Mahindra & mahindra limited tqm and deming awardPresentation Transcript
Mahindra & Mahindra Limited (M&M) TQM and Deming award
About M&M• It is one of the largest automobile manufacturers by production in India and a subsidiary of Mahindra Group conglomerate.• It is ranked #21 in the list of top companies of India in Fortune India 500 in 2011.• Mahindra & Mahindra was set up as a steel trading company in 1945.• 1,44,000 employees in over 100 countries across the globe.
Background & History• Multinational automaker headquartered in Mumbai, Maharashtra, India.• The company was founded in 1945 in Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed.• The company changed its name to Mahindra & Mahindra in 1948.
Core Purpose• Indians are second to none in the world. The founder of our nation and of our company passionately believed this. We will prove that right by believing in ourselves and by making M&M limited known world wide for the quality of its products and services.• We don’t have a group wide mission statement. Our core Purpose is what makes all of us want to get up and come to work in the morning. • Anand G Mahindra
Core Values• Good Corporate Citizenship Long term success Ethical business standards• Professionalism Best people for the job innovation and well reasoned risk taking• Customer First Respond to the changing needs and expectations• Quality focus First time right• Dignity of the individual
Quality Policy• “ Customer first and quality focus are our core values. For this, we shall respond to the changing needs and expectation of the customers speedily and effectively.” Achieved By:• Understanding customer requirements• Involvement of suppliers and business partners• Setting the annual business objectives aligned with our vision• Total employee involvement• Adopting a process approach• Delivering ‘first time right’ products.
Management Responsibility President and COO through middle management provide evidence of quality commitment• Communication about meeting requirements.• Establishing quality policy• Ensuring quality objectives are established for each area in line• Conducting management reviews• Review of process efficiency
Previous to TQM (1990)• Tractor division was sellers market• Focus was more on quality• No emphasis on development of new models• Manufacturing activity was more inspection oriented detection• Interaction with suppliers purely need based• Sales and service activity lacked standardization• Rework rejection percentages were high• Employee involvement in improvement activity was very limited• Mindset, factory layout, equipment -- Road blocks
TQM Journey with M&M• The TQM journey was in three phases:• Introduction phase from 1900 - 94• Promotion phase from 1995 – 99• Development phase from 2000 onwards
Introduction phase (1900 – 94)• In the first phase objective were. Improving manufacturing quality through process control. Improving the quality of bought out components and Increasing productivity and reduce the cost of poor quality (COPQ) by Solving chronic cross functional quality problems.Introduction of initiatives like Juran’s process of quality improvement (JQI), Statistical process control (SPC), Supplier support activity and business process reengineering (BPR) in manufacturing.
Promotion phase in 1995 – 99• The focus was not only the standardization of all operations as per international guidelines, but also to improvement upon them.• Certifications ISO 9000 and automotive sector specific standard QS 9000 were obtained• Upgradation of manufacturing facilities• Initiation of Deming prize guidelines
Development phase (2000 onwards)• Improvement in core process like new product development, manufacturing, supplier management and sales and customer operations• Introduction of policy development daily work management technique• Certification to environment management system standards ISO 14001• Continuous improvement activity stepped up to touch employee involvement of 100 percent during period
After effectsBenefits due to TQM• Reduction in rejection at suppliers end as well at receipt stage.• Reduction in no of consumer complains• Increased productivity, customer satisfaction, employee involvement in continuous improvement• Introduction of new models – 15 models in three years
• Won the Japan quality medal in 2007, the only tractor company worldwide to be bestowed this honors.• First tractor company globally to win the Deming application prize in 2003 from JUSE.• Total productive maintenance (TPM) Excellence award first category form Japanese institute of plant maintenance (JIPM) for the company’s automotive division
Deming Prize• The Deming prize, established in December 1950 in honour of W. Edwards Deming• it was originally designed to reward Japanese companies for major advances in quality improvement.• Over the years it has grown, under the guidance of Japanese Union of Scientists and Engineers (JUSE) to where it is now also available to non- Japanese companies.• The awards ceremony is broadcast every year in Japan on national television.
Winners of application prize Year 1951• Fuji Iron & Steel Co., Ltd. (now part of Nippon Steel)• Showa Denko K.K.• Tanabe Seiyaku Co., Ltd.• Yawata Iron & Steel Co., Ltd (now part of Nippon Steel) 1952 to 1989• Florida Power & Light (first non-Japanese winner of award)• 1998• Sundram Clayton brakes division (Sundaram Brake Linings), the worlds first friction material company to win. 2002• TVS Motor Company (TVSMC)
2003• Mahindra & Mahindra Ltd., the worlds first tractor company to win.• Rane Brake Lining Ltd.• Sona Koyo Steering Systems Ltd. 2004• Indo Gulf Fertilisers Ltd.• LUCAS TVS• SRF limited 2005• Rane Engine Valve Ltd• Rane TRW Steering Systems Ltd.(SGD)• Krishna Maruti Ltd., Seat Division
2006• Sanden International (Singapore) Pte Ltd (SIS), the first Singapore-based company to win.2007• Rane (Madras) Ltd.2008• Tata Steel, the first integrated steel plant in Asia to win Deming award in 2008.