system elements. When quality

improvement plans are drawn up, how to implement them should be well developed. Of

course, firms need to arrange sufficient resources in order to ensure that the quality

improvement plans can be implemented; they are useless if they cannot be implemented

in practice.

Employee performance evaluation is a process by which a firm establishes

measures (targets) and evaluates an individual employee’s behavior and accomplishments

within a finite time period. Employees’ performance as a whole affects the success of the

firm. Therefore, the firm needs to regularly evaluate employee performance against set

targets. Individual targets should be established on the basis of job requirements,

potential contributions to organizational objectives, teamwork, working attitudes, etc.

The results of employee performance evaluation can serve as input for employees’

recognition, reward, dismissal, education, and training. All the seven case companies

have training centre and regular training programs for managers, supervisors and

employees.

Quality tools play a key role in an organization-wide approach to continuous

improvement, and their use is a vital component of any successful improvement process.

Improving communication between management and labour has not been so important a

facilitator for company 6, as it has been for other companies. While the role of the quality

department has been an important facilitator for companies 3, 4 and 7, it has not been that

important for companies 1, 2, 5 and 6. Except for company 7, for all other companies

promoting export has not been a very important facilitator. Attracting foreign investments

229

has not been an important facilitating factor for any company for the successful


Table 3.95. Company-wise mean scores for Barrier Factors

Barrier Factors Company

1 2 3 4 5 6 7

Fear and resistance to change 1.3500 1.6000 1.8333 1.1579 1.4737 1.2000 1.1500

Costly and long-term study .9000 1.6000 1.7222 1.0526 .8947 .8000 1.1000

Lack of government

commitment

-.7500 -.4000 -.4444 -.5789 -.3158 -.3500 -.5500



.6500 .8500 .2222 .6316 .3684 .7000 -.0500

Lack of competent

management

.3500 .7000 .1667 .8947 .05263 .05000 -.3000


consultants

-.2000 -.1000 -.1111 -.3158 .1053 -.4500 -1.400


TQM

1.6000 1.4500 1.1667 1.5263 1.0526 1.0500 1.4500

Inadequate planning 1.1500 1.4000 .8889 .9474 1.1053 .5500 .9500

Difficulty in developing

company specific models

.5000 .2500 .8333 .1579 .1579 .3500 .3000

Resource limitations .4000 .2500 .7222 -.3158 .7895 -.2000 -1.200

Lack of training 1.0500 -.1000 1.3333 .0526 .4211 -.1500 -.7000

Lack of skills of workers .6500 .2500 1.3333 -.4737 .0000 -.3000 -.6000

Reluctance of workers to

involve in decision making

.0000 .0000 .5556 -.6316 -.3158 .0500 .0000

Employee apathy -.3000 -.1500 .6667 -.3158 -.1053 .0500 -.4000

Lack of coordination

between departments

.0000 -.3500 .5556 -.6842 .0526 -.1000 -.9000


programs

-.5500 -.2500 .0000 -1.4211 -.8421 -.5500 -.7000

Poor condition of machines -.8500 -.3500 -.3333 -1.4211 -1.0526 -.9500 -1.050

230

Fear and resistance to change has been an important barrier factor in the

implementation of TQM for all the companies. Inadequate knowledge about TQM has

also been an important barrier for all the companies. The result of this study is similar to

others. Huang and Lin (2002) found that most of the difficulties had stemmed from

inadequate knowledge and understanding about TQM, resistance and disregard on the

part of employees and lack of consistent top management support.

Managers need to improve their managerial abilities through continuous learning.

Learning TQM is an important step toward implementing it. Managers should be modest

enough to learn from their employees and value the ability of their creativity. Top

managers should combine these insights into an approach that fits the specific conditions,

problems, and challenges of their own firms. The effectiveness of leadership can be

improved and the ability of decision-making enhanced.

For companies 2, 3, 4 and 7 costly and long term study has been an important

barrier; for others it has not been so important a barrier. They believe TQM is a long term

activity and required a lot of training and education programs. The attitude of employees

towards quality programs is seen to be one of the barriers in the respondent organizations.

Some respondents found that it is very difficult to change the mindset of the employees

with regard to quality. They said that many believe that quality is an added cost, and

hence could not accept it as an integral part of the job.

Inadequate planning has been an important barrier for companies 1, 2 and 5; for

others it has been felt as a barrier to some extent. For companies 1, 2, 4 and 6 lack of

consistent top management commitment has been felt as a barrier to some extent. Lack of

competent management has been felt as a barrier to some extent by companies 2 and 4.

For companies 1 and 3 difficulty in developing company specific model has been a

barrier to some extent. Resource limitation has been a barrier to some extent for

companies 3 and 5.

231

While lack of training has been felt as an important barrier for companies 1 and 3,

it is not so for other companies. Lack of skills of the workers has been an important

barrier for company 3, while it has been felt to some extent for company 1. Only

company 3 has felt to some extent reluctance of workers to involve in decision making as

a barrier. To some extent employee apathy and lack of coordination among functions

have been felt as barriers in company 3.

Lack of government commitment, ineffective maintenance programs and poor

condition of machines are not considered to have been barriers in any company. Several

of these barrier factors found in this study are similar to the factors found to impede TQM

implementation in other countries, as reported by various other researchers like Masters

(1996); Adebanjo and Kehoe (1998); Tamimi and Sebastianelli (1998); Salegna and

Fazel (2000) and Kifayah Amar and Zuraidah Mohd Z. (2002).

232

Table 3.96. Company-wise mean scores for Achievements after TQM

Achievements Company

1 2 3 4 5 6 7

Increase in customer

satisfaction

1.6000 1.5500 1.8333 2.0000 1.7895 1.8500 1.7000

On-time delivery 1.3500 1.4000 1.6667 1.7368 1.5789 1.6500 1.3000

Decrease in defects 1.4500 1.2000 1.6111 1.3684 1.3684 1.2500 1.5000

Decrease in work accidents 1.2000 .9500 1.5000 1.2105 .8947 1.0000 1.2000

Decrease in work-in-progress 1.2000 .7000 1.5000 1.2105 1.1053 1.0000 1.1000

Increase in work satisfaction 1.1500 .9500 1.5000 1.2632 1.3684 1.0000 1.5000

Achieving teamwork 1.6500 1.5000 1.7222 2.0000 1.7895 1.8500 1.7000

Improvement in productivity 1.4500 1.3500 1.7778 1.8947 1.6842 1.7000 1.6000

Development of new products .5000 .6500 -.2778 .0000 -.3684 -.1000 .8500

Quality improvement 1.6500 1.6500 1.8889 1.1579 1.1053 1.1500 1.8000

Decrease in internal quality

costs

.7500 .8000 1.3333 .8421 1.2105 .7500 1.5000

Decrease in external quality

costs

.6500 .8000 1.1111 .8421 1.2105 .7000 1.6000

Decrease in appraisal costs .4500 .6000 1.0000 .6842 .4211 .4500 1.3000

Decrease in price .3500 .5000 1.3889 .1579 .4211 .2500 1.3000

Increase in profitability .6500 1.0500 1.4444 .1579 1.0000 .4000 1.5500

Increase in market share .3500 .9000 .8889 1.0526 1.1053 .6000 1.2000

Improvement in safety levels .4500 .7500 .5556 .8947 .8947 .8000 1.3500

Improvement in morale 1.1500 1.2500 1.1111 1.2105 1.1053 1.1000 1.5000

Increase in customer satisfaction, on-time delivery, decrease in defects, achieving

teamwork, improvement in productivity, quality improvement and improvement in

morale are the important achievements experienced by all the companies after the

implementation of TQM. The result shows all the case companies achieved increase in

customer satisfaction. They achieved this benefit by using customer satisfaction survey,

customer complaint information and customer services.

233

The aim of the customer satisfaction survey is to obtain the customer satisfaction

level with the products and services that the firm provides. Methods used to conduct the

customer satisfaction survey include questionnaire surveys, formal and informal feedback

from customers, personal interviews, telephone surveys, and seminars. Regular customer

satisfaction surveys can track customer perceptions of the quality of a firm and its

competitors. This information can be used to improve the quality of products, services,

and processes. Finally, the firm needs to move from satisfying customers to delighting

them.

Customer complaint information is valuable for the firm in pursuing quality

improvement and customer satisfaction. The firm needs to collect various pieces of

complaint information from customers extensively, as well as create a central complaint

registration system, which registers various complaints from customers. Customer

complaints should be resolved effectively and promptly. All complaints received need to

be aggregated and analyzed for use in improvement. The firm that does not respond to

customer complaints creates a negative corporate image.

The firm needs to provide necessary assistance for the customers before

purchasing, during the process of purchasing, and after purchasing. It is also important to

improve the skills of sales and service personnel. Service quality is increasingly

becoming a more important factor affecting customer satisfaction, customer retention,

and customer loyalty. Almost all respondents from all companies mentioned that they

achieved increase in team work. They achieved this benefit by using some quality

programs such as quality control circle and cross-functional teams during the


Decrease in work accidents has been an important achievement for companies 1,

3, 4, 6 and 7. For companies 2 and 5 they are achievements but not so important as felt in

other companies. In all companies, except company 2, decrease in work-in-progress has

been an important achievement; for company 2 it has been an achievement, but not very

important as felt in other companies. The same is true in the case of increase in work

satisfaction as an achievement after the implementation of TQM. For companies 2, 3, 5

and 7 increase in profitability has been an important achievement; for company 1 it has

234

been an achievement to some extent. Increase in market share has been an important

achievement for companies 4, 5 and 7; it is so to some extent for companies 2, 3 and 6.

Improvement in safety levels has been an important achievement for company 7, while it

is so to some extent for companies 2, 3, 4, 5 and 6.

To some extent development of new products is viewed as an achievement after

the implementation of TQM in companies 1, 2 and 7. Decrease in internal as well as

external quality costs is considered to some extent as an achievement in companies 1, 2, 4

and 6; for other companies it is an important achievement. Decrease in appraisal costs has

been an important achievement for companies 3 and 7; for companies 2 and 4 it is an

achievement to some extent. For companies 3 and 7 decrease in price has been an

important achievement; for company 2 it is so to some extent.

235

Table 3.97. Company-Wise Mean Scores for Core Values

Core Values Company

1 2 3 4 5 6 7

Top management

commitment

1.9500 1.7500 1.7222 1.7368 1.8947 1.7500 2.0000

Everybody being

committed

1.6500 1.4000 1.7778 1.7368 1.8947 1.5500 1.7000

Continuous improvement 1.7500 1.4500 1.8889 1.8947 1.8947 1.5500 1.7000

Decisions based on facts 1.6000 1.3000 1.5000 1.6316 1.6842 1.4000 1.6000

Focus on customers 1.8500 1.6500 2.0000 2.0000 1.7895 1.6000 1.8000

Focus on process 1.5500 1.7500 1.3889 2.0000 1.7895 1.4500 1.8000

Decrease in quality costs 1.0500 .9000 1.0556 1.0526 .0526 .5500 1.3000

Improvement in

productivity

1.4000 1.3500 1.8333 1.3158 1.1053 1.0500 1.6000

Decrease in price .8000 .7500 1.5000 1.1579 -.0526 .4000 1.2000

Promotion of export .5000 .6500 1.2778 1.1579 .6842 .9000 1.6000

The concept of TQM is generally understood, and often also described, as some

form of “management philosophy” based on a number of core values, such as customer

focus, continuous improvement, process orientation, everybody’s commitment, fast

response, result orientation and learn from others.

Often TQM is illustrated by the model of a quality award, such as the Malcolm

Baldrige National Quality Award in the USA (MBNQA), the European Quality Award

established by the European Foundation for Quality Management (EFQM) or Deming

Award in Japan. However, the relation between the award models and TQM is often quite

diffuse. The number of core values also differs between the award models and

accordingly also the core values themselves. This is probably even more confusing since

these award models and their award criteria certainly have had more influence on the

practical implementation of TQM than the articles written by academia.

As for the core values with which the companies focused at the beginning of

implementation of TQM, top management commitment, everybody being committed,

continuous improvement, decisions based on facts, focus on customers, focus on process

236

and improvement in productivity have been important core values for all the companies.

The result of this study supports result of other researches where they found “focus on

customers”, “management commitment”, “everybody’s commitment”, “focus on

processes”, “continuous improvements”, and “fact-based decisions” as core values and

sometime they called it as “the cornerstones of TQM” (Hellsten, 1997; Bergman and

Klefsjö, 1994).

Decrease in quality costs has been an important core value for companies 1, 3, 4

and 7; for companies 2 and 6 it has been a core value, but not so important as for other

companies. Decrease in price has been an important core value for companies 3, 4 and 7;

the same has been a core value to some extent for companies 1 and 2. Promotion of

export has been an important core value for companies 3, 4 and 7; the same has been a

core value to some extent for companies 1, 2, 5 and 6.

Table 3.98. Company-wise mean scores for TQM Goals

TQM Goals Company

1 2 3 4 5 6 7

To generate competitive power 1.4000 1.3000 1.6111 1.4737 1.5789 1.2500 1.8000

Continuous improvement 1.8000 1.7500 1.8889 1.7368 1.7895 1.4000 1.6000

To improve quality 1.7500 1.6000 2.0000 1.8947 1.4737 1.4000 1.8000


the long-term

1.9000 1.7000 1.7222 1.8947 1.4737 1.3500 1.8000

To receive quality award .8000 .7000 .8889 -.0526 .4211 .7000 .9000

Satisfied customers 1.8500 1.8500 2.0000 2.0000 1.8947 1.6000 1.9000

Satisfied employees 1.5500 1.6500 1.5556 1.6842 1.8947 1.3500 1.6000

To improve productivity 1.2000 1.4000 1.7778 1.7368 1.4737 1.3000 1.6500

To achieve lower costs .8500 .9500 1.2222 1.3158 1.3158 .7500 1.4500

Business excellence 1.8000 1.6500 1.2778 1.7368 1.8947 1.5000 1.7000

Having satisfied customers is the most important goals for all case companies

without any doubt. As for the goals with which the companies started to implement

TQM, all the companies had generating competitive power, continuous improvement,

improving quality, achieving a quality culture in the long term, having satisfied

employees, improving productivity and achieving business excellence as important goals.

237

Achieving lower costs has been an important goal for companies 3, 4, 5 and 7; the

same has been a goal to companies 1, 2 and 6 to some extent. For companies 1, 2, 3, 6

and 7 receiving quality award has been a goal to some extent.

Table 3.99. Company-Wise Mean Scores for Side Effects of TQM

Side Effects Company

1 2 3 4 5 6 7

Decrease in productivity -1.1000 -1.150 -2.000 -1.211 -1.211 -1.350 -1.500

Higher costs -.9500 -1.100 -1.944 -1.263 -.6842 -1.200 -1.400

More paper -.2500 -.2500 -.7778 .1579 .1053 .1000 -.3500

Decrease in market share -1.2000 -1.250 -1.722 -1.368 -1.105 -.7000 -1.700

Higher stock level -1.0500 -1.250 -1.611 -1.368 -.8947 -.6000 -1.700

Higher staff turnover -.9000 -1.000 -1.556 -1.263 -.6842 -.4000 -1.000

Increase in number of staff -.7500 -1.000 -1.611 -1.263 -.8947 -.6500 -1.200

Weakened morale -1.2000 -1.300 -1.667 -1.368 -1.684 -1.150 -1.800

In all the companies no side effects have been experienced as a result of the

implementation of TQM. More paper work has been felt slightly as a side effect in

companies 4, 5 and 6. All employees interviewed in companies 3, 4, 5, 6 and 7 assert

that there has been an increase in productivity after the implementation of TQM. In

company 1 four out of five say that there has been an increase in productivity while in

company 2 nine out of ten say so.

All the respondents from all the companies assert that implementation of TQM

has had an overall positive effect on the company. This might be explained in two

different ways. First, the company is truly improved, and the effects can be identified in

terms of cost reduction, sales increase, performance enhancement, and product image

promotion. Second, the company does not actually experience improvement, and the

effects are not significant. However, since the company has been already implementing

TQM for quite a while, the company mentally believes that its implementation of TQM is

successful, and will pay back in the near future.

Documents

Chapter 4: TQM Implementation in the Selected Firmsshodhganga.inflibnet.ac.in/bitstream/10603/15886/11/11_chapter 3.pdf · India, Sundaram Brake ... manufacturer in India and among