tqm in auto industry

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Application of TQM to improve production and services


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Abstract

This study is based on the application of TQM in an Indian automobile

manufacturing firm. In this research main thing is to the total quality management

of any product or services. Total quality management is the management of quality

in any product. Business is based on the quality of product and services and its

very important to maintain the quality of goods in any business process. This

current research will help for finding the all objective in application of TQM.

This research starts with introduction to define the application of total quality

management. Main purpose is to doing this chapter to finding the aim, objective,

background of the study, research question, and background of the company. In

second section is literature review, it is the total conceptual framework of the wholeresearch. In the third chapter will discussed about research methodology. Research

methodology plays a key role in the whole research. Appropriate research design,

method, philosophy, and approaches help to chosen right methodology. On the

other hand some ethical issue, conclusion and limitation will discuss in this chapter.

Chapter 4 is about data collection method and analysis. Both primary and

secondary method will be used for the data collection and after that data analysis

process will started. In primary research quantitative and qualitative both method

will be selected. Chapter 5 is basically for recommendation and conclusion and also

objective has been linked to the conclusion. In this chapter also will discuss the

justification of the objective. Recommendation also has been provided so that a

reader can easily understand the value of TQM in an automobile industry. Limitation

and future scope also discussed on chapter 5.


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Table of Contents

Chapter 1...................................................................................................... 6

Introduction .................................................................................................. 6

1.0 Introduction ............................................................................................. 6

1.1 Background of the study............................................................................ 7

1.2 Purpose of the Study ................................................................................ 7

1.3 Aims ....................................................................................................... 7

1.4 Objective ................................................................................................. 7

1.5 Research Question .................................................................................... 8

1.6 Problem Statement ................................................................................... 8

1.7 Justification of the Study ........................................................................... 8

1.8 Rational of the Study ................................................................................ 9

1.9 Structure of the Study .............................................................................. 9

1.10 Background of the Company .................................................................. 10

1.10 Conclusion ........................................................................................... 12

Literature Review ......................................................................................... 13

2.0 Introduction: ......................................................................................... 13

2.1 Conceptual Framework ............................................................................ 14

2.2 Origin of Total Quality Management: ......................................................... 15

2.3Principles of Total Quality Management: ..................................................... 15

2.4Elements of Total Quality Management: ..................................................... 16

2.5 Evaluation tools of Total Quality Management: ........................................... 18

2.6 Kaizen Theory of Total quality Management: .............................................. 22

2.7 Evaluation of TQM .................................................................................. 22

2.7.1 Gurus ................................................................................................. 23

2.7.2 Focus on customers ............................................................................. 23


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2.8 Implementation of TQM in auto industry .................................................... 24

2.9 Five Measurements ................................................................................. 25

2.10 MAJAICO and PROTON .......................................................................... 25

2.11 Integrated Measurement ....................................................................... 26

2.12 Financial and non-financial performance .................................................. 26

2.13 Toyota case study on cracks in TQM implementation ................................. 27

2.13.1 Dysfunctional structure ....................................................................... 27

2.13.2 Flaw of product development ............................................................... 28

2.14 Conclusion ........................................................................................... 28

Research Methodology .................................................................................. 29

3.0 Introduction: ......................................................................................... 29

3.1 Research Proposition: ............................................................................. 29

3.2 Research Philosophy: .............................................................................. 30

3.2.1 Selection of Positivism Philosophy: ......................................................... 30

3.3 Research Onion: ..................................................................................... 31

3.4 Research Design: ................................................................................... 32

3.4.1 Selection of Exploratory Design: ............................................................ 32

3.5 Research Approach: ................................................................................ 32

3.5.1 Selection of Deductive Approach: .......................................................... 32

3.6 Sampling Method: .................................................................................. 33

3.7 Data Collection Method: .......................................................................... 33

3.8 Quantitative Data: Questionnaire Survey Method........................................ 33

3.9 Qualitative Data: Interview Method ........................................................... 34

3.10 Sampling Size: ..................................................................................... 34

3.11 Limitations:.......................................................................................... 34

3.12 Ethical Issue: ....................................................................................... 35


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3.13 Conclusion: .......................................................................................... 35

Chapter 4.................................................................................................... 36

Analysis and Findings ................................................................................... 36

4.0 Introduction ........................................................................................... 36

4.1 Total Quality Management ....................................................................... 37

4.1.1 Background......................................................................................... 38

4.1.2 History ............................................................................................... 38

4.1.3 Evolutions ........................................................................................... 39

4.2 Implementation Issues for TQM ................................................................ 39

4.2.1 Improvements ..................................................................................... 40

4.2.2 Problems of Total Quality Management ................................................... 40

4.2.3 Leadership Management ....................................................................... 41

4.3 Quality Awards and Models ...................................................................... 41

4.3.1 Leadership .......................................................................................... 42

4.3.3 Strategic planning ................................................................................ 42

4.3.4 Customer and market focus .................................................................. 42

4.3.5 Awards ............................................................................................... 42

4.3.6 European Quality Award ....................................................................... 43

4.3.7 Canadian Quality Award........................................................................ 43

4.3.8 Australian Quality Award ...................................................................... 43

4.4 ISO 9000............................................................................................... 43

4.4.1 Use of ISO 9000 .................................................................................. 44

4.4.2 Background......................................................................................... 44

4.4.3 Global Scenario ................................................................................... 44

4.4.4. Audit ................................................................................................. 45

4.4.5 Effectiveness ....................................................................................... 45


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4.4.6 Role of ISO 9000 ................................................................................. 45

4.4.7 Advantages ......................................................................................... 46

4.4.8 Criticism ............................................................................................. 46

4.5 Summary .............................................................................................. 47

Chapter 5.................................................................................................... 48

Conclusion and Recommendation ................................................................... 48

5.0 Conclusion ............................................................................................. 48

5.1 Evaluate the awareness of TQM. ............................................................... 49

5.2 Implementation Problems ........................................................................ 50

5.3 Awareness of awards and models. ............................................................ 51

5.3.1 Awareness of IS0 9000. ........................................................................ 52

5.4 Recommendation .................................................................................... 52

5.5Limitation of the Research ........................................................................ 53

5.6 Future scope of the Research ................................................................... 53


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Chapter 1

Introduction

1.0 Introduction

Now-a- days, business is based upon the quality of the products and services. This

is done to maintain standard quality in the management and quality goods and

services in the market. Often see that there is an accident in the quality of products

and services. This process can be taken up as total quality management and ISO

9000 (Aravindan et al. 2008).

The introductory chapter of this research consists of a brief introduction of total

quality management and ISO 9000. Further it has generated a background of the

study and specifies the reason to describe the cause of total quality management

and ISO 9000 (Bergman and Klefsjo, 2007).

It also includes the ethical issues related to this research. The chapter also includes

rationale behind the selection of the topic. The most vital thing is mentioning the

aims and objectives of the research study. After mentioning the aims and

objectives has been highlighted some research questions based on research

objectives. The chapter also includes the problem statement and a brief structure of

the dissertation (Dean and Bowen, 2008).


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1.1 Background of the study

In any business process main thing should maintain by the company that is quality

of product. Total quality management is to control the good quality of product in

any business process. In any business key aspect is quality of product so every

company 1st thing should maintain that is quality of product. This study is basically

to clear about the total quality management and how TQM can apply in an

automobile company. In this study also discussed about the different strategies of

TQM application and what the impact of TQM is in an automobile industry.

1.2 Purpose of the Study

The purpose of the study is based upon the two given factors that is primary and

secondary reason. Primary reason is to obtain the degree from the institute oruniversity. The secondary reason is to implement the total quality management and

ISO 9000 in the workplace.

1.3 Aims

The main aim of this research is to explore the benefits of total quality

management and the ISO 9000. It also tries to evaluate the strategies, pros and

cons of total quality management and the ISO 9000.

1.4 Objective

The objective of this research is

To understand the total quality management and the ISO 9000. To critically analysis the adoption of total quality management and the ISO

9000.

To assess the reason behind the total quality management and the ISO9000.

To evaluate any of the pitfalls of taking the total quality management and theISO 9000.


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1.5 Research Question

What are total quality management and the ISO 9000 and its effect onbusiness?

Why total quality management and the ISO 9000 have an impact onbusiness?

How quality management and the ISO 9000 hamper the business? How will a business implement quality management and the ISO 9000 in

their units?

1.6 Problem Statement

Simply stated, both the total quality management and ISO 9000 will be helpful in

the long term of the business. The company managers will want to put into itsuitable time and commitment to ensure its success in quality and quality of

products. In contrast, if it is not as important, prudence needs to be exercised in

making a commitment (Morse, 2007).

How much importance and stake is placed in forming in quality management and

ISO 9000. It should be directly proportionate to the degree to which the total

quality management and ISO 9000 supports a companys business strategy.

The cases are structured around the quality management and ISO 9000 theories is

used to analyze the structures and to gain a deeper understanding of the

phenomenon. These are being accessed by using quality management and ISO

9000 in the search for differentiation, sustainable competitive advantage and

superior performance.

1.7 Justification of the Study

The justification of the study is based on the principles of total quality managementand the ISO 9000. To justify the total quality management and the ISO 9000

various elements are taken into account. The studies define of all the factors of the

total quality management and the ISO 9000. It has to be defined and understand

the implementation on the business.


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A case study on the Toyota automobile has been taken under the total quality

management. It also includes the quality awards like the Canadian Quality Awards

have also been taken up in the study. It also provides the leadership skills and

strategic planning of the models.

1.8 Rational of the Study

The use of quality management and the ISO 9000 is growing under the

performance expectation of the business. Companies have successfully adopted the

quality management and the ISO 9000 to produce and perform better products and

services. It also satisfies the customers and employees as well. There is a wide

range of reasons for entering quality management and the ISO 9000.

Quality management and ISO 9000 are used to perform various activities which a

company requires to perform in the company. These companies benefits come

from quality management and ISO 9000 in a variety of ways, including sharing cost

and risk, pooling their respective strengths, and leveraging complementarities.

This research looks at the literature on total quality management and ISO 9000 to

gain an understanding of the rationale for both total quality management and ISO

9000. Organizational propensity is to enter into quality management and ISO 9000

and their effect on sustainable competitive advantage. The study has chosen in the

context, on the various awards and models connecting to the ISO 9000.

1.9 Structure of the Study

This is a dissertation consisting of 5 chapters.Within each of the chapter will show

various studied chapter wise appropriate role of the research aims.

Chapter 1 mainly focuses on the introduction of the study, which will highlights on

a short overview of the research topic. As well as there will be the aims, objective,

rationale of the study, justification of the study and problem statement of the main

areas of research study.


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Chapter 2 mainly focuses on the introduction on the introduction to total quality

management, its implementations, evaluations, gurus, focus on the customers,

measurements and a case study of Toyota.

Chapter 3 mainly focuses on the research methodology. It is done mainly done todo research and to understand the outcomes to the research.

Chapter 4 mainly focuses on the quality models and awards, definitions ISO 9000,

uses, global scenario and the background. This unit also contains the roles,

advantages and criticism of the ISO 9000.

Chapter 5 mainly focuses on the conclusion, linking with the objectives,

recommendation, limitation of the research and future scope of the research.

1.10 Background of the Company

Tata motors formerly known as TELCO is an Indian multinational company. Its

headquarter is located in Mumbai, India. It has been founded in the year 1945 as a

manufacturer of locomotives. This is the first manufacturer of commercial in the

year 1954. The company is presently listed in Bombay Stock Exchange, National

Stock Exchange and the New York Stock Exchange. Tata motors parent company is

Tata Group.

In the year 2012 the company earned revenue of US$ 33 billion. The operating

profit is US$ 3.10 billion. The profit earned by this industry is US$ 2.50 billion. The

estimated employee in the industry is 60,000 by the year 2012.

Tata Motors has top three in passenger vehicles in India with products in the

compact, midsize car and utility vehicle segments. The companys manufacturing

base in India is spread all over the country. The dealership, sales, service and spare

parts network comprises over 4000 touch points of the country.

Tata motor now has franchisee operations in countries like Kenya, Bangladesh, and

Ukraine. It also has dealerships in 20 countries across 7 continents. Tata Motors at

present in many countries it has only managed to create a large consumer base in


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the Indian Subcontinent. Tata has a growing consumer base in countries like Italy,

Spain and South Africa.

Tatas have approximately 1000 dealerships in more than 200 cities across

27 states and 4 Union Territories of India.It has the 3rd largest Sales and Service

Network after Maruti Suzuki and Hyundai.

The company Tata Motors have joint ventures with Marcopolo. 51% of the shares

are with the TATA and the rest 49% with the other. They manufacture low floor bus

which runs in Chennai, Delhi. There manufacturing plant is in Dharwad. Tata

motors have also tied up with Fiat India Automobiles and Telecon Construction

Solutions.

The Tata Motors Limited in Lucknow had bagged the Rajiv Gandhi National Quality

Award for 2009 in the "Best of All" category. This award is instituted by the Bureau

of Indian Standards (BIS). The company also bagged two awards for Jaguar and

Land Rover from Autoweek at the Frankfurt Motor Show. Jaguar C-X16 was

selected as "Best in Show" winner. The Land Rover Defender Concept got 100 Sport

as "Best Concept" by Autoweek.

The company was awarded the 'Golden Peacock Environment Management Award'

for the year 2011. The companys commercial vehicle plant in Jamshedpur is the

recipient of this prestigious award. Jamshedpur plant was Tata Motors first vehicle

manufacturing plant in India. The award named after the Indian national bird

recognizes corporate excellence. Tata Motors received the Golden Peacock Award

at the 13th World Congress on Environmental Management and union Home

minister P. Chidambaram presented the award. The Golden Peacock Award has

emerged as a hallmark of corporate excellence because of the transparency and

thorough evaluation process.
http://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/States_of_Indiahttp://en.wikipedia.org/wiki/Union_Territoryhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://economictimes.indiatimes.com/tata-motors-ltd/stocks/companyid-12934.cmshttp://economictimes.indiatimes.com/tata-motors-ltd/stocks/companyid-12934.cmshttp://en.wikipedia.org/wiki/Hyundai_Motor_India_Limitedhttp://en.wikipedia.org/wiki/Maruti_Suzukihttp://en.wikipedia.org/wiki/Union_Territoryhttp://en.wikipedia.org/wiki/States_of_Indiahttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Indian_Subcontinent


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1.10 Conclusion

This chapter is the introductory to the research. It contains various aspects like

aims, objective, rationale of the study, justification of the study and problem

statement of the main areas of research study. This research deals with the total

quality management and the ISO 9000. This unit will help to understand, critically

analysis, assess the reason and the pitfalls of the total quality management and the

ISO 9000.


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Chapter 2

Literature Review

2.0 Introduction:

Total Quality Management, as name indicates, it involves in improving quality and

performance of product and service of a company. Here, customer satisfaction is

the main motive which creates customer attraction and fulfills customer

expectation. So, it can be said that focusing on customer satisfaction, total quality

management manages peoples and business processes. In simple term Total

Quality Management includes performance, appearance, easy accessibility, delivery

and maintenance or after sales service, cost efficiency and value. Total QualityManagement takes into account all quality measures taken at all levels and

involving all company workforce. According to Ahire et al. (2008), TQM processes

have some phases like: Plan, do, verify, and action. In planning phase, people

identify the problem to be addressed, gather important data, and determine the

main root of the problem. Whereas, in the verifying phase people check the results

through comparing the data which are collected earlier and the fresh data. On the

other hand, Dahlgaard and Kanji (2009) opined that in acting phase, people file

their results, update others about process changes and make recommendations for

the trouble to be addressed in the next process.


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2.1 Conceptual Framework

2.2 Origin of TQM

2.3 Principles of TQM

2.4 Elements of TQM

2.5 Evaluation tools of TQM

2.6 Kaizen Theory

2.7 Evaluation of TQM

2.8 Implementation in Auto Industry

2.9 Five Measurements

2.10 Majorco and Proton

2.11 integrated Measurement

2.12 Financial and Non Financial Performace

2.13 Toyota Case Study

2.14 Conclusion


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2.2 Origin of Total Quality Management:

According to Murthy (2007), the Total Quality Management were developed at the

time of First World War which has evolved from the quality ascertain methods. The

war effort led to large scale manufacturing efforts that often produced poor quality.

To help correct this, quality inspectors were introduced on the production line to

ensure that the level of failures due to quality was minimized (Patel, 2011).

In opinion of Dean et al. (2008), after the First World War, quality assessment

became more commonplace in manufacturing environments and this led to the

introduction of Statistical Quality Control This quality technique provided a

statistical method of quality based on sampling. On the other hand, Dow et al.

(2007) opined that it was not possible to inspect every item; a sample was testedfor quality. According to Aravindan et al. (2008), the theory of Statistical Quality

Control was based on the concept that dissimilarity in the production process leads

to variation in the end product. If the variation in the process could be removed this

would lead to a higher level of quality in the end product.

Flynn et al. (2006) examined that after Second World War, the industrial

manufacturers in Japan produced poor quality items. In the years of 1950 quality

control was an integral part of Japanese manufacturing and was adopted by alllevels of workers within an organization. It was seen as companywide quality

control which involves all human resources from administration to the workforce in

quality control.

2.3Principles of Total Quality Management:

Lemak and Reed (2006) illustrated that the Total Quality Management is a business

approach to improving the efficiency, competitiveness and elasticity of an

organization which is beneficial for all stakeholders of an organization.

Executive Management: In an organization the administration department or top

management has to control the total quality management as a main manager.

Training: Training is an essential factor in total quality management to get


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success. The employees should get training about the concept and methods to

maintain the quality or quality control.

Customer focus: It indicates how a customer can be satisfied by having the

product or service of a company. For this, the company has to improve the qualityof the product or service so that people willing to pay for it and want to buy more

and more. If the customers get satisfied it will lead the company to create more

profit as well as to gram the market.

Methodology and tools: There have to be use appropriate methodology and tools

to find out the problems which are responsible for low quality. Once the problems

are short out, the company has to try to solve the entire problem by using

appropriate methods and tools. It will reduce time to solve the problems.

Decision making: Decision making is very important to every company. It is not

only helping the company to maintain the quality but also the overall performance

depend upon it. A good decision can lead the company to higher position whereas a

bad decision can make the company worst. There have to be made quality decisions

based on measurement, in terms of total quality management.

Continuous improvement: Maintaining the quality is not a short time job for a

company. To get success in long run, the organization has to do work continuously

to improve the quality and performance.

Company culture: The culture of the organization should aspire at developing the

ability of the workforce to work together to maintain or improve quality.

Employee involvement: Employee should be encouraged to be pro-active in

recognize and addressing quality related difficulty. Without employee involvement

the total quality management will not be successful for what it stands for.

Ultimately, the affects will reflect on the performance of the company.

2.4Elements of Total Quality Management:

Mann and Kehoe (2006) opined that there are eight elements of total quality

management. The organization must have to focus on those elements because


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without those elements a company cannot implement the concept of total

quality management.

There are two types of ethics, one is organizational ethics and other one is

individual ethics. Both types of ethics are important to maintain the quality andperformance of an organization.

Integrity: Nwabueze (2009) opined that integrity is the form of sincerity, ethics,

values, and fairness. Customers expect all these form a company when they buy a

product or service. Here, in duplicity environment, total quality management will

not work effectively. Trust: Powell (2008) mentioned that trust refers to the

combination of integrity and ethical behavior. The organization must have to create

trust among its customers. It allows decision making at appropriate levels in theorganization. Trust is necessary to make sure customer satisfaction. So, trust builds

the mutual environment essential for total quality management.

Training: Training is very important for workforce which makes employees more

efficient. Training fulfills the requirement of an employee in terms of identifying,

creating, communicating and delivering value to the customer or consumer.

According to Silos (2008), during the development of total quality management,

employees are trained so that they can become effective employees for the

company which can improve the quality of the output.

Team work: According to Sukhija (2009), team work is an essential element of

total quality management. Employees feel more comfortable when they are working

as a team. It increases the motivation of employees and leads to efficient work as

well. Leadership: Leadership in total quality management requires the

administrator to provide an inspiring vision, make strategic directions that is

understood by employees and to inspire values that guide subordinates (Kemp,

2007). According to Summers (2011), to implement total quality management the

supervisor has to guide their workforce. Communication: Communication is must

for every organization which creates cohesiveness among employees. Rocha et al.

(2011) opined that communication links the all elements of total quality

management. Employees strive to receive recognition for themselves and their


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teams. As people are recognized, there can be huge changes in self-esteem,

productivity, quality (Rahman and Bullock 2009).

Foundation: The foundation is consisting of three elements like ethics, trust and

integrity.

Building Bricks: Building brick consist of training, leadership and teamwork.

Binding Mortar: Here, binding mortar indicates communication.

Roof: Finally Roof includes recognition.

2.5 Evaluation tools of Total Quality Management:

Love and Holt (2000) observed that the concept of quality has existed for manyyears, but the meaning has changed with the change of time. Total quality

management attempts to maintain the quality in every aspect of the company. On

the other hand Lagrosen (2009) opined that TQM is concerned with technical

aspects of quality as well as the participation of people in quality, such as

customers, companies human resources, and suppliers. Here we look at the

specific concepts that make up the viewpoint of total quality management.


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Figure 1: Concept and Main Idea of TQM(Source: Flynn et al. 2006, pp. 366)

Customer Focus: The first feature of total quality management is the companys

focus on its customers. According to Lakhal et al. (2008), quality is defined as

fulfilling or beyond customer expectations. The aim is to identify and then meet

customer needs. TQM recognizes that even if a product is produced perfectly

without concentrating on customers want, the product has less value to the

customer. Therefore, it can be said that that quality is customer determined. It is

also observed that customer expectations repeatedly vary from one customer to the

next.

Concept Main Idea

Customer focus

Continuous Improvement

Employee Empowerment

Use of Quality Tools

Product Design

Process Management

Managing Supplying Quality

The main aim is to identify and meet

customer needs.

A idea of never ending step up

Employees are likely to seek out,

identify, and correct quality problems.

Current employee training in the use ofquality tools.

Products and services need to bedesigned to fulfill customerexpectations.

Quality should be built into the process;

sources of quality problems should berecognized and corrected.

Quality concepts must extend to acompanys suppliers.


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Continuous Improvement: Kelemen (2009) mentioned another concept of the

TQM idea is the focus on continuous improvement. Traditional systems operated on

the assumption that once a company achieved a certain level of quality, it was

successful and needed no further improvements. If we relate American and

Japanese management system, this can be observed that traditionally, change for

American managers involves large magnitudes, such as major organizational

restructuring.

Employee Empowerment: In opinion of Soteriou (2007), in total quality

management the role of employees is very different from traditional system. Here,

workers are empowered to make decisions related to quality in the production

process. They are considered as an essential element of the effort to achieve or

maintain high quality. TQM differentiates between external and internal customers.

External customers are those who purchase the companys goods and services.

Whereas, internal customers are the employees of the organization who receive

goods or services from others in the company. On the other hand, Morse (2007)

opined that total quality management idea is to empower all employees to seek out

quality troubles and correct them. With the old concept of quality, employees were

afraid to identify problems for fear that they would be responsible for that. On the

other hand, the modern concept of quality provides incentives for employees to

identify the problems. Sometimes, the employees are rewarded to identify the

quality problem as well as help administration to solve the problem.


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Use of Quality tools: In total quality management, it is the responsibility of

employees to identify and solve the quality problem. Therefore if employees are to

identify and correct quality problems, they need proper training. They need to

understand how to assess quality by using a variety of quality control tools, how to

interpret findings, and how to correct problems (Mishra 2009).

Flowcharts

Checklist

Control Chart

Scatter Diagram

Pareto Chart

Histogram

Product Design: In the words of Hendricks et al. (2008), in the way of total quality

management, the product design is an essential factor. In the process of building

quality this has to be ensured that the design of the product fulfills the customer

expectation. If a customer says that the product is safe, it does not mean that

another customer will say the same. It might vary customer to customer. According

to Hakes (2008), there is a useful tool called Quality Function Development which

is helpful in enhancing communication between different functions like marketing,

operations, engineering etc.


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2.6 Kaizen Theory of Total quality Management:

The Total Quality Control is the management tool which involves in maintaining and

improving the quality of product or service of an organization. It has the

responsibility to increase the performance of an organization by delivering quality

product or service. Total Quality Control indicates the structured Kaizen actions

which links everyone in a company from managers to subordinates (Hackman and

Wageman 2007). It helps in consistent and integrated attempt toward improving

performance at every level of the organization. This leads to enhanced customer

satisfaction through fulfilling organizational goals like: maintain quality, cost

effectiveness, forecast, improvement of human resources, new product

development etc.

As said by Gilmore (2008), in Japan Kaizen strategies are developed as a

supervision tool applied in organization which helps in improving managerial

performance in every stage of the organization. The basic concept of the Kaizen

style Quality control in Japan focuses on quality of people. Goetsch and Davis

(2010) observed that if the employees of the organization having good quality then

it lead to quality production.

2.7 Evaluation of TQM

Ahire and Golhar (2008) suggested that for centuries, the concept of quality has

been defined and redefined and have changed its meaning and the structure.

Methods like the statistical samples were used to this quality for the purpose of

evaluating and to control the quality charts. So called the concepts of quality have

taken into new dimensions was possible due to Quality Gurus of 1960s and created

a broad meaning (Aravindan and Devadasan, 2008).

On the other hand, Brauchle and Evans (2008) suggested that in the late 1970s,

the meaning of the term quality in business changed the outlook before the

inspections and corrections were needed. Many of the US companies lost its market

shares between 1970s and 1980s. At the same time, Japanese automobile

industry Toyota and Honda became the leading player. The quality leads to the


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development of strategic management. Successful companies today have realized

that the quality give a competitive advantage in all expects.

According to Bergman and Klefsjo (2007) that these companies first define their

target customers and then define the term quality. The competitions grew based onthe quality and importance and generated interest and concern sin the early 1970s.

For many companies, the improvement of the quality became a major concern.

Total Quality Management has helped many organisational in the establishment of

quality goods and services. Today all the business houses have emphasised on the

management of quality. Without this a business cannot function, operate, provides

services and products to its esteemed customers. The customers want better and

innovative things and the companies have to provide the necessary products(Dahlgaard and Kanji, 2009).

2.7.1 Gurus

In the words of Sukhija (2009), to understand the proper meaning of the term

quality, a person should look at the philosophies propounded by various researchers

over a period of time. Their contributions to the philosophies, knowledges and

teachings have lead to the better understanding the basic concept of quality.

Dow and Ford (2007) analyzed many philosophers prefunded various meanings to

the concepts on quality. Philosophers have given various methods to support and

establishment of the business in order to maintain the quality (Dean and Bowen,

2008).

2.7.2 Focus on customers

According to Ghobadian and Woo (2008), the first target for the quality is to focus

on the needs of the customers. Customers were considered to the king of the

markets as the products and services are customer driven. The first goal of the

Total quality management is to identify the needs of the customers and then fulfil

the needs of the customers.


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Also the expectation of the customers differs from that of the other customers. The

company has to focus on the needs of the customers to fulfill the objectives.

The companies have to gather relevant information about the customers

perception, attitude, buying behaviour to meet their requirements. The companyshould focus on the target customers rather than focusing to all the customers.

Market survey and interview of the customer will help in fulfilling the objective of

the business (Goetsch and Davis, 2010).

The company have to do careful analysis of the market before launching a product

or services. It has to determine the target customers and how the company will

target the given customers. Products are driven by the customers not the company.

Innovate products at a better and standard price, quality, quantity will help tosustain in the market as well as in the market (Hackman and Wageman, 2007).

2.8 Implementation of TQM in auto industry

Gilmore (2008) illustrated that today; manufacturers in the world are facing

competitions from the other competitors and the customers seeking quality

products and services at a lower cost. In order to fulfil that requirement, the

manufacturers have to produce those products which are economical, cost effective

in nature.

The framework of manufacturing of automobile industry will help in improving the

operational and remain in the competing industry.

According to Hoyle (2010), the total quality management benefits the automobile

sector which was started in the year 1983 which had 3 car companies and 2

motorcycle companies. This company has provided 60,000 employments to the

people in 2006. Those manufactures succeeds in the market who have world lass

practices in the competing markets (Hakes, 2008).

To become one of the world class infrastructures, one has to implement the total

quality management. There were many research studies were done on the

automobile sector, but there was no such studies done to implement the


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intergraded total quality management. The study was done to implement the total

quality management among the vendors (Silos, 2008).

The six practices were like the leadership, suppliers, organization, management of

customer practices, product management, product management, informationmanagement, human resource management and the management of the process.

2.9 Five Measurements

The performance of five measurement were the customer involvement and

satisfaction level, leadership effectiveness level, human resource management

effectiveness level, process and system approach effectiveness level and the quality

measurement level. These performances were done in financial and non-financial

measurement of performance (Hendricks and Singhal, 2008).

In the words of Kalpande and Gupta (2010), the study in this industry is used for

the collection of descriptive data through the system of questionnaires. 30 highly

performance and active vendors were studied. The vendors were evaluated by the

automobile industry and graded them as highly committed and high performance

vendors and the rest as benchmark (Dandekar, 2010).

According to Kelemen (2009), the personal from various fields like quality, factory,operations, production managers and the top management were the respondents of

the survey. The respondents allowed any queries from the vendors to ensure better

understanding of the questionnaire.

2.10 MAJAICO and PROTON

Plunkett et al. (2008) noted that the survey was done to meet the current scenario

of total quality management of the automobile sector. 30 vendors were taken in

account. The next 17 vendors were later described as the PROTON development

vendors. All the vendors will be used as benchmark for PROTON through vendor

management group. Those who were interested in implementing the system they

boosted their performance of the company (Lagrosen, 2009).


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In the words of Kemp (2007), the total 30 questionnaire were distributed to the

vendors who were highly active and high performance. Out of the 30 vendors, 17

vendors were MAJAICO improved vendors where as the rest 13 were the PROTON

and have showed high performance. The questionnaire was divided into three

segments. The 17 vendors for MAJAICO participated in the case study.

2.11 Integrated Measurement

According to Prajogo et al. (2008), the analysis of the descriptive used in the Total

Quality Measurement are classified into independent variables and the dependent

variables. In independent variable contained all the six practices of Total Quality

Management comprising of leadership, suppliers, organization, management of

customer practices, product management, product management, informationmanagement, human resource management and the management of the process.

The five dependent variables were the customer involvement and satisfaction level,

leadership effectiveness level, human resource management effectiveness level,

process and system approach effectiveness level and the quality measurement level

(Lemak and Reed, 2006).

As per Longenecker and Scazzero (2007), the findings from this survey indicate

that all the independent and dependent variables have shown that the value is

more than 4 which indicates strong practices of Total Quality Management

practices. Mishra (2009) opined that most of the companies believes in open

minded leaderships with percentage of implementation is 88%. It is followed with

the focuses on the management of suppliers, organization and the customers with

an aggregate of 80% implementations.

2.12 Financial and non-financial performanceOne of the basic needs of an organization is the performance of the financial and

non-financial. Without these assets no organization will able to perform in the

market. Finance deals with the monetary terms like the cash and banks but non-

financial deals with the employees, staffs, customers, land and building and

machinery (Mann and Kehoe, 2006).


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In the words of Patel (2011), the performances of financial and non financial are

needed by any organization now to giving more assessment of the performance.

Sole dependent on a particular finance is no longer sufficient to remain in this

competitive market. The automobile industry should emphasis on non financial

performance which can lead to financial performance.

Morse (2007) stated that in context to the survey conducted, leadership practices

will not only effect on the part of financial profits. This results in world class

organization.

Quality raw materials, better working environment, modern facilities with gadgets,

better packages and compensations, provided.

2.13 Toyota case study on cracks in TQM implementation

The world wide population for the Toyota have doubled in between 1985 and 2008.

To establish this growth, Toyota employed additional employees and suppliers to

achieve the given targets (Love and Holt, 2000).

2.13.1 Dysfunctional structure

The problem in the Toyotas manufacturing company was the plastic parts in the

accelerator pedal. The Toyota although rectified the mistake but they did not

change the system in the US. The Toyota industry initially denied the problems in

the brake system and the runway vehicles but minimized it. Toyota would have

been saved if it would have been deal openly about the industrial problems upfront

and substantially would have saved the industries monies and the public outrages

(Mukherjee, 2006).


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2.13.2 Flaw of product development

The car makers in US had to line up all the cars lined for the programming codes

that have helped the cars to control the complexes and the system based

computer.

Ohno (2008) analyzed that apart from the above problems of the Toyota

automobile industry; there were other issues like the designs for the products. In

the year 2010, the automobile industry called off 2050 Tacoma pickup trucks to

make over the problems found in it. Again in the year 2009 in the month of August

the industry recalled 98,000 small cars from 16 cold states to fix the problems

faced by the cars of the company. Various sources said that Toyota automobile

industries quality began decades ago (Murthy, 2007).

2.14 Conclusion

Total Quality Management helps to better the product and the service of a

company. With the coming of the globalization, the scenarios have been changed

now; people saw the industry adopting TQM processes which lead to the

developments of new and better products, services available to them for use.

People saw the process as a tool for betterment of usable product and service.

There are a lot issues involved with the implementation of TQM in organizations.

Despite these disadvantages they would love to adopt and have people following

TQM practice. The process helps in minimizing the losses and maximizes the

revenues, amends the marketing strategies, asks for modern management

practices, demands for safety of the employees and the organization. Besides the

wastages of the raw materials is reduced.


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Chapter 3

Research Methodology

3.0 Introduction:

Cooper and Schindler (2010) identified that research methodology is a specific

design to chosen appropriate method and resolves the problem in a research.

Appropriate philosophy, design and approach have been chosen in this part to

discuss and conclude the study. Inductive research method, positivism philosophy

and the qualitative method will be chosen in this study. So, that after chosen all

methodology its very important to maintain the research process.

3.1 Research Proposition:

Bernard (2011) opined in this study the main aim is to find the application of TQM

in Indian automobile industry. In the chapter 1 already discuss the aim, objective,

research question, and the background of the company. The data collection

method can help to solve the problem using primary and secondary data collection

method (Bergh and Ketchen, 2009). Before the data collection method will start

first need to identify that in what methodology like philosophy, approaches, and

design will be chosen. After chosen all this method the data collection method will

be easy to find. In this study qualitative method will be chosen and sampling size

will be 4-6 and the qualitative method will be solved by the interview question to

the manager (Hair and Money, 2011). Sampling method will be probability method

by using simple random method. From the research onion method is cleared that in

this research inductive method will be chosen and the positivism theory has been

chosen to collect the real data with the manager to take interview process.


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3.2 Research Philosophy:

Gulati (2009) suggested that in the research onion method 1st method which is

come that is research philosophy so research philosophy has been a main part to

chosen data collection method and data analysis. In the research philosophy there

have many method that is positivism, realism, and interpretivism etc. in this study

the researcher use the positivism philosophy because of to know the manager

motivation factor. Realism theory is felt to know the motivational factor of manager

so that the positivism theory will be chosen by the researcher. Also the

interpretivism is completely different of positivism because of its completely felt to

know the motivational factor (Somekh and Lewin, 2011). Its only believed on the

human opinion and believes that social organization is completely different area.

3.2.1 Selection of Positivism Philosophy:

In this study the best chosen will be positivism theory to know the manager

behavior, choices and decision making. Realism and interpretivism theory is not

need here because both two are completely felt to know the motivational factor.

Realism deal with the human sense rather than human mind and that is not need

here and the interpretevism deal with the respondent opinion which is not need in

this study. Positivism philosophy will be the based chosen according to the

knowledge and information.


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3.3 Research Onion:

Cameron (2009) evaluated that research onion is the complete framework of the

whole research methodology. There have basically six layers in the research onion.

First layer is research philosophy in the research philosophy there have many

philosophy. Next is research approaches, approaches two types one is inductive and

another is deductive. Saunders et al. (2009) founded that third layer is strategies of

research which will help to give the right strategies in this research. After that

chosen and the chosen might be depend on the researcher after clear all the layer

last will be data collection method. After collection of both the primary and

secondary data analysis process will be start.

Figure 1: Research Onion[Source: Saunder et al. 2009, p 52]


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3.4 Research Design:

Crouch and Pearce (2012) opined research design is basically the research planning

to the whole research process. Its mainly depend on the research objective after

setting objective the research design has been chosen. Exploratory design is need

to explore to the manager and in this method the research will be explain

theoretically, problem denoting and establish the research objective (Freshwater,

2007). In the explanatory research only focus on why question and the descriptive

method is related to why, whom, how, when and what question.

3.4.1 Selection of Exploratory Design:

In this study the exploratory design method has been chosen by the research. So

all the question is need to explore to the HR manager, Industry manager in theauto mobile industry. On the other hand to chosen of exploratory method is in this

research used the qualitative research method. So, its need more on description

and explain theoretical terms than mathematical, graph, chart.

3.5 Research Approach:

Lancaster (2012) observed that in the inductive approach first observation process,

then data collation, hypothesis testing and finally theory part will develop. On the

other hand in the deductive approach need not any observation research start with

theory studying, hypothesis testing, and observation and finally theory part has

been confirmed. So from the above theory its confirmed that deductive approaches

is theory testing and the inductive approach is theory building (Morgan, 2007).

3.5.1 Selection of Deductive Approach:

In this particular research best chosen will be inductive method. For this study

need the observation part first because of a case study is needed. After failure of

case study the researcher will do the research and so that data collection process is

done and also the hypothesis process is done, then hypothesis theory part has been

development. Deductive approach is not right for this research because in the

deductive approach observation part is not needed.


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3.6 Sampling Method:

Sampling method has been chosen for this study that is probability sampling

because of its very easy and simple sampling. Probability sampling is mainly used

for statistical analysis and in this research need statistical analysis so the

probability sampling is may be the best choices. On the other hand population is

continuously changes so this process is easy to collect the response from every

manger. There is no need to choose non probability sampling because some

element of population has no chance of selection.

3.7 Data Collection Method:

Johnson et al. (2007) commented that data collection process is bases of two

methods primary and secondary. In the primary method the researcher used here

4-6 managers by using survey question method to the manager. The researcher

will give the question to the manger and option is 5. Bernard (2011) observed so

the primary data collection method is done by using survey question to the

manager and secondary data has been collect using of internet or other option. In

this research primary data has been fined and the secondary data already fined.

3.8 Quantitative Data: Questionnaire Survey Method

Quantitative research is based on social research makes it feasible. In this method

is mainly based on mathematical, figure and chart bases so that the reader can

understand the whole process easily (Ellis and Levy, 2009). In the quantitative

research 20question will be through to the customer/ employee/ laborer. In the

quantitative method sample size will be 50-55 and each question must have 3-5

option. Quantitative research method also consumes the time and this process is

also easy.


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3.9 Qualitative Data: Interview Method

Bernard (2011) opined that the qualitative method the researcher will give the

question to the manger follow the survey question method and the qualitative

method mainly focus on quality that cannot be qualified. In this method the

researcher will choose the 4-6 mangers and for each manger have 6 questions.

Freshwater (2007) founded that qualitative and quantitative research method is

completely different from others. Quantitative method is basically based on numeric

or mathematical on the other hand qualitative is more descriptive and need more

explanation.

In this topic the researcher has been follow the qualitative method because of toknow the manager view about the application of TQM in the automobile industry.

So that the exploratory method, positivism philosophy and probability sampling

chosen its all indicate that this research will be qualitative method.

3.10 Sampling Size:

Sampling size has been chosen to know the destination point of in this research.

The sample size will be 4-6 that are already chosen by the researcher.

3.11 Limitations:

Limitation point also comes in this research main problem is to collect the primary

data from the manager. The researcher only gives the question sheet to the

manager only in India its not possible to know the view of outside in India because

of time is very less. The entire manager gives not the answer properly to the

question. Also the researcher takes not properly guidance for this research. Also the

sample what is chosen by the researcher its very less if the sample size will chosen

more than 6 then this research get the more benefit.


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3.12 Ethical Issue:

Validity is maintained by the interview question with the manager. In this study

validity can be maintain by the continuously checking by measuring.

Bergh and Ketchen (2009) suggested that reliability process is depending on quality

of process, its applied on to a large group rather than the individual respondent

who is already responds. In this study methodology is same to determine the same

result but the respondent was not same.

Ethics means in this study respondent is free to answer whatever wants to say

because in this ethics process respondent name is confidential (Lancaster, 2012).

The most common way to define ethics is to lead the separate between acceptable

and unacceptable behavior. Also, in this process researcher cannot force to the

respondent to give the answer. After that the research process will start on the

bases of respondent result (Cooper and Schindler, 2010).

3.13 Conclusion:

The main important part is to do any research is appropriate research process in a

scientific way. Introduction and literature review is already done, after that this

chapter will discussed for chosen right method. In this research suitable philosophy,

design, approaches, method process is already discussed. The main reason is for

discussed about this chapter to select the right research methodology. So its clear

to the researcher that after finish this chapter in what method this research will be

done. In this research positivism, inductive approach, exploratory design, and

source is primary and secondary that is already discussed. Also the data analysis

process and method has been already discussed. After doing this research validity,

reliability and ethical issue is also come.


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Chapter 4

Analysis and Findings

4.0 Introduction

Data in short is called information. Collection of data for the purpose of reviewing

and analysing of data is the main aim of chapter 4. Herein the data collected

through Qualitative, Quantitative Method is analysed. Data collection method is

described in the Research Methodology chapter. For this particular study, data has

been collected using Qualitative Method. Any data in the form of a narration is

termed as Qualitative data. The data is collected using interviews, open ended

questions, and other less structured formats.

What does data analysis mean? Does it refer to one method or many? More

importantly, can people without a background in math or statistics learn to

identify and use data analysis in their work? Data analysis can refer to a variety of

specific procedures and methods. It is important to see data analysis as part of a

process. Data analysis involves goals; relationships; decision making; and ideas, in

addition to working with the actual data itself. Simply put, data analysis includes

ways of working with information to support the work, goals and plans. From this

perspective, data analysis process would include the following key components:

Purpose

Questions

Data Collection

Data Analysis Procedures and Methods

interpretation/identification of Findings

Writing, Reporting, and Dissemination; and


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Evaluation

Implementation of TQM process into the organisation requires many pieces of

information. All department of TATA Motors production, supply chain, human

resource, marketing and customer service is involved in the collection andsubsequent use of information gathered. . To understand the implications of TQM

implementation and the resultant outcome of it, managers from TATA Motors have

been interviewed through an open ended questionnaire. The managers are from

various domains and functions of the TATA Motors family. TQM as a process does

not affect the production only, it also has implications on the employee employer

relationship, customer - company relationship and the marketing functions.

Marketing gets affected as the quality of collaterals changed keeping in mind the

TQM process and demands.

4.1 Total Quality Management

The bad effects on the quality products leads to the failure of the organization and

it will effect on the part of marketing. Many of the organizations today are suffering

from losses because of the bad quality of product. The customer satisfaction on the

products declines. The main reason for such a decline is the sale of the products is

the satisfaction of the customers.

The companies now have understood the importance of the customers. So the

successful companies, according to their satisfaction, needs and wants have

improved the products. The companies have improved their standard quality by

using total quality management process. The companies have started to produce

not only quality products but also satisfy the esteem customers.

The term total quality management refer to the management process of improving

product or goods in an organization. Quality which is the main essential element of

any organization is the key success for the business and marketing. Total quality

management is totally dependent on quality assurance. Quality assurance refers to

the ability of customer needs and to manage the customer satisfaction.


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The quality assurance system is the basic organizational structure of an

organization. The organizational processes and procedures are required to meet the

quality of product as per the customers needs and wants. Total quality

management is the integration factor of a business. It provides an excited product

to the customer through a process of randomly improvements.

4.1.1 Background

Before the beginning of the concept of globalization in 1990s, many organization or

companies hardly known about total quality management process. Slowly and

steadily the organizations came to knew about total quality management process.

The business process started to improve growth of quality. Now-a-days

organizations are more concern about the quality of product only. TQM processmanages the quality of products.

Another definition of TQM process is to manage the products the first time and

again and again. TQM process is responsible for the involvement of product and

services and its employees. The TQM method can be successful only when involving

of all the management, suppliers, customer and workforce to fulfilment of customer

satisfaction.

4.1.2 History

Total quality management was first developed by an American management

organization to meet the customers satisfactions and needs. To fulfil the customer

satisfaction, six sigma process ideas by Motorola in 1986. The main difference

between total quality management and Six Sigma process is that total quality

management is for long-term success of the customer satisfaction.

To control the total quality management efforts have been made to participate allthe member of the organization to improving the quality of product and services. In

recent times, maximum of the organizations are following that methods by which

they meet the customer satisfaction. It also helps in improving the quality of

product.


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4.1.3 Evolutions

The process mainly focuses on the customers needs and wants and then improving

the products and services. In the beginning the organization focuses on customers

attitude which varies from customer to customers and their needs. The quality of

products should be of customer expectation.

The organization has to think about that how to maintain the customer needs and

the good quality of products so as to improve products quality and quantity. Now

the evolution of total quality management is of continuous improvement. There are

seven steps to select a theme, collection of analyze data, analyze the causes, do a

plan to help implement solution, evaluate effect, standardize the solution and

reflect on process. The reason behind the participation is to provide better salary,

job security, good job environment, interesting work and self-development to the

employees. The evolution of social networks and the dependent on training,

national standard certification, and development of new method.

The total quality management is a successful factor in product design, managing

the processes, total involvement by the customer. Also in the case of providing

feedback information by the customer, training and full involvement of the

employer.

Therefore, the total quality management process is mainly used for the satisfaction

of the given customers including the use of various approaches. In the recent

times, organization have applied for total quality management method in their

organizations. This is done to satisfy the customers needs and wants, employee

participation, supplier partnership and continuous improve of product quality.

4.2 Implementation Issues for TQM

For many years, the business or organization houses are using the term Total

Quality Management (TQM). Total Quality Management has some pros and cons

while in the part of implementations. The main implementation of Total Quality

Management is that it brings out sophisticated technologies. The organization that

used Total Quality Management methods got successes in every field. Total Quality


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Management helps in meeting the requirements of the customers and their

satisfaction. This has helped in the improvement quality according to the needs of

the esteem customers.

Total Quality Management helps in the engineering of various projects. Engineeringcan be better understood by the help of market strategies, communication skills.

Enhancing the leadership quality plays an important role in the engineering part.

4.2.1 Improvements

Total Quality Management has been improving continuously over the years. Due to

this improvement the company is able to deliver quality products and services. The

involvements of customers in the organization are welcome for the betterment.

Better priorities to the esteem customers and the coordination from employees are

excellent.

Employees contributions in the company will help in the concentrations of the

company. The company must provide high return on the investment by improving

the efficiency of the products and services. A total Quality Management method

helps in the balancing between services and manufacturing industry.

4.2.2 Problems of Total Quality Management

Total Quality Management has various problems implementing in small business.

The lack of involvement or participation from the employees in the organization.

Therefore, the companys quality management is fully dependent on the customers

participations or involvement.

Incorporation from the customer and employees as well will not be able to provide

quality products. Sometimes it is not possible for a company to fulfil the

satisfactions of the customers. Time management is the important factor of an

organization.

Another problem in the total quality management is the lack of motivation and

satisfaction from employees and customers. If the employees of an organization is

not satisfied with the working environment. Then the employers have to provide


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better working environment. For the customer, the company have to produce only

those products which are wanted by them.

4.2.3 Leadership Management

Management of leadership is the most important factors for the success total

quality management. The growth of the company will not be completed if there a

failure in the process of leadership. Poor production cost will not create a problem

in the business organization processes. Also it will affect the working condition of

the company.

All the time will not be suitable for the employees in this organization. Sometimes

unfriendly behavior of the manager creates a problem to develop the quality of the

product.

4.3 Quality Awards and Models

Efforts to improve the practice in the quality management various reforms were

taken into account. The various organizations in the field of reorganizations have

come up in awarding the best business in the field of quality management.

These organizations have set up one core principle in the management of quality.

The factors are including customer driven quality, leadership, continuous

improvement and learning. It also has employee satisfaction, design quality and

prevention, planning for the future, company responsibility and citizenship, and

results.

The seven categories includes leadership, strategic planning, customer and market

focus, information and analysis, human resource focus, process management and

business results.


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4.3.1 Leadership

Leaders takes the risk of losses in creating a innovates product. Leaders have to

take all the necessary steps in the development of the products. Leaders have the

have the potential to create the demand and supply of the products.

4.3.3 Strategic planning

Strategic planning is defined as the direction and decision making regarding the

allocation of resources in the strategy. Strategies are done to maintain a proper

flow of the work and resources to maintain the quality of products. Without proper

strategic planning a business may not succeeded in the competitive market.

Strategic planning helps in evaluation the outcomes and helps in prevent the

losses. Improper planning will lead to the failure of the strategic planning.

4.3.4 Customer and market focus

Customers are the ones who purchases goods and services from the company.

Today customers are considered the king of the markets. Those days are gone

where production results in sells of the products. Now, the company have to

produce according to the taste and preference of the customers. The company have

to focus on the market trends so as to maximise the profits. The market trends

keeps on changing. Right quality of product and services at the right time leads to

profit maximization.

4.3.5 Awards

Awards are given to an individual or group of individuals to recognise their

excellences in various fields. Awards may be in the form of certificates, trophy,

medals or ribbons. Awards are the recognition for the people or organization. An

award creates awareness among the people on various aspects. Better the

recognition better will be the demand and supply of goods and services.


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4.3.6 European Quality Award

Recognizing the importance of total quality management, in the year 1988. As

many as 14 European countries have been formed the European Foundation for

Quality Management (EFQM). Awards unlike the other awards, the European Quality

Award are the regional awards. The awards included under the different heads like

leadership, people management. The EFQM every year improves the quality models

by gathering the feedbacks from the people.

4.3.7 Canadian Quality Award

The Canadian award was introduced for the first time by the Canadian Ministry of

Industry in the year 1984. The countrys national institute rewards the individuals

who had continuous improvement in the quality. Unlike the criteria of linkingawards, the Canadian award relies on continuous improvements in the presentation

of the awards.

4.3.8 Australian Quality Award

The Commonwealth Government of Australia has recognized the Australian Quality

Awards. This institute was formed in merger of Total Quality Management,

Australian Quality Award Foundation and Quality Society of Australia. The models

the people, information, strategy has a greater effect on the award. The

organizational performance is affected by the quality of processes. The key

elements of this award are the customer focuses and the leadership. The Australian

Quality Award is quite similar to that of MBNQA.

4.4 ISO 9000

The term ISO 9000 refers to standard norms relating to the management a quality

system that helps the industry that the needs of the customers. For the given

products like the statutory and regulatory bodies.

ISO is the International Organization of Standards is available to all the 173

countries under the National bodies of standards. The ISO 9000 deals with the

fundamentals of the systems of quality management. The ISO 9000 provides all the


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necessary requirements for which the company or industry to meet the basic

minimum standards on the products and services. The requirement of the ISO 9000

is provided by the third party certified bodies after the confirmations of the

organizational requirement needs.

In todays world, the most popular management tools is that the organizations are

independently, making the ISO 9000. The improvements of the internal benefits of

the organization have lead to the development of the external environment.

Internal benefits like the satisfaction of the customers, relationship with the

suppliers are the additional benefits.

4.4.1 Use of ISO 9000

The adoption of ISO 9000 may be due to various factors. Several stakeholders have

significant benefits from the ISO certified bodies. 48% of the certified clients had

won awards for the business.

Companies with ISO 9000 certified got the maximum return on the assets than

those of the non certified companies. The establishments of ISO 9000 in the stock

markers, the shareholders of many companies became richer due to this

certification. Now, many stock market related companies are attracting the target

customers.

4.4.2 Background

The ISO 9000 was based upon the concept of 570 series of British Standards

Institution (BSI) and proposed in 1979 as the ISO. Since then the development of

the ISO have been tremendous. With the pace of time, new and better certifications

have been developed in order to maintain the quality standards in the products and

services.

4.4.3 Global Scenario

As the number of business in the world is increasing. The number of the ISO 9000

also increased. This growth has helped in the development of the business sectors.

Now, business can bring out better and innovative products. This ISO 9000 have


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helped the foreign companies to set up industry in various countries in order to

obtain standardizations. Due to the competitions among the different companies,

the ISO 9000 have emerged into a new concept. This has lead to certification of

standard products and minimized the competitions.

4.4.4. Audit

The internal audit is considered healthier than that of the external audit. This audit

helps in ascertaining the quality of the business. Audit is vital to each and every

organization. It helps in controlling the quality. The company can make the

necessary adjustments if the company have diverted the quality.

4.4.5 Effectiveness

The effectiveness of the ISO 9000 is to monitor and improve quality. Without

proper quality, business cannot be called effective. The company have to

continuously evaluate the effectiveness so as to improve the quality. The

effectiveness will increase when there is proper quality control.

Effectiveness can be controlled by proper utilization of the resources A company

have to use this resource judiciously in ensure that the resources are used properly.

Effective use of this resource will lead to better products and services at a

reasonable price.

4.4.6 Role of ISO 9000

There are various roles regarding ISO 9000 certifications. It provides quality

standards on the products manufactured by the different companies. This standard

helps in the controlling of quality products and ensures that the quality products are

sold in the markets at the fair price.

ISO 9000 provides the basic facilities to the business for the development of the

products. This policy helps the business to upgrade the technology and machinery,

research and development of products. This policy helps to link the business to the

needs of the customers.


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It creates goodwill of the company as well as for the customers. This ISO 9000

helps in the determining the working condition of the plant and the improvements

to be made.

The ISO 9000 provides a base for the development of new products. The testing ofthe product is done scientifically. The business houses plans and develops the

stages and strategies of the product. The new product is launched only when the

company is satisfied with it.

4.4.7 Advantages

ISO 9000 have many advantages. It creates more effective operations and helps in

increasing the satisfaction and retention of customers. Better and quality products

to customers will give profits to the business. Besides satisfaction to customers, it

enhances the marketing of the products in the markets.

Proper training and evaluation of the employees helps in the development of

motivation and awareness. It will lead to the future development of quality outputs

and will create overall growth in the production of goods. Modern practices of

management will reduce the wastage of materials and manpower in an

organization. Due to this ISO 9000 the organization will import new technology and

machinery. The company can maximize the profit.

4.4.8 Criticism

The common criticism found in ISO 9000 is the registration process. It requires lot

of time and money and it is a long process. This hampers the quality production of

the goods and services. The quality of the employees and staff is not improved.

Another criticism of ISO 9000 is that the lack of motivation from the people. This

may result in strike and unemployment. The employees may leave the organization

as there will be no proper training and status.


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4.5 Summary

Total quality management is the overall view of the quality of products and

services. This management deals with the production of goods and services at a

cheaper price. The total quality management was coined during World War II. The

total quality management partly falls under the ISO 9000. Under this, the company

sets the standard norms relating to the system and the needs of the customers.

ISO 9000 was coined in the year 1987. The total quality management have various

advantages, roles and limitations.

The advantages of ISO 9000 are like, it creates more effective operations and helps

in increasing the satisfaction and retention of customers. The role of the ISO 9000

is that it helps in the controlling of quality products. And to ensures that the quality


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Chapter 5

Conclusion and Recommendation

5.0 Conclusion

The study cannot be complete without a proper conclusion. Its basically

summarizing all findings from the data collected and various literature reviews done

in previous chapters.

With the beginning of the World War II in the early 1940s the term quality became

one of the important term and statistical in nature. The concept of quality possible

due to Quality Gurus of 1960s and created a broad meaning. In the late 1970s,

the meaning of the term quality in business changed the outlook before the

inspections and corrections were needed.

The term total quality management refer to the management process of improving

product or goods in an organization. The total quality management came in after

the 1990s globalization. For years, the term Total Quality Management in small,

medium or large scale industries are applying this method.

The main idea of total quality management is to bring out sophisticated

technologies. The various organizations in the field of reorganizations have come up

in awarding the best business in the field of quality management. Organizations

have set up one core principle in the management of quality.

The term ISO 9000 refers

tqm in auto industry

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