Tqm – Tvs – College Essay Example
Tqm – Tvs – College Essay Example

Tqm – Tvs – College Essay Example

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  • Published: May 18, 2017
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TQM – The Deming Way (TVS Motors) About W. E. DEMING: William Edwards Deming was an American statistician, professor, author, lecturer, and consultant. In Japan, from 1950 onward, he educated top management on enhancing design (and consequently service), product quality, testing, and sales (particularly through global markets) by utilizing various techniques, such as statistical methods. THE DEMING PRIZE: The Deming Prize is an industry-specific quality award recognized at a national level in Japan.

The Deming Prize, established in 1951 by the Japanese Union of Scientists and engineers (JUSE) and named after W. Edwards Deming, is the world's oldest and most prestigious award for quality. W. Edwards Deming introduced statistical quality control methodology to Japan after World War II. The prize aims to recognize organizations that make significant advancements in quality each year through a national competition in TQC (Total Quality Control).

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The Deming Prize consists of three award categories.

Individuals who have made exceptional contributions to the study of Total Quality Management (TQM) or statistical methods used for TQM, or those who have greatly contributed to the dissemination of TQM, receive the Deming Prize for Individuals. On the other hand, autonomously managed organizations or divisions of organizations that have achieved remarkable performance improvement through the application of TQM in a designated year are awarded the Deming Application Prize.

The Operations Business Units Quality Control Award is an annual award given to operations business units that have achieved significant improvement in performance through the use of quality control/management in the pursuit of Total Quality Management (TQM) within a designated year. The Deming Application prizes are awarded to both private and public organizations, including small enterprises, divisions of large corporations,

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and overseas companies. A total of 143 companies have won this prestigious award.

Here are some key facts about the award:
- Quality is defined as "conformance to specifications" and is viewed from the perspective of the producers.
- The primary focus is on statistical quality control.
- The overall approach is the management of quality.
- The purpose of the award is to promote quality assurance through the use of statistical techniques.
- The types of organizations eligible for the award are mainly private or public manufacturing companies.
- The orientation of the award is 60% process and 40% results.
- Scoring weight is given equal importance in 10 criteria.
- Consideration is given to productivity, delivery, safety, and environmental concerns.
- Information management is of lesser concern.
- The award is open to firms from any country.
- Applications for the award consist of 1000 pages and require one year working with a consultant from the Union of Japanese Scientists & Engineers.
- Grading time for applications is one year.
- The award is sponsored by the Union of Japanese Scientists and Engineers.

The checklist for the DEMING AWARD (Grading Criteria) includes items such as policy, organization, education/training, quality assurance system, promotion/implementation of quality control activities, statistical methods, results achieved, future plans, system maintenance/improvement, and information management.1. Policies for managing and controlling quality, establishing methods, justifying and ensuring consistency, utilizing statistical techniques, and transmitting and diffusing policies.

The text reviews policies and their achievement. It discusses the relationship between policies and long- and short-term planning, standardization, systematization of standards, the method of establishing, revising, and abolishing standards, the outcome of these actions, the contents of the standards, utilization of statistical methods, accumulation of technology, utilization of standards, organization

and its management, explicitness of the scopes of authority and responsibility, appropriateness of delegations of authority.

Interdivisional cooperation, committees and their activities, utilization of staff, utilization of QC Circle activities, and quality control diagnosis shall be considered.

Systems for the control of quality and such related matters as cost and quantity, control items and control points, utilization of such statistical control methods as control charts and other statistical concepts, contribution to performance of QC circle activities, actual conditions of control activities, and the state of matters under control shall be addressed.

Education programs and results shall be part of the education and dissemination endeavor.

The text below discusses various aspects of quality control and assurance in a company, including: the importance of quality and control awareness, understanding of statistical concepts and methods, the effectiveness of quality control, education of related companies, QC circle activities, suggestions for improvement, and the procedure for developing new products and services. The text also mentions the significance of maintaining quality in various areas such as design, reliability, and other properties.

Safety and immunity from product liability, customer satisfaction, process design, process analysis, process control and improvement, process capability, instrumentation, gauging, testing, and inspecting, equipment maintenance and control of subcontracting, purchasing, and services, quality assurance system and its audit, utilization of statistical methods, evaluation and audit of quality, and actual state of quality assurance. Collection, dissemination and use of information of quality includes collection of external information.

Transmission of information between divisions (3). Speed of information transmission (use of computers) (4). Data processing statistical analysis of information and utilization of the results (9). Results (1). Measurements of results (2). Substantive results in quality, services,

delivery time, cost, profits, safety, environments, etc. (3). Intangible results (4). Measures for overcoming defects. Analysis (5). Selection of key problems and themes (2). Propriety of the analytical approach (3). Utilization of statistical methods (4). Linkage with proper technology (5).

Quality analysis, process analysis 6. Utilization of analytical results 7. Assertiveness of improvement suggestions| 10. Planning for the Future| 1. Grasp of the present state of affairs and the concreteness of the plan 2. Measures for overcoming defects 3. Plans for further advances 4. Linkage with the long-term plans| TVS MOTOR COMPANY LIMITED About the company: TVS Motor Company Limited (TVS-M) is a member of the TVS group, the largest automotive component manufacturing group in India with annual sales of more than US$ 2. 5 billion.

The group's growth can be attributed to its commitment to promoting trust, value, and customer service. The company believes that market leadership and business rewards naturally ensue. TVS-M is one of the largest two-wheeler manufacturers in India, recording an annual sales turnover of $614.28 million in 2003-2004. TVS Motor achieved revenues of Rs. 4424 crores, showing a growth of 18.4% in FY '09-'10 and 36% in 2011. In 2010-2011, the company exported a total of 2.39 lakh units, compared to 1.65 lakh units in 2009-10, indicating a growth of 45% from the previous year.

Sundaram-Clayton Limited (SCL), a TVS group company, established a new Moped Division at Hosur in southern India in 1979. In 1982, SCL and Suzuki Motor Corporation (SMC), Japan formed Ind-Suzuki Motorcycles Limited (ISML) as a joint venture. Motorcycle production began in 1984. In 1987, ISML acquired SCL Moped Division, and the merged company was named TVS-Suzuki Limited (TSL).

In 2001, SMC and TVS decided to separate and renamed the company TVS Motor Company Ltd.

TVS Motor Company has received the 'Star Performer - Silver Shield' award in the two/three wheelers category from EEPC India for its outstanding export performance in 2007-08. Mr. Venu Srinivasan, CMD of TVS Motor Company, received the Star of Asia Award from Business Week International in November 2003. He also earned a Doctorate in Science from the University of Warwick, United Kingdom, and was honored with the prestigious JRD Tata Corporate Leadership Award in 2004.Engineering - * TVS Motor Company is the recipient of multiple prestigious awards and recognition. These include:
- The Deming Prize in Total Quality Management, awarded in Tokyo, Japan on November 12, 2002.
- The Technology Award 2002 from the Ministry of Science, Government of India, for the successful commercialization of indigenous technology for TVS Victor.
- The Asian Network for Quality Award 2004, where TVS Scooty Pep won the 'Outstanding Design Excellence Award' from Business World and National Institute of Design.
- The Progressive Manufacturer 100 Award in 2009 for the end-to-end automation of the entire business process of its lubricant brand, TVS TRU4.
- The TPM Excellence Award 2008 (First category) by Japan Institute of Plant Maintenance (JiPm).

Management - * TVS Motor Company has also been recognized in the management sphere. Some notable awards include:
- Emerging Corporate Giant in the Private Sector, awarded by The Economic Times and the Harvard Business School Association of India on November 14, 1996.
- Best Managed Company award from Business Today in 2003.
- Most Investor-friendly company by Business Today.

Additionally, TVS Motor Company has

received awards for its advertising efforts, such as the 'Good Advertising' award by Auto India Best Brand Awards in 2009.

In terms of technological achievements, the company won the SAP ACE 2007 Award for Customer Excellence in the Most Innovative Netweaver Category. They also received the TEAM TECH 2007 Award of Excellence for Integrated use of Computer Aided Engineering Technologies.

All these awards and recognition can be attributed to TVS Motor Company's commitment to evolving Total Quality Management (TQM) as an organization-wide effort.The focus is not only on continuous production and improving quality standards in goods and services, but also on establishing an institution that prioritizes quality in every aspect. The company considers Total Quality Management (TQM) as a fundamental aspect of its corporate culture. TQM aims to enhance the quality of all processes, products, and services through employee participation, increased customer satisfaction, and loyalty from shareholders, ultimately leading to better business outcomes. It is worth mentioning that both the process and the final outcomes are given equal importance. TVS-M is fortunate to benefit from the rich heritage of the TVS group.

The values of trust, discipline, and customer service were instilled and refined at TVS-M. The company began its Total Quality Management (TQM) journey in the 1990s, facing challenging circumstances. Despite being the first to introduce 100cc Indo-Japanese motorcycles in India, TVS-M experienced a decline in market share and sales due to increased competition. Consequently, the company focused on short-term financial survival while preparing for long-term revival and growth.

In three phases - the Planning phase (1990 to 1995), Promotion phase (1995 to 1999), and Deployment phase (1999 to 2002) - TVS-M implemented a series of

steps including diagnosis, establishing strategic directions, and maintaining consistent communication and education. The recognition it received through the Deming Prize was the result of a team effort sustained over a decade. This recognition acknowledged TVS-M's dedication to building an organization with capabilities that meet external and international benchmarks.

TVS-M's pursuit of continuous improvement expanded throughout the organization through initiatives such as Just-in-Time (JIT) and Total Productive Maintenance (TPM). These initiatives aimed for zero defects, zero breakdowns, and the production of high-quality, cost-effective products.

The leadership at TVS-M strongly believed in TQM, aligning with the values of the TVS Group founder.

This became the driving force behind the sincere implementation of TQM activities. Employee participation and co-operation established the foundation for the success of TQM in TVS-M. In the policy management process, three breakthrough objectives of the company were achieved through taskforces, cross-functional teams and supervisory improvement teams. Additionally, quality control circles aligned with the departmental and sectional objectives and action plans. The employee suggestion system enabled continuous improvement at the workplace. The individual workmen could make suggestions for workplace improvements. In the TEIAN system, those making suggestions took esponsibility for implementation. The implemented suggestions were evaluated and awarded. Additionally, those making the best suggestions from each unit and department were rewarded by the President and Managing Director. The company was able to secure 100 per cent employee participation in TQM. The employees had completed more than 1,468 projects through Quality Control Circles (QCC) in 2003-04. The average number of suggestions implemented per employee increased to 44 from 41. Regular improvements in business processes - Order obtaining process. The application of TQM principles resulted in effective planning and implementation

of order obtaining processes.

The area sales and service organization was decentralized to provide direct customer service at the points of purchase. Policy deployment and daily management were implemented across all area offices. Regular training was given to sales, service, and dealer staff to effectively communicate the superiority of existing and new products. A customer satisfaction survey system was introduced to measure customer satisfaction and improve product performance. The introduction of a dealer management system through ERP improved dealership processes. Dealer conferences were held to share best practices and promote horizontal deployment. The lean manufacturing system and JIT projects achieved quality and productivity improvement targets. Total Employee Involvement (TEI) led to significant improvements in productivity, quality, and cost. Overall Equipment Effectiveness (OEE) continually improved through Total Productive Maintenance (TPM). Lean and TPM were key initiatives for rapid improvement in Quality, Productivity, and Cost. Cost deployment was closely monitored and ownership was developed across the organization. The initiatives on "e-buying and global sourcing" resulted in substantial cost savings.

TVS-M implemented TQM practices among suppliers through a "cluster approach" led by the TVS-M supplier cluster taskforce. They also made significant improvements in internal efficiencies for new product development and design by better understanding customer needs and product usage conditions. This was achieved through structured customer visit programs, early involvement of suppliers and machine tool builders, and quality proving both in-house and at suppliers' facilities to ensure defect-free products and a fast ramp-up. TVS-M's strengths in good product development capability, world-class manufacturing facilities, good quality, reliable products, and sales and service support contributed to their continuous increase in export business. They also had a technological edge with world-class design, development,

and testing facilities that could develop products to meet customer requirements. The company collaborated with leading technological research laboratories and institutions globally as well as in India for advanced technology development and testing. Their R team applied for over 60 patents and their engineers published 30 national and international papers.The Business Excellence Model focused on understanding Total Quality Management (TQM), which involved systematically achieving customer satisfaction with the participation of all employees. TQM utilized a logical approach that included planning, implementation, result evaluation, and continual improvement. The knowledge gained from TQM was transformed into standards to ensure a system-based operation within the company. Total Employee Involvement (TEI) served as the basis for TQM, with all staff members engaging in continuous improvement initiatives. Operating level employees contributed through suggestion schemes and quality control circles, while supervisors and managers participated in Supervisory Improvement Taskforces and Cross Functional Taskforces.

The company aligned improvement themes to its annual policies. Daily work management involved defining and monitoring key processes, ensuring they met targets, detecting abnormalities, and preventing their recurrence. Kaizen, or continuous improvement, was encouraged through various schemes involving all employees. Policy management processes were used to formulate annual breakthrough objectives, which were then deployed company-wide and periodically reviewed. Training was provided to build necessary knowledge, skills, and competency among all employees. Each department documented key management activities to improve work practices and knowledge. New multi-product development with reduced lead-time was a focus, along with managing target costs. TVS Motor continued building its brand image in India with the aim of expanding it globally.Deming Prize Recognition: During the evaluation and investiture ceremony, auditors provided specific comments on TVS-M's achievement. They praised

the establishment of an excellent leadership structure for top management to practice Total Quality Management (TQM). The auditors also highlighted the importance of total employee involvement as a driving force behind learning, absorption, and incorporation of TQM principles into daily activities. They acknowledged that TVS-M had reached a sufficient level of organizational competence for new product development and had acquired diverse management techniques under the TQM umbrella. By faithfully learning and promoting these techniques, significant improvements were shown in man management indices.

However, the auditors identified areas for improvement. They recommended an integrated approach to brand recognition and strategy for TVS-M. Additionally, they advised TVS-M to acquire new tools to enhance their technological capabilities.

The Deming Prize was recognized as a milestone in TVS-M's continuous improvement journey towards customer satisfaction. With this recognition, TVS-M now had a higher responsibility to maintain and enhance their high standards of quality and customer satisfaction, further contributing to business growth and international recognition.

Applying TQM principles has resulted in improved sales volume, turnover, and profit for the company. Additionally, there has been an acceleration in New Product Development, with more new products being launched in shorter lead times. The exports business has also seen continuous growth. Notably, customer satisfaction with new products has improved. Looking ahead, the company's future plans involve building the TVS brand in India and other countries, particularly in Asia. The aim is to develop advanced technology and multi-project management capability to create new products for both Indian and international markets. An important goal is to achieve global competitiveness in terms of costs. Furthermore, supplier and dealer capabilities will be enhanced, and leaders will be trained for key positions

to support business growth.

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