TQM in India

TOTAL QUALITY MANAGEMENT IN INDIA

Aaditya NagpalIndustrial Engineering

401107001

HISTORICAL PERSPECTIVE

India became independent in the year 1947.

1950 - 1990 Business scenario• Industrial growth was very slow and sluggish• Insignificant market share in world market• Thrust was towards 1)Self Reliance 2) Protection from competition 3) Nationalization

ECONOMIC REFORMS OF THE 1990s

1990 - Till date Business scenario

The country’s door was opened towards foreign investments and the thrust was towards :

1) Globalization 2) Competition 3) Privatization

CRITICAL ISSUES FACED BY INDIAN INDUSTRIES

• GLOBAL MARKET SCENARIO

• TOTAL QUALITY MANAGEMENT

• PRODUCT INNOVATION• HUMAN RESOURCE

DEVELOPMENT• NEW MARKETING

STRATEGIES

DEMING PRIZE• It was established in December

1950 in honour of W. Edward Deming

• It was originally designed to reward to 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)and it is now available to non Japanese companies as well

INDIAN COMPANIES WINNER OF THE DEMING APPLICATION PRIZE

• Sundram Clayton brakes division(Sundaram Brake Linings), the world's first friction material company to win.

• TVS Motor Company • MAHINDRA & MAHINDRA Ltd., the world's first tractor company to win.• Rane Brake Lining Ltd.• SRF limited • Rane Engine Valve Ltd• Rane TRW Steering Systems Ltd.(SGD)• Krishna Maruti Ltd., Seat Division• Rane (Madras) Ltd.• TATA STEEL, the first integrated steel plant in Asia to win Deming award in

2008• NATIONAL ENGINEERING INDUSTRIES LIMITED, part of the 150-year-old,

multi-billion CK Birla Group. The first bearing manufacturing company to win.

MAHINDRA AND MAHINDRA• It is one of the largest automobile

manufactures in India by production and a part of the Mahindra Group Conglomerate

• It is ranked #21 in the list of top companies in India in the Fortune 500 list of 2011

• It has about 1,44,000 employees across 100 countries in the world

• It was originally set up as a steel company in Ludhiana in the year 1945

PREVIOUS TO TQM (1990)• 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

TQM JOURNEY WITH MAHINDRA

The TQM journey was in three phases :• Introduction phase (1990-1994)• Promotion Phase (1995-1999)• Development Phase (2000 onwards)

“Customer first and quality focus are our core values. For this, we shall respond to the changing needs and expectations of the customers speedily and effectively” - Anand G. Mahindra Group Chairman, Mahindra & Mahindra

INTRODCUTION PHASE (1990-1994)The first phase objectives were :• Improving manufacturing quality through

process control• Improving the quality of bought out

components• Increasing productivity and reducing the cost of

poor quality

Other processes like Juran’s process of quality improvement (JQI) and Statisitical Process control (SPC) were adopted.

PROMOTION PHASE (1995-1999)• The focus was not just on standardization

of operations according to international guidelines but improvement of operations.

• Certifications ISO 9000 and automotive sector specified standard QS 9000 were obtained

• Up gradation of manufacturing facilities• Initiation of Deming Prize Guidelines

DEVELOPMENT PHASE (2000 onwards)

• Improvement in core processes like new product development, manufacturer supplier management and sales customer operation

• Certification to environment management system standards ISO 14001

• Continuous improvement activity started including 100 percent of the employees

BENEFITS OF TQM

CUSTOMER SATISFACTION

REDUCTION IN REJECTION

MARKET LEADER

TATA STEEL

• The quality movement started in the company in the 1980s, under the leadership of Dr. J.J Irani, the then Managing Director

• The concept of Quality Circles was started at Tata Steel’s factory at Jamshedpur.

• Over the next two decades the quality circles grew to 7500 in number, covering 96% of the total employees.

“Business excellence is much more than quality. In Tata Steel, we started by just talking about the quality of the product. Then we talked about the big Q, quality in all its facets, and the small q, which pertains to the quality of the product”

- Dr. J.J. Irani, former M.D., Tata Steel

PURSUIT OF BUSINESS EXCELLENCE• Tata Steel also wholeheartedly embraced two

prominent schools of thought in the area of quality improvement – Juran and Kaizen

• The company won the JRD-QV award in 2000

THE DEMING PRIZE AND TATA STEEL

• It is regarded as the highest award in the area of TQM, closest to Nobel Prize. This makes it a singular event to be cherished forever

• It is one of the most difficult awards to challenge and win.

• For a company as large as TATA STEEL to win the prize is even more extraordinary, since this meant that TQM principles and their applications had been adopted across several thousand people spanning multiple shop floors and locations

• Tata STEEL became the first steel company outside Japan to win this award

WINNING THE DEMING

PRIZE

• Having decided on pursuing the Deming Prize, B. Muthuraman requested an initial diagnosis by the Deming team in 2005

• The final Deming examination was conducted in 2008 and is a fifteen day high pressure event

• Finally TATA STEEL bagged the Deming Prize and the company dedicated the prize to all its 35,000 workers who made it possible

LIFE AFTER DEMING

• The company has applied for Deming Grand Prize (highest Deming honour)

• TATA STEEL won the DEMING GRAND PRIZE in October 2012 and became the first integrated steel company in the world to do so

OTHER MAJOR TQM INITIATIVES IN INDIA

• Quality in Manufacturing – RANBAXY• Quality in Marketing – HINDUSTAN UNILEVER• Quality as service – HDFC • Quality in HRD – INFOSYS• Quality in Hospitality – OBEROI GROUP OF

HOTELS

CONCLUSIONIn marching towards the 21st century, Indian corporate have begun the journey of TQM. The journey is very painful. Yet, there is no alternate road for excellence. TQM is both a goal and a path. Therefore, the quality journey is one that can never end.

THANK YOU