Tqm in Tata Motors

Embed Size (px)

Citation preview

  • 8/14/2019 Tqm in Tata Motors

    1/113

    INTRODUCTION

    1. Define Total Quality?

    TQM is an enhancement to the traditional way of doing business. It is the art of

    managing the whole to achieve excellence. It is defined both a philosophy and a set of

    guiding

    principles that represent the foundation of a continuously improving organization. It is

    the

    application of quantitative methods and human resources to improve all the processes

    within an

    organization and exceed customer needs now and in the future. It integrates fundamental

    management techniques existing improvement efforts and technical tools under a

    disciplined

    approach.

    !. Define Quality?

    Quality " #erformance x $xpectations

    %.What are the Dimensions of Quality?

    & 'eatures

    & (onformance

    & )eliability

    & *urability

  • 8/14/2019 Tqm in Tata Motors

    2/113

    & +ervice

    & )esponse

    & ,esthetics

    & )eputation

    -. Give the Basic Concepts of TQ ?

    & , committed and involved management to provide long term top to bottom

    organizational support.

    & ,n unwavering focuses on the customer both internally and externally.

    & $ffective involvement and utilization of the entire wor/ force.

    & (ontinuous improvement of the business and production process.

    & Treating suppliers as partners.

    & $stablish performance measures for the processes.

    0. Give the !rinciples of TQ ?

    (onstancy of purpose2 short range and long range ob3ectives aligned

    Identify the customer4s56 (ustomer orientation

    Identification of internal and external customers

    (ontinuous improvement

    7or/flow as customer transactions

    $mpower front line wor/er as leader

    Quality is everybody8s business

    'or a service industry some elements of quality are2

  • 8/14/2019 Tqm in Tata Motors

    3/113

    empathy

    trust6 i.e. expertise integrity courtesy

    responsiveness

    tangible product attractiveness 4curb appeal5

    reliability on time no interruptions

    & (ustomer orientation to child care services a mar/eting perspective

    & 9arriers that exist to a customer orientation

    :. Give the O"stacles associate# $ith TQ Implementation?

    & ;ac/ of management commitment

    & Inability to change organizational culture

    & Improper planning

    & ;ac/ of continuous training and education

    & Incompatible organizational structure and isolated individuals and departments

    & Ineffective measurement techniques and lac/ of access to data and results.

    & #aying inadequate attention to internal and external customers.

    & Inadequate use of empowerment and teamwor/

    .

  • 8/14/2019 Tqm in Tata Motors

    4/113

    Quality (osts are defined as those costs associated with the nonachievement of product

    or service quality as defined by the requirements established by the organization and its

    contracts

    with customers and society.

    >. Give the primary cate'ories of Quality cost?

    & #reventive cost category

    & ,ppraisal cost category

    & Internal failure cost category

    & $xternal failure cost category

    1?. Give the typical cost "ases?

    & ;abor

    & #roduction

    & @nit

    & +ales

    11 ( )o$ $ill you #etermine the optimum cost?

    & Ma/e comparison with other organizations

    & Aptimize the individual categories

    & ,nalyze the relationships among the cost categories

  • 8/14/2019 Tqm in Tata Motors

    5/113

    1!. *tate the Quality Improvement *trate'y?

    & )educe failure costs by problem solving

    & Invest in the BrightC prevention activities

    & )educe appraisal costs where appropriate and in a statistically sound manner

    & (ontinuously evaluate and redirect the prevention effort to gain further quality

    improvement.

    1%( Define Quality !lannin'?

    , quality plan sets out the desired product qualities and how these are assessed and

    define the

    most significant quality attributes. It should define the quality assessment process. It

    should set

    out which organizational standards should be applied and if necessary define new

    standards.

    1-. Give the O"+ectives of TQ ?

    To develop a conceptual understanding of the basic principles and methods

    associated with TQM6

    & To develop an understanding of how these principles and methods have been put into

    effect in a variety of organizations6

    & To develop an understanding of the relationship between TQM principles and the

    theories and models studied in traditional management6

    & To do the right things right the first time every time.

  • 8/14/2019 Tqm in Tata Motors

    6/113

    10. What is nee#e# for a lea#er to "e effective?

    To be effective a leader needs to /now and understand the following2

    & #eople paradoxically need security and independence at the same time.

    & #eople are sensitive to external rewards and punishments and yet are also strongly

    selfmotivated.

    & #eople li/e to hear a /ind word of praise.

    & #eople can process only a few facts at a time6 thus a leader needs to /eep things

    simple.

    & #eople trust their gut reaction more than statistical data.

    & #eople distrust a leader8s rhetoric if the words are inconsistent with the leader8s

    actions.

    1:. What is the important role of senior mana'ement?

    D ;istening to internal and external customers and suppliers through visits focus

    groups and surveys.

    D (ommunication.

    D To drive fear out of the organization brea/ down barriers remove system

    roadbloc/s anticipate and minimize resistance to change and in general change

    the culture.

    1

  • 8/14/2019 Tqm in Tata Motors

    7/113

  • 8/14/2019 Tqm in Tata Motors

    8/113

    o Fision +tatement

    o Mission +tatement

    o Quality #olicy +tatement

    !?. Give the "asic steps to strate'ic &uality plannin'?

    & (ustomer needs

    & (ustomer positioning

    & #redict the future

    & Gap analysis

    & (losing the gap

    & ,lignment

    & Implementation

    !1. What is a &uality policy?

    The Quality #olicy is a guide for everyone in the organization as to how

    they should provide products and service to the customers. The common characteristics

    are

    & Quality is first among equals.

    & Meet the needs of the internal and external customers.

    & $qual or exceed the competition.

    & (ontinually improve the quality.

    & Include business and production practices.

    & @tilize the entire wor/ force.

  • 8/14/2019 Tqm in Tata Motors

    9/113

    T), ,IG)T ,-, ,NT* O. TQ /

    Total Quality Management is a management approach that originated in the 1>0?Hs and

    has steadily become more popular since the early 1>=?Hs. Total Quality is a description

    of the culture attitude and organization of a company that strives to provide customers

    with products and services that satisfy their needs. The culture requires quality in all

    aspects of the companyHs operations with processes being done right the first time and

    defects and waste eradicated from operations.

    To be successful implementing TQM an organization must concentrate on the eight /ey

    elements2

    $thics

    Integrity

    Trust

    Training

    Teamwor/

    ;eadership

    )ecognition

    (ommunication

    This paper is meant to describe the eight elements comprising TQM.

    0ey ,lements

  • 8/14/2019 Tqm in Tata Motors

    10/113

    TQM has been coined to describe a philosophy that ma/es quality the driving force

    behind leadership design planning and improvement initiatives. 'or this TQM

    requires the help of those eight /ey elements. These elements can be divided into four

    groups according to their function. The groups are2

    I. 'oundation It includes2 $thics Integrity and Trust.

    II. 9uilding 9ric/s It includes2 Training Teamwor/ and ;eadership.

    III. 9inding Mortar It includes2 (ommunication.

    IF. )oof It includes2 )ecognition.

    I( .oun#ation

    TQM is built on a foundation of ethics integrity and trust. It fosters openness fairness

    and sincerity and allows involvement by everyone. This is the /ey to unloc/ing the

    ultimate potential of TQM. These three elements move together however each element

    offers something different to the TQM concept.

    1. $thics $thics is the discipline concerned with good and bad in any situation. It is a

    two faceted sub3ect represented by organizational and individual ethics. Arganizational

    ethics establish a business code of ethics that outlines guidelines that all employees are

    to adhere to in the performance of their wor/. Individual ethics include personal rights or

    wrongs.

    !. Integrity Integrity implies honesty morals values fairness and adherence to the

    facts and sincerity. The characteristic is what customers 4internal or external5 expect and

    deserve to receive. #eople see the opposite of integrity as duplicity. TQM will not wor/

    in an atmosphere of duplicity.

  • 8/14/2019 Tqm in Tata Motors

    11/113

    %. Trust Trust is a by product of integrity and ethical conduct. 7ithout trust the

    framewor/ of TQM cannot be built. Trust fosters full participation of all members. It

    allows empowerment that encourages pride ownership and it encourages commitment. It

    allows decision ma/ing at appropriate levels in the organization fosters individual ris/

    ta/ing for continuous improvement and helps to ensure that measurements focus on

    improvement of process and are not used to contend people. Trust is essential to ensure

    customer satisfaction. +o trust builds the cooperative environment essential for TQM.

    II.9ric/s

    9asing on the strong foundation of trust ethics and integrity bric/s are placed to reach

    the roof of recognition. It includes2

    -. Training Training is very important for employees to be highly productive.

    +upervisors are solely responsible for implementing TQM within their departments and

    teaching their employees the philosophies of TQM. Training that employees require are

    interpersonal s/ills the ability to function within teams problem solving decision

    ma/ing 3ob management performance analysis and improvement business economics

    and technical s/ills. *uring the creation and formation of TQM employees are trained

    so that they can become effective employees for the company.

    0. Teamwor/ To become successful in business teamwor/ is also a /ey element of

    TQM. 7ith the use of teams the business will receive quic/er and better solutions to

    problems. Teams also provide more permanent improvements in processes and

    operations. In teams people feel more comfortable bringing up problems that may

    occur and can get help from other wor/ers to find a solution and put into place. There

    are mainly three types of teams that TQM organizations adopt2

  • 8/14/2019 Tqm in Tata Motors

    12/113

    ,. Quality Improvement Teams or $xcellence Teams 4QIT+5 These are temporary

    teams with the purpose of dealing with specific problems that often re occur. These

    teams are set up for period of three to twelve months.

    9. #roblem +olving Teams 4#+Ts5 These are temporary teams to solve certain

    problems and also to identify and overcome causes of problems. They generally last

    from one wee/ to three months.

    (. Eatural 7or/ Teams 4E7Ts5 These teams consist of small groups of s/illed

    wor/ers who share tas/s and responsibilities. These teams use concepts such as

    employee involvement teams self managing teams and quality circles. These teams

    generally wor/ for one to two hours a wee/.

    :. ;eadership It is possibly the most important element in TQM. It appears everywhere

    in organization. ;eadership in TQM requires the manager to provide an inspiring vision

    ma/e strategic directions that are understood by all and to instill values that guide

    subordinates. 'or TQM to be successful in the business the supervisor must be

    committed in leading his employees. , supervisor must understand TQM believe in it

    and then demonstrate their belief and commitment through their daily practices of TQM.

    The supervisor ma/es sure that strategies philosophies values and goals are transmitted

    down through out the organization to provide focus clarity and direction. , /ey point is

    that TQM has to be introduced and led by top management. (ommitment and personal

    involvement is required from top management in creating and deploying clear quality

    values and goals consistent with the ob3ectives of the company and in creating and

    deploying well defined systems methods and performance measures for achieving those

    goals.

  • 8/14/2019 Tqm in Tata Motors

    13/113

    III(Bin#in' ortar

  • 8/14/2019 Tqm in Tata Motors

    14/113

    IF.)oof

    =. )ecognition )ecognition is the last and final element in the entire system. It should

    be provided for both suggestions and achievements for teams as well as individuals.

    $mployees strive to receive recognition for themselves and their teams. *etecting and

    recognizing contributors is the most important 3ob of a supervisor. ,s people are

    recognized there can be huge changes in self esteem productivity quality and the

    amount of effort exhorted to the tas/ at hand. )ecognition comes in its best form when it

    is immediately following an action that an employee has performed. )ecognition comes

    in different ways places and time such as

    7ays It can be by way of personal letter from top management. ,lso by award

    banquets plaques trophies etc.

    #laces Good performers can be recognized in front of departments on performance

    boards and also in front of top management.

    Time )ecognition can given at any time li/e in staff meeting annual award banquets

    etc.

    7e can conclude that these eight elements are /ey in ensuring the success of TQM in an

    organization and that the supervisor is a huge part in developing these elements in the

    wor/ place. 7ithout these elements the business entities cannot be successful TQM

    implementers. It is very clear from the above discussion that TQM without involving

    integrity ethics and trust would be a great remiss in fact it would be incomplete.

    Training is the /ey by which the organization creates a TQM environment. ;eadership

    and teamwor/ go hand in hand. ;ac/ of communication between departments

    supervisors and employees create a burden on the whole TQM process. ;ast but not the

  • 8/14/2019 Tqm in Tata Motors

    15/113

    least recognition should be given to people who contributed to the overall completed

    tas/. ence lead by example train employees to provide a quality product create an

    environment where there is no fear to share /nowledge and give credit where credit is

    due is the motto of a successful TQM organization

    T), TQ OD,-/

    ,t the century close the creation of the global mar/et international orientation of

    management that sweeps national boundaries introduction of new technologies and

    shift towards customer focused strategies ma/e the competition stronger than ever. The

    criteria for success in this global internationally oriented mar/et have been changing

    rapidly. In order to expand business enter new mar/ets and set realistic competitive

    long term ob3ectives excellence became an imperative. ManagementHs effort has been

    directed towards discovering what ma/es a company excellent.

    To achieve excellence companies must develop a corporate culture of treating people as

    their most important asset and provide a consistent level of high quality products and

    services in every mar/et in which they operate. +uch an environment has supported the

    wide acceptance of Total Quality Management 4TQM5 which emerged recently as a

    new challenging mar/etable philosophy. It involves three spheres of changes in an

    organization people technology and structure.

    There is also a need for a systematic approach so that each element of TQM$J can be

    bonded together smoothly. Aa/land K1>=>L originated the idea of a % cornerstone model.

    The proposed - pillar model 4'igure %.15 brings the customerHs requirement into the

    system. This ma/es the approach to TQM more complete. The additional pillar

  • 8/14/2019 Tqm in Tata Motors

    16/113

    satisfying customers is vital because it explicitly addresses customers requirements.

    7ithout it TQM would have no ob3ective.

    The 'our #illars of TQM

    The role of top management in implementation of total quality is crucial and its input on

    people far reaching. TQM therefore should be understood as management of the

    system through systems thin/ing which means understanding all the elements in the

    company and putting them to wor/ together towards the common goal. The TQM$J

    Model advocates an integrated approach in order to support the transition to systems

    management which is an ongoing process of continuous improvement that begins when

    the company commits itself to managing by quality. The Model illuminates the elements

    that form a base to the understanding of TQM philosophy and implementation of the

    process company wide.

  • 8/14/2019 Tqm in Tata Motors

    17/113

    The *tructure of TQ ,1/

    The -o'ic of TQ ,1/

    In order to have a systematic approach to TQM it is necessary to develop a conceptual

    model. Generally a model is a sequence of steps arranged logically to serve as a

    guideline for implementation of a process in order to achieve the ultimate goal. The

    model should be simple logical and yet comprehensive enough for TQM

    implementation. It also has to sustain the changes in business environment of the new

    era. The Model also reflects teachings of the contemporary quality gurus. The idea was

    to develop a universally applicable step by step guideline by including recognized

    practices in TQM2

    apanese 0 + #ractice 40 +5

  • 8/14/2019 Tqm in Tata Motors

    18/113

    9usiness #rocess )e engineering 49#)5

    Quality (ontrol (ircles 4Q((s5

    I+A >??1N! Quality Management +ystem 4I+A5

    Total #roductive Maintenance 4T#M5

    ,s Asada pointed out 0 + is the /ey to total quality environment. Therefore it should be

    the first step. 9#) is concerned with re defining and designing your business process in

    order to meet the needs of your customers effectively. It is more concerned with the

    business ob3ectives and systems and should follow as +tep !. Q((s are concerned with

    encouraging the employees to participate in continuous improvement and guide them

    through. They improve human resources capability to achieve the business ob3ectives.

    Therefore this should be +tep %. I+A >??? is to develop a quality management system

    based on the good practices in the previous three steps. T#M is a result of applying 0 +

    to equipment based on a sound quality management system. In fact I+A >??1 requires

    procedures for process control and inspection and testing equipment which are part of

    T#M. Therefore T#M should be implemented in +tep 0.

    If the above five steps have been implemented successfully the organization is already

    very close towards achieving TQM.

    TQM$J is a sequential model which is easy to remember and simple to implement. This

    is in line with the quality principle of Oeep It +hort and +imple 4OI++5 although it is not

    simple to ma/e a model simpleP

  • 8/14/2019 Tqm in Tata Motors

    19/113

    (ompanies starting to implement TQM should follow TQM$J step by step. (ompanies

    which have already gone through some degree of improvement using some of the steps

    should review what have not been done and do it as their next step of improvement. In

    order to maximize your benefits from TQM$J you have to start early too.

    T), ,**,NTI%-* O. TQ

    TQM is the way of managing for the future and is far wider in its application than 3ust

    assuring product or service quality it is a way of managing people and business

    processes to ensure complete customer satisfaction at every stage internally and

    externally. TQM combined with effective leadership results in an organization doing

    the right things right first time .

    The core of TQM is the customer-supplier interfaces both externally and internally and

    at each interface lie a number of processes . This core must be surrounded by

  • 8/14/2019 Tqm in Tata Motors

    20/113

    commitment to quality communication of the quality message and recognition of the

    need to change the culture of the organisation to create total quality. These are the

    foundations of TQM and they are supported by the /ey management functions of

    people processes and systems in the organisation .

    This section discusses each of these elements that together can ma/e a total quality

    organisation. Ather sections explain people processes and systems in greater detail all

    having the essential themes of commitment culture and communication running through

    them.

    What is &uality?

    , frequently used definition of quality is Delighting the customer by fully meeting

    their needs and expectations . These may include performance appearance availability

    delivery reliability maintainability cost effectiveness and price. It is therefore

    imperative that the organisation /nows what these needs and expectations are. In

    addition having identified them the organisation must understand them and measure its

    own ability to meet them.

    Quality starts with mar/et research to establish the true requirements for the product or

    service and the true needs of the customers. owever for an organisation to be really

    effective quality must span all functions all people all departments and all activities

    and be a common language for improvement. The cooperation of everyone at every

    interface is necessary to achieve a total quality organization in the same way that the

    apanese achieve this with company wide quality control.

  • 8/14/2019 Tqm in Tata Motors

    21/113

    Customers an# suppliers

    There exists in each department each office each home a series of customers suppliers

    and customer supplier interfaces. These are Bthe quality chainsC and they can be bro/en

    at any point by one person or one piece of equipment not meeting the requirements of

    the customer internal or external. The failure usually finds its way to the interface

    between the organization and its external customer or in the worst case actually to the

    external customer.

    'ailure to meet the requirements in any part of a quality chain has a way of multiplying

    and failure in one part of the system creates problems elsewhere leading to yet more

    failure and problems and so the situation is exacerbated. The ability to meet customers8

    4external and internal5 requirements is vital. To achieve quality throughout an

    organization every person in the quality chain must be trained to as/ the following

    questions about every customer supplier interface2

    Customers 2internal an# e3ternal4

    & 7ho are my customersR

    & 7hat are their true needs and expectationsR

    & ow do or can I find out what these areR

    & ow can I measure my ability to meet their needs and expectationsR

    & *o I have the capability to meet their needs and expectationsR

    4If not what must I do to improve this capabilityR5

  • 8/14/2019 Tqm in Tata Motors

    22/113

    & *o I continually meet their needs and expectationsR

    4If not what prevents this from happening when the capability existsR5

    & ow do I monitor changes in their needs and expectationsR

    *uppliers 2internal an# e3ternal4

    & 7ho are my internal suppliersR

    & 7hat are my true needs and expectationsR

    & ow do I communicate my needs and expectations to my suppliersR

    & *o my suppliers have the capability to measure and meet these needs and

    expectationsR

    & ow do I inform them of changes in my needs and expectationsR

    ,s well as being fully aware of customers8 needs and expectations each person must

    respect the needs and expectations of their suppliers. The ideal situation is an open

    partnership style relationship where both parties share and benefit.

    !oor practicesTo be able to become a total quality organization some of the bad practices must berecognized and corrected. These may include2

    & ;eaders not giving clear direction

    & Eot understanding or ignoring competitive positioning

    & $ach department wor/ing only for itself

    & Trying to control people through systems

    & (onfusing quality with grade

    & ,ccepting that a level of defects or errors is inevitable

  • 8/14/2019 Tqm in Tata Motors

    23/113

    & 'irefighting reactive behaviour

    & TheIts not my problem attitude

    ow many of these behaviours do you recognize in your organizationR

    The essential components of TQ 5 commitment 6 lea#ership

    TQM is an approach to improving the competitiveness effectiveness and flexibility of

    an organization for the benefit of all sta/eholders. It is a way of planning organizing and

    understanding each activity and of removing all the wasted effort and energy that is

    routinely spent in organizations. It ensures the leaders adopt a strategic overview of

    quality and focus on prevention not detection of problems. 7hilst it must involve

    everyone to be successful it must start at the top with the leaders of the organization.

    ,ll senior managers must demonstrate their seriousness and commitment to quality and

    middle managers must as well as demonstrating their commitment ensure they

    communicate the principles strategies and benefits to the people for whom they have

    responsibility. Anly then will the right attitudes spread throughout the organization.

    , fundamental requirement is a sound quality policy supported by plans and facilities to

    implement it.

    ;eaders must ta/e responsibility for preparing reviewing and monitoring the policy

    plus ta/e part in regular improvements of it and ensure it is understood at all levels of

    the organization.

    $ffective leadership starts with the development of a mission statement followed by a

    strategy which is translated into action plans down through the organization. These

  • 8/14/2019 Tqm in Tata Motors

    24/113

    combined with a TQM approach should result in a quality organization with satisfied

    customers and good business results. The 0 requirements for effective leadership are2

    & *eveloping and publishing corporate beliefs values and ob3ectives often as a mission

    statement

    & #ersonal involvement and acting as role models for a culture of total quality

    & *eveloping clear and effective strategies and supporting plans for achieving the

    mission and ob3ectives

    & )eviewing and improving the management system

    & (ommunicating motivating and supporting people and encouraging effective

    employee participation

    The tas/ of implementing TQM can be daunting. The following is a list of points that

    leaders should consider6 they are a distillation of the various beliefs of some of the

    quality gurus2

    & The organisation needs a long term commitment to continuous improvement.

    & ,dopt the philosophy of zero errorsNdefects to change the culture to right first time

    & Train people to understand the customer7supplier relationships

    & *o not buy products or services on price alone loo/ at the total cost

    & )ecognise that improvement of the systems must be managed

    & ,dopt modern methods of supervisin' an# trainin' eliminate fear

    & $liminate barriers between departments by managing the process improve

    communications

    and team$or8

  • 8/14/2019 Tqm in Tata Motors

    25/113

    & $liminate goals without methods standards based only on numbers barriers to pride of

    wor/manship and fiction get facts by studying processes

    & (onstantly educate and retrain develop e3perts in the organisation

    & *evelop a systematic approach to manage the implementation of TQM

    Culture chan'e

    The failure to address the culture of an organisation is frequently the reason for many

    management initiatives either having limited success or failing altogether.

    @nderstanding the culture of an organisation and using that /nowledge to successfully

    map the steps needed to accomplish a successful change is an important part of the

    quality 3ourney.

    The culture in any organisation is formed by the beliefs behaviours norms dominant

    values rules and the BclimateC. , culture change e.g from one of acceptance of a

    certain level of errors or defects to one of right first time every time needs two /ey

    elements2

    & (ommitment from the leaders

    & Involvement of all of the organisation8s people

    There is widespread recognition that ma3or change initiatives will not be successful

    without a culture of good teamwor/ and cooperation at all levels in an organisation as

    discussed in the section on #eople.

    The "uil#in' "loc8s of TQ / processes9 people9 mana'ement systems an#

    performance measurement

  • 8/14/2019 Tqm in Tata Motors

    26/113

    $verything we do is a #rocess which is the transformation of a set of inputs which can

    include action methods and operations into the desired outputs which satisfy the

    customers8 needs and expectations.

    In each area or function within an organisation there will be many processes ta/ing

    place and each can be analysed by an examination of the inputs and outputs to

    determine the action necessary to improve quality.

    In every organisation there are some very large processes which are groups of smaller

    processes called /ey or core business processes. These must be carried out well if an

    organisation is to achieve its mission and ob3ectives. The section on #rocesses discusses

    processes and how to improve them and Implementation covers how to prioritise and

    select the right process for improvement.

  • 8/14/2019 Tqm in Tata Motors

    27/113

    The only point at which true responsibility for performance and quality can lie is with

    the !eople who actually do the 3ob or carry out the process each of which has one or

    several suppliers and customers.

    ,n efficient and effective way to tac/le process or quality improvement is through

    teamwor/. owever people will not engage in improvement activities without

    commitment and recognition from the organisation8s leaders a climate for improvement

    and a strategy that is implemented thoughtfully and effectively. The section on #eople

    expands on these issues covering roles within teams team selection and development

    and models for successful teamwor/.

    ,n appropriate documented Quality ana'ement *ystem will help an organisation not

    only achieve the ob3ectives set out in its policy and strategy but also and equally

    importantly sustain and build upon them. It is imperative that the leaders ta/e

  • 8/14/2019 Tqm in Tata Motors

    28/113

    responsibility for the adoption and documentation of an appropriate management system

    in their organisation if they are serious about the quality 3ourney. The +ystems section

    discusses the benefits of having such a system how to set one up and successfully

    implement it.

    Ance the strategic direction for the organisation8s quality 3ourney has been set it needs

    !erformance easures to monitor and control the 3ourney and to ensure the desired

    level of performance is being achieved and sustained. They can and should be

    established at all levels in the organisation ideally being cascaded down and most

    effectively underta/en as team activities and this is discussed in the section on

    #erformance.

    *CO!, 6 I !ORT%NC,

    Total quality management provides a needed change initiative along with others. TQM

    is very important in terms of company profit base because TQM is maintaining the

    product quality standards and specification. TQM provide better quality control of the

    product. TQM in T,T, Motors it is basically depends on product range timely

  • 8/14/2019 Tqm in Tata Motors

    29/113

    delivery and product standardization. The scope TQM in a very long term base. It is

    included some important point which is related to the TQM.

    1 It is the only way to give organization a competitive advantage.

    ! TQM fit for the services sectors is discussed with emphasis on customer

    satisfaction. ,lso covered are some limitations of TQM including empowerment

    times of paradigm shifts ma3or process changes and reward system.

    -IT,R%TUR, R,:I,W

    T), ,..,CT* O. TQ

    Improvin' .inancial *ervices throu'h TQ

  • 8/14/2019 Tqm in Tata Motors

    30/113

    The wor/ described in this case study was underta/en in a young rapidly expanding

    company in the financial services sector with no previous experience with Total Quality

    Management 4TQM5. The quality pro3ect began with a two day introductory awareness

    program covering concepts cases implementation strategies and imperatives of TQM.

    The program was conducted for the senior management team of the company. This

    program used interactive exercises and real life case studies to explain the concepts of

    TQM and to interest them in committing resources for a demonstration pro3ect. The

    demonstration pro3ect which used the +even +teps of #roblem +olving 4similar to

    *M,I(5 was to show them how TQM concepts wor/ed in practice before they

    committed resources for a company wide program.

    *tep ;( Define the !ro"lem

    ;(;4 *electin' the theme/ , meeting of the senior management of the company was

    held. 9rainstorming produced a list of more than !? problems. The list was prioritized

    using the weighted average table followed by a structured discussion to arrive at a

    consensus on the two most important themes customer service and sales productivity.

    @nder the customer service theme S)educing the Turnaround Time from an Insurance

    #roposal to #olicyS was selected as the most obvious and urgent problem. The company

    was young and therefore had few claims to process so far. The proposal to policy

    process therefore impacted the greatest number of customers.

    ,n appropriate cross functional group was set up to tac/le this problem.

  • 8/14/2019 Tqm in Tata Motors

    31/113

    ;(

  • 8/14/2019 Tqm in Tata Motors

    32/113

    Eon Medical #olicies 1< days

    Medical #olicies %0 days

    Invo/ing the slogan from the awareness program SIn God we trust the rest of us bring

    dataS the group was as/ed to collect data and establish reality. ,rmed with a suitably

    designed chec/ sheet they set about the tas/.

    Customer #esire/ 7hat was the turnaround desired by the customerR +ince a customer

    survey was not available individual group members were as/ed to thin/ as customers

    imagine they had 3ust given a completed proposal form to a sales agent. 7hen would

    they expect the policy in handR 'rom the customerHs point of view they realized that they

    did not differentiate between medical and non medical policies. Their perception

    averaged out six days for the required turnaround.

    SIs this the average time or maximum time that you expectRS they were as/ed.

    SMaximum S they responded. It was clear therefore that the average must be less than

    six days. The importance of SvariabilityS had struc/ home. The concept of sigma was

    explained and was rapidly internalized. 'or >>.< percent delivery within the customer

    limit the metric was defined.

    Customer #esire/

    ,verage % +igma turnaround " less than : days

  • 8/14/2019 Tqm in Tata Motors

    33/113

    Current status/

    Eon medical policies 4,verage 1>N+igma 105 ,verage % sigma" :- days

    Medical 4,verage % days respectively.

    *tep

  • 8/14/2019 Tqm in Tata Motors

    34/113

    Transport times

    *eployment of manpower

    Typically it was found that waiting times constitute the bul/ of processing turnaround

    times. #rocess Mapping 4Falue +tream Mapping in ;ean5 was underta/en. The

    aggregate results are summarized below2

    Eumber of operations =-

    Eumber of handovers 1%

    In house processing time 4estimated5 1!: man mins.

    )ange of individual stage time ! to 1% mins.

    (ould this be trueR (ould the turnaround be 1!: minutes for internal processing without

    waitingR The group started to question of the status quo. The change process had begun.

    To chec/ this estimate it was decided to collect data run two policies without waiting

    and record the time at each stage. The trial results amazed everyone2 #olicy Eo. 1 too/

    1?? minutes and #olicy Eo. ! too/ >< minutes. ,lmost instantly the mindset changed

    from doubt to desire2 S7hy canHt we process every proposal in this wayRS

    *tep ( Generatin' I#eas

    In the introductory program of TQM during the IT session the advantages of flow

    versus batch processing had been dramatically demonstrated using a simple exercise.

    @sing that bac/ground a balanced flow line was designed as follows2

  • 8/14/2019 Tqm in Tata Motors

    35/113

    1. *etermine the station with the maximum time cycle which cannot be split up by

    reallocation = minutes.

    !. 9alance the line to ma/e the time ta/en at each stage equal = minutes as far as

    possible.

    %. )educe the stages and handovers 1% to =.

    -. $liminate non value added activities transport ma/e personnel sit next to each

    other.

    0. ,gree processing to be done in batch of one proposal.

    (hanging the mindset of the employees so they will accept and welcome change is

    critical to building a self sustaining culture of improvement. In this case the line

    personnel were involved in a Quality Mindset #rogram so that they understood the

    reasons for change and the concepts behind them and are /een to experiment with new

    methods of wor/ing. The line was ready for a test run.

    *tep @( Testin' the I#ea

    Testing in stages is a critical stage. It allows modification of ideas based upon practical

    experience and equally importantly ensures acceptance of the new methods gradually by

    the operating personnel.

    *ta'e ;/ )un five proposals flowing through the system and confirm results. The test

    produced the following results2

    ,verage turnaround time2 U 1 day

    In house processing time2

  • 8/14/2019 Tqm in Tata Motors

    36/113

    There was 3ubilation in the team. The productivity had increased by !- percent. The

    head of the (#( summarized2 SI gave five files for processing and went for a meeting.

    $merging from the meeting about %? minutes later I was greeted by the dispatch cler/

    3ubilantly reporting SHMadam the TQM files are ready for dispatch.HS The mindset was

    dramatically changed and line personnel were now /een to push the implementation.

    *ta'e

  • 8/14/2019 Tqm in Tata Motors

    37/113

    *tep A( Implementin' the I#eas

    )egular operations with the new system was planned to commence. owever two

    wee/s later it was still not implemented. Ane of the personnel on the line in (#( had

    been released by his department for the five day trial to sit on the line but was not

    released on a regular basis. The departmental head had not attended the TQM awareness

    program and therefore did not understand why this change was required.

    There were two options mandate the change or change the mindset to accept the

    change. +ince the latter option produces a robust implementation that will not brea/

    down under pressures it was agreed that the group would summarize TQM the 3ourney

    and the results obtained in the pro3ect so far and also simulate the process with a simple

    exercise in front of the department head. This session was highly successful and led to

    the release of the person concerned on a regular basis.

    *tep ( Chec8 the Result

    The process was run for one month with regular chec/s. The results obtained were

    marginally better than the trials conducted in +tep 02

    ,verage 11 days

    +igma > days

    ,verage % sigma %= days

  • 8/14/2019 Tqm in Tata Motors

    38/113

    *tep ( *tan#ar#i e Control7Document the Improvement *tory

    $ssentially the in house processes in two centers of processing the (#( and

    one sales branch had been impacted so far. To ma/e sure that the gains were

    held control charts were introduced in both locations. +ample x bar and sigma

  • 8/14/2019 Tqm in Tata Motors

    39/113

    control charts for the (#( are shown below2

  • 8/14/2019 Tqm in Tata Motors

    40/113

    , special SGrind It InS session was conducted for line personnel to ensure that

    the control chart was updated every day and any deterioration was dealt with by

    finding and /illing the root causes of the problems.

    (ustomer reaction2 +ales management and sales agents 4internal customers5

    clearly noticed the difference. 'or instance one sales manager reported that a

    customer had received a policy within a wee/ of giving a proposal and was so

    amazed that he said SIf you give such service I will give you the next policy

    alsoPS

    ,doption of a similar process at the (#( and the model branch for medical

    policies has already reduced the average % sigma of turnaround time by

  • 8/14/2019 Tqm in Tata Motors

    41/113

    e#ical policies/ Goal to reduce turnaround from

  • 8/14/2019 Tqm in Tata Motors

    42/113

    owever a certain level of stress is probably desirable to initiate TQM. #eople need to

    feel a need for a change. Oanter 41>=%5 addresses this phenomenon be describing

    building bloc/s which are present in effective organizational change. These forces

    include departures from tradition a crisis or galvanizing event strategic decisions

    individual Sprime movers S and action vehicles. *epartures from tradition are activities

    usually at lower levels of the organization which occur when entrepreneurs move

    outside the normal ways of operating to solve a problem. , crisis if it is not too

    disabling can also help create a sense of urgency which can mobilize people to act. In

    the case of TQM this may be a funding cut or threat or demands from consumers or

    other sta/eholders for improved quality of service. ,fter a crisis a leader may intervene

    strategically by articulating a new vision of the future to help the organization deal with

    it. , plan to implement TQM may be such a strategic decision. +uch a leader may then

    become a prime mover who ta/es charge in championing the new idea and showing

    others how it will help them get where they want to go. 'inally action vehicles are

    needed and mechanisms or structures to enable the change to occur and become

    institutionalized.

    *teps in ana'in' the Transition

    9ec/hard and #ritchard 41>>!5 have outlined the basic steps in managing a transition

    to a new system such as TQM2 identifying tas/s to be done creating necessary

    management structures developing strategies for building commitment designing

    mechanisms to communicate the change and assigning resources.

    Tas/ identification would include a study of present conditions 4assessing current

    reality as described above56 assessing readiness such as through a force field analysis6

  • 8/14/2019 Tqm in Tata Motors

    43/113

    creating a model of the desired state in this case implementation of TQM6 announcing

    the change goals to the organization6 and assigning responsibilities and resources. This

    final step would include securing outside consultation and training and assigning

    someone within the organization to oversee the effort. This should be a responsibility of

    top management. In fact the next step designing transition management structures is

    also a responsibility of top management. In fact (ohen and 9rand 41>>%5 and yde

    41>>!5 assert that management must be heavily involved as leaders rather than relying

    on a separate staff person or function to shepherd the effort. ,n organization wide

    steering committee to oversee the effort may be appropriate. *eveloping commitment

    strategies was discussed above in the sections on resistance and on visionary leadership.

    To communicate the change mechanisms beyond existing processes will need to be

    developed. +pecial all staff meetings attended by executives sometimes designed as

    input or dialog sessions may be used to /ic/ off the process and TQM newsletters may

    be an effective ongoing communication tool to /eep employees aware of activities and

    accomplishments.

    Management of resources for the change effort is important with TQM because outside

    consultants will almost always be required. (hoose consultants based on their prior

    relevant experience and their commitment to adapting the process to fit unique

    organizational needs. 7hile consultants will be invaluable with initial training of staff

    and TQM system design employees 4management and others5 should be actively

    involved in TQM implementation perhaps after receiving training in change

    management which they can then pass on to other employees. , collaborative

  • 8/14/2019 Tqm in Tata Motors

    44/113

    relationship with consultants and clear role definitions and specification of activities

    must be established.

    In summary first assess preconditions and the current state of the organization to ma/e

    sure the need for change is clear and that TQM is an appropriate strategy. ;eadership

    styles and organizational culture must be congruent with TQM. If they are not this

    should be wor/ed on or TQM implementation should be avoided or delayed until

    favorable conditions exist.

    )emember that this will be a difficult comprehensive and long term process. ;eaders

    will need to maintain their commitment /eep the process visible provide necessary

    support and hold people accountable for results. @se input from sta/eholder 4clients

    referring agencies funding sources etc.5 as possible6 and of course maximize

    employee involvement in design of the system.

    ,lways /eep in mind that TQM should be purpose driven. 9e clear on the organizationHs

    vision for the future and stay focused on it. TQM can be a powerful technique for

    unleashing employee creativity and potential reducing bureaucracy and costs and

    improving service to clients and the community.

    The Concept of Continuous Improvement "y TQ

    TQM is mainly concerned with continuous improvement in all wor/ from high level

    strategic planning and decision ma/ing to detailed execution of wor/ elements on the

    shop floor. It stems from the belief that mista/es can be avoided and defects can be

    prevented. It leads to continuously improving results in all aspects of wor/ as a result

    of continuously improving capabilities people processes technology and machine

    capabilities.

  • 8/14/2019 Tqm in Tata Motors

    45/113

    (ontinuous improvement must deal not only with improving results but more

    importantly with improving capabilities to produce better results in the future. The five

    ma3or areas of focus for capability improvement are demand generation supply

    generation technology operations and people capability.

    , central principle of TQM is that mista/es may be made by people but most of them

    are caused or at least permitted by faulty systems and processes. This means that the

    root cause of such mista/es can be identified and eliminated and repetition can be

    prevented by changing the process.

    There are three ma+or mechanisms of prevention/

    1. #reventing mista/es 4defects5 from occurring 4Mista/e proofing or #o/a Wo/e5.

    !. 7here mista/es canHt be absolutely prevented detecting them early to prevent

    them being passed down the value added chain 4Inspection at source or by the

    next operation5.

    %. 7here mista/es recur stopping production until the process can be corrected to

    prevent the production of more defects. 4+top in time5.

    ( TQ is the foun#ation for activities9 $hich inclu#e/

    (ommitment by senior management and all employees

    Meeting customer requirements

    )educing development cycle times

    ust In TimeN*emand 'low Manufacturing Improvement teams

    )educing product and service costs

    +ystems to facilitate improvement

  • 8/14/2019 Tqm in Tata Motors

    46/113

    ;ine Management ownership

    $mployee involvement and empowerment

    )ecognition and celebration

    (hallenging quantified goals and benchmar/ing

    'ocus on processes N improvement plans

    +pecific incorporation in strategic planning

    This shows that TQM must be practiced in all activities, by all personnel, in Manufacturing, Marketing,

    Engineering, R& , !ales, "urchasing, #R, etc.

    TQ in manufacturin'

    Quality assurance through statistical methods is a /ey component in a manufacturing

    organization where TQM generally starts by sampling a random selection of the

    product. The sample can then be tested for things that matter most to the end users. The

    causes of any failures are isolated secondary measures of the production process are

    designed and then the causes of the failure are corrected. The statistical distributions of

    important measurements are trac/ed. 7hen partsH measures drift into a defined Serror

    bandS the process is fixed. The error band is usually a tighter distribution than the

    Sfailure bandS so that the production process is fixed before failing parts can be

    produced.

    It is important to record not 3ust the measurement ranges but what failures caused them

    to be chosen. In that way cheaper fixes can be substituted later 4say when the product is

    redesigned5 with no loss of quality. ,fter TQM has been in use itHs very common for

    parts to be redesigned so that critical measurements either cease to exist or become

    much wider.

  • 8/14/2019 Tqm in Tata Motors

    47/113

    It too/ people a while to develop tests to find emergent problems. Ane popular test is a

    Slife testS in which the sample product is operated until a part fails. ,nother popular test

    is called Ssha/e and ba/eS in which the product is mounted on a vibrator in an

    environmental oven and operated at progressively more extreme vibration and

    temperatures until something fails. The failure is then isolated and engineers design an

    improvement.

    , commonly discovered failure is for the product to disintegrate. If fasteners fail the

    improvements might be to use measured tension nutdrivers to ensure that screws donHt

    come off or improved adhesives to ensure that parts remain glued.

    If a gearbox wears out first a typical engineering design improvement might be to

    substitute a brushless stepper motor for a *( motor with a gearbox. The improvement is

    that a stepper motor has no brushes or gears to wear out so it lasts ten or more times as

    long. The stepper motor is more expensive than a *( motor but cheaper than a *(

    motor combined with a gearbox. The electronics are radically different but equally

    expensive. Ane disadvantage might be that a stepper motor can hum or whine and

    usually needs noise isolating mounts.

    Aften a STQMedS product is cheaper to produce because of efficiencyNperformance

    improvements and because thereHs no need to repair dead on arrival products which

    represents an immensely more desirable product.

    TQ an# contin'encyE"ase# research

    TQM has not been independent of its environment. In the context of management

    accounting systems 4M(+s5 +im and Oillough 41>>=5 show that incentive pay enhanced

    the positive effects of TQM on customer and quality performance. Ittner and ;arc/er

  • 8/14/2019 Tqm in Tata Motors

    48/113

    41>>05 demonstrated that product focused TQM was lin/ed to timely problem solving

    information and flexible revisions to reward systems. (hendall 4!??%5 summarizes the

    findings from contingency based research concerning management control systems and

    TQM by noting that BTQM is associated with broadly based M(+s including timely

    flexible externally focused information6 close interactions between advanced

    technologies and strategy6 and non financial performance measurement.C

    TQM 3ust another management fadR

    ,brahamson 41>>:5 argued that fashionable management discourse such as Quality

    (ircles tends to follow a lifecycle in the form of a bell curve. #onzi and Ooenig 4!??!5

    showed that the same can be said about TQM which pea/ed between 1>>! and 1>>:

    while rapidly losing popularity in terms of citations after these years. *ubois 4!??!5

    argued that the use of the term TQM in management discourse created a positive utility

    regardless of what managers meant by it 4which showed a large variation5 while in the

    late 1>>?s the usage of the term TQM in implementation of reforms lost the positive

    utility attached to the mere fact of using the term and sometimes associations with TQM

    became even negative. Eevertheless management concepts such as TQM leave their

    traces as their core ideas can be very valuable. 'or example *ubois 4!??!5 showed that

    the core ideas behind the two management fads )eengineering and TQM without

    explicit usage of their names can even wor/ in a synergistic way.

    Total Quality Management is an approach to the art of management that originated in

    apanese industry in the 1>0?Hs and has become steadily more popular in the 7est since

    the early 1>=?Hs.

  • 8/14/2019 Tqm in Tata Motors

    49/113

    Total Quality is a description of the culture attitude and organization of a company that

    aims to provide and continue to provide its customers with products and services that

    satisfy their needs. The culture requires quality in all aspects of the companyHs

    operations with things being done right first time and defects and waste eradicated from

    operations.

    Many companies have difficulties in implementing TQM. +urveys by consulting firms

    have found that only !? %:V of companies that have underta/en TQM have achieved

    either significant or even tangible improvements in quality productivity

    competitiveness or financial return. ,s a result many people are sceptical about TQM.

    owever when you loo/ at successful companies you find a much higher percentage of

    successful TQM implementation.

    +ome useful messages from results of TQM implementations2

    if you want to be a first rate company donHt focus on the second rate companies who

    canHt handle TQM loo/ at the world class companies that have adopted it

    the most effective way to spend TQM introduction funds is by training top

    management people involved in new product development and people involved

    with customers

    itHs much easier to introduce $*MN#*M in a company with a TQM culture than

    in one without TQM. #eople in companies that have implemented TQM are more

    li/ely to have the basic understanding necessary for implementing $*MN#*M.

    'or example they are more li/ely to view $*MN#*M as an information and

  • 8/14/2019 Tqm in Tata Motors

    50/113

    wor/flow management system supporting the entire product life cycle then as a

    departmental solution for the management of (,* data

    Important aspects of TQM include customer driven quality top management leadership

    and commitment continuous improvement fast response actions based on facts

    employee participation and a TQM culture.

    CustomerE#riven &uality

    TQM has a customer first orientation. The customer not internal activities and

    constraints comes first. (ustomer satisfaction is seen as the companyHs highest priority.

    The company believes it will only be successful if customers are satisfied. The TQM

    company is sensitive to customer requirements and responds rapidly to them. In the

    TQM context Xbeing sensitive to customer requirementsH goes beyond defect and error

    reduction and merely meeting specifications or reducing customer complaints. The

    concept of requirements is expanded to ta/e in not only product and service attributes

    that meet basic requirements but also those that enhance and differentiate them for

    competitive advantage.

    $ach part of the company is involved in Total Quality operating as a customer to some

    functions and as a supplier to others. The $ngineering *epartment is a supplier to

    downstream functions such as Manufacturing and 'ield +ervice and has to treat these

    internal customers with the same sensitivity and responsiveness as it would external

    customers.

  • 8/14/2019 Tqm in Tata Motors

    51/113

    TQ lea#ership from top mana'ement

    TQM is a way of life for a company. It has to be introduced and led by top management.

    This is a /ey point. ,ttempts to implement TQM often fail because top management

    doesnHt lead and get committed instead it delegates and pays lip service. (ommitment

    and personal involvement is required from top management in creating and deploying

    clear quality values and goals consistent with the ob3ectives of the company and in

    creating and deploying well defined systems methods and performance measures for

    achieving those goals. These systems and methods guide all quality activities and

    encourage participation by all employees. The development and use of performance

    indicators is lin/ed directly or indirectly to customer requirements and satisfaction and

    to management and employee remuneration.

    Continuous improvement

    (ontinuous improvement of all operations and activities is at the heart of TQM. Ance it

    is recognized that customer satisfaction can only be obtained by providing a high quality

    product continuous improvement of the quality of the product is seen as the only way to

    maintain a high level of customer satisfaction. ,s well as recognizing the lin/ between

    product quality and customer satisfaction TQM also recognizes that product quality is

    the result of process quality. ,s a result there is a focus on continuous improvement of

    the companyHs processes. This will lead to an improvement in process quality. In turn

    this will lead to an improvement in product quality and to an increase in customer

    satisfaction. Improvement cycles are encouraged for all the companyHs activities such as

    product development use of $*MN#*M and the way customer relationships are

  • 8/14/2019 Tqm in Tata Motors

    52/113

    managed. This implies that all activities include measurement and monitoring of cycle

    time and responsiveness as a basis for see/ing opportunities for improvement.

    $limination of waste is a ma3or component of the continuous improvement approach.

    There is also a strong emphasis on prevention rather than detection and an emphasis on

    quality at the design stage. The customer driven approach helps to prevent errors and

    achieve defect free production. 7hen problems do occur within the product

    development process they are generally discovered and resolved before they can get to

    the next internalcustomer.

    .astresponse

    To achieve customer satisfaction the company has to respond rapidly to customer needs.

    This implies short product and service introduction cycles. These can be achieved with

    customer driven and process oriented product development because the resulting

    simplicity and efficiency greatly reduce the time involved. +implicity is gained through

    concurrent product and process development. $fficiencies are realized from the

    elimination of non value adding effort such as re design. The result is a dramatic

    improvement in the elapsed time from product concept to first shipment.

    %ctions "ase# on facts

    The statistical analysis of engineering and manufacturing facts is an important part of

    TQM. 'acts and analysis provide the basis for planning review and performance

    trac/ing improvement of operations and comparison of performance with competitors.

    The TQM approach is based on the use of ob3ective data and provides a rational rather

    than an emotional basis for decision ma/ing. The statistical approach to process

  • 8/14/2019 Tqm in Tata Motors

    53/113

    management in both engineering and manufacturing recognizes that most problems are

    system related and are not caused by particular employees. In practice data is collected

    and put in the hands of the people who are in the best position to analyze it and then ta/e

    the appropriate action to reduce costs and prevent non conformance. @sually these

    people are not managers but wor/ers in the process. If the right information is not

    available then the analysis whether it be of shop floor data or engineering test results

    canHt ta/e place errors canHt be identified and so errors canHt be corrected.

    ,mployee participation

    , successful TQM environment requires a committed and well trained wor/ force that

    participates fully in quality improvement activities. +uch participation is reinforced by

    reward and recognition systems which emphasize the achievement of quality ob3ectives.

    An going education and training of all employees supports the drive for quality.

    $mployees are encouraged to ta/e more responsibility communicate more effectively

    act creatively and innovate. ,s people behave the way they are measured and

    remunerated TQM lin/s remuneration to customer satisfaction metrics.

    % TQ culture

    ItHs not easy to introduce TQM. ,n open cooperative culture has to be created by

    management. $mployees have to be made to feel that they are responsible for customer

    satisfaction. They are not going to feel this if they are excluded from the development of

    visions strategies and plans. ItHs important they participate in these activities. They are

    unli/ely to behave in a responsible way if they see management behaving irresponsibly

    saying one thing and doing the opposite.

    !ro#uct #evelopment in a TQ environment

  • 8/14/2019 Tqm in Tata Motors

    54/113

    #roduct development in a TQM environment is very different to product development in

    a non TQM environment. 7ithout a TQM approach product development is usually

    carried on in a conflictual atmosphere where each department acts independently. +hort

    term results drive behavior so scrap changes wor/ arounds waste and rewor/ are

    normal practice. Management focuses on supervising individuals and fire fighting is

    necessary and rewarded.

    #roduct development in a TQM environment is customer driven and focused on quality.

    Teams are process oriented and interact with their internal customers to deliver the

    required results. ManagementHs focus is on controlling the overall process and

    rewarding teamwor/.

    %$ar#s for Quality achievement

    The *eming #rize has been awarded annually since 1>01 by the apanese @nion of

    +cientists and $ngineers in recognition of outstanding achievement in quality strategy

    management and execution. +ince 1>== a similar award 4the Malcolm 9aldrige Eational

    Quality ,ward5 has been awarded in the @+. $arly winners of the 9aldrige ,ward

    include ,TYT 41>>!5 I9M 41>>?5 Milli/en 41>=>5 Motorola 41>==5 Texas

    Instruments 41>>!5 and Jerox 41>=>5.

  • 8/14/2019 Tqm in Tata Motors

    55/113

    CO !%NF !RO.I-,

    T%T% otor

    Tata Motors ;imited is India8s largest automobile company with revenues of )s.

    %0:01.-= crores 4@+* =.= billion5 in !??< ?=. It is the leader in commercial vehicles

    in each segment and among the top three in passenger vehicles with winning products

    in the compact midsize car and utility vehicle segments. The company is the world8s

    fourth largest truc/ manufacturer and the world8s second largest bus manufacturer.

    The company8s !% ??? employees are guided by the vision to be Bbest in the manner in

    which we operate best in the products we deliver and best in our value system and

    ethics.C

    $stablished in 1>-0 Tata Motors8 presence indeed cuts across the length and breadth

    of India. Aver - million Tata vehicles ply on Indian roads since the first rolled out in

  • 8/14/2019 Tqm in Tata Motors

    56/113

    1>0-. The company8s manufacturing base in India is spread across amshedpur

    4 har/hand5 #une 4Maharashtra5 ;uc/now 4@ttar #radesh5 #antnagar 4@ttara/hand5

    and *harwad 4Oarnata/a5. 'ollowing a strategic alliance with 'iat in !??0 it has set

    up an industrial 3oint venture with 'iat Group ,utomobiles at )an3angaon

    4Maharashtra5 to produce both 'iat and Tata cars and 'iat powertrains. The company is

    establishing a new plant at +anand 4Gu3arat5. The company8s dealership sales services

    and spare parts networ/ comprises over %0?? touch points6 Tata Motors also distributes

    and mar/ets 'iat branded cars in India.

    Tata Motors the first company from India8s engineering sector to be listed in the Eew

    Wor/ +toc/ $xchange 4+eptember !??-5 has also emerged as an international

    automobile company. Through subsidiaries and associate companies Tata Motors has

    operations in the @O +outh Oorea Thailand and +pain. ,mong them is aguar ;and

    )over a business comprising the two iconic 9ritish brands that was acquired in !??=.

    In !??- it acquired the *aewoo (ommercial Fehicles (ompany +outh Oorea8s

    second largest truc/ ma/er. The rechristened Tata *aewoo (ommercial Fehicles

    (ompany has launched several new products in the Oorean mar/et while also

    exporting these products to several international mar/ets. Today two thirds of heavy

    commercial vehicle exports out of +outh Oorea are from Tata *aewoo. In !??0 Tata

    Motors acquired a !1V sta/e in ispano (arrocera a reputed +panish bus and coach

    manufacturer with an option to acquire the remaining sta/e as well. ispano8s

    presence is being expanded in other mar/ets. In !??: it formed a 3oint venture with

    the 9razil based Marcopolo a global leader in body building for buses and coaches to

    manufacture fully built buses and coaches for India and select international mar/ets. In

  • 8/14/2019 Tqm in Tata Motors

    57/113

    !??: Tata Motors entered into 3oint venture with Thonburi ,utomotive ,ssembly

    #lant (ompany of Thailand to manufacture and mar/et the company8s pic/up vehicles

    in Thailand. The new plant of Tata Motors 4Thailand5 has begun production of the

    Jenon pic/up truc/ with the Jenon having been launched in Thailand at the 9ang/o/

    Motor +how !??=.

    Tata Motors is also expanding its international footprint established through exports

    since 1>:1. The company8s commercial and passenger vehicles are already being

    mar/eted in several countries in $urope ,frica the Middle $ast +outh $ast ,sia

    +outh ,sia and +outh ,merica. It has franchiseeN3oint venture assembly operations in

    Oenya 9angladesh @/raine )ussia and +enegal.

    The foundation of the company8s growth over the last 0? years is a deep understanding

    of economic stimuli and customer needs and the ability to translate them into

    customer desired offerings through leading edge )Y*. 7ith over ! 0?? engineers and

    scientists the company8s $ngineering )esearch (entre established in 1>:: has

    enabled pioneering technologies and products. The company today has )Y* centres in

    #une amshedpur ;uc/now in India and in +outh Oorea +pain and the @O. It was

    Tata Motors which developed the first indigenously developed ;ight (ommercial

    Fehicle India8s first +ports @tility Fehicle and in 1>>= the Tata Indica India8s first

    fully indigenous passenger car. 7ithin two years of launch Tata Indica became India8s

    largest selling car in its segment. In !??0 Tata Motors created a new segment by

    launching the Tata ,ce India8s first indigenously developed mini truc/

    In anuary !??= Tata Motors unveiled its #eople8s (ar the Tata Eano which India

    and the world have been loo/ing forward to. The Tata Eano has been subsequently

  • 8/14/2019 Tqm in Tata Motors

    58/113

    launched as planned in India in March !??>. , development which signifies a first

    for the global automobile industry the Eano brings the comfort and safety of a car

    within the reach of thousands of families. The standard version has been priced at

    )s.1?? ??? 4excluding F,T and transportation cost5.

    *esigned with a family in mind it has a roomy passenger compartment with generous

    leg space and head room. It can comfortably seat four persons. Its mono volume

    design will set a new benchmar/ among small cars. Its safety performance exceeds

    regulatory requirements in India. Its tailpipe emission performance too exceeds

    regulatory requirements. In terms of overall pollutants it has a lower pollution level

    than two wheelers being manufactured in India today. The lean design strategy has

    helped minimise weight which helps maximise performance per unit of energy

    consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that

    the car has low carbon dioxide emissions thereby providing the twin benefits of an

    affordable transportation solution with a low carbon footprint.

    The years to come will see the introduction of several other innovative vehicles all

    rooted in emerging customer needs. 9esides product development )Y* is also

    focussing on environment friendly technologies in emissions and alternative fuels.

    Through its subsidiaries the company is engaged in engineering and automotive

    solutions construction equipment manufacturing automotive vehicle components

    manufacturing and supply chain activities machine tools and factory automation

    solutions high precision tooling and plastic and electronic components for automotive

    and computer applications and automotive retailing and service operations.

  • 8/14/2019 Tqm in Tata Motors

    59/113

    True to the tradition of the Tata Group Tata Motors is committed in letter and spirit to

    (orporate +ocial )esponsibility. It is a signatory to the @nited Eations Global

    (ompact and is engaged in community and social initiatives on labour and

    environment standards in compliance with the principles of the Global (ompact. In

    accordance with this it plays an active role in community development serving rural

    communities ad3acent to its manufacturing locations.

    7ith the foundation of its rich heritage Tata Motors today is etching a refulgent

    future.

    %N%G, ,NT

    Boar# of Directors

    Mr. )atan E Tata 4(hairman5

    Mr. E , +oonawala

    *r. Irani

    Mr. ) Gopala/rishnan

    Mr. Eusli E 7adia

    Mr. + M #alia

    *r. ) , Mashel/ar Mr. Easser Mun3ee

    Mr. +ubodh 9hargava

    Mr F O airath

    Mr. )avi Oant

    Mr. # M Telang

    *enior ana'ement

    Mr. )avi Oant Managing *irector

    Mr. # M Telang $xecutive *irector 4(ommercial Fehicles5Mr. )a3iv *ube #resident 4#assenger (ars5

    Mr. ( )ama/rishnan (hief 'inancial Afficer

    Mr. + E ,mbarde/ar #lant ead 4(F9@ #une5

    Mr. + 9 9orwan/ar ead 4 amshedpur #lant5

    Mr. , M Man/ad ead 4(ar #lant5

  • 8/14/2019 Tqm in Tata Motors

    60/113

    Mr. @ O Mishra Fice #resident 4,** and Materials (F9@5

    Mr. + Orishnan Fice #resident 4(ommercial #(9@5

    Mr. # W Gurav Fice #resident 4(orp. 'inance ,Nc and Taxation5

    Mr. + Tambe Fice #resident 4 uman )esources5

    Mr. ) #isharody Fice #resident 4+ales and Mar/eting (F9@5

    Mr Eagesh #inge (hief Internal ,uditor

    Company *ecretary

    Mr. O +ethna

    Corporate Communications

    Mr. *ebasis )ay ead (orporate (ommunications

    %NU.%CTURING

    Tata Motors owes its leading position in the Indian automobile industry to its strong

    focus on indigenisation. This focus has driven the (ompany to set up world class

    manufacturing units with state of the art technology. $very stage of product evolution

    design development manufacturing assembly and quality control is carried out

    meticulously. Aur manufacturing plants are situated at amshedpur in the $ast #une in

    the 7est and ;uc/now in the Eorth.

    amshe#pur /

    $stablished in1>-0 the amshedpur unit was the companyHs first unit and is spread

    over an area of =!! acres. It consists of - ma3or divisions Truc/ 'actory $ngine

    'actory (ab Y (owl 'actories and the Eovus.

    !une /

    The #une unit is spread over ! geographical regions #impri 4=?? acres5 and

    (hinchwad 41%? acres5. It was established in 1>:: and has a #roduction $ngineering

    *ivision which has one of the most versatile tool ma/ing facilities in the Indian sub

    http://www.tatamotors.com/our_world/?ViewID=1http://www.tatamotors.com/our_world/?ViewID=2http://www.tatamotors.com/our_world/?ViewID=1http://www.tatamotors.com/our_world/?ViewID=2
  • 8/14/2019 Tqm in Tata Motors

    61/113

    continent.

    -uc8no$ /

    Tata Motors ;uc/now is one of the youngest production facilities among all the Tata

    Motors locations and was established in 1>>! to meet the demand for (ommercial

    Fehicles in the Indian mar/et... 4

    Uttara8han#

    The company has set up a plant for its mini truc/ ,ce and the passenger carrier Magic

    4based on the ,ce platform5 at #antnagar in @ttara/hand. The plant began...

    %W%RD*

    Tata Motors wins award at the 9ang/o/ International Motor $xpo...

    Tata Motors Investor )elations ran/ed first in India...

    Eirmal Gram #uras/ar awarded to #ot/a panchayat...

    Tata Motors bags the E*TF #rofit 9usiness ;eadership ,ward !??=...

    Tata Motors awarded the Top $xporter Trophy by $$#(...

    (F9@ #une wins )a3iv Gandhi Eational Quality ,ward for !??

  • 8/14/2019 Tqm in Tata Motors

    62/113

    Tata Motors #une (F9@ has bagged the SGolden #eacoc/ Eational Quality ,w...

    Tata Motors was awarded four prestigious honours at the H(E9( TF1= ,utocar,u...

    Tata Motors chosen as IndiaHs Most Trusted 9rand in (ars...

    9usiness Today selects Mr. #.#. Oadle as IndiaHs 9est ('A in !??0...

    #une 'oundry *ivision bags prestigious Green 'oundry ,ward...

    Tata Motors is H(ommercial Fehicle Manufacturer of the WearH...

    ,($ bags H9est (ommercial Fehicle *esignH at the 99( Top Gear ,wards....

    amshedpur bags Eational $nergy (onservation ,ward for the fourth consecutiveye...

    Tata Motors bags the prestigiousH (II $JIM 9an/ awardH for business excellence...

    Tata Motors receives )* QF awards for 9usiness $xcellence...

    H(ar Ma/er of the WearH ,ward for Tata Motors...

    Tata Motors is H(ommercial Fehicle Manufacturer of the WearH...

    TE+ Foice of the (ustomer ,ward for Indica *iesel...

    H('A of the Wear ,ward !??-H awarded to Mr #raveen # Oadle $xecutive *irector...

    Tata Motors wins the prestigious H(orporate #latinumH ,ward at the India Manuf...

    Tata Motors wins HGolden #eacoc/ ,wardH for (orporate +ocial )esponsibility...

    Tata Motors (F9@ #une wins Eational $nergy ,ward...

    Tata Motors amshedpur wins H$nergy $fficient @nit ,wardH...

    Tata Motors wins the first (+I) *iamond ubilee Technology ,ward...

    Tata Motors Training *ivision 7ins SGolden #eacoc/ Eational Training ,ward!??-S...

    http://www.tatamotors.com/our_world/awards.php?getID=61&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=57&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=57&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=54&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=53&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=52&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=51&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=50&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=49&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=49&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=48&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=47&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=46&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=45&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=44&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=43&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=43&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=42&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=41&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=39&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=38&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=37&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=36&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=36&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=61&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=57&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=57&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=54&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=53&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=52&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=51&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=50&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=49&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=49&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=48&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=47&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=46&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=45&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=44&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=43&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=43&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=42&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=41&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=39&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=38&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=37&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=36&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=36&action=Pull&
  • 8/14/2019 Tqm in Tata Motors

    63/113

    Tata Motors amshedpur Y ;uc/now win awards...

    T,T, MATA)+ (,+$ +T@*W 7IE+ 'I)+T #)IZ$ IE III$ #)A*@(TIFITW(AET$+T...

    T,T, MATA)+ 7IE+ ,7,)* 'A) ',I) 9@+IE$++ #),(TI($+...

    Tata Indica and Tata +afari $Ji win awards...

    Tata Motors (ar plant gets two I+A certifications...

    Tata Motors bags awards at 1-th Eational (onvention of IE+,,E...

    Indica and +afari win accolades...

    T,T, MATA)+ #@E$ ,7,)*$* +$(AE* #;,($ IE E,TIAE,; ;$F$;(AM#$TITIAE IE $E$)GW (A...

    Tata Motors )eceives SIndiaHs 9est $mployerS ,ward 'rom The $mploye...

    Tata Motors (F9@ #une has won the prestigious anda Golden Oey awardinstitute...

    (F9@ )$($IF$+ (AMM$E*,TIAE ($)TI'I(,T$ 'A) H+T)AEG(AMMITM$ET TA TQMH...

    Tata Motors team wins The )unners @p #osition at The ,sian 9usiness +imulation(...

    T $ #)$+TIGIA@+ 9,;,E($* +(A)$(,)* (A;;,9A),TIF$ ,;; A'',M$ ,7,)*...

    Tata Motors receives all India trophy for Top $xporters...

    Tata Indigo ad campaign wins $ffie award...

    Golden #eacoc/ $nvironment Management ,ward !??%...

    Industry and Technology ,ward !??!...

    ,dvertising ,wards...

    Tata Indigo Most $xciting Eew (ar of the Wear I(I(I 9an/ Y Averdrive ,wa...

    Tata $ngineering , +ocially )esponsible (orporate says T$)I...

    http://www.tatamotors.com/our_world/awards.php?getID=35&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=33&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=33&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=32&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=31&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=30&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=29&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=28&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=27&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=27&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=26&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=25&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=25&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=24&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=24&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=23&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=23&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=22&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=22&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=21&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=20&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=19&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=18&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=17&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=16&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=15&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=35&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=33&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=33&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=32&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=31&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=30&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=29&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=28&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=27&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=27&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=26&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=25&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=25&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=24&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=24&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=23&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=23&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=22&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=22&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=21&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=20&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=19&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=18&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=17&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=16&action=Pull&http://www.tatamotors.com/our_world/awards.php?getID=15&action=Pull&
  • 8/14/2019 Tqm in Tata Motors

    64/113

    H#rof. Fasant )ao )olling TrophyH for Falue $ngineering !??!...

    Tata $ngineering was conferred 9harat Gaurav #uras/ar...

    9est Falue for Money (ar of the Wear Tata Indigo (E9( ,uto (ar ,uto ,wards !...

    HFoice of the (ustomer ,wardH for H9est *iesel +mall (arH Tata Indica by E'A ,...

    India ('A ,ward !??!...

    Tata $ngineering bags IE+,,E awards...

    Eational 9est Training $stablishment ,ward...

    $nvirointernational...

    Good (orporate (itizen award...

    Eational ,ward for +uccessful (ommercialisation of Indigenous Technology...

    Eational ,ward for )Y* $fforts...

    )egional Top $xporterHs Trophy...

    9est (ompany ,ward at 7or/s/ills (ompetition...

    $$#( ,ward for Tata $ngineering...

    http://www.tatamotors.com/our_world/awards.php?getID=14&action=Pull&http://www.tatamotors.com/our_world/awar