Operation Management Final
brownc8
BusinessCaseAnalysisExample1.pdf
Pardeep Gahlota et al. International Journal of Recent Research Aspects ISSN: 2349-7688, Vol. 6, Issue
4, Dec 2019, pp. 1-9
© 2019 IJRRA All Rights Reserved page-1
TQM Implementation: A Case Study
Analysis of an Indian Automobile
Industry
Pardeep Gahlota* and Naveen Hooda aDepartment of Mechanical Engineering, U.I.E.T., Maharshi Dayanand University, Rohtak, India
Abstract
Purpose- TQM as a never-ending drive in pursuit of a delighted customer and needs to be assimilated into everything
the business does. It comprises different aspects such as use, availability, efficiency, service and delivery for customer
satisfaction. An insufficient understanding of TQM creates an environment for failure of implementation of TQM
framework. Indian industries started realizing the TQM outcomes in early 1990s and a satisfying TQM culture has
been rooted in Indian industrial sector. So an attempt has been with a case study analysis within an Indian automobile
industry with the use of an effective questionnaire survey which was prepared after a prolonged literature survey, field
visits and expert interviews.
Research Methodology- After a detailed analysis of literature a questionnaire was prepared which was sent to different
industries. A brief study of respondents was made where a Non-TQM Indian automobile industry was selected at
random to implement TQM as well as to get optimum benefits after its implementation.
Findings: Results concluded with seven core benefits to the industry which mainly comprises of corrected Layout and
adequate scheduling, enhanced employee involvement and recognition, better supplier quality. The final results
suggested a increase of Rs. 30,470 in revenue and new job distribution on seven machines were suggested to continue
the same.
Research Implications- The study is subject to the regular restrictions of survey investigations. The case study is implies
only in an Indian automobile industry. To get better findings it can be applied to different type of industries
simultaneously.
Originality/Value- The study is supportive in portraying the benefits of TQM implementation in India which might be
taken seriously by Non-TQM industries.
Keywords: TQM, implementation, case study, automobile.
I. INTRODUCTION
Although quality is the core of survival for any business but
has become a misunderstood issue today. Quality is
characterized by the customer, so it is no longer a company’s
issue as they have to follow the footprints of their almighty
(customer). With rapid turn in quality management,
managers find it hard and challenging to guarantee efficient
operations (Choi and Behling 1997, Vouzas and Psychogios
2007). A true competitiveness lies beneath continuous
relationship with customers and value to customer approach
(Dervitsiotis 2007). In early years of manufacturing, one
operator was placed in industries to inspect and to make a
decision to accept or reject a product. But today, as business
is becoming larger day by day, a separate quality and
inspection department has been established by every single
globally participating industry (Chong and Rundus 2004).
The early tradition of bringing quality was more focused on
emphasizing technical operations and strong standards with
timely reporting to top management. This scenario changes from
management of quality in 20th century to quality of
management in 21st century with hard efforts of top management
leadership who implemented it (Yarrow et al. 2004). As the
ritual of accepting quality management approaches by
organizations is from 1930s, the entrance of TQM in the late
1980s unlocked a new era in the quality interest groups
(Dahlgaard-Park, 2000). The versatility of TQM permits its
application in different business nature around the entire
globe (Powell 1995). TQM is such a philosophy which has
capability and potential to transform the approach and
ethnicity regarding quality along with customer gratification
(Black and Porter 1996). Over the years TQM has garnered
as an innovative concept with has a sculpture of continuous
improvement for attaining customer satisfaction (Krajewski
et al. 2013). Organizations such as Apple, Ford, Mercedes
Benz, Motorola, Toyota etc. have initiated fundamental
changes over the years (Sinha et al. 2016) such as 5-S
practices such as structurize, systematize, sanitize,
standardize and self-discipline (Ho 1999). TQM was limited
to private sector earlier but has spread into public sector since
Pardeep Gahlota et al. International Journal of Recent Research Aspects ISSN: 2349-7688, Vol. 6, Issue
4, Dec 2019, pp. 1-9
© 2019 IJRRA All Rights Reserved page-2
1990’s (Carr and Littman 1991) and in academic research
also (Milakovich 1990). Apart from these basic questions,
TQM has created a work friendly environment for employees
by specifying the need of employee involvement and
empowerment also (Lawler III 1994). Many organizations
across world have affirmed that an effective TQM
implementation is helpful in achieving competitive
advantage (Anderson et al. 1994a). TQM adoption has
allowed firms to compete globally (Handfield 1993).
Approximately 90% improvement rate in employee’s
relations, customer satisfaction and financial performance is
attained due to TQM implementation (Rategan 1992). Its
implementation has brought outstanding benefits for different
organizations across the world. As after liberalization and
globalization of Indian economy in 1990’s (Wali et al. 2003),
Indian organizations also have implemented this novel
approach (Motwani et al. 1997). TQM implementation has
answered different queries (Vinzant and Vinzant 1996)
which were floating in the mind of Indian organizations over
the years, such as:
Whether such organizations will succeed
What if, TQM phenomenon will fade
Will TQM benefit in building a world-class Indian organization
So, TQM has a journey of more than 25 years in Indian
market and its implementation has glorified the pace of
Indian industries in different manners and they are competing
well internationally (Parvadavardini et al. 2016).
II. LITERATURE REVIEW
An enormous quantity of literature concerning TQM has been
postulated worldwide through the decades (Sila 2007, Yusuf
et al. 2007). TQM from an economic and organizational
perception and stated that TQM is a science based technology
which is not hierarchical and market based but actually is a
team work, better work process and continuous improvement
based. It forces the use of science in decision making and
effective creation Boaden (1997). TQM is such an approach
which eliminates discrepancy in production or delivering
service thereby also permits to enhance competence,
consistency and quality. Continuous improvement is the base
to support TQM. It was reported that, US managers consider
TQM as the only technique where Americans have to
compete with European and Pacific Firms Steingard and
Fitzgibbons (1993). Lakhe and Mohanty (1994) intended to
discuss that the economic change and demand of better
products originate the needed TQM. Hackman and Wageman
(1995) stated that the thoughts about TQM flourished by the
pioneers such as Deming, Juran and Ishikawa have garnered
a social movement which has spread from industry to care
management, public bodies and academic research. The
authors concluded later on that the core of TQM lies within
four assumptions namely: quality, people, organization and
role of top management. Chaudary et al. (2015) found that
TQM is decisive in fulfilling customer desires and attaining
business heights. TQM seems to be a journey of success of
an industry with the devotion of managerial commitment.
TQM not only attempts all employees to commit themselves
but willing them to alter wastage and bring continuous
improvement. Study done by Fu et al. (2015) was focused
for examining the role of TQM organizational culture in
achieving elevated heights of business excellence. Study
considered Chen et al. (2013) approach to investigate seven
Taiwanese industries. Carmona-Márquez et al. (2016)
performed an empirical study in Spain to identify relationship
of critical success factors of TQM and their application
sequence during the TQM implementation. Structural
equation models (SEM) was applied to evaluate the relation
between constructs and the prognostic influence of the
research model. Shafiq et al. (2017) performed confirmatory
factor analysis to empirically test the effects of TQM on OP
in textile industry of Pakistan. Results also maintained the
vision of TQM gurus that TQM has an optimistic influence
on business results. For SMEs, attentiveness and edification
of the quality principles are essential for ascertaining
effective knowledge and efficient appliance. Furthermore,
the applications can be subdivided to divisions within the
SMEs other than manufacturing (Sreedharan et.al. 2017). The
case study analysis done by Hoque and Alam (1999)
concluded that a thoughtful dependency on TQM is
judgmental in adopting it. A descriptive longitudinal case
study done by Pimentel and Major (2014) concluded that a
properly used TQM strategy is helpful in achieving better
organizational efficiency and team work results. Arumugam
et. A. (2009 performed a case study analysis to assess the
level of TQM practices within a USA based manufacturing
company in Malaysia. Results suggested that the core of
quality management implementation strategy lie in customer
focus and process management. Also, Bourne et al. (2000),
in their case study analysis, suggested that the performance
measurement systems should comprise of a process for
sporadically reviewing and revising the whole set of
measures in use. Another case study done by Bititci et al.
(2000) stressed for employing dynamic performance
measurement system. Welikala and Sohal (2008) performed
a detailed case study analysis in an Australian organization
here findings suggested that employee involvement found to
be chief focus and it as implemented first in the company.
This point lost its ground when company focused primarily
more on outside. Their concluded with answering two
questions that How crucial has employee involvement been
in the sustainability of TQM in this organization and How did
it benefit the organizations and the employees?
Rahman and Tannock (2005) performed three case studies
done in Malaysian SMEs. It involves interviewing top
management. Study elaborated that all three companies ere
having different approaches while implementing TQM.
Venkateswarlu and Nilakant (2005) performed a qualitative
case study in five different organizations with in New
Zealand. Only two organizations admitted of continuing with
quality programmes whereas others were not continuing with
Pardeep Gahlota et al. International Journal of Recent Research Aspects ISSN: 2349-7688, Vol. 6, Issue
4, Dec 2019, pp. 1-9
© 2019 IJRRA All Rights Reserved page-3
it. Nagpal and Twamley (1989) elaborated a case study
analysis of SPC implementation in a small plastics
manufacturing unit as a technique of starting a quality
enhancement culture. They described the process from initial
training to the application of control charts on the shop floor.
Ghobadian and Gallear (1996) in their case study analysis in
four SMEs suggested the grounds for adopting TQM, the
major steps concerned in its implementation, the effects and
changes resulted from TQM implementation. Final
conclusion suggested that SMEs could implement TQM with
substantial triumph and they also found the potentials
inherent in SMEs. Brown (1993) in his case study analysis
suggested that the main reason for adopting TQM by a small
company was to initiate and inculcate a new culture and
management’s wish to earn more profitability to the
company.
III. CASE STUDY ON TQM IMPLEMENTATION
3.1 Introduction
To identify the reality of TQM implementation within a small
automobile manufacturing industry, an attempt has been
made with the help of a survey questionnaire. So, in this
regard, a research instrument in the outlines of questionnaire
was developed. Different sources were used to develop the
questionnaire such as broad literature review, input from
industries, field visits and academic management experts.
The questionnaire was developed in three sections namely:
Section A: Industry’s General information
Section B: Status of Total Quality Management (TQM) Elements
Section C: Status of Total Quality Management (TQM) Implementation
After a analyzing the different questionnaires which were
responded by different industries, an XYZ automobile
industry was selected at random which didn’t have TQM
implementation in it. The industry was manufacturing cam
shafts for various automobiles namely: scooters, motor cycle,
cars, trucks and also manufacturing gears for some
automobile and had a annual turnover of more than Rs. 12
crores. Different suppliers were providing the raw material of
different grades according to vehicle specifications for
forging & machining and simultaneously the industry was
receiving forged parts from different suppliers to machine
them accordingly. Different operations performed on the
products were turning, grinding, drilling, hardening, buffing,
lapping, knurling and lastly inspection by quality control
department.
3.2 TQM Implementation Methodology
TQM engages the entire organization to do efforts for
customer satisfaction (Kanji 1990) which includes customer
priorities, senior management, employee participation,
process & product design and employing quality tools etc.
(Rahman 2001). In the beginning, survey questionnaire
prepared for this research work was sent to industry
authorities. The objective of sending this questionnaire was
to have basic information’s about industry in TQM context.
After analyzing industry’s response, some plant visits were
made and meetings were held with executives of different
departments. After meeting it was suggested to industry that
an organized approach to TQM is required to make it
competitive. Industry started TQM effort in November 2018.
Under the first stage of preparation and awareness the
management developed an innovative quality policy and
displayed it at suitable places in the industry so that it could
be readable to everybody in the industry.
In a statement, the Managing Director defined TQM as “a
philosophy which emphasizes on team work, employee
involvement at all levels and strategic alliance with suppliers
as well as customer in order to reduce waste for achieving
continuous quality improvement”.Finally, management of
the industry permitted to fabricate improvement in one
production line with the help of quality management
approach. Different operations performed in that production
line on the products were turning, grinding, drilling,
hardening, lapping, buffing and lastly inspection by quality
control department.
3.3 TQM Implementation Process
When the idea of TQM implementation was hovered among
the employees, they felt that such a schedule will need much
educated, empowered and trained people. So, management
thought to reinstate some of the employees. Then, top
management foot stepped in and gave an undertaking that
there would be no cutback. The dilemma was fully resolved
when the workers were started to be trained for quality
production.
A problem identification team was established in January,
2019 which included researcher, managing director, general
manager, production engineer and eight workers. First
meeting was held on 7th January, 2019. It was elucidated to
members to identify the probable roadblocks in TQM
implementation. A scheduled problem identification process
(Figure 1) was followed by the team to find the potential
system problems. The problems came out to be as follows:
Poorer recognition of employees and lack of training to them
Pitiable layout plan and inadequate scheduling
Low supplier quality and lubricant deficiency
Deprived working surroundings and lack of team work
Inadequate inspection and lack of calibration
Idle machines and insufficient maintenance
Brainstorming
Procession
Pardeep Gahlota et al. International Journal of Recent Research Aspects ISSN: 2349-7688, Vol. 6, Issue
4, Dec 2019, pp. 1-9
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Figure 1: Problem Identification Process
The gathering helped to uncover promising grounds for fewer
earnings and more wastage. The team decided to convene
after one month. On 19th February, 2019 the second meeting
was held where bringing optimum profit was its aim.
IV. TESTING AND OUTCOMES
Analysis of questionnaire has indicated that the industry was
found to be giving good credence to TQM elements as
obvious from Table 1. Leadership and commitment,
customer satisfaction and quality planning were being given
maximum credence. Supplier’s quality management,
employee involvement & empowerment and evaluation &
continuous improvement were given to be satisfactory
credence. Product design and process management & control
found not to be important from industry’s point of view.
Table 1: Importance of TQM Elements in Industry
Elements Importance
Leadership and Commitment, Customer Satisfaction, Quality Planning Very important
Suppliers Quality Management, Employee Involvement and Empowerment,
Evaluation and Continuous Improvement
Important
Product Design, Process Management and Control Less important
No factor Least important
In the third meeting, held on 8th April 2019, the March 2018
data was brought together for exhaustive study and improved
results. Machines were entitled as Mc-I, Mc-II, Mc-III, Mc-
IV, Mc-V, Mc-VI and Mc-VII and products were entitled as
Job–1, Job–2, Job–3, Job-4, Job-5 and Job-6. Availability of
assorted machines and time taken by each job on each
machine on production line for one month is shown in Table
2 in minutes. Table 3 shows the price (Rs/ unit) of each job
after completion.
Pardeep Gahlota et al. International Journal of Recent Research Aspects ISSN: 2349-7688, Vol. 6, Issue
4, Dec 2019, pp. 1-9
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Table 2: Machine Availability (in minutes) and Time (in minutes) Taken by Each Job on Different Machines
Time
(minutes)
7025 12955 9710 11795 11615 9800 8255
S. No. Job/ Mc Mc-I Mc-II Mc-III Mc-IV Mc-V Mc-VI Mc-VII
1 Job-1 20 35 00 25 40 55 10
2 Job-2 35 50 25 80 35 45 25
3 Job-3 15 25 60 00 50 35 40
4 Job-4 30 15 50 10 65 30 00
5 Job-5 05 40 20 25 20 00 45
6 Job-6 10 45 35 15 00 25 20
Table 3: Price (Rs / Unit) of Each Job after Completion
S. No. Job Price (Rs / Unit ) of job after completion
1 Job-1 520
2 Job-2 370
3 Job-3 550
4 Job-4 470
5 Job-5 380
6 Job-6 220
Job-1- Cam shaft for scooters Mc- I Turning
Job-2- Cam shafts for motor cycle Mc- II Grinding
Job-3- Cam shafts for cars Mc- III Drilling
Job-4- Cam shafts for SUVs Mc- IV Hardening
Job-5- Cam shafts for buses Mc- V Lapping
Job-6- Gears for trucks Mc- VI Buffing
Mc- VII Knurling
Pardeep Gahlota et al. International Journal of Recent Research Aspects ISSN: 2349-7688, Vol. 6, Issue
4, Dec 2019, pp. 1-9
© 2019 IJRRA All Rights Reserved page-6
Figure 2: Cause and Effect Diagram (Ishikawa Diagram) After examining every probable cause in second meeting, an
Ishikawa diagram (Figure 2) was drawn and from the diagram
it was apparent that basis of the problem were straightforward
and can be resolved easily by generating a concept of quality
product in between management and workers and it could be
understandable to both after small training. There was a
necessity of slightly supplementary commitment from
management and additional commitment from workers
which can be accomplished through problem identification
process.
To get to the bottom of the problem for optimum profit, QC
suggested to bring assist of optimization techniques, which
help in obtaining the best results under agreed circumstances
as it facilitates to make decisions such as reducing the effort
required, enhancing desired benefits etc. Mathematical
programming techniques which are most often studied in
operation research are the best possible methods to do so.
Linear-programming technique was used to unravel the
problem. Data was congregated and transformed into the
linear programming problem shown in Table 4.
Table 4: Data Formulation as Linear Programming Problem
Price
(Rs.)
Time
(Minutes)
7025 12955 9710 11795 11615 9800 8255
Job/ Mc Mc-I Mc-II Mc-III Mc-IV Mc-V Mc-VI Mc-VII
520 Job-1 20 35 00 25 40 55 10
370 Job-2 35 50 25 80 35 45 25
550 Job-3 15 25 60 00 50 35 40
470 Job-4 30 15 50 10 65 30 00
380 Job-5 05 40 20 25 20 00 45
220 Job-6 10 45 35 15 00 25 20
The 7 machines and 6 jobs were considered as a linear
programming problem and the objective of maximizing the
revenue is taken. The LPP problem was solved and
maximized revenue was attained where a new job scheduling
on each machine was also suggested. Table 5 resulted about
new job scheduling on each machine as well suggesting that
profit has increased up to Rs. 30,470 per month on production
line, with this TQM approach.
Pardeep Gahlota et al. International Journal of Recent Research Aspects ISSN: 2349-7688, Vol. 6, Issue
4, Dec 2019, pp. 1-9
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Table 5: Expected Increase in Revenues
Jobs Price (Rs./ Unit) Actual
production in
March
Actual
revenue of
March
Suggested
production
through LPP
Expected
revenue of
March
Job-1 520 75 39000 42 21840
Job-2 370 55 20350 88 32560
Job-3 550 20 11000 12 6600
Job-4 470 25 11750 67 31490
Job-5 380 30 11400 95 36100
Job-6 220 65 14300 44 9680
Total revenue 1,07,800 1,38,270
Expected increase in revenues in the month of March- Rs. 30470 /-
V. CONCLUSION
It is evident from the case study that, A Non-TQM Indian
automobile industry adopted all the recommendations given
by problem identification team. There are seven (7) benefits
achieved by the industry which are as follows: 1) Corrected
Layout and adequate scheduling, 2)Enhanced employee
involvement and recognition, 3) Better supplier quality, 4)
Vigorous and liberated working environment, 5) Minimal
wastage of machine hours, 6) Better inspection process and
improved quality and 7) Optimum profit. The machines and
jobs of production line were combined into a LPP production
scheduling problem. The LPP problem was solved for
maximizing the revenue. The final results suggested a
increase of Rs. 30,470 in revenue and new job distribution
on seven machines were suggested to continue the same.It
has been found that the industry has been significantly
benefited in many areas by implementing TQM and
sustaining its competitiveness in market.
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