TQM Practices in TVS

Motors
 Introduction of TVS
• The TVS Group was established in 1911 by Shri. T V Sundaram Iyengar.
• Venu Srinivasan, managing director and chairman of TVS
• There are over 30 companies in the TVS Group
• Around 40,000 peoples are working in TVS group worldwide
• Turnover in excess of USD 4 billion.
• TVS commands a strong presence in manufacturing of two-wheelers,
auto components and computer peripherals
• Also have vibrant businesses in the distribution of heavy commercial
vehicles passenger cars, finance and insurance.
 TQM Practices in TVS
• TQM was launched at TVS in 1989
• TVS’s adaptation of TQM rests on five pillars
ØPolicy deployment
ØInvolving every person at the company
ØKaizen or continuous improvement
ØStandardization of processes
ØNew product development
• The five pillars start with policy management, which is used to arrive
at the annual breakthrough objectives. There are generally not more
than three company objectives, arrived at after a detailed exercise,
which are deployed and reviewed periodically.
• The company conducts an exhaustive range of training programs,
utilising both in-house skills and consultants from all over the world.
The programs are conducted for all employees, at all levels to direct
foot traffic, arrows are painted on the shiny shop floor.
• Large banners with exhortations such as “Let Us Achieve Zero Defects”
and “Quality is a Way of Life” hang across the company
• Figures were conveyed to employees through charts displayed in the
factory
• Every hour productivity is displayed and created a feedback loop.
• Employees were encouraged to offer suggestions for improvement.
• “Awards are given for the best suggestion.”
• Results are displayed for everyone to see in order ”to hold the gains
• Requires a high degree of understanding between employees and
management.
• Roles of each employee are now clarified and targets clearly assigned.
 Total Employee Involvement
• Company’s TQM program is the tremendous emphasis that is laid on
Total Employee Involvement (TEI)
• The company tries to obtain TEI basically through:
1. Suggestions scheme
2. Quality Circle activities
3. Cross Functional Teams (CFTs)
4. Supervisory improvement Teams (SITs)
5. Task forces
 Daily Work Management
• Daily work management consists of defining and monitoring key
processes, ensuring that they meet set targets, detecting
abnormalities and preventing their recurrence. TVS Motor encourages
continuous improvement in all aspects of work, using Cross
Functional Teams (CFT), Supervisory Improvement Teams (SIT) Quality
Control Circles (QCC) and suggestion schemes
 Change After TQM
• In nearly two decades. Productivity, quality and sales have improved
dramatically
• Rate of “re-work” 15%=> 100 parts per million
• 4 deliveries a month to customers =>two daily now.
• TVS rolled out its first 20 models in 21 years but it has produced
16new products in the past five years alone
• Keep 10 weeks of inventory => 2 weeks now
• One employee work on one machine => employees are trained to
operate different machines
• The company was ranked second in overall customer satisfaction
Export Performance - Sales Volume