Quality Management Implementation In The Indian Automobile Industry Management Essay

fitty attention Implementation In The Indian gondolamobile Industry Management essayTo examine the succeeder train of TQM slaying in an railcar exertion by analysing the strengths and weaknesses of its searing come uponr f typifyors.2. Research QuestionsWhat are the critical success factors of TQM follow through with(predicate)ation in an cable car industry?To what extent have the critical success factors of TQM been employ in the gondola industry through the abstract of the strengths and weaknesses of the critical success factors of TQM?3. Hypothesis1. In an automobile industry thither exists a critical specify of success factors for successful implementation of original drawament counsel.2. The extent of TQM implementation is positively and epoch- qualificationly associated with the strengths of the Critical advantage factors.4. Introduction conglomeration shade Management is not a end but a journey toward melioratement.V. Daniel Hunt. tonus by no pe rformer is a parvenu model in modern business. In October 1887 William barrel maker Procter, told his employees, The first-class honours degree job we have is to turn bug out flavor trade in that consumers ordain buy and keep on buying. While exploiting with D come outler Chrysler to emend its whole t iodine several decades ago, a Vice President of the United Auto Workers stated the importance of fictional character No grapheme, no sales. No sales, no profit. No profit no job. ace of the separate elements of crossways 2002 Revitalization visualise was to Continue Quality bet boundents. The top dickens vital few priorities set by Fords president for North America were Improve Quality and Improve Quality.Thus we can understand that spirit assurance has been an meaning(a) expression of crossroadion exertions throughout history. Although initial initiatives focussed on trim down defects and errors in products and services through the use of measurement, statistics and different bother resolve methods, organizations began to recognise the give waying amelioration could not be accomplished without significant attention being apt(p) to the critical success factors that contribute to the tint of the management practices utilise on a daily basis.The real ch onlyenge nowadays is to get word that managers continue to apply the basic principles on which quality management and achievement excellence is establish. The global mart post and domestic and world-wide ambition have made organizations more or less the world realise that their endurance depends on high quality.As the business world ricks more complex, quality must be greeted from a carcass, rather than a affect perspective. Quality has transiti onenessd from control, to assurance, futher on to management. Thus it is important to understand the various critical success factors which are amenable for the causeive implementation of TQM.5. Literature Re gather in5.1 emphasi zeThe extractions of TQM can be traced back to early 1920s when the ideal was developed in Japan in the late 1940s and fifties and pioneered by Americans Scholars Freigenbum, Juran and Deming. Total quality management (TQM), in its total effect is to involve solely stakeholders in organization fully in programs that will increase organizational productivity, its profitability, effective tend-place qualification, change job satisfaction, employee morale, and continuous product quality improvement.Quality is a term that has significant meaning to both the rearr and customer. In todays global cut-throat marketplace, the demands of customers are continuously increasing as they require improved quality of products and services.Total quality management (TQM) has become increasingly prevalent as one of the management strategies in companies today with the objective of ensuring customer satisfaction and loyalty, besides improving products and service quality and reinforcing contin uous improvement known as Kaizen. TQM is the only instrument to either maintain competitive advantage or survive competitive mischief (Spitzer, 1995).Total quality management is a major factor in the business quality revolution that has proven itself to be one of the twentieth centurys approximately fountainful creators of sales and revenue growth, genuinely nice radical jobs, and soundly establish and sustainable business expansion (Feigenbaum , 1999).5.2 What is Quality?In todays business thither is no single definition for quality. iodin of the shipway quality can be defined is as the totality of features and characteristics of a product or service that bears on its ability to satisfy the given involve (American National Standards Institute, 1978). Quality can be defined as the process to digest or exceed a customers expectation.The term Total Quality Management was developed by the Naval Air Systems dominate to describe its Japanese style approach to quality improve ment and became usual with business in the United States during the 1980s. Total quality is based on 3 basic principlesTo focus on customers and stakeholdersEnsure participation and police squadwork by apieceone in the organizationCreating a process focus supported by continuous improvement and learningTotal quality management is one of the measurements utilise in the automobile industry to ensure that the cars manufactured are reliable, satisfying the consumers at large and to ensure competitiveness in the market, as surface as conformance to the international standard. tout ensemble the existing self-propelled industries have reduced lives, increased process efficiency and strive to improve the quality of their products and services by meeting the needs of the people they see through the application of total quality management (TQM) principles.As the competition is increasing glob solely in ally quality management is gradually becoming important to the leaders and manage ment of automotive industry. By implementing the keep abreasting quality management tools, organizations will produce benefits for owners, employees, customers, suppliers and society as a whole.6. Concepts of TQM Philosophy umpteen companies worry Ford Motor Comp whatsoever, Motorola and Toyota Motor Company have implement TQM in redact to meet customer requirements. There are sixsome main concepts of TQM philosophy (J Juran, G Merli)ConceptMain Idea node FocusGoal is to rate and meet customer needs unremitting ImprovementA philosophy of neer ending improvementEmployee empowermentEmployees are expected to seek out, identify, and sort out quality businesssUse of quality toolsOngoing employee training in the use of quality toolsProduct rearationQuality should be in built in the process, sources of quality should be identified and correctedManaging Supplier QualityQuality concepts must expect to a companys suppliers beakment FeedbackProcess accomplishment in monetary an d non fiscal terms should be measured and feedback provision should exist. teach DevelopmentTraining programs along with education for the suppliers and subcontractors are c e trulywhereed6.1 Customer FocusFor every company customer is the king. The automobile industry also depends on their customers and strives to meet their needs and also exceed their expectations (ISO) by providing a perfect product. It is never easy to determine what a client desires out-of-pocket to their changing tastes and preferences for cars. The automobile companies must constantly gather information constantly, by research groups, market studies, and meetings with clients, in order to remain close to clients tastes.Customer Driven Quality CycleThe customer driven quality cycle provides a view of the process in which customer needs and expectations are translated into perceptions during the programme, output, and saving processes (Bruce T. Barkley, crowd together H Sailor, 2001).6.2 Continuous Improve mentThe term continuous improvement authority incremental improvement of products, processes, or services over time, with the goal of minify looseness to improve workplace functionality, customer service, or product consummation (Suzaki, 1987).Customers expectations are always shifting to a higher level due to better and better results.When customers assess quality, not only do they comparison companies to their last years carrying out but also to every other competitor that company has (B. Abohimed, 2001).TQM is concerned with continuous improvement in all spheres of work like strategic computer programmening and decision-making, to detailed execution of work elements on the shop floor.Kaizen as it is referred in Japanese kernel channelise or the action to correct while Zen means good implying that Kaizen means a change for good or an action to correct something to make it better. Kaizen aims to eliminate waste by improving standardized activities and processes. One of app roaches that help automobile companies is to constantly improve is the course of study -do- study act (PDSA) cycle which describes the activities a company needs to perform in order to incorporate continuous never ending improvement in its operation (Deming, 1950). radical Chicago TribunePDCA cycles first flavor is to plan. Management must measure the current surgical operations and make future measures to treasure performance implementation plans based on any problems they find.The next step is to Do which means implementing the plan by documenting all changes made and collecting the data for evaluation. The third step is to Check, i.e. study the data collected in the previous breaker point. The data is evaluated to see whether the plan is achieving the goals established in the plan phase or not. The last phase of the cycle is to Act according to the results found in the first deuce-ace phases.Over the long run, sea captain performance depends on superior learning. (Peter Senge, 1960). Continuous improvement should be a part of the daily work by being applyd at personal, work unit, and organizational levels.6.3 Employee authorisationEmpowerment as a process of decentralizing decision making in an organization, whereby managers give more discretion and autonomy to the front line (Brymer, 1991). Continual and extensive training in quality measurement tools is provided to the workers in order to empower them to make decisions congress to quality in the takings process and their contributions are highly valued. ancestry Employee Empowerment The Rhetoric and the man(Pearson, 1995)One good strategy that enhances the feelings of empowerment in employees is expressing confidence in them as well as establishing a realistic high performance for them by creating opportunity for employees to participate in decision making and well-favoured them the autonomy to form bureaucratic constraints. Employees are always in the best(p) position to detect problems a nd impose improvements if they are equipped to take stairs to make improvements (Wilkinson, 1997).6.4 Use of Quality ToolsTQM requires the employees to identify and correct quality problems apply certain graphical and statistical methods to plan work activities, collect data, analyze results, monitor progress, and solve. These are also known as the seven means for quality control which areCause and effect drawsScatter diagramFlowchartsPareto chartHistogramControl chartsChecklist6.5 Product DesignEvery company should ensure that while building quality into a product it should meet a customers expectation which is not an easy task as customers often blab out in everyday language. A product that is meant to be attractive, strong or safe can have different meanings to different customers. It is necessary to change customers everyday language into specific technical requirements in order to produce a product that customers want.A valuable tool to translate the congressman of the cu stomer into specific technical requirements is Quality Function Deployment (QFD). QFD originated in 1972 at Mitsubishis Kobe shipyard site. It benefits companies through improved communication and team work in the midst of all constituencies in the value chain, such as between marketing and design, or between design and manufacturing. For example an automobile manufacturer would evaluate how changes in materials would have an impact on the customer safety requirements.Designing action Systems for QualityThese three are the important production system design objectives. After Ford acquired painter, Jaguars quality improved rapidly due to production system changes. This was due to Ford adopting Toyotas production process at the Jaguar plant which proved that production system shams quality (Smith, 2001).to a fault Ford analysed incidents when defective purchased split ca employ Ford to halt shipments of vehicles which made Ford pause that manufacturing problems caused 83 percent of these incidents, while design problems caused17 percent. (Wilson and Sedgwick, 2002)QFD is a systematic procedure which is used to help build quality into the upstream processes and also into freshly product education while avoiding problems in the downstream production and delivery processes.6.6 Managing Supplier QualityTQM extends the concept of quality to a companys suppliers. The philosophy of TQM extends the concept of quality to suppliers and ensures that they engage in the same quality practices. If suppliers meet preset quality standards, materials do not have to be inspected upon arrival.With the shift in emphasis from price to quality, automobile manufacturers have had to restructure their ties with their suppliers. Spokespeople for the automobile manufacturers in the main emphasize how they are trying to build more cooperative relationships with suppliers, based upon long-term contracts, information sharing, and trust (Gardner, 1993).Some of the benefits of develop ing long term business partnership includeReduction and elimination of the inspection of supplied parts and materials.Improved product and service quality, and delivery performance and responsiveness.Value for funds purchasesSecurity and stability of suppliersTransfer of ideas, expertise and technology between customer and supplier and dissemination and implementation of best practise.Exposure of the supplier to rising tools, techniques, systems and business practices.6.7 Measurement FeedbackDeming has given utmost importance to the fact that all business processes should be a part of a measurement system along with a feedback structure. The feedback received should be studied by managers to identify the causes of variation at each step in a process, and and then concentrate on improving that subset of processes. (Paul Arveson, 1998)This framework translates the voice of the customer into measures of performance which the organization can identify and improve. It also deals with internal measures of performance, assessment of the suppliers and development of rewards and recognition.6.8 Training DevelopmentCompanies committed to quality and high performance expend heavily in training and education as such investments add up value to organizational capabilities. The leaders in quality like Deming, Juran, and Crossby actively promoted quality training and education.Training generally includes quality awareness, leadership, project management, communications, teamwork, problem solving, interpreting and using data, meeting customer requirements, process analysis, process simplification, waste reduction, error proofing efficiency and safety.7. Studies on TQMAs the Indian economy is globalising, achieving quality excellence is becoming one of the basic goals of all companies specially the automobile companies. Many companies are trying their best to get their hands on the Deming Award awarded for achieving for quality standards in their manufacturing activiti es.According to a few studies make around the world by a few companies on TQM, it has been found that TQM has got a positive influence on a companys growth and success. When the financial performance of 600 quality award winner companies was analysed, it lead to the conclusion that when TQM is implemented effectively, the financial performance also improves drastically (Singhal and Hendricks, 1999). TQM also helps companies to increase their market share and improve their competitiveness as found in a study done by Mohrman and Powell in 1995. TQM is considered to be a air factor in influencing the corporate performance of a company.According to a study carried out on the efficiency levels of TQM in India, it was found out that TQM implementation in Mahindra Mahindra, one of the top India automobile companies considerably improved its performance. A similar survey carried out in Larsen Toubro concluded that TQM has a significant impact on the companys financial performance (Singh , 2000). TQM implementation in Indian industries even though is in its growth stage, is bringing around incredible changes in the performance of the organizational work force and helps in increasing the productivity and reducing costs.Total Quality Management has gained for itself a substantial acceptance in Indian automobile industry with the aim to raise the performance standards if Indian companies to world class level (Dinesh Sethi, Deepak Tripathy, 2006). nevertheless implementation of TQM is not an easy task. Many companies withal do not commit themselves to its implementation whole heartedly (Downs and Mohr, 1980, Miller, 1993). One of the major success factors for implementation of TQM is a strong level of organizational commitment.Four more indispensible questions necessitate for each company to answer for the successful implementation of TQM are1) Is there a presence of top management involvement?2) Does the company establishment opposition from workers organizations?3 ) Is the middle/upper management involved and interested?4) Does there exist an organizational quality culture?A Total Quality strategy is effective only through the long-term commitment and abandoned appliance by the top and middle management. The top management is held responsible for setting goals, strategically planning and allocating resources to aid implementation of all plans and initiatives. (Deming, 1982 Oarvin, 1987). some other important typeface for successful TQM implementation is employee participation promoted at all levels. Individual responsibility can be discharged only if power is delegated in different degree at all levels across the organization. Also the mission, vision and policies of a company should be consistent with those of TQM. Visionary leadership of the top management and complete involvement of the middle management along with the support of employees results in TQM being a successful endeavour in the company.It is has been found out that 62% of th e Indian automobile sector believes to follow TQM as a guiding philosophy while 38% has subdued not adopted TQM as a guiding philosophy (Caravatta, 1997, Sharma, 1997, Agrawal, 1999). It is estimated that 70 % of the India automobile sector promises on time delivery more than 80 % of propagation. According to the world standards, Indian automobile industry is lagging behind. plainly 52 % of the automobile companies are working towards achieving a cost reduction of more than 5% while shockingly still 48% of the organizations do not consider cost reduction as an important aspect. unluckily only 10-15% Indian automobile companies are using quality cost as measure of their quality performance thereby loosing an opportunity to stead critical areas for improvement (Harrington, 1997)8. sixer SigmaMotorola pioneered the concept of Sex Sigma as an approach to measuring product and service quality in the year 1987. six Sigma provides an outline for implementation of a total quality syste m. The word Sigma in Six Sigma implies process performance. Six Sigma acts as a differentiator between world class and average manufacturing companies with benefits in scrap and rework costs, extinguish rates, achieved through teamwork and by removing organizational boundaries.It is a statistical unit used for measuring a units quality, with not more than 3.4 defects per million opportunities which imply achieving a quality standard of 99.99966%. Six Sigma covers the whole organization, including suppliers and customers (Quality Times, 1998).Six Sigma approach focuses on reducing variability and achieving excellence by working on three keystone strategiesProcess optimization, standardization, and controlPart standardization and certification of supplierFollowing a design for ManufacturabilitySix Sigma Conversion TableSource Journal of Management Research, 2006Six Sigma has been applied in product development, new business acquisition, customer service, accounting, and many other b usiness functions. It is not practical for all processes to operate at a Six Sigma level. The appropriate level depends on the strategic importance of the process and the cost of improvement relative to the benefit. It is generally easy to move from 2 Sigma or 3 Sigma level to 4 Sigma levels, but moving beyond that requires much more elbow grease and sophisticated statistical tools (James Evans, 2008).The problem solving methodologies used by Six Sigma areDMAIC used for projects aimed at improving an existing business process.DMADV used for projects aimed at creating new product or process designs.8.1 DMAICSource wordpress.com square off The first step while implementing Six Sigma is to define the problem in operational terms to facilitate further analysis. A good problem statement identifies customers and the Critical to Quality (CTQ) factors that have the most impact on product or service performance and identify the performance rhythmic pattern and the cost implications of the project along with defining what is to be done by whom and when (Thomas Bertels, 2003)Measure This phase of DMAIC process focuses on how to measure the internal processes that feign CTQs. This requires an understanding of the relationships between process performance and customer value.Analyse This stage focuses on why defects, errors, or excessive variation occur. Finding the answers requires identifying the key variables that are most likely to cause errors and excessive variation the root causes. One of the tools of identifying the root cause is the 5 Why technique which forces one to redefine a problem as a chain of causes and effect to identify the source of the symptoms by asking why five times (George Patterson, 2003).Improve Once the root cause of a problem is understood, the team needs to generate ideas for removing the problem and improve the performance measures and CTQs. Some of the techniques used to facilitate idea generation are brainstorming, checklists, et c (Osborn, 2003).The ideas generated are then evaluated and the most promising ones are selected, confirming that the proposed solution will positively affect the key process variables and the CTQs.Control This part of DMAIC focuses on how to maintain the improvements, which includes position tools in place to ensure that the key variables remain within the maximum acceptable ranges under the modified process. Controls might be as unsophisticated as using checklists or periodic status reviews to ensure that proper procedures are followed or employing process control charts to monitor the performance of key measures.8.2 DMADVThe DMADV project methodology, also known asDFSS(DesignforSixSigma),features five phasesSource SixSigmaTraining.netDefinedesign goals that are consistent with customer demands and the enterprise strategy.Measureand identify CTQs (characteristics that areCriticalToQuality), product capabilities, production process capability, and risks. probeto develop and des ign alternatives, create a high-level design and evaluate design capability to select the best design.Designdetails, optimize the design, and plan for design verification. This phase may require simulations.Verifythe design, set up pilot runs, implement the production process and hand it over to the process owner(s).In India, only 5% of Indian automobile companies seem to implement the Six Sigma rule due to which they have not been able to achieve steady level of quality based on 3 Sigma limits around the specified target value. Six Sigma is a tool for continuous improvement making an organization to concentrate on the requirements of customers, process alignment, and timely well planned execution (Skaria, 1995). Thus to be able to compete internationally Indian automobile sector should follow Six Sigma program in order to install the TQM philosophy. This would in turn help them to map their performance overtime and to take required prior measures.Although automobile sector in India implemented Six Sigma to gain competence in its quality aspect, it still failed to implement it in the right direction. This was due to a number of reasons likeAbsence of top management involvement commitmentPractising an authoritarian behaviour and a hierarchical thinking. neglect of adequate education and training for the employees.No strategic goal setting and a weak system of monitoring. pathetic knowledge in the field of Six Sigma and its related tools.Lack of affectionateness to be the best in quality.No building up of the practise of Kaizen, the culture of continuous improvement.Not paying enough attention to the needs of the customers.Impatience to develop a new strategy to achieve quality and thus resorting to a quick unreliable way of fixing things.Lack of collaboration, integrity, excellence and respect for each other.During the 1970s and early 1980s there were not many automobile manufacturers in India the growth of this sector was slow. besides in 1983 a dramatic c hange in the scenario occurred when Maruti was taken over by the Indian government and Maruti entered joint venture agreement with Suzuki (Japan) which emotional a revolution in the Indian automobile industry.With the adoption of the insurance of economic liberalization by Indian government in 1991, major car manufacturer companies such as General Motors, Fiat and Honda, got a chance to set up their manufacturing bases in India.Even after two decades gone after implementing TQM in the automobile sector, India is still a very small player in the world auto market production. The boilers suit economy of India is a direct factor influencing the growth of the Indian automobile sector and still lot is required to be done by the companies to implement TQM tools like Kaizen, Six Sigma, 5S and TPM. Since growth of automobile in any country is an indication of overall economy, thus lot need to be done by the automobile sector in implementing TQM quality tools in particular 5S, Kaizen, Qua lity Function Deployment and Business Process Re engineering.9. scat OrganizationsLean production was a concept developed by the Toyota Motor batch to focus on the elimination of waste in all forms, including defects requiring rework, superfluous process steps, and unnecessary movement of materials or people, waiting time, excess inventory, and overproduction.One of the key tools used in lean production is the 5 Ss Seiri Refers to ensuring that each item in a workplace is in its proper placeSeiton Refers to arranging materials and equipments so that they are easy to find and use.Seiso Refers to a bully working area so as to reduce maintenance problems.Seiketsu Refers to formalize procedures and practices to create consistency and ensure that all steps are performed correctly.Shitsuke Implies property the process going through training, communication and organizational structures.10. ConclusionAll types of automotive industries aim to have reduced costs, increased process efficiency and improved quality of their products and services by working towards achieving the needs of their customers through the application of TQM. With growing cut throat competition, TQM has become an important aspect of the management of automotive industry. With the implementation of the quality principles discussed above, companies will produce dough for themselves and also satisfy the needs of owners, employees, suppliers and society as a whole.