Application of TQM to improve production and services

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 it’s
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 whole
research. 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.....................................................................................................7

Introduction..................................................................................................7

1.0 Introduction............................................................................................7

1.1 Background of the study...........................................................................8

1.2 Purpose of the Study................................................................................8

1.3 Aims......................................................................................................8

1.4 Objective................................................................................................8

1.5 Research Question...................................................................................9

1.6 Problem Statement..................................................................................9

1.7 Justification of the Study...........................................................................9

1.8 Rational of the Study..............................................................................10

1.9 Structure of the Study............................................................................10

1.10 Background of the Company..................................................................11

1.10 Conclusion...........................................................................................13

Literature Review.........................................................................................14

2.0 Introduction:.........................................................................................14

2.1 Conceptual Framework............................................................................15

2.2 Origin of Total Quality Management:.........................................................16

2.3Principles of Total Quality Management:.....................................................16

2.4Elements of Total Quality Management:.....................................................17

2.5 Evaluation tools of Total Quality Management:...........................................19

2.6 Kaizen Theory of Total quality Management:..............................................23

2.7 Evaluation of TQM..................................................................................23

2.7.1 Gurus................................................................................................24

2.7.2 Focus on customers.............................................................................24

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2.8 Implementation of TQM in auto industry....................................................25

2.9 Five Measurements.................................................................................26

2.10 MAJAICO and PROTON..........................................................................26

2.11 Integrated Measurement.......................................................................27

2.12 Financial and non-financial performance..................................................27

2.13 Toyota case study on cracks in TQM implementation.................................28

2.13.1 Dysfunctional structure.......................................................................28

2.13.2 Flaw of product development...............................................................29

2.14 Conclusion...........................................................................................29

Research Methodology..................................................................................30

3.0 Introduction:.........................................................................................30

3.1 Research Proposition:.............................................................................30

3.2 Research Philosophy:..............................................................................31

3.2.1 Selection of Positivism Philosophy:.........................................................31

3.3 Research Onion:.....................................................................................32

3.4 Research Design:...................................................................................33

3.4.1 Selection of Exploratory Design:............................................................33

3.5 Research Approach:................................................................................33

3.5.1 Selection of Deductive Approach:...........................................................33

3.6 Sampling Method:..................................................................................34

3.7 Data Collection Method:..........................................................................34

3.8 Quantitative Data: Questionnaire Survey Method........................................34

3.9 Qualitative Data: Interview Method...........................................................35

3.10 Sampling Size:.....................................................................................35

3.11 Limitations:.........................................................................................35

3.12 Ethical Issue:.......................................................................................36

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3.13 Conclusion:..........................................................................................36

Chapter 4...................................................................................................37

Analysis and Findings...................................................................................37

4.0 Introduction..........................................................................................37

4.1 Total Quality Management.......................................................................38

4.1.1 Background........................................................................................39

4.1.2 History...............................................................................................40

4.1.3 Evolutions..........................................................................................40

4.2 Implementation Issues for TQM................................................................41

4.2.1 Improvements....................................................................................41

4.2.2 Problems of Total Quality Management...................................................42

4.2.3 Leadership Management.......................................................................42

4.3 Quality Awards and Models......................................................................42

4.3.1 Leadership..........................................................................................43

4.3.3 Strategic planning...............................................................................43

4.3.4 Customer and market focus..................................................................43

4.3.5 Awards...............................................................................................44

4.3.6 European Quality Award.......................................................................44

4.3.7 Canadian Quality Award.......................................................................44

4.3.8 Australian Quality Award......................................................................44

4.4 ISO 9000..............................................................................................45

4.4.1 Use of ISO 9000..................................................................................45

4.4.2 Background........................................................................................46

4.4.3 Global Scenario...................................................................................46

4.4.4. Audit.................................................................................................46

4.4.5 Effectiveness.......................................................................................46

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4.4.6 Role of ISO 9000.................................................................................47

4.4.7 Advantages.........................................................................................47

4.4.8 Criticism.............................................................................................48

4.5 Summary..............................................................................................48

Chapter 5...................................................................................................49

Conclusion and Recommendation...................................................................49

5.0 Conclusion.............................................................................................49

5.1 Evaluate the awareness of TQM................................................................50

5.2 Implementation Problems........................................................................51

5.3 Awareness of awards and models.............................................................52

5.3.1 Awareness of IS0 9000.........................................................................53

5.4 Recommendation...................................................................................53

5.5Limitation of the Research........................................................................54

5.6 Future scope of the Research...................................................................54

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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 or
university. 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 ISO
9000.
 To evaluate any of the pitfalls of taking the total quality management and the
ISO 9000.

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1.5 Research Question
 What are total quality management and the ISO 9000 and its effect on
business?
 Why total quality management and the ISO 9000 have an impact on
business?
 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 it
suitable 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 company’s 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 management
and 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 to

do 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. It’s
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 motor’s 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 company’s 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.

Tata’s 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 company’s 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.

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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 Quality
Management 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 tested
for 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 all
levels 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

15
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 quality
of 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

16
 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 and
performance 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 the
organization. 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 many
years, 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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 Concept Main Idea
Customer focus The main aim is to identify and meet
customer needs.
Continuous Improvement A idea of never ending step up
Employee Empowerment Employees are likely to seek out,
identify, and correct quality problems.
Use of Quality Tools Current employee training in the use of
quality tools.

Product Design Products and services need to be

designed to fulfill customer
expectations.
Process Management
Quality should be built into the process;
sources of quality problems should be
recognized and corrected.
Managing Supplying Quality
Quality concepts must extend to a
company’s suppliers.

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 company’s
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 customer’s 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.

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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 company’s 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 1960’s and created
a broad meaning (Aravindan and Devadasan, 2008).

On the other hand, Brauchle and Evans (2008) suggested that in the late 1970’s,
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 1970’s and 1980’s. At the same time, Japanese automobile
industry Toyota and Honda became the leading player. The quality leads to the

22
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 on
the quality and importance and generated interest and concern sin the early 1970’s.
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, knowledge’s 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.

23
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 customer’s

perception, attitude, buying behaviour to meet their requirements. The company
should 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 to
sustain 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

24
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, information
management, 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).

25
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, information
management, 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 performance

One 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).

26
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 Toyota’s 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).

27
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.

28
 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 it’s 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.

29
3.2 Research Philosophy:
Gulati (2009) suggested that in the research onion method 1 st 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). It’s 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.

30
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]

31
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 the
auto 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 it’s 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.

32
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.

33
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 to
know the manager view about the application of TQM in the automobile industry. So
that the exploratory method, positivism philosophy and probability sampling chosen
it’s 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 it’s 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 it’s very less if the sample size will chosen
more than 6 then this research get the more benefit.

34
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, it’s 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 it’s 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.

35
 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

36
• 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 and
subsequent 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.

37
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 customer’s 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 1990’s, 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 process
manages 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 customer’s 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 all
the 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.

38
4.1.3 Evolutions
The process mainly focuses on the customer’s needs and wants and then improving
the products and services. In the beginning the organization focuses on customer’s
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 customer’s 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
Management helps in meeting the requirements of the customers and their

39
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. Engineering

can 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.

Employee’s 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 company’s quality management is fully dependent on the customer’s
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

40
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.

41
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.

42
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 country’s national institute rewards the individuals
who had continuous improvement in the quality. Unlike the criteria of linking
awards, 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

43
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 today’s 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

44
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.

45
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 of
the 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. It’s 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 1940’s the term quality became
one of the important term and statistical in nature. The concept of quality possible
due to Quality Gurus of 1960’s and created a broad meaning. In the late 1970’s,
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 1990’s 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 to standard norms relating to the management a quality
system that helps the industry that the needs of the customers.

To conclude, the researcher has found that there is highly positive in the nature of
total quality management and ISO 9000. Business should have total quality
management and ISO 9000.

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5.1 Evaluate the awareness of TQM.
TQM mainly focuses on the customer’s needs and wants. In the beginning the
organization focuses on customer’s attitude which varies from customer to
customers and their needs. The quality of products should be based upon customer
expectation.

The companies now have understood the importance of the customers. The
organization has 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. The continuous improvements are not
an easy process in case of the methodology which is help to meet the entire given
factors.

Total quality management is the integration factor of a business. It provides an

excited product to the customer through a process of randomly improvements.
Total quality management was first developed by an American management
organization to meet the customer’s satisfactions and needs.

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. It provides better salary, job security, good job
environment, interesting work and self-development to the employees.

Social networks helps in training, national standard certification, and development

of new method. TQM helps in product design, managing the processes, total
involvement by the customer. This is done to satisfy the customer’s needs and
wants, employee participation, supplier partnership and continuous improve of
product quality.

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5.2 Implementation Problems
Total Quality Management has various problems implementing in small business.
The main reason is that there is lack of human resources in the company. The lack
of involvement from the employees in the organization. The company’s quality
management is fully dependent on the customer’s participations or involvement.
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. It also brings initiative in the quality. 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.

The organization that used Total Quality Management methods got successes in
every field. Total Quality Management helps in meeting the requirements of the
customers and their satisfaction. On the other hand the participation of the
employment is the key to success. 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. Also in the
resource allocation around the world. Engineering can be better understood by the
help of market strategies, communication skills. Enhancing the leadership quality
plays an important role in the engineering part.

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5.3 Awareness of awards and models.
The excellence in the field of the business or corporate has laid the foundation in
this half of the century. 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.

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. Awards may be in the form of certificates, trophy, medals or
ribbons. It is the public recognition for the excellences. Awards are the recognition
for the organization.

An award creates awareness among the people on various aspects. Awareness

leads to the attraction towards the company. This will turn into the selling and
demand of products. Better the recognition better will be the demand and supply of
goods and services.

European Quality Award was established in the year 1988. It have developed
various programs to honour the outstanding businessman in various field. 16
countries and similar to that of MBNQ. Canadian Quality Award was introduced for
the first time by the Canadian Ministry of Industry in the year 1984. The system
was revised in 1989.

The Commonwealth Government of Australia has recognized the Australian Quality

Awards. This was formed in the year 1993. This institute was formed in merger of
Total Quality Management, Australian Quality Award Foundation and Quality Society
of Australia. Later on six more councils have joined the merger.

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5.3.1 Awareness of IS0 9000.
ISO is the International Organization of Standards is available to all the 173
countries under the National bodies of standards. It has eight management
principles. Now there are more than a million of organization are under the ISO
9000. 48% of the certified clients had won awards for the business.

This standard was initially coined in the year 1987. The ISO 9000 was based upon
the concept of 570 series of British Standards Institution (BSI) and proposed in
1979 as the ISO. The history of this ISO 9000 can be traced back to twenty years
ago MIL-Q-9858 in the year 1959. At present, the British Standards Institution
(BSI) have certified more than 71,000 business globally.

5.4 Recommendation
In order to improve the total quality management initiative has been taken to
provide some of the recommendations in this section. It is evident from the study
that there is further improvement in the total quality management of any company.

Recommendation is just a scope for the improvement or suggestions given for the
better analysis of the future scopes. It helps a company to rectify the mistakes
done in the past and present for better and productive products and services of the
employees and the customers.

A company should have total quality management and ISO 9000 to protect the
needs of the customers. It helps in the production of goods and services, better
technologies and machinery, uplift the standard of living. It also increases the
demand and supply, taste and preference of the customers.

The researcher feels that total quality management and ISO 9000 should formed in
order to maintain harmony between the organization and the esteem customers.

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5.5Limitation of the Research
The limitation of this research was that were no sets of closed ended. This research
is purely based upon the qualitative method, wherein the questions were put to the
different heads involved with the production and implementation of TQM.The
managers refused to divulge data in terms of production increase and employee
satisfaction levels.

Even the secondary research that was done to generate data and analyze about the
growth in TATA Motor growth was not able to justify the TQM implementation
process. Although the organization has been awarded with various medals and
prizes certain developments still remain behind closed doors.

5.6 Future scope of the Research

The future scope of the research will give vital information regarding the
improvement of total quality management and ISO 9000. The company will have to
know about the various aspects like the demand and supply, the consumer
behaviours, buying behaviours of the people and marketing mix – 4P’s and 7P’s.

Without understanding, the above factors will result in the pitfall of total quality
management and ISO 9000. The future scope will depend upon how a company
uses the resources, understanding the local markets, needs and wants of the
customers of a given areas, region, state or country.

A company have to provide all the basic facilities to the people of the given country.
The company should be able to understand the various needs and wants of the
customers. The fulfil of these requirements are to done on basis research and
development.

Proper research and study should be done to update the previous work. The world
is evolving everyday; changes are dynamic, upgrading the technologies and
machines and the demand of the customers. The company must have a scientific
rules and regulation in the workplace so that the employees gain the maximum

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output at a minimum effort. The company with the best efforts and results will be
the one industry in terms of satisfaction from the customers and its employees.
Products are sold in the markets at the fair price. Various awards are given to the
business houses by various national based organizations. These awards are given to
recognize the contribution made by the company. Contributions relating to the
satisfaction of the customers and employees in terms of proper training.

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