2. Total Quality Management (TQM)
• TQM is a set of management practices followed
organization-wide, geared to ensure the organization
consistently meets or exceeds customer requirements.
Process measurement and controls constitute major focus
in TQM as means of continuous improvement. In a TQM
effort, all members of the organization participate in
improving processes, products, services and the culture in
which they work.
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3. • If the company is committed to provide its customers with
products and services that satisfy their needs, its culture,
attitude and organization also should speak so. Not many
companies that implemented TQM have been successful.
• Surveys reveal that only 20-36% of companies that have
undertaken TQM have achieved either significant or even
tangible improvements in quality, productivity,
competitiveness or financial return.
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4. Prerequisites for TQM
• There are some prerequisites for successful implementation of
TQM.
• These are customer-driven quality, top management
leadership and commitment, continuous improvement, fast
response, actions based on facts, employee participation,
and a TQM culture.
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5. • How products are developed In TQM environment It is
interesting to see the process of product development in a TQM
environment.
• Without a TQM approach, product development is usually
carried on in a an atmosphere where each department acts
independently.
• Short-term results drive behavior so scrap, changes, work-
arounds, waste, and rework are part of routine.
• Most often, the attention of management is lost in supervising
individuals, fire-fighting and rewarding individuals for their
performance.
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6. • Product development in a TQM environment is always
customer-driven and focused only on quality.
• Teams in TQM environment are process-oriented, and
interact with their internal customers to deliver the
required results.
• The focus of top management is on controlling the overall
process, and rewarding teamwork, not individuals.
• A core concept in implementing TQM is Deming’s 14 points
which refer to the set of management practices to help
companies to increase their quality and productivity.
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7. • International Organisation for Standardisation (ISO) defines
TQM as ’a management approach for an organisation,
centered on quality,
• Based on the participation of all its members and aiming at
long-term success through customer satisfaction, and
benefits to all members of the organization and to society’.
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8. TQM comprises the following four process steps:
1. Kaizen:—focuses on continuous process improvement by
making processes visible, repeatable and measurable.
2. Atarimae Hinshitsu :—make things work as they are
meant for (i.e., a pen is meant for writing).
3. Kansei :—examine the way the user applies the product
leads to improvement in the product itself. :
4. Miryokuteki Hinshitsu: —things should have an aesthetic
quality (for instance, a pen will write in a way that is
pleasing to the writer).
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9. TQM at Tata Motors
• Tata Motors had all along believed in developing strong in-house design,
engineering, and manufacturing capabilities.
• It performed a large part of its manufacturing activities in-house.
• It had installed facilities to manufacture engines, gearboxes and
transmission mechanisms, body panels, castings and forgings and important
components and sub-assemblies.
• It even manufactured its own machine tools, dyes and fixtures, in its
machine tools division.
•
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10. • Tata Motors started a comprehensive quality improvement
initiative in September 2000.
• The initiative played an important role in the company’s
turnaround, from a loss of Rs. 500 crores in the year ended
March 2001 to a profit of Rs. 28 crores in the first quarter of
2002-03.
• Every year, about a quarter of Tata Motors’ workforce went
through training courses, which were rated highly in the Indian
engineering industry.
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11. • Personnel were trained before building workshops.
• In case of imported machines, engineers and workers were sent
to the foreign manufacturer’s facilities to receive training well
before the arrival of the machine.
• The top management at Tata Motors, thus, strived hard to
develop TQM culture throughout the organisation.
• There were efforts visibly seen for continuous improvement,
fast response and employee participation.
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