I. Introduction

With global competition continually getting fierce, Total Quality Management, and

Control is a must for any globally competitive company. Thanks to many organizations

for standardization; management, and over all quality standards has been set by these

organizations for the perusal, and use of companies. One company known for its

quality in every aspect of its organization is the Deming-prized, Chennai-based, air-

break systems and castings manufacturer.

India, being known for its companies that has unreliable quality, Sundaram-Clayton

stands on top of its Indian competitors by being the first Deming-prized Indian

Company. This therefore challenges other Indian companies to be at par with

Sundaram-Clayton’s standards. The Focus of Sundaram-Clayton is overall customer

satisfaction. Not only that, Sundaram-clayton is known for Comprehensive integration

of the supply chain through implementation of ERP (Enterprise-Wide Resource

Planning), which helped Sundaram-Clayton with their responsiveness. Sundaram-

Clayton also implemented Total Employee Involvement through Total Quality

Management, believing that continuously honing the skills of their employees, and

adopting different strategies from different companies, to deliver total quality that will

leave their customers completely satisfied. It is no joke that Sundaram-Clayton

received the prestigious Deming award. Sundaram-Clayton will have to continue such

practices, and not be absolved by other companies in India, which are known for

corrupt practices and unreliable quality. Sundaram-Clayton must stand at the peak of

quality as the bearer of quality and standard in India, and to encourage other

companies to emulate their practices, not only for profit, but for the benefit of India’s

economy as a whole.

II. Statement of the Problem

Global Competition nowadays is fierce, with car manufacturers from asia,

continuously making breakthroughs in their performance, and challenging the big

American car companies, Sundaram-Clayton must continually provide for top-quality

service in order not to lag behind other Asian Car component Manufacturers. The main

problem of SCL (Sundaram-Clayton Limited) is how to continually develop and

strengthen its standard and quality, despite Indian companies’ apathy towards quality

management. Aside from this, they have to know how to be continually be at par with

global standards, amidst global economic crises, and fierce competition.

II. Objectives of the Study

o This study aims to create a wide understanding of the importance of

Total Quality Management.

o This study will try to let the readers understand the importance of Quality

management, amidst global crises and fierce competition

o This study will try to enlighten the readers as to why Quality

management and its sustenance will yield huge profits.

III. Analysis

SWOT analysis

Strengths –

The SCL, has continually been implementing the Company Wide-

Quality control

Implementation of Total Employee Involvement, Policy

Deployment, Standardization, Kaizen, and Training. Making

everyone in the company aware of Quality Control

Integration of 10 parameters of Deming, into 4 streams of quality

practices: policies, people, processes, products

Deming prize Awardee

Weaknesses –

There are no weaknesses seen

Opportunities –

Asian car manufacturers are rising above western competition, which

means that Sundaram-Clayton, being an Asian company, it can cater the

the needs of neighboring powerful companies.

Threats –

Global Economic Crises

Automotive-industry recession in the west

Fishbone Diagram

MAN

MACHINE

MATERIALS

Method

To sustain Quality and Standards

Training

Kaizen

Daily Inspection

Total Quality Control

Deming Standards

VI: findings

Positive:

The SCL, has continually been implementing the Company Wide- Quality control, they

need to implement the Total Employee Involvement, Policy Deployment,

Standardization, Kaizen, and Training. They should make everyone in the company

aware of Quality Control in order for them to sustain Deming prize for their reputation.

Negative:

There are no weakness found in the case but they should be ready for the global

economic crisis and the Automotive-industry recession in the west

V. Alternative courses of action:

ACA 1. They should get an ISO certificate

Advantage: to strengthen their quality beyond deming’s standards.

Disadvantage: SCL does not really need it. It can incur them costs without any

substancial growth

ACA 2. they should should get HACCP certificate.

Advantage: to standardized their hazard control points

Disadvantage: it can be costly

ACA 3. To implement the involvement of the employees and give rewards and benefits

to them

Advantage: it can be a good strategy to raise the company’s profit

Disadvantage : Time consuming, Costly

Recommendation:

We highly recommend that for the company to keep up and sustain their

standards, they should get a certificate from the International Organization for

Standardization (ISO). This will completely prove their company as one of the top

bearer of standards in all aspects of their company. This will also make the

company gain recognition in the European auto industry as an ISO certified

company since ISO is based in Geneva, and is one of the world’s most reknowed

standard setter. Although this can take a lot of company’s time, and resources,

since it is not easy to get certified, getting audited will continually sustain their

quality in every aspect of the company’s work.

Conclusion:

The Auto-industry has faced a down turn during these last few years affected by

the global financial-crises. Aside from this western car manufacturers are also

facing their greatest downturn, making Asian auto manufacturers the leaders of

the industry. The fact that SCL’s immediate market is in asia, creates a huge

advantage. The only factor now is if they can sustain their quality and standard,

despite the increase in demand. This is why an ISO certificate will reconfigure

their standards, while keeping up with their Deming-awarded practices. The ISO

certificate will certainly make the company keep-up with today’s standards, and

growth is not far, despite the crises that the global industry is now facing.

Ateneo de Davao University

In partial and fullfilment for the subject mgt433 – Total Quality Management, MWF 5:50-6:50 2nd sem school year

2010-2011

Case of Sundaram-Clayton

Submitted by:

Ampatuan, Syed Kamal Reza L. Bantug, Mark

Chiong, Kenneth Lago, Carlo

Tan, Kobi Troy

Submitted to: Sir Reynaldo Navacilla