TVS Motor Company is an Indian motorcycle manufacturer that has been practicing total quality management (TQM) since 1987. The company sees TQM as a company-wide effort for continuous quality improvement through total employee involvement. This leads to increased customer satisfaction and loyalty. TVS places tremendous emphasis on total employee involvement, obtained through suggestions, quality circles, cross-functional teams, and other programs. Employees at all levels are responsible for different aspects of retaining performance, making improvements, and achieving breakthroughs. Projects from employee involvement programs are aligned with company targets and priorities. Employee contributions are recognized through awards from the managing director to improve engagement and sense of belonging.

1. TVS Company Limited, the manufacturer of motorcycles and other two wheelers, is a part of the
almost one-century-old TVS Group of companies that was first established in the year 1911.
TVS Motor Company has at two locations – Hosur (Tamil Nadu) and Mysore (Karnataka). The
company’s sales during the financial year 2002-03 were to the tune of Rs 2700 crore. The
company began its TQM journey the year 1987. During 2002 the company won the
internationally coveted Deming Application Prize; it was the first two wheeler company in the
world to get that prize.
The company’s philosophy towards quality is reflected in its following statements.
Our Understanding of TQM:
TQM is the company wide effort of continuous quality improvement of all processes, products
and services through total employee involvement that results in increasing customer satisfaction
and loyalty and improved business results.
Quality Policy:
TVS Motor Company Limited is committed to achieving total customer satisfaction through
excellence in TQC. We will continuously strive to provide the customer the best value for money
by supplying quality product at the right time and at the right price. We shall provide superior
after sales service to maintain and reinforce customer satisfaction. This objective will be
achieved by continuous improvement through total employee involvement.
Total Employee Involvement:
What is most striking about the company’s TQM program is the tremendous emphasis that is laid
on Total Employee Involvement (TEI). The above two statements also clearly mention that it is
through TEI that they would achieve the TQM objective. TEI is at the very foundation of the
TQM movement at TVS Motors as depicted in the company’s TQM Model presented.
The company tries to obtain TEI basically through:

2. 1. Suggestions scheme
2. Quality Circle activities
3. Cross Functional Teams (CFTs),
4. Supervisory improvement Teams (SITs),
5. Task forces
The notional relative allocation of responsibilities among the different levels of employees in the
organization i.e. top and senior management, middle management and workers is clear at the
company. Following are three kinds of responsibilities which are shared by three levels
(however, the time spent by each of these levels is different):
(a) Retainment (i.e. Retaining the performance levels achieved)
(b) Improvement and
(c) Breakthroughs
Staff and workers would be more involved in ‘retainment’ part through good daily management
practices and contribute to improvement through Employee Suggestions System and through
participation in the Quality Control Circles (QCCs). The middle level people such as the
executives would be more into ‘improvement’, while the top management would be mainly
responsible for breakthroughs. The projects through TEI are well aligned to the company’s
targets. The company’s long range plans and annual policies are the main inputs for selecting and
prioritizing the TEI projects. Department-wise ‘Project banks’ are created which are then picked
up by SIT, CFT or QCCs and commitments are made in the QCC convention and SIT/CFT
convention. Hence, the QCC, SIT and CFT projects and their schedules are in alignment with the
company’s targets and objectives. There is a two way deployment mechanism: Targets flow from
the top and bottom up on identification of projects to achieve the targets. Any gap between the
two is resolved through a structured discussion. The implementing (i.e. fructifying the project
ideas) is a major responsibility which is as much with the grass roots level as with those at the
executive level.

3. Employee involvement is recognized and appreciated through awards and recognition to the
employees, who cross milestones; regularly. These awards are received through the hands of
Managing Director of the company. This would accomplish the following:
1. It would demonstrate the personal involvement of the topmost level of management in the
company’s TQM journey
2. It would improve the bond between employees at all the levels.
3. It would improve a sense of belonging to the company and
4. The company’s goals could be directly articulated/communicated to the employees at such
function.
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