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IJESS Volume2, Issue3 ISSN: 2249- 9482
International Journal of Engineering and Social Science www.gjmr.org 92
TQM WITH SPECIAL REFERENCE TO INDIAN WORLD CLASS
CORPORATIONS: RELIANCE AND TATA MOTORS
Anju Bala*
ABSTRACT
Every nation has its own independent historical and cultural background. The quality
scenario, therefore, differs from some national setting to the other. The nations are orienting
their quality management strategies and systems to meet the requirements of the operating
environment though the primary focus remains the same, that is, Total Customer Satisfaction.
Many of the present techniques of quality management were developed in Japan. However,
U.S.A., European nations and developing nations have also contributed significantly to this
development.
Purpose: The main objective of the present study is to examine and appraise TQM
programmers of Reliance and Tata Motors. These enterprises are ideal private sector
enterprises.
Design/methodology/approach – A questionnaire survey was developed and distributed to a
sample of firms selected from the motor vehicle parts and accessories industry.
Keywords: TQM (Total Quality Management), Performance Evaluation. Organizational
Characteristics, RIL, Tata Motor.
IJESS Volume2, Issue3 ISSN: 2249- 9482
International Journal of Engineering and Social Science www.gjmr.org 93
INTRODUCTION
In today’s global competition and economic liberalization, quality has become one of the
important factors for achieving competitive advantage. A good quality product or service
enables an organization to add and retain customers. Poor quality leads to discontented
customers, so the costs of poor quality are not just those of immediate waste or rectification
but also the loss of future sales. Technological innovations have diffused geographical
boundaries resulting in more informed customers. The business environment has become
increasingly complex and the marketplace has changed from local to global. Constant
pressure is applied on the management to improve competitiveness by lowering operating
cost and improving logistic. Customers are becoming increasingly aware of rising standards,
having access to wide range of products and services to choose from. There is an ever-
increasing demand for quality product and/or services and this global revolution had forced
organizations to invest substantial resources in adopting.
In the globalised economy there is great emphasis on quality both for product and services.
This emphasis has generated a new concept known as TOTAL QUALITY MANAGEMENT.
The concept of total quality management which originated in Japan, has spread throughout
the world and has attracted the attention of Indian corporate sector only recently because of
globalization of economy, increased competition and greater expectation of discerning
customers.
Fiegenbaum has defined TQM as:
“Total composite of product and services characteristics of marketing, engineering,
manufacturing and maintenance through which the product and service in use will meet the
expectation of the customer.”
Indian Statistical Institute has defined TQM as follow:
“TQM is an integrated organizational approach in delighting customer (both internal and
external) by meeting their expectations on continuous basis through everyone involved with
the organization working on continuous improvement in all products, services, and processes
along with proper problem-solving methodology.”
Confederation of Indian Industry (CII) has defined TQM as:
“Meeting the requirement of internal and external customers consistently by continuous
improvement in the quality of work of all the employees.”
In addition, the American Federal Office of Management (cited in Morgan & Migratory,
1997) defines TQM as …a total organizational approach for meeting customer needs and
IJESS Volume2, Issue3 ISSN: 2249- 9482
International Journal of Engineering and Social Science www.gjmr.org 94
expectations that involves all managers and employees in using quantitative methods to
improve continuously the organization’s processes, products, and services. (p. 7)
According to the latter definition TQM is not merely a technical system. In fact, TQM is
associated with the organization itself, which is also a social system. Pike and Barnes (1996)
argue that organizations are not only technical systems, but also human systems. In addition,
Oakland (1993) states that TQM is an attempt to improve the whole organization’s
competitiveness, effectiveness, and structure For Dale (1999),
From the above definitions, we can identify two important aspects that comprise TQM:
management tools and techniques as well as management concepts and principles. The
Techniques refer to what has been referred to as the “hard” aspects of TQM, while the
principles refer to the “soft” side.
The “Hard” Side of TQM
Deming (1986) has stated that “in God we trust - all others must use data.” This statement
emphasizes the importance of management techniques, tools, and systems that compose the
“hard” side of TQM. Using the definition given by Goetsch and Davis (1994) management
tools are means of “collecting and displaying information in ways to help the human brain
grasp thoughts and ideas that, when applied to physical processes, cause the processes to
yield better results” (p. 382). The quality management literature provides a wide range of
quality management tools, techniques, and systems. Some of them are quite simple, while
others are more complex. Table 1 shows the “hard” aspects of TQM most commonly found in
Quality Management Literature. 43 The Qualitative Report March 2007
CONCEPT OF TQM GURU:-
A TQM Guru is an expert thinker who communicates his thought through verbal and written
expression and thus contributes to the field of TQM. Starting just after World War-II a
number of philosophers and thinkers have made their contribution to the movement of “Total
Quality Management”. In this summer of 1985, the name “Total Quality Management was
first suggested by Nancy Warren, a behavioral Scientist in US Navy according to Marry
Walton (1990). Therefore after a number of TQM Guru’s have made their significant
contributions.
Many TQM Guru’s are Americans and very few of them have their origin in Japan.
There are some junior TQM gurus of Indian origin who have also done some laudable work
on TQM. They are: - S.M.Sundara Raju, M.K.Raju, S.V.S Raghavan, M.R.Naidu,
Dr.D.D.Sharma, P.N.Arumugham, H.B.Linganna and S.Ahuja and also D.V.Kapur.
IJESS Volume2, Issue3 ISSN: 2249- 9482
International Journal of Engineering and Social Science www.gjmr.org 95
Quality Gurus
To fully understand the TQM movement, we need to look at the philosophies of notable
Individuals who have shaped the evolution of TQM. Their philosophies and
Teachings have contributed to our knowledge and understanding of quality today. Their
individual contribution is as:-
Walter A. Shewhart –Contributed to understanding of process variab
–Developed concept of statistical control charts.
W. Edwards Deming –Stressed management’s responsibility for quality.
–Developed “14 Points” to guide company’s quality
Improvement.
Joseph M. Juran –Defined quality as “fitness for use.”
–Developed concept of cost of quality.
Armand V. Feigenbaum –Introduced concept of total quality control.
Philip B. Crosby _ Coined phrase “quality is free.”
–Introduced concept of zero defects.
Kaoru Ishikawa –Developed cause-and-effect diagrams.
–Identified concept of “internal customer.”
Genichi Taguchi –Focused on product design quality.
–Developed Taguchi loss function.
Research Objective and Methodology:-
The main objective of the present study is to examine and appraise TQM programmes of
Reliance and Tata Motors. The organizations selected Reliance and Tata Motors pertain to
private sector but they are major business units with myriad activities.
Hence case study of these two Indian Private Sector companies would act like beacon light
for other private sector enterprises endeavoring to go global. The major thrust area of the
study will be the role and work done by world class TQM gurus and TQM and management
relationship, QCs, JIT, Teamwork for quality, TEI, Bench-marking, Quality system standard.
Some of the other objectives of the present study are:
o To study the organizational, managerial and product profile of Reliance and Tata
Motors and also the performance of these organizations in different areas.
o To study basics of total quality, TQM, TQM thinkers and thoughts and cost of
qualities and Kaizen continuous improvement.
Methodology:
IJESS Volume2, Issue3 ISSN: 2249- 9482
International Journal of Engineering and Social Science www.gjmr.org 96
The study is both descriptive as well as applied. The researcher would make intensive and
extensive study of standard current literature on TQM for conceptual and philosophical part
of the study. The hypothesis would be tested with the help of qualitative statement and
quantitative techniques. Statistical tool would also form part of the testing of the hypotheses.
The primary data would be collected with the help of questionnaires, interview and
discussion techniques. The secondary data are collected from company‘s record, annual
report, news-letters, websites and newspapers editorial comments.
1.1 UNDERSTANDING TOTAL QUALITY MANAGEMENT (TQM)
Total Quality Management has many definitions. Gurus of the total quality management
discipline like Deming, Juran, Crosby, Ishikawa and Feigenbaum defined the concept in
different ways but still the essence and spirit remained the same. According to Deming,
quality is a continuous quality improvement process towards predictable degree of uniformity
and dependability. Deming also identified 14 principles of quality management to improve
productivity and performance of the organization. Juran defined quality as “fitness for use.”
According to him, every person in the organization must be involved in the effort to make
products or services that are fit for use. Crosby defines quality as conformance to
requirements. His focus has been on zero defects and doing it right the first time. Ishikawa
also emphasized importance of total quality control to improve organizational performance.
According to him quality does not only mean the quality of product, but also of after sales
service, quality of management, the company itself and the human life. Feigenbaum defined
total quality as a continuous work processes, starting with customer requirements and ending
with customer’s satisfaction.
Definitions of quality have changed with the passage of time with changing customer’s needs
and requirements. But the essence has more or less been to develop an approach to problem
solving, conformation to standards for customer satisfaction. With management functions
getting complex, approaches to managing quality in functional areas are becoming difficult.
Organizations, which have successfully use TQM principles, have customer and quality
embedded in their corporate strategy.
ISO defines TQM as: “TQM is a management
Approach of an organization, centered on quality, based on the participation of all its
members and aiming at long-term success through customer satisfaction, and benefits to all
members of the organization and to society.” Total Quality Management (TQM) is a
management strategy aimed at embedding awareness of quality in all organizational
IJESS Volume2, Issue3 ISSN: 2249- 9482
International Journal of Engineering and Social Science www.gjmr.org 97
processes. TQM has been widely used in manufacturing, education, government, and service
industries, as well as NASA space and science programs.
The Four Pillars of TQM
The role of top management in implementation of total quality is crucial and its input on
people far-reaching. TQM, therefore, should be understood as management of the system
through systems thinking, which means understanding all the elements in the company and
putting them to work together towards the common goal. The TQMEX Model advocates an
integrated approach in order to support the transition to systems management which is an
ongoing Process of continuous improvement that begins when the company commits itself to
managing by quality. The Model illuminates the elements that form a base to the
understanding of TQM philosophy and implementation of the process company-wide.
The Structure of TQMEX:
IJESS Volume2, Issue3 ISSN: 2249- 9482
International Journal of Engineering and Social Science www.gjmr.org 98
ELEMENTS OF A TOTAL QUALITY MANAGEMENT PROGRAM
The following elements are essential in any successful quality management program:
1. Management commitment to total quality management.
2. Training in simple statistical techniques, the nature of samples, collecting data, variation
and the program to be implemented.
3. Organization structure emphasizing work group authority and accountability for results.
4. Statistical process Control (SPC) system to monitor and control process variable
variation.
5. Formal performance reports based on output from the SPC system.
6. Systemized team approach to problem solving.
7. Continuing emphasis on reducing variation in the product process.
REVIEW OF LITERATURE
Certain Research Studies on TQM in India and abroad have been undertaken by various
scholars J.M.Juran, Chairman Emeritus, Juran Institute is the pioneer quality guru and has
contributed a lot to the management of TQM. His Quality Control Handbook (1951) gave 14
points quality mantras. Philip B. Crosby (1972) did lot of research work on TQM. Armand
V. Feigenbaum (1991) contributed much toward total Quality control. Kaoru Ishikawa of
Japan (1975) contributed toward development of QCs. Genichi Taquchi worked as Director
of Japanese Academy Of Quality between 1978-82. Shigeo Shingo (1985) pioneered the area
of Zero Quality Control. W G Ouchi gave “Theory Z” and researched the impact of Japanese
management philosophy on American Businesses.
Certain Quality gurus like-S.M. Sundara Raju (1995), UNIDO Expert and Advisor Quality
Technology and Management, contributed toward TQM improvement programmes.Dr.
IJESS Volume2, Issue3 ISSN: 2249- 9482
International Journal of Engineering and Social Science www.gjmr.org 99
D.D.Sharma (2000) wrote a master- piece work “TQM-Principles, Implementation and
cases”. The result drawn would be beneficial for adaptation of TQM programmes.
BACKDROP OF ORGANISATIONS SELECTED
Profile of Tata Motor:-
Tata Motors Limited is India’s largest automobile company, with consolidated revenues of
Rs.1,23,133 crores (USD 27 billion) in 2010-11. It is the leader in commercial vehicles in
each segment, and among the top three in passenger vehicles with winning products in the
compact, midsize car and utility vehicle segments. The Company is the world's fourth largest
truck manufacturer, and the world's third largest bus manufacturer. The Company's over
25,000 employees are guided by the vision to be "best in the manner in which we operate,
best in the products we deliver, and best in our value system and ethics."
Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India.
Over 5.9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The
Company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Luck now (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and
Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an
industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce
both Fiat and Tata cars and Fiat powertrains. The Company's dealership, sales, services and
spare parts network comprises over 3500 touch points; Tata Motors also distributes and
markets Fiat branded cars in India.
Tata Motors, the first Company from India's engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international automobile
company. Through subsidiaries and associate companies, Tata Motors has operations in the
UK, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business
comprising the two iconic British brands that was acquired in 2008. In 2004, it acquired the
Daewoo Commercial Vehicles Company, South Korea's second largest truck maker. The
rechristened Tata Daewoo Commercial Vehicles Company has launched several new
products in the Korean market, while also exporting these products to several international
markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from
Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed
Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009.
Hispano's presence is being expanded in other markets. In 2006, Tata Motors formed a joint
venture with the Brazil-based Marco polo, a global leader in body-building for buses and
coaches to manufacture fully-built buses and coaches for India and select international
IJESS Volume2, Issue3 ISSN: 2249- 9482
International Journal of Engineering and Social Science www.gjmr.org 100
markets. In 2006, Tata Motors entered into joint venture with Thonburi Automotive
Assembly Plant Company of Thailand to manufacture and market the Company's pickup
vehicles in Thailand. The new plant of Tata Motors (Thailand) has begun production of the
Xenon pickup truck, with the Xenon having been launched in Thailand in 2008.
Tata Motors is also expanding its international footprint, established through exports since
1961. The Company's commercial and passenger vehicles are already being marketed in
several countries in Europe, Africa, the Middle East, South East Asia, South Asia and South
America. It has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,
Russia, Senegal and South Africa.
The foundation of the Company's growth over the last 50 years is a deep understanding of
economic stimuli and customer needs, and the ability to translate them into customer-desired
offerings through leading edge R&D. With over 4,500 engineers and scientists, the
Company's Engineering Research Centre, established in 1966, has enabled pioneering
technologies and products. The Company today has R&D centers in Pune, Jamshedpur, Luck
now, Dharwad in India, and in South Korea, Spain, and the UK. It was Tata Motors, which
developed the first indigenously developed Light Commercial Vehicle, India's first Sports
Utility Vehicle and, in 1998, the Tata Indica, India's first fully indigenous passenger car.
Within two years of launch, Tata Indica became India's largest selling car in its segment. In
2005, Tata Motors created a new segment by launching the Tata Ace, India's first
indigenously developed mini-truck.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the
world have been looking forward to. The Tata Nano has been subsequently launched, as
planned, in India in March 2009. A development, which signifies a first for the global
automobile industry, the Nano brings the comfort and safety of a car within the reach of
thousands of families. The standard version has been priced at Rs.100,000 (excluding VAT
and transportation cost).
Designed with a family in mind, it has a roomy passenger compartment with generous leg
space and head room. It can comfortably seat four persons. Its mono-volume design will set a
new benchmark among small cars. Its safety performance exceeds regulatory requirements in
India. Its tailpipe emission performance too exceeds regulatory requirements. In terms of
overall pollutants, it has a lower pollution level than two-wheelers being manufactured in
India today. The lean design strategy has helped minimize weight, which helps maximize
performance per unit of energy consumed and delivers high fuel efficiency. The high fuel
IJESS Volume2, Issue3 ISSN: 2249- 9482
International Journal of Engineering and Social Science www.gjmr.org 101
efficiency also ensures that the car has low carbon dioxide emissions, thereby providing the
twin benefits of an affordable transportation solution with a low carbon footprint.
In May 2009, Tata Motors introduced ushered in a new era in the Indian automobile industry,
in keeping with its pioneering tradition, by unveiling its new range of world standard trucks
called Prima. In their power, speed, carrying capacity, operating economy and trims, they will
introduce new benchmarks in India and match the best in the world in performance at a lower
life-cycle cost.
Tata Motors is equally focused on environment-friendly technologies in emissions and
alternative fuels. It has developed electric and hybrid vehicles both for personal and public
transportation. It has also been implementing several environment-friendly technologies in
manufacturing processes, significantly enhancing resource conservation.
Through its subsidiaries, the Company is engaged in engineering and automotive solutions,
construction equipment manufacturing, automotive vehicle components manufacturing and
supply chain activities, machine tools and factory automation solutions, high-precision
tooling and plastic and electronic components for automotive and computer applications, and
automotive retailing and service operations.
Tata Motors is committed to improving the quality of life of communities by working on four
thrust areas – employability, education, health and environment. The activities touch the lives
of more than a million citizens. The Company's support on education and employability is
focused on youth and women. They range from schools to technical education institutes to
actual facilitation of income generation. In health, our intervention is in both preventive and
curative healthcare. The goal of environment protection is achieved through tree plantation,
conserving water and creating new water bodies and, last but not the least, by introducing
appropriate technologies in our vehicles and operations for constantly enhancing environment
care.
With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.
Reliance Industries Limited (RIL)
(BSE: 500325, NSE: RELIANCE, LSE: RIGD) is the largest private sector conglomerate
company headquartered at Mumbai, India. The company is largest by annual turnover of
US$58.5 billion and market capitalization of US$78.2 billion for the fiscal year ending in
March 2011 making it one of the largest India's private sector companies, being ranked at
264th position in the Fortune Global 500 (2009) and at the 126th position in the Forbes
Global 2000 list (2010).
IJESS Volume2, Issue3 ISSN: 2249- 9482
International Journal of Engineering and Social Science www.gjmr.org 102
Reliance was founded by the Indian industrialist Dhirubhai Ambani in 1966. Ambani has
been a pioneer in introducing financial instruments like fully convertible debentures to the
Indian stock markets. Ambani was one of the first entrepreneurs to draw retail investors to the
stock markets. Critics allege that the rise of Reliance Industries to the top slot in terms of
market capitalization is largely due to Dhirubhai's ability to manipulate the levers of a
controlled economy to his advantage.
Though the company's petrochemicals, refining, and oil and gas-related operations form the
core of its business, however, other segment of the company includes textile, retail business,
telecommunications and special economic zone (SEZ) development. After severe differences
between the founder's two sons, Mukesh Ambani and Anil Ambani, the group was divided
between them in 2006. In September 2008, Reliance Industries was the only Indian firm
featured in the Forbes's list of "world's 100 most respected companies. In 2010, it stood at
13th position in the Platts Top 250 Global Energy Company Rankings
According to the company website "1 out of every 4 investors in India is a Reliance
shareholder." Reliance has more than 3 million shareholders, making it one of the world's
most widely held stocks. Reliance Industries Ltd, subsequent to its split in January 2006 has
continued to grow. Reliance companies have been among the best performing in the Indian
stock market.
On the 1st of July, 2011, Reliance Industries Ltd. fell 4% after the Press Trust of India
reported that a federal probe agency (CBI had registered a case against V.K. Sibal, a former
Director General of Hydrocarbons, for allegedly favoring "leading private players and
foreign consultants involved in oil and gas explorations." Although the agency didn't name
any private-sector companies, dealers said that Reliance dropped sharply because of concerns
that the company could be one of those allegedly involved.
PRODUCT:
Reliance Industries Limited has a wide range of products from petroleum products,
petrochemicals, to garments (under the brand name of Vimal), Reliance Retail has entered
into the fresh foods market as Reliance Fresh and launched a non-veg chain called Delight
Reliance Retail and NOVA Chemicals have signed a letter of intent to make energy-efficient
structures.
Major subsidiaries and associate
Reliance Life Science is a research-driven, biotechnology-led, life sciences organization that
participates in medical, plant and industrial biotechnology opportunities. Specifically, these
relate to Biopharmaceuticals, Pharmaceuticals, Clinical Research Services, Regenerative
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IJESS Volume2, Issue3 ISSN: 2249- 9482
International Journal of Engineering and Social Science www.gjmr.org 104
review corporate governess benchmarking organizational Re-engineering, quality circles,
continuous improvement PDCA cycle etc. Indian organizations facing a challenge from the
inflow of MNCs since the Government f India has implemented the polices liberalization,
privatization and globalization. In the light of this, they are in the dire need of new ideas,
approaches and techniques for attaining a competitive edge. Many Indian organizations have
started realizing the importance of Total quality management and new quality system
improvement standards. More and more organizations in Indian Corporate world are striving
to obtain ISO 9000 accreditation and several of them have already got these. They have
realized that continuous improvement is the key to excellence. Taking into consideration all
the above facts, the researcher has selected major private sector companies per excellence in
TQM movement. The researcher hopes that Indian companies both in private and public
sector would learn lesson from these companies and would make full attempts. To realize the
benefits of TQM in the changing industrial and economic scenario of India.
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IJESS Volume2, Issue3 ISSN: 2249- 9482
International Journal of Engineering and Social Science www.gjmr.org 105
(14) Raju Sundara, S.M.: Total Quality Management, Tata McGraw Hill
Publishing Company Limited, New Delhi, 2007.
(15) Mizuno, S: Management for quality Improvement: The 7 New QC Tools,
Productivity Press, London, 2006.
(16) Kothari, C.R.: Research Methodology, Wishwa Prakashan, New Delhi, 2008.
(17) Anhony, Robert N. AND John Dearden: Mnagement Control Systems,
Richard D.Irwin, Homewood, 11, 2001.
(18) Andrews, Kenneth R.: The Concept of Corporate Strategy, Richard D.Irwin,
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Annual Report of Reliance Industries-2007-10.
Annual Report of Tata Motors-2007-10.
Websites:
www.hindustaneconomy.com
www.ril.com
www.tatamotors.com
Journals
Paradigm-IMT Journal Quarterly
Vikalpa-Journal of IIM, Ahmadabad
Faculty of Management Journals, D.U.