The Holistic Approach to Quality Management: A Case Study of Indian Industry

Sanjiv Gupta
Ph.D Scholar, Chandigarh University
[email protected]

ABSTRACT
This paper traces the evolution of quality in the field of Production and Operations in the
manufacturing industry, especially the trajectory of growth from an abstract idea to a fully-
developed action plan. Through the diachronic approach that examines the four industrial
revolutions, it establishes the evolution of quality from ‘inspection’ to ‘assurance’. After the
Indian market was thrown open in 1991, the Indian industry evolved in order to keep in step with
global competitors. Since then, operations management teams have studied and adopted various
kinds of methodology to improve the quality of their products. The industry has been working
towards winning prestigious quality awards which can bear testimony to the quality standards
they follow. The Deming Prize is one such award, which certifies that the systems being
followed by the organisation can sustain and improve the quality of the product. The study
follows the Deming guidelines in order to understand the process which industries maintain to
win this award. The author has studied three Deming award winning organisations to understand
the basic conditions to be fulfilled before vying for the Deming. This study will help managers
and engineers identify gaps in the quality systems they follow. The implications drawn by the
author are directed towards any organization interested in achieving process and product quality
across the board.
KEYWORDS
Quality, Process, Employees, Management, Industry.

1
 The Holistic Approach to Quality Management: A Case Study of Indian Industry

1. INRODUCTION
An integral part of human existence means existing in line with a Quality system, more so
in the industrial context. Quality is identified with the manufacturing and service sector and its
evolution has been a crucial part of industrial growth from the beginning of the twentieth
century. Today, it has become a way of life in every field and drives business growth. Quality is
often defined by the manufacturing world as ‘conformance to specifications that is also termed
standard’. If the product meets the needs of the customers and fulfils expectations, it is termed as
a good quality product. The desire for improvement in quality of goods and services is quite old,
ever since prices were based on the quality of products.
The history of modern quality assurance has spanned over two centuries as well as several
cultures, continents and major historical events. Different individuals and philosophies
associated with the quality movement have shaped the current state of quality management and
quality engineering, as well as attested to the difference a quality-driven approach can make in
delivering a successful product.
1.1 The History of Quality Evolution in the Industrial Environment
The First Industrial Revolution (1760 – 1820) saw the introduction of a new
manufacturing process. During this period, the manufacturing processes shifted from hand
production to machine production. Process innovation led to change in the manufacturing
process by introducing new chemical and iron production systems. Since this revolution began in
Great Britain, most of the innovators were British.
The Second Industrial Revolution (1870- 1914) is also called the Technological
Revolution. This was a period of product innovation. The introduction of the railway network,
telegraph and new products for electric power generation and transmission were the highlights of
this era. In this era, the manufacturing industry shifted to the moving line and mass production
technology. In the 1920s and the 1930s, the concept of evaluating manufacturing processes to
promote product quality entered the American system. “Statisticians in Germany and America
applied statistical methods for analyzing and controlling quality variations in the product
manufacturing process, according to Kolb and Hoover (2012). During World War II (1939-
1945), the concept of quality management emerged in order to take care of the emerging need for
high quantity in military products with very stringent quality standards.”To institutionalize the
concept of quality management, the American Society for Quality Control was formed (ASQC).
Gradually, the inspection department became the department of Quality Engineering (QE) or
Quality Assurance (QA). These departments started working on process compliance to ensure
in-built quality. Four factors were identified which could lead to in-built quality, as follows:
1. Man
2. Machine
3. Method

2
4. Material
The technology / process department started laying down production processes on the basis
of these four parameters. The focus of QE/QA shifted from inspection of products to the
auditing of the manufacturing process. The technical experts believed that if the process is laid
down correctly and is followed as planned, without any short cuts, the quality of the product will
automatically remain within the designed parameters. The different individuals and movements
associated with the evolution of quality as a desirable goal have shaped the current state of
quality management and quality engineering and demonstrated the difference that a quality-
driven approach can make in delivering a successful product.
The Third Industrial Revolution saw innovation in information and communication
technology. During this era, internet services were launched. More importance was given to the
generation of energy and renewable sources of energy. 3D printing using nylon or plastic based
material was introduced (Bhatt Ashish, 2017).
The Fourth Industrial Revolution has taken the manufacturing world by storm.
Entrepreneurs, multinational companies, corporate houses and start ups are adopting new
technology to improve their products. Digital technology is taking root in all types of business.
Technological breakthroughs have taken place in robotics, Artificial Intelligence, nano-
technology and bio technology. According to Michael Dell, the Founder of Dell Inc. ‘the next
Trillion dollars will be earned with data – for our customers and our industries’ (Bhatt Ashish,
2017).
Like the revolutions that preceded it, the Fourth Industrial Revolution has the potential to
raise global income levels and improve the quality of life for populations around the world. The
revised demands of the consumer mean more hard work for the producer. Offering all these
services seamlessly makes its own demands on the assurance of continued and consistent quality
levels. The need of the hour is not piecemeal implementation but the holistic application of Total
Quality Management across the board (Bhatt, Ashish, 2017). However, the possibilities of
employment and intensity of competition in the labor market and general skill profile demand
have all changed.
1.2 Quality Inspection and Quality Control
After the Industrial Revolution, the manufacture of products became more complicated
and jobs became more specialized, thus introducing the need to inspect products for quality after
each stage of manufacture. In addition, poor quality performance created complications within
the existing scientific management system. Factory managers created inspection departments to
keep defective products from reaching customers, a practice that focused more on the end results
than on the process of manufacturing. During 1920-1935, the concept of evaluating
manufacturing processes to promote product quality entered the industrial American system.
Statisticians in Germany and the United States applied statistical methods for analyzing and
controlling quality variations in the product manufacturing process. Dr Deming stressed the need
for Statistical Process control in manufacturing organisations. According to his philosophy,
charts and checklists, supplemented by uncompromising focus on the consumer were essential
factors to build a quality product. As soon as the manufacturing organizations in Japan adopted
his philosophy, Japanese quality made a turnaround. Various industries in India also adopted the

3
methodology of Dr Deming to improve their performance. The author has been a part of one
such organisation that worked to win the Deming prize and having been one of the team leaders,
he faced the challenges that the process brought along in its wake. This experience helped him
realize the importance of conducting a study that would yield guidelines for all stakeholders.
This became the justification for pursuing the study of three Deming award winning
organisations with the objective of understanding the basic conditions to be fulfilled before vying
for the Deming.
1.3 Stages of Quality Management:
There are four stages in the evolution of quality management (Dale et al., 1999)
shown in Figure I. The details are as follows

 Inspection
 Quality Control
 Quality Assurance Policy Deployment

 Total Quality Management Process Management

Total Quality Process Management

Management
Team work
Total Quality Management
Employee
involvement

Quality System
Deployment

Quality Assurance Quality

Assurance Advanced Quality
Planning

FMEA, SPC

Self Inspection

Quality Control Quality Develop Quality

Manual
Control
Product Testing

Inspection
Salvage
Inspection
Corrective action

Figure I: STAGES OF EVOLUTION OF QUALITY

2. RESEARCH METHODOLOGY

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 Quality certification is the testimony to confirmation of the highest quality standards in
the manufacturing process that includes production process, product testing, final inspection and
delivery to customers. In the last few years, there has been an increase in these awards
worldwide based on methodology, type of industry and size of industry. ISO 2000: 2013, ISO
14001, BIS, AGMARK, Codex for food and EN standards are some of the awards which bear
testimony to adherence to quality standards by organisations in the service and manufacturing
sector. In this era of competition, every organisation is focussed on improving its brand image
by adhering to the standards of such certifications. Winning a quality award is a matter of
prestige and testimony of one’s ability to maintain the quality of products and services.
Organisations are spending more resources like time, effort and money in order to adhere
to quality standards. Though there are a number of quality certifications, only a few have been
able to maintain their glory and standard.
Deming is one of the most coveted certifications, which is awarded to very few
organisations. In India, only a handful of organizations have been bestowed this honour. In the
landscape of TQM, this certification is awarded to those organisations which show exemplary
improvement in Productivity, Design, Product Development, Delivery and Customer Interface
that includes supply and recall of products.
To remain at the cutting edge in this era of competition, Indian companies are setting the
benchmark in various systems while following the stringent parameters set by the Deming. Since
Indian companies are aspiring to position themselves in the league of high performing companies
globally, it is important that they improve upon TQM practices by adopting the highest
certification standards. Very few companies in India have achieved Deming certification. A
study has been made to compare the adoption of various parameters (as defined by the Deming
Prize committee) by a few select manufacturing organisations who have been awarded this prize
in the last six years. The Deming prize committee has framed the following ten elements as a
guide to win the Deming Prize.
1. Policies
2. Organisation
3. Information
4. Standardisation
5. Human Resources
6. Quality Assurance
7. Maintenance
8. Improvements
9. Effects
10. Future Plans
This study has been conducted on the following three organisations:
1. Ashok Leyland Pantnagar
2. CEAT Ltd.
3. Mahindra & Mahindra - Swaraj Division

5
 The data was collected through a detailed analysis of the communications submitted to
JUSE by these organisations and henceforth posted on the JUSE website. Once this data had
been analysed and tabulated, interaction with the key functionaries of these companies was done
in order to get confirmation and further clarity. The interaction varied from supervisor to top
management; belonging to different departments of the organisation. The interaction was in the
form of informal discussion regarding implementation of the Deming award, steps taken by them
to apply for it and the hurdles faced during the implementation.
3. DATA ANALYSIS AND DISCUSSION
3.1 Ashok Leyland
Ashok Leyland is an Indian Automobile company headquartered in Chennai, India. It is
owned by the Hinduja Group. Founded in 1948, it is the second largest commercial vehicle
manufacturer in India and twelfth largest manufacturer of trucks globally. In the trucks segment,
Ashok Leyland primarily concentrates on the 16 to 25- ton range. However, they have a presence
in the entire truck range, from 7.5 to 49 tons. Ashok Leyland established the Pantnagar
(Uttarakhand) plant (ALP) as a green field project in 2010 for manufacturing new generation
Light Commercial Vehicles with an installed capacity of 75,000. The vision statement of ALP is:
“Help to achieve organization’s vision through World-Class Operations and contribute to
Uttarakhand’s development by enhancing Localization as well as increasing Employability”.
ALP, from its inception, has the latest technology from all over the world, chosen to
perform critical operations. For ALP, World Class Operation is: “Improving Customer
Experience through Competitive Quality Levels and On Time Delivery while operating with
Capital Efficient Practices at a “Happy Work Place” [Union of Japanese Scientists and Engineers
(JUSE), 2016. See Appendix 2]
3.2 CEAT Ltd
CEAT is one of India’s leading tyre manufacturing companies. Founded in 1979 by Rama
Prasad Goenka, CEAT manufactures a wide range of radial and bias tyres for both commercial
and passenger vehicle segments. CEAT has four in house plants at Bhandup, Nasik, Halol and
Nagpur, as well as various outsourcing units. It is one of the leading players in India’s domestic
retail market.
3.3 Mahindra & Mahindra – Swaraj Division
Swaraj Division (SD) is an independent strategic Business unit of the Farm Equipment
Sector of Mahindra & Mahindra. The Swaraj Division is engaged in the manufacture of Tractors
in the range of 21 H.P. to 72 H.P. It has two manufacturing plants – Plant-I at Mohali and Plant-
II at Chappercheri (10 km. from Plant-I) in Punjab, India. The Total production capacity of the
Swaraj Division is around 100000 Tractors.
3.4 Deming Prize Parameters
3.4.1 Policies

ALP CEAT M&M -Swaraj

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 Business objectives were  The management’s view of A Policy Management
identified as per the aspects CEAT during a top process was initiated at
of Vision. management exercise in Swaraj in 2009 with the
FY08 was: “The current purpose of aligning the
 The relevant long term goals CEAT is slow, conservative, employees with the vision
for each business objective inward-focused and and business objectives of
were formulated till 2020 complacent in good times, the organization and
and these Goals are while being a survivor in ensuring superior
reviewed yearly with a times of crisis - getting performance.
three-year projection. together and showing
flexibility”.  The process of policy
 These annual plans for management flows from the
achieving the objectives are  To overcome the concerns organization’s vision and
further deployed in the of low Quality, poor deployment of goals in line
entire organization through a efficiency and poor delivery, with a Long Term Plan
Policy Deployment Process. the management decided to (LTP) and culminates with a
adopt a new way of strong review mechanism.
 This Process was adopted as
thinking, executing and
a tool for managing business  Objectives & Goals are
managing, known as Quality
in FY14 and deployment of deployed from CE to the
Based Management (QBM).
the organization’s vision and Divisions, from Divisions to
strategy up to department  To reach the top 10 the Departments.
head levels through the “X” EBITDA making tyre
– Matrix and tree diagram. companies globally, growth  In order to improve the
was to be pegged at 3.5X in policy of each subsequent
 The objectives and action year, input from the previous
the next 5 years.
plan are communicated to all year’s diagnosis is
employees through a well  It encouraged the company incorporated. Thus, the CE
structured process. to define visionary goals that Policy sets the course for the
are more ‘game changing’ organization for the next
 The company has a well-
and also emotionally financial year.
defined Quality policy
compelling.
which defines the objectives  Swaraj division having
to offer defect-free products  Consequent to following developed a vision and a
to the customer. QBM methodology, a policy long term aspiration, aims at
development and satisfying the customers by
 The policies are
deployment process was offering them high quality,
communicated through
built into CEAT’s Annual trouble free and environment
personnel interaction and
Planning system. friendly products at
displayed throughout the
affordable prices, backed by
plant.  The current process has dependable and timely after
undergone many changes sales service.
 ALP has been able to steer
based on findings from the
the course, moving from
last few years through a  The mission of Swaraj is:
daily management to
review of progress of policy “To bring farm-tech
developing systems.
objectives as well as internal prosperity and drive positive
(JUSE,2016)
management diagnosis. change in the life of our
stakeholders including the

7
  The objectives are proposed end customers (farmers) &
during a joint meeting with communities”.
first line supervisors, thus
making the communication  The action plan for
process a robust one. achieving the vision is
finalized accordingly, which
 The company evolved a is primarily based on TQM
comprehensive planning methodology.
system that extends from a
5- year horizon Long Term  The policies are
Demand and Supply communicated to employees
Planning system to a daily at all levels through
machine level scheduling quarterly and yearly
system. meetings.

 These policies are deployed  The top management takes

through the top management part in all critical meetings
level to the respective so as to convey their support
functions. In addition to in achieving the objectives.
these, Policy objectives are (Mahindra & Mahindra Ltd.
also identified at the Swaraj Division, 2012)
functional level (Level One
or L1) which are deployed
by the functional heads.
(JUSE,2017)

3.4.2 Organisation

ALP CEAT M&M Swaraj

 The plant has a well  Based on the QBM  Keeping in view the
documented organizational approach, more emphasis philosophy of TQM, the
structure. was given to improve the company has laid major
quality of the in house emphasis on quality
 The Organization structure manufacturing processes and improvement so as to deliver
comprises of corporate take remedial action defect free product to its
functions and plants. immediately. customers.
 The Head, Manufacturing &  To achieve this, Daily work  To improve employee
Project Planning who reports management was involvement and to build
to the MD is responsible for introduced. TQM culture, the Training
all the manufacturing plants Department focuses on
along with Project Planning.  It starts with basic role “Change Facilitation” and
clarity to each individual on “Inculcating TQM Culture”
 To embed quality culture in what is expected from them as an organizational need.
the organisation, SGA group on a routine basis.
(Small Group Activities)

8
 was promoted, which helped  This is provided by means of  Supervisory skills as well as
to improve the product a ‘Role Template’ which TQM based training in
quality. outlines the blueprint of a Standardization, basic QC
role as well as an overall tools, SPC, advanced tools
 A Suggestion Scheme is in role definition. like QFD, FMEA and DOE
place for individual is conducted regularly.
suggestions.  These role templates are
reviewed on a yearly basis to  Daily Work Management
 A complete Kaizen check whether the objectives was started with an objective
hierarchy has been of a particular role are still to keep regular control over
developed based on the level valid. Production, Quality, Cost
of complexity and employee and Delivery.
participation.  Otherwise need-based
revision of role template is  Every day, area wise quality,
 With the initiation of TQM, done and signed off. production target, cost &
Processes have been productivity concerns are
established to enhance  In order to achieve the discussed for corrective
people engagement, targeted Quality, Cost and measures along with a status
capability and team work. Delivery parameters with review.
highest impact on customer
 The accountability of people satisfaction, a horizontal  Defects are resolved through
has been shifted to processes virtual structure was Kaizen (QC Story Problem
and departments with HR established through cross solving / Task), Poka-Yoke
support. functional councils. etc. followed by SOP
revision and standardization.
 All people related processes  Cross functional councils
are run through CFT review the end-to-end value  This enables the officers to
approach. (JUSE,2016) chain of the business process monitor, decide and
and deploy the QCD goals implement effective
accordingly. countermeasure through
CFTs.
 To create a modern work
culture, the company  The use of DWM has
adopted the Self-Managed significantly contributed
Team (SMT) philosophy. towards improving
SMT is an empowered manufacturing performance.
group of people with
operational decision-making
authority on the shop-floor.
 SMT’s subsequently
undertook various projects
for quality improvement and
achieved much needed
success. (JUSE,2017)

9
3.4.3 Information

ALP CEAT M&M -Swaraj

 The organization has a  Since tyres are a customer  Collection of Internal and
structured communication centric product, capturing external data is a focus area
system for collecting and their voice was a major at Swaraj.
sharing all internal objective. Information of
information. external environment and  Information Technology is
customer perception was extensively used for this
 Regular meetings with given top priority. purpose.
workmen, supervisors and
front line managers are a  All information regarding  The IT infrastructure
part of this system. the status of each objective provides Web Applications
and their plan is shared with and Mobility Solutions for
 Information about changes employees through in-house providing information
in business environment is meetings. connectivity with Dealers
well captured and is used to and Suppliers and
draw future plans.  A People Red Book was Implementation of SAP for
designed to collect the voice integrating various Business
 To improve feedback and of the people and convert Functions.
speed up business actions them into phenomena, which
with suppliers, AL SQA are resolved before they  For providing innovative
(Supplier Quality become bigger issues. solutions, software has been
Assurance) utilized IT developed for instant
enabled systems in Supplier  IT system enables business information flow to dealers.
Quality processes. to execute strategies and Similarly, an online website
provides the necessary has been developed which is
 In the first phase, a backbone for process control further integrated with SAP
supplier’s performance and automation. to ensure the availability of
index like SQMI (Supplier real time information to
Quality Maturity Index) and  The organization’s tactical suppliers.
PPM level real time data knowledge and data is
was made available on the secured on a centralized  To provide better services to
AL website. (JUSE,2016) knowledge management the customers, the existing
system. Manufacturing has warranty claim handling
developed its strategy system has been upgraded
“Digitization in for analysis of quality
manufacturing processes” to parameters.
expand the digital capability
across all the manufacturing  This provides an analysis of
plants. field complaints received
through warranty claims.
 Systems like on-line data
acquisition from process and  The Customer Voice
MIS generation, barcode and Collection System has also
RFID scanners for product been strengthened to collect
identification and error the information and initiate

10
 proofing, are the major appropriate action on it.
digital initiatives taken in
the Hallo plant.  This system is in use for
external as well as internal
 The new plant at Nagpur has customers.
also implemented MES
(Manufacturing Execution
System) on an IoT (internet
of things) platform.
(JUSE,2017)

3.4.4 Standardisation

ALP CEAT M&M Swaraj

 Improvements in QA  The organization has a well  The Effective utilization of

systems resulted in the placed system for SOP (Standard Operating
organization being certified maintaining Standard Procedures) & QCPC
to TS 16949 standard. Operating Procedures, which (Quality Control Process
are audited at regular Chart) is a part of their Daily
 As a result of Daily intervals as per the need. Work Management.
Management methodology
as well as ISO efforts, the  A separate system is  SOPs have been developed
framing and use of standards followed to maintain quality covering guidelines on
was introduced in all areas. standards of Raw materials “How to do” in line with
and in process quality “What to do”. 100% of
 More than 2500 Standard standards. machining and assembly
operating procedures and operations were
Work instructions were  Manufacturing units of standardized in the SOPs.
created and displayed on the CEAT are certified for
shop floor. ISO9001, ISO TS16949,  SOPs are continuously
ISO 14001 and OHSAS revised based on the process
 More than 150 managers 18001. changes and actions taken
have been trained in internal for the resolution of defects.
audit methodology. Systems  The system is well
audits for revising and maintained that CEAT has  SOPs have been made in the
abolishing the standards are been awarded various local language, wherever
carried out by these auditors awards like the Creative required.
on a regular basis. Excellence Award, Ranked
Number 1 in J.D. Power  QCPC were prepared to
 To sustain the practices of 2017 India Original control product quality by
Daily Management, an Equipment Tyre Customer ensuring “How to Check”
internal review mechanism Satisfaction Index (TCSI), and “How to control”
has been devised in which British Safety Council factors. (Mahindra
the monthly review of each Award etc &Mahindra Ltd. Swaraj
department is done by Division, 2012)
trained DM trainers.  To reduce investment cost

11
 Based on system and achieve higher  A systematic and structured
improvements and quality of productivity and quality process is followed to
the products, the output, CEAT has developed develop the Technology Up
organization has been its own machine building Gradation Roadmap.
awarded the APS Project shop where innovation is
Award by CII, Super Shop given practical shape and  The process starts with the
Floor Award by Times of successful projects are identification of Key
India, Innovative Project – horizontally employed Success Factors (KSF) based
Value Enhancer Theme across all plants. on knowledge of legislation
2014. (JUSE,2016) (JUSE,2017) requirements, customer
needs, competition, New
Applications, various
technology trends and
changing scenario prevailing
in various markets.

3.4.5 Human Resources

ALP CEAT M&M Swaraj

 To improve the skills of the  Training and Development  The HR Vision of Swaraj is:
employees, all the programmes played a major ‘Build a strong corporate
manufacturing processes role in improving employee constitution through highly
were mapped for the involvement and ownership. Skilled and engaged
required skill level. employees ensuring Total
 To improve QBM Employee Involvement in all
 Since the initiation of TQM, knowledge and build skills, continual improvement
a big drive of TQM all employees were given initiatives’.
education was taken up different training. This
across all levels of aspect was addressed under  To strengthen the skill set,
hierarchy. QBM skills and Functional / five operational Skills and
Business skills. five Knowledge skills for
 Employees were trained in each process are evaluated.
TQM methodology based on  Gap analysis was carried out
their experience and specific to ascertain the type of  They are categorized into
need. training required by every Equipment, Process,
employee so as to perform Quality, Safety and Problem
 The TQM training objective his/her duties as per the Solving.
was to improve the problem QBM methodology.
solving capabilities of  The evaluation of these
managers and associates.  The SPARSH Circles (QC skills helps in identifying the
Circle) were initiated where gaps and act as a guide to
 To implement quality training was imparted to the plan training and
policies and manage the workmen to solve their day development plans.
change, employees are to day and medium term
educated and trained for an operational problems.  At the organizational level,
understanding of change seven Leadership

12
 management.  This resulted in not only Competencies have been
solving the problems but defined which are applicable
 Mission Gemba, which is also made them happy and to all levels of officers.
based on ISER (Information, participative.
Skill, Empowerment and  The, functional
Reward & Recognition)  As an outcome of various competencies for each
concept, was introduced. QBM activities, the department (process) have
engagement of managers as also been defined.
 For a balanced work life, well as workmen/associates
various engagement improved  All employees are involved
initiatives like Monsoon in improvement activities
Hungama and Winter  There has been a complete through various focused
Carnival have been transformation of the initiatives such as Quality
introduced as a result of the Bhandup and Nashik plant Circles, Officers
above activities. where the situation has Improvement Teams.
changed from a hostile
 The formation of QC circles environment to a safe and  In QCC teams, problems
led to the identification of secure workplace. have been solved with step
improvement projects within (JUSE,2017) by step QC methodology
the current system. and usage of 7 QC tools.
(JUSE,2016) Higher level problems have
been taken up by OIT.

3.4.6 Quality Assurance

ALP CEAT M&M Swaraj

 In order to ensure defect free  The Quality Policy of CEAT  To ensure quality of in-
product to the customer, is oriented towards the house process, process
ALP started working on customer and the purpose is audits are carried out at
three fronts. 1. Supplier “Making mobility safer and regular intervals.
quality 2. In house smarter Everyday”.
manufacturing quality 3.  This ensures adherence to
Field quality.  Quality Assurance covers process parameters. In case
the entire value chain, of any gaps, SOP’s are
 QA was strengthened with starting from product revised suitably.
various sub processes for development to sales,
Field Quality, service, raw material  Performance evaluation
Manufacturing Quality, suppliers and manufacturing, under certain identified tests
Supplier Quality and New including Outsourcing representing field conditions
Product Quality. vendors. is carried out as per the
defined checklist.
 To improve supplier quality,  Support is provided to align
Capability Building the manufacturing process of  For improving the
programs were launched at vendors with the required performance and features to
the supplier end through product standards. meet changing customer
training, system audit and requirements, the existing

13
 process control measures.  Till FY12, the new product models are continuously
development process was in upgraded. Product up
 The Supplier capability line with APQP (Advanced gradation is undertaken
program was rejuvenated Product Quality Planning). based on customer feedback
through the implementation In FY13, this process was received through surveys,
of TQM at the supplier end. revised with gate approval customer and dealer
systems and robust design interaction programs and
 Quality Gate establishment
reviews at the appropriate Swaraj Satkar sessions
for fault detection at source
level. (where customers are invited
was introduced.
for plant visit and provide
 Critical Quality assurance feedback for product
 When new products were
activities like customer improvement, based on
introduced, Defect wise
feedback and benchmarking product strategy
stratification, additional
resulted in preparing true requirement).
check points and specific
customer requirements.
training were imparted.
 Field failures (0-100, 0-250
 Cross functional teams for and warranty) are captured
 In order to capture initial
each category between and analyzed. QC story
field failures, minimize
Marketing, R&D, QA, Tech approach is followed for
customer dissatisfaction and
and Manufacturing have resolution of all field
to stop carryover of failures,
been facilitating the new failures.
a QRT – Quick Response
product development
Team comprising of
through PLM (product life  The 7 step QC story
Members from
cycle management). approach helps in the
Manufacturing, Design and
elimination of failures and
Field Service was  The R&D test lab was reduction in problem
formulated. developed to simulate resolution time.
various field conditions in-
 For new launches, new
house.  With the objective of
requirements in the NMP
proactively building the
process were identified.  There is a significant prevention mechanism in
reduction in premature manufacturing processes, the
 Facilities improvement has
claims of new products PFMEA has been initiated.
been taken up to improve the
compared to regular SKUs.
process as well as product
 Through PFMEA, the
quality.  The customer claim potential failure modes and
management process was its potential effects are
 Structured efforts were made
revised to ensure effective identified jointly by
at the shop floor level to
and faster resolution. Production and
eliminate rejection in
machine shop and assembly. Manufacturing Engineering.
 Based on severity, further
classification is done -  This is followed by
 Implementation of Poka
critical, major and minor. Standardization of processes
Yoke, on the job training
Based on the criticality, through SOPs. The PFMEA
and revision of SOP are
cross functional teams has significantly contributed
some of the steps undertaken
including service, R&D, in improving the
to improve the quality.
manufacturing, supply manufacturing quality and
(JUSE,2016)
chain, technical and QA are also contributed to

14
 formed to resolve the eliminating field failures.
phenomena. (JUSE,2017) (Mahindra & Mahindra Ltd.
Swaraj Division, 2012)

3.4.7 Maintenance

ALP CEAT M&M Swaraj

 To “Make all critical and  To convert administrative  Statistical Process Control

important parameters stable controls to engineering (SPC) is being used to
& capable” SPC was controls, CEAT introduced ensure prevention of defects.
initiated by covering various technological Cp, Cpk and other critical to
“critical & important” systems like Poka yoke to quality parameters are being
product characteristics. eliminate failure modes. monitored.
 The implementation was  The input received from  PMC & X-bar R Charts are
enhanced in other and non various kinds of feedback is used for monitoring the
critical areas to ensure that used to strengthen quality quality of the operations.
no component is table, PFMEA and control
manufactured with defect. plan.  Histograms are prepared for
PMC data to check the
 On line computation of  This resulted in continual normality.
control charts has helped the reduction in warranty claims
manufacturing unit to act over the period. PDCA cycle  Swaraj lays emphasis on
swiftly in case any process is a part of root cause PQCDSM to ensure cost
tends to go beyond the analysis process. competitiveness.
control limits.
 Analysis of all critical in-  Various steps like Cycle
 Employees at all levels house and field defects is time reduction, Line
participate in improvement carried out. balancing and
in quality, cost reduction and manufacturing process
improvement in delivery.  In order to create significant reengineering, are taken to
competitive advantage in the control cost and improve
 Tool cost optimization was manufacturing process, efficiency.
carried out after radical innovation in
benchmarking with other AL manufacturing has been  Major emphasis is laid on
plants. initiated to support a leap in operating expenses and
capital productivity. special projects are being
 PFMEA was prepared for undertaken to reduce tool
each process (Line wise).  The objective is to reduce inventory, tool consumption,
the cost of investment, power and consumables.
 A new methodology of increase productivity and
preparing PFMEA with 16 reduce conversion cost.  To improve the Overall
type Human error Equipment Efficiency
identification, Master  SPARSH, an acronym that (OEE), Total Productive
Ishikawa Diagram, etc is stands for Sustainable, Maintenance (TPM) was

15
 being used to identify Productive, Accurate, introduced as a tool to
potential errors in Reliable, Safe and Healing reduce these losses and
processing. helped the organisation in improve equipment
adopting various control management.(Mahindra &
A New Model methods as a part of the Mahindra Ltd. Swaraj
Productionisation Process daily management process. Division, 2012)
was created under a CFM.
 This consists of 5 input
 One of the salient features of parameters and 5 output
this process was that the parameters covering safety,
product sign off activity quality, cost delivery and
within CFM, where critical morale.
to customer and ongoing
improvement points were  The technological
identified and action taken. advancement helped the
Halol plant to improve 53
 PDCA is extensively being critical processes which
used to improve product resulted in the reduction of
quality and productivity. cycle time in 34 operations.
(JUSE,2016) (JUSE,2017)

3.4.8 Improvement

ALP CEAT M&M Swaraj

 Loss of production due to  CEAT has classified various  Improvements are carried
non availability of material improvements into four out by following a structured
was one of the concerns and levels. L1 and L2 are Gemba approach.
was the biggest contributor based improvements which
to low monthly delivery refer to Just-Do-It Kaizen  Projects are identified based
performance. and Why-Why Kaizen. L3 is on problems faced during in-
quality circle (QCC) or house operations, customer
 The plant started aligning ‘Sparsh Circle’ based feedback and field failures.
parts with production improvements which are
planning through various  Quality control circle
conducted by the workmen
initiatives like localization identifies small projects
and associates operating on
of components, enhancing in which can be solved without
the shop floor.
house capacities, much help of the
establishment of  The permanent QC teams management.
warehouses, etc. prioritize problems from a
 Any deviation in the quality
pool of problems bank,
 The organisation carried out of the product is analyzed by
created from chronic issues
bottleneck analysis for each root cause analysis and is
identified in DM and work
aggregate. sustained by following the
towards improving the
PDCA Cycle.
QCDSM parameters in their
 QC circle activities
contributed towards cost  The Revision of SOP’s for

16
 reduction and improving workplace. standardization and
productivity. horizontal deployment
 L4 Improvements are across both the plants is a
 Supplier capacity was Quality Improvement part of standardization
reviewed for all component Projects (QIPs) which solve process.
families covering 100% chronic issues affecting
parts to ensure material QCDSM spectrum in any  KANBAN was introduced to
availability to meet peak function. address the varying product
volumes. demand, line shortages and
 These are generally taken up optimum inventory levels.
 IT based material by Cross Functional Teams This resulted in higher
Requirement Planning (CFTs). Inputs are provided service level by reducing
(MRP) was started to ensure in terms of capability line material shortages and
quick communication to all building in 7 QC tools and optimum inventory.
stakeholders, whenever the hypothesis testing, advanced
production planning needs to tools and techniques.
be changed.
 Facing the problem of
 Further, to align with the production aimed at
World Class practice of maximizing tonnage without
measuring or monitoring the corresponding sales, CEAT
vehicle delivery on a daily introduced an “End to End
bucket, the organisation Pull” system which was
shifted from “Make to more customer-centric.
Stock” to “Make to Order”.
 The high in-house inventory
was reduced by introducing
the Kanban system.

3.4.9 Effects

ALP CEAT M&M Swaraj

 TQM helped ALP in  Consequent to the efforts to  One of the tangible gains is
realizing the Business improve QCDSM the reduction of Field
Objectives in line with its parameters, the volume of failures, which got reduced
long term Vision. defective cured tyres came from 5.93 RPH to 3.03 (F16)
down from 9.7% to 3.8% by and supplier rejection
 The Culture of PDCA FY17. reduced from 5500 PPM to
spread across the 2042 PPM (F16). During
organization resulted in the  This resulted in reduction in F16, 263 projects were
improvement of QCDSM Warranty claims from 6765 completed by QCC teams.
performances. PPM to 3016 by FY17.
 The company is sensitive
 Capacity utilization  Both the above factors towards the effect on
improved from 49% (FY12) coupled with 10X increase environment. The Carbon
to 100% (FY16). Rejection in the launch of new foot print came down from

17
 cost reduced from Rs 3545/ products resulted in 0.342 Tons of co2/ tractor to
HECU to Rs. 1104 by improvement in Customer 0.28Tons (F16).
F16Q3. Satisfaction index from 75
to 81. (JUSE,2017)  Some of the intangible
 Similar improvements are benefits are better and faster
also seen in other business  One of the intangible gains decision-making due to
parameters. is the continuous quick and accurate
improvement in the availability of information,
 Some of the intangible satisfaction of all providing users with access
effects are an increase in stakeholders (customers, to the database of user-
Customer (External & employees, society, proven solutions so they can
Internal) focus, introduction suppliers, and outsourcing solve their own problems.
of culture of standardisation partners), complete
and continuous transformation of the old
improvement. (JUSE,2016) plants with a high level of
employee involvement.
(JUSE,2017)

3.4.10 Future Plans

ALP CEAT M&M Swaraj

 ALP plans to enhance the  The organization plans to  To further improve product
sphere of improvements improve the focus of QBM quality and reliability, the
across all employees, activities on medium term company proposes to widen
covering Non-permanent issues of the company and the scope of Product
associates as well. further raise problem solving Reliability programs, extend
capability with greater use “Zero defect approach” to
 Plans are also being drafted of advanced methods. cover entire “Process line /
in the AL Group to roll out Module”, Improve “QA
initiatives for bringing about  The future plan is to deepen functional excellence”
creativity and innovation. management understanding through competency / skill
of paradigm shifts in QBM building.
 Detailed future plans have and modify practices
been worked out to sustain accordingly.  On the productivity front,
growth with an increased the company proposes to
emphasis on quality and  Strengthening QBM improve productivity by
customer care. (JUSE,2016) practices, particularly in HR 15% in the next 3 years,
and Finance shall be the achieve zero customer
focus during the onward complaints due to
journey to become world manufacturing process and
leaders. CEAT also plans to focus on safety culture to
further extend the QBM way make the company accident
of management to its free. (Mahindra & Mahindra
partners. (JUSE,2017) Ltd. Swaraj Division, 2017,

18
 pp. 136-137)

4. CONCLUSIONS
In order to achieve results, all these organizations follow similar strategies based on the Deming
guidelines. All of them conducted a preliminary study in order to find the gap between current
practices and desired practices. Each organisation conducted a survey at every stage of the
organisation process and among all stakeholders. This survey pulled many surprises out of the
hat. Naturally, these surprises, both pleasant and unpleasant led to a lot of introspection and
brainstorming that began from the highest echelons and the reverberations were felt right up to
the worker level. The top level management and the executives were eying the Deming. The mid
level team players were focused on the individual rewards the win would bring. The workers
were keen to display their prowess for any fresh initiative. All in all, the winds of change were
impacting everyone. This is seen as the general trend in every organisation. In its own way, each
concluded that adopting the TQM methodology is the best way to grow and win the Deming
prize. They followed the basic guidelines framed by the Deming committee and established the
methodology for bridging those gaps. However, just as each organisation reached the decision to
fight for the Deming in its own time, similarly, the methodology varied from organisation to
organisation and from process to process.
The implementation and its analysis that has been presented in the body of this paper are drawn
from the data and observations from each organisation. When a reader from a theoretical
perspective or an application perspective needs to understand the process with a holistic view,
the table given below can be helpful. Based on the analysis, the following conclusions have been
drawn with respect to the implementation of the guidelines of the Deming committee. The
ratings against each parameter are given in Table 1.
Table 1: Rating of Deming Prize Parameters

Parameter APL CEAT M&M

1 Policies A A A

2 Organisation A A A

3 Information A B A

4 Standardisation A B A

5 Human Resources A B B

6 Quality Assurance A A A

7 Maintenance B A A

8 Improvements A B B

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 9 Effects B A A

10 Future plans B B A

Note: A: High level of implementation, B: Medium level of Implementation ( For instance, under
the ‘Standardization’ parameter, if the processes in the organisation are standardized, revised,
audited and updated at pre defined intervals, it is rated as ‘A’, whereas if any one of these steps
are not taken as per the plan, it is rated as ‘B’.)
Source: Based on secondary data and personal interaction during plant visits
The above analysis indicates that in all organizations, the parameters studied either
achieve the level of implementation or are at the medium level. This indicates that the companies
have put the systems and processes in place, leading to the evolution of all business parameters.
Based on the business growth and the commitment of top management to implement the TQM
methodology, they were awarded the Deming Prize. Their future plans also indicate that they
shall continue with the journey and contribute to disseminate TQM.
5. MANAGERIAL IMPLICATIONS
In the ever changing business environment, the Indian industry is facing stiff competition
from the developed as well as developing countries. Until excellence is achieved in the
operations, sustaining the growth of the industry remains a struggle. One of the methods can be
adopting the parameters of the Deming, which can then guide the sector towards a path for
sustainable growth. The study is very useful for the managers who wish to take a leap and
compete in this challenging world of developing and developed countries. Since these guidelines
help to fill the gap between the current and desired state, the organizations which have
successfully implemented the process have been bestowed with the prestigious Deming Prize.
Though there are variations in the process of implementing change in these organisations, which
was due to the business and cultural environment of the particular organisation, the study
indicates a clear path which can be followed for achieving business excellence.
6. SCOPE FOR FUTURE RESEARCH
This study was carried out on three organizations of the automobile sector. To
substantiate the findings, further research can be carried out on the non-automobile
manufacturing industries. The process of implementation in some other automobile companies,
who have not applied for the Deming award, but have successfully followed the guidelines, can
be studied and a realistic model can be drawn. The researchers can also build more detailed
models which can be specific to a different set of circumstances. Future research needs to
continue the development of sound theoretical models and instruments in order to guide the
industry.
REFERENCES
Bhat Ashish.(2017). Industry 4.0.-Digitisation drives sustainable growth, Siemens AG 2017

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Dale BG, Lascelles DM (1999) Total quality management adoption: revisiting the levels, The
TQM Magazine, vol. 9, issue 6, pp. 418 – 428
Kolb R Rachel and Hoover l Marcey (2017), “The History of Quality in Industry”, US
Department of Commerce, Springfield, VA 22161, pg 8
Mahindra & Mahindra Ltd. Swaraj Division. (2012). Description of TQM practices (general).
India : Mahindra & Mahindra Ltd.
Mahindra & Mahindra Ltd. Swaraj Division. (2017). Description of TQM practices (general).
India : Mahindra & Mahindra Ltd.
Union of Japanese Scientists and Engineers (JUSE). (2016).Summary of the winners
presentation. Retrieved from http://www.juse.or.jp/upload/files/2016_01_youshi.pdf
Union of Japanese Scientists and Engineers (JUSE). (2017). Summary of the winners
presentation. Retrieved from http://www.juse.or.jp/upload/files/2017_03_youshi.pdf

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