Total quality management at Mahindra & Mahindra Limited
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Transcript of Total quality management at Mahindra & Mahindra Limited
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.