TQM IN MAHINDRA

AND MAHINDRA

MAHINDRA & MAHINDRA

It is one of the largest automobile

manufacturers by production in India and a
subsidiary of Mahindra Group conglomerate.
It is ranked #21 in the list of top companies
of India in Fortune India 500 in 2011.
Mahindra & Mahindra was set up as a steel
trading company in 1945.
1,44,000 employees in over 100 countries
across the globe.

BACKGROUND & HISTORY

Multinational automaker headquartered in

Mumbai, Maharashtra, India.
The company was founded in 1945 in
Ludhiana as Mahindra & Mohammed by
brothers K.C. Mahindra and J.C. Mahindra
and Malik Ghulam Mohammed.
The company changed its name to Mahindra
& Mahindra in 1948.

CRITICAL ISSUES FACED

1.
2.
3.
4.

5.

Global
market
scenarioeconomic
turbulence and govt. Unsupportive policy
Total quality management- although quality
is good but failed to manage
Product innovation- no development of new
product & improvement of existing product
Human
resource
developmentno
individual
development
to
achieve
performance improvement
New marketing strategies- not much
focused on advertisements.

PREVIOUS TO TQM (1990)

1.
2.
3.
4.
5.
6.
7.
8.
9.

Tractor division was sellers market

Focus was more on quality
No emphasis on development of new models
Manufacturing activity was more inspection
oriented detection
Interaction with suppliers purely need based
Sales and service activity lacked standardization
Rework rejection percentages were high
Employee involvement in improvement activity
was very limited
Mindset, factory layout, equipment -- Road blocks

TQM JOURNEY WITH M&M

The TQM journey was in three phases:
1. Introduction phase from 1900 94
2. Promotion phase from 1995 99
3. Development phase from 2000 onwards

INTRODUCTION PHASE
In the first phase objective were.
1. Improving manufacturing quality through
process control.
2. Improving the quality of bought out
components and
3. Increasing productivity and reduce the cost of
poor quality (COPQ) by Solving chronic cross
functional quality problems. Introduction of
initiatives like Jurans process of quality
improvement (JQI), Statistical process control
(SPC), Supplier support activity and business
process reengineering (BPR) in manufacturing.

PROMOTION PHASE

1.

2.

3.
4.

The focus was not only the standardization

of all operations as per international
guidelines, but also to improvement upon
them.
Certifications ISO 9000 and automotive
sector specific standard QS 9000 were
obtained
Upgradation of manufacturing facilities
Initiation of Deming prize guidelines

DEVELOPMENT PHASE
1.

2.
3.
4.

Improvement in core process like new

product development, manufacturing,
supplier management and sales and
customer operations.
Introduction of policy development daily
work management technique.
Certification to environment management
system standards ISO 14001.
Continuous improvement activity stepped
up to touch employee involvement of 100
percent during period

BENEFITS OF TQM
1.
2.
3.

4.

Reduction in rejection at suppliers end as

well at receipt stage.
Reduction in no. of consumer complains
Increased productivity, customer
satisfaction, employee involvement in
continuous improvement
Introduction of new models 15 models in
three years

AWARDS

First and only tractor company globally to

win Deming award in 2003
Won the Japan quality medal in 2007, the
only tractor company worldwide to be
bestowed this honors.
First tractor company globally to win the
Deming application prize in 2003 from JUSE.
Total
productive
maintenance
(TPM)
Excellence award first category form
Japanese institute of plant maintenance
(JIPM) for the companys automotive division