Total quality management at Mahindra & Mahindra Limited

Mahindra & Mahindra Limited Total quality

Management

RAHUL BABAR

ABOUT M&M

• 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.• 34,612 employees in automobile

manufacturing.

History of M & M

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.

CORE VALUE Good Corporate Citizenship

Long term success Ethical business standards

Professionalism Best people for the job

Innovation and well reasoned risk taking Customer First

Respond to the changing needs and expectations

Quality focus First time right

Dignity of the individual

QUALITY POLICY“ Customer first and quality focus are our core

values. For this, we shall respond to the changing needs and expectation of the customers speedily

and effectively.”

Achieved By: Understanding customer requirements

Involvement of suppliers and business partnersSetting the annual business objectives aligned

with their vision Total employee involvement Adopting a process approach

Delivering ‘first time right’ products.

TQM JOURNEY WITH M&M

The TQM journey was in Four phases:

Previous to TQM

Introduction phase from 1990 – 94

Promotion phase from 1995 – 99

Development phase from 2000 onwards

PREVIOUS TO TQM (1990)• Tractor division was sellers market (A market

condition characterized by a shortage of goods available for sale)

• 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

INTRODUCTION PHASE (1990 – 94)

In the first phase objective were: Improving manufacturing quality through process

control. Improving the quality of bought out components and Increasing productivity and reduce the cost of poor

quality (COPQ) by Solving chronic cross functional quality

problems.

Introduction of initiatives like:Juran’s process of quality improvement (JQI)

Statistical process control (SPC)Supplier support activity

Business process reengineering (BPR) in manufacturing.

Statistical Process Control (SPC) is an industry-standard methodology for

measuring and controlling quality during the manufacturing process. Quality

data in the form of Productor Process measurements are obtained

in real-time during manufacturing.

Business process reengineering (BPR) is the analysis and redesign of workflows within and between enterprises in order to

optimize end-to-end processes and automate non-value-added tasks.JURAN’s Trilogy

PROMOTION PHASE (1995 – 99)

• 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

The Deming Cycle, or PDCA Cycle (also known as PDSA Cycle), is a continuous quality improvement model consisting out of a logical sequence of four repetitive steps for continuous improvement and learning: Plan, Do, Study

(Check) and Act.

DEVELOPMENT PHASE (2000 ONWARDS)

• 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 DUE TO TQM

• 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

• 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 company’s automotive

division

Total productive maintenance (TPM) is a system of maintaining and improving the integrity of production and

quality systems through the machines, equipment, processes, and employees that add business value to

the organization.

DEMING PRIZE

The Deming prize, established in December 1950 in honor of W. Edwards Deming

It was originally designed to reward Japanese companies for major advances in quality

improvement.

Over the years it has grown, under the guidance of Japanese Union of Scientists and Engineers

(JUSE) to where it is now also available to non- Japanese companies.

The awards ceremony is broadcast every year in Japan on national television.