Total Quality Management

Assignment on
Fiat

Submitted to – Submitted by –
Prof. Rajeev Ranjan Amit Kumar Sharma
(ERP ID – 0191MBA191)
 Introduction about TQM
Total Quality Management is a management approach that originated
in the 1950's and has steadily become more popular since the early
1980's. Total Quality is a description of the culture, attitude and
organization of a company that strives to provide customers with
products and services that satisfy their needs. The culture requires
quality in all aspects of the company's operations, with processes
being done right the first time and defects and waste eradicated from
operations. Total Quality Management, TQM, is a method by
which management and employees can become involved in the
continuous improvement of the production of goods and services.
It is a combination of quality and management tools aimed at
increasing business and reducing losses due to wasteful practices.
Some of the companies who have implemented TQM include Ford
Motor Company, Motorola and Toyota Motor Company. Today,
high quality is absolutely essential to meet customer
requirements. The TQM principles express the basic ideas and in
this case the specialists have relatively different points of view.
J. Juran formulates the following principles: client orientation,
competitiveness, continuous quality improvement, client-
supplier relations internalization, top management involvement.
G. Merli places at the basis of TQM the following principles:
clients’ satisfaction, quality on the first plan, involvement of the
entire personnel, continuous improvement.
 TQM is the foundation for activities, which include:

 Commitment by senior management and all employees

 Meeting customer requirements
 Reducing development cycle times
 Just in time/demand flow manufacturing
 Improvement teams
 Reducing product and service costs
 Systems to facilitate improvement
 Line management ownership
 Employee involvement and empowerment
 Recognition and celebration
 Challenging quantified goals and benchmarking
 Focus on processes / improvement plans
 Specific incorporation in strategic planning
About The Tools & Techniques
1. TQM Framework – TQM framework is a combination of the
tools and techniques used by the management whenever they
need to improve their quality in their organisations. It helps to
identify the process of choosing correct tools and technique in
the organisation.

2. 7 QC tool -The seven basic tools of quality is a designation

given to a fixed set of graphical techniques identified as being
most helpful in troubleshooting issues related to quality. They
are called basic because they are suitable for people with little
formal training in statistics and because they can be used to
solve the vast majority of quality-related issues.
List of the tools –
 Cause and effect diagram
 Check sheet
 Control chart
 Histogram
 Pareto chart
 Scatter diagram
 Flow chart
 Run chart

3. Benchmarking- Benchmarking is the process of comparing the

cost, cycle time, productivity, or quality of a specific process or
method to another that is widely considered to be an industry
standard or best practice. Essentially, benchmarking provides a
snapshot of the performance of your business and helps you
understand where you are in relation to a particular standard.
The result is often a business case for making changes in order
to make improvements. The term benchmarking was first used
 by cobblers to measure ones feet for shoes. They would place
the foot on a "bench" and mark to make the pattern for the
shoes. Benchmarking is most used to measure performance
using a specific indicator resulting in a metric of performance
that is then compared to others.

4. Lean Manufacturing - Lean is a methodology to reduce waste in

a manufacturing system without sacrificing productivity. The
customer defines what is of value in terms of what they would
pay for the product or service. Through lean management, what
adds value becomes clear by removing or reducing everything
that doesn’t add value. Lean manufacturing, or lean production,
is a system of techniques and activities for running a
manufacturing or service operation. The techniques and
activities differ according to the application at hand but they
have the same underlying principle: the elimination of all non-
value-adding activities and waste from the business.

5. Jurans Trilogy – The Juran Trilogy was developed by Dr.

Joseph Juran, and it’s something I learned about recently in my
Total Quality Management and Six Sigma course. The Juran
Trilogy is an improvement cycle that is meant to reduce the cost
of poor quality by planning quality into the product/process.

The Juran Trilogy consist of

1. Quality Planning
2. Quality Control
3. Quality Improvement
6. ISO 9000 – ISO 9000 is defined as a set of international
standards on quality management and quality assurance
developed to help companies effectively document the quality
system elements needed to maintain an efficient quality system.
They are not specific to any one industry and can be applied to
organizations of any size.
ISO 9000 can help a company satisfy its customers, meet
regulatory requirements, and achieve continual improvement. It
should be considered to be a first step or the base level of a
quality system.

7. Six Sigma – Six Sigma tools are defined as the problem-solving

tools used to support Six Sigma and other process improvement
efforts.
The Six Sigma expert uses qualitative and quantitative
techniques to drive process improvement. Although the tools
themselves are not unique, the way they are applied and
integrated as part of a system is. Some of the statistical and
graphical tools commonly used in improvement projects are:
 DMAIC
 5S
 Seven Wastes
 Value Stream Mapping
 Flow
 Visual Workplace
 Voice of Customer
 Gap In The Industry-
Manufacturing is emerging as a high growth sector. Prime
Minister Narendra Modi’s ‘Make in India’ initiative aims to
place India on the world map as a manufacturing hub. At the
same time, it is also true that the Indian manufacturing sector is
grappling with skills gap between educational institutes and the
industry. This is true for the automotive sector, as it is for many
other sectors in manufacturing. In fact, with massive
technological transformation happening across sectors,
companies have to keep pace with the constantly shifting
landscape, as do individuals, to meet the ever-evolving demands
of a modern-day job.
Acquiring new skills (upskilling) is key to sustaining in this
dynamic landscape. Bridging the skills gap has been a consistent
endeavour from both institutes and corporates. While there are
programmes in place, they are not reflecting the change at the
same pace as the change witnessed by the industry.
Problems facing by the Fiat India company in the resent year is
very much and they have no control over them and facing many
problems .
Ask anybody why Fiat has done so poorly in the past and continues to
be invisible in India, and you'll probably hear one or all of the
following reasons -
 Wrong choice of local partners
 Poor reliability
 Poor after sales service
 Poor mileage
 Not so powerful heavy cars
 Poor brand image
 No quality services
 Delivery time
Of course, these might have contributed to the situation to a large
extent. But to find the real reason why they are in this mess, you need
to look at their recent history in India.
Year 1997 - Launch of Fiat Uno
Year 2000 - Death of Fiat Uno
Year 2000 - Launch of Fiat Siena
Year 2001/02 - Death Of Fiat Siena
Year 2001 - Launch Of Fiat Palio/Petra/Adventure
Year 2010 - Death Of Fiat Palio
Year 2009 - Launch Of Fiat Punto/Linea
Year 2014 - Death Of Fiat Punto/Linea
What can one deduce here? Fiat, in 15 years, has launched a grand
total of 4 models in the past 15 years. All these years, if you go to a
Fiat showroom, you don't get to choose a car. Fiat basically launches
a model (and its booted variant) and waits for it to die a slow painful
death. And then they launch another one after 5 years. In my opinion,
this is the biggest cause for Fiat's failure as a manufacturer in India.
Fiat now rakes in decent amount of profits every year thanks to the
success of Punto & Panda in Europe. It's not like they don't have the
money to invest in emerging markets. You will NOT see the
following models launched in India, even though they make perfect
sense.

Implementation of tool and techniques –

1. Benchmarking – It will help to benchmark the product
according to the need and preference of the customers and the
standard of the quality should be followed in the production of
the car . Benchmarking is used to identify what other businesses
do to increase profit and productivity, and then adapting those
methods to make your business become more competitive.
Imagine if you had a car lot that sells 50 cars per month and
down the street a competitor sells 300 cars per month. By
studying and identifying what your competitor is doing, you
could increase sales and be in the market for the long time.
2. 7QC Tool –The 7 QC Tools are simple statistical tools used for
problem solving. These tools were either developed in Japan or
introduced to Japan by the Quality Gurus such as Deming and
Juran. In terms of importance, these are the most useful. Kaoru
Ishikawa has stated that these 7 tools can be used to solve 95
percent of all problems. These tools have been the foundation of
Japan's astonishing industrial resurgence after the second world
war.

For solving quality problems seven QC tools used are Pareto

Diagram, Cause & Effect Diagram ,Histogram, Control Charts ,
Scatter Diagrams, Graphs and Check Sheets . all this tools are
important tools used widely at manufacturing field to monitor
the overall operation and continuous process improvement. This
tools are used to find out root causes and eliminates them , thus
the manufacturing process can be improved. The modes of
defects on production line are investigated through direct
observation on the production line and statistical tools.

This tool helps to take care of the all the charts and the quality
measures and show the diagrams of them to help and to solve
the problem .

3. Lean Manufacturing – It will help the organisation to manage

the inventory of the time of production and be available at
period of time because as we know the Fiat brand takes time to
 delivery of the product to the customer , so it wouldn’t happen
in future and the customers should get their car on time and with
all the features and services and also help to minimize the
wastage of the inventory in the production .

Outcomes Of The Implemented Tools

 Less wastages

 Reducing the inventory costs

 Reducing the time of delivery

 Quality improvement

 Innovations

 Customers satisfaction

 Charts for information’s

Some future tools which should be implemented in future according

to the change of market are –

 SIX SIGMA

 NEW STRATEGIES

 REDESIGNING TQM FRAMEWORK

These some tools will help to increase or improve the brand name in
the market