TQM in Automobile Services discusses how total quality management (TQM) can create a competitive advantage in the automobile industry. Implementing quality controls throughout the production process leads to failure-free products that satisfy customers and increase brand loyalty. It is also important to understand customer needs and expectations in order to fulfill or exceed them. The growing demands of customers and changing technologies require companies to continuously improve quality.

1. TQM in Automobile Services
Reporters:
Cabiten, John Eduard
Clavecillas, Dara
Tabara, Krisna Angela
Tajanlangit, Stephie Marie

2. In times of sever competition, it is of crucial importance to
create a competitive advantage to differentiate from the
competitors and to sustain the business of the company. This
shows that a customer-focused quality management is one way
to create a sustainable competitive advantage. Quality controls
along the whole value chain-before, during and after production-
leads to failure free products, which save costs on the one hand
and have thus a positive customers’ expectations lead to
satisfied customers who build up a brand loyalty and brand
retention sales, which have a positive influence on the
company’s sales, market share as well as the overall image.

3. Furthermore, it is important to listen to ‘the voice of the
customers’ and get an insight in the customer’s needs and
wants. To fulfill or even exceed their expectations leads to
customer satisfaction which is a key to success in today’s
business world. In addition, the customer demands in regard of
quality are growing continuously and new technologies are
appearing on the markets on a regular basis. Therefore th
producers are forced to keep to the

4. latest technology development and to get hold on the changing
customer needs. But even without this external pressure, quality
improvement is justified from a cost point of view.
Today’s business environment creates a growing need for
quality management. Tougher competition leads to the demand
for cost savings and higher profitability. These days the
consumer can choose from a variety of similar products, which
are often exchangeable in the eyses of the customer. If they are
not satisfied with a product’s

5. performance, they switch to the competitors brand. Thus the
focus on the customer’s needs and wants in line with quality is
one way of differentiation from the vast number of competitors.
Satisfied customers are likely to build up a brand loyalty and
this helps to ensure long term sales. The explosive growth of
technology led to a higher product complexity and thus favored
the quality movement.

6. QUALITY ASSURANCE MANAGEMENT IN
AUTOMOBILE INDUSTRY
The accent on quality was lost in American industry in the
post World War II era, when the country’s industry could sell
almost anything that it can make, at a time when the quality
level of foreign made products was of no great worry. To be
sure, there were advocates of quality control in the United
States (US), such as Edward Deming, however, American
industry was in no mood to listen to them. Unfortunately for
American industry, someone else did listen to Deming the
Japanese. The superior quality control procedures of today’s
Japanese industry were originally

7. developed under the guidance and tutelage of Edwards
Deming. Further, the statistical and mathematical element of
Deming’s procedures, and, in turn, those of Japanese industry
were based on the work of another American quality control
expert, Walter Shewbart.
Deming insisted that true quality control began with a real
commitment from top management. American companies,
particularly automobile manufacturers, however, made quality
control a minor function of middle or lower level management.

8. Creating a positive stress-free work environment,
eliminating fears and anxieties is important for any company.
Employees working in a supportive non-threatening work
atmosphere display significant better results.

9. QS 9000- QUALITY MANAGEMENT SYSTEMS IN
AUTOMOBILE SECTORS
QS-9000 is the industry specific adaption of the ISO-9000
standards for the North American auto industry. It applies to all
first-tier suppliers, i.e. companies selling components to be
used or installed directly in the products of the Big Three
automakers. It is a QUALITY SYSTEM REQUIREMENT
STANDARD developed by the three U.S. automobile giants:
CHRYSLER: Supplier quality assurance manual.
FORD: Q-101 quality system standard.
GENERAL MOTOR: NAO targets for excellence

10. QS-9000 defines the fundamental quality system expectation of
Chrysler, Ford, General Motors, Truck Manufacturers and other
subscribing companies for internal and external suppliers of
production and service parts and materials. These companies
are committed to working with suppliers to ensure customer
satisfaction beginning with conformance to quality
requirements, and continuing with reduction of variation and
waste to benefit the final customer, the supply base, and
themselves.

11. How Toyota Achieve Its Objective By Implementing
TQM Marketing
The Toyota company of Japan has taken this challenge
seriously and has proved its ability to compete with the once
emperors of the industry such as Ford, Volvo, Chevrolet et al.
buy careful adoption of cutting edge technologies such as Total
Quality Management, Toyota has turned itself into a game
changer in the industry.

12. Company Overview
Toyota Motor Company (TMC) is the crown of Japanese
auto industry. Started as a small car manufacturer on August
28, 1937 it gifted many quality innovations to the world
throughout its history. In the early 1980s Toyota won its first
quality control award in Japan.
The company launched its luxury brand Lexus in 1989
which became a massive success. It also manufactures Scion
an economical automobile brand that targets young adults.
Toyota also conquered the hybrid car market with the launch of
its iconic car Prius in 17.

13. Today with a work force of 71,116 and an annual sale of
US$228+ billion, Toyota is as profitable as all the other car
companies combined. In 2007, it became the world’s largest
auto manufacturer beating General Motors.

14. According to Deming TQM involves 14 principles
1. Create constancy of purpose
2. Adopt a new philosophy of cooperation
3. Cease dependence on mass inspection to achieve quality
4. End the practice of awarding business
5. Improve constantly, and forever
6. Institute training
7. Adopt and institute leadership for the management of
people.
8. Drive out fear and build trust

15. 9. Break down barriers between departments.
10. Eliminate slogans, exhortations, and targets asking zero
defects or new level of productivity
11. Eliminate numerical goals, numerical quotas and
management by objectives
12. Remove barriers that rob people of joy in their work
13. Institute a vigorous program of education and self-
improvement.
14. Put everybody in the company to work to accomplish
the transformation.

16. SWOT Analysis
Strenghts
Weaknesses
Opportunities
Threats

17. Value Chain Analysis of Maruti Suzuki
A value chain is a chain of activities. Products pass
through all activities of the chain in order and at each
activity the product gains some value. The goal of these
activities is to offer the customer a level of value that
exceeds the cost of the activities so that the company can
charge a premium price for the product hereby resulting in a
profit margin,