Role of TQM in Sustained Business Performance in Indian Automotive Supply Chain

Role of TQM in Sustained Business Performance in Indian Automotive Supply Chain

Sanjiv Narula (BML Munjal University, India), Satwinder Pal (Hero Moto Corp, India), Vinay Saini (Hero Moto Corp, India), Prabhat Saxena (Hero MotoCorp, India), Ajay Goyal (Hero Moto Corp, India) and Mohit Yadav (BML Munjal University, India)
Copyright: © 2018 |Pages: 23
DOI: 10.4018/978-1-5225-4038-0.ch006


This chapter creates a place in which TQM (total quality management) differs from business sustainability. Management can focus themselves more accurately when they understand the missing link between these two aspects. It also helps to reduce and eliminate certain wastes related to cost and efficiency and helps to produce better quality with minimum waste. In this study, a TQM framework is developed according to a comprehensive literature review: primary data collection through a structured questionnaire and interview of performers/nonperformers at various levels in different organizations. Analysis of data is used to establish the relationship between attributes of TQM and business sustainability. TQM enhances the cost effectiveness while helping suppliers to produce enhanced quality to their customers and with minimum efforts and lesser rejection. Analysis of data is used to establish the relationship between attributes of TQM and cost effectiveness in an organization.
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TQM and Business Sustainability TQM Helps Organizations in

  • Sustained improvement at world class level at least for ten years.

  • Will be market leader in products and services that it provides worldwide.

  • Evidence that improved results were due to quality improvement initiatives.

  • Critical business process will at World Class level – bench mark for other organization.

  • Vision of the future state is the mind-set –midterm, long term plans.

  • Develop more aggressive targets for the future.

Purpose of the Project

Our Primary Objective of the research is to

  • Identify the TQM Factors associated with Business Sustainability.

  • How Organizations Sustain leadership.


Today’s Global Business Environment current scenario poses Challenge of Maintaining growth and market share (Figure 1)

Figure 1.

Challenges in the market

Literature Review

Quality is the ability of a product or service to consistently meet or exceed customer expectations

We can improve quality while adhering to the customers demand and we can also enhance appetite of our buyers towards our product, it will not just only leads to improve our production but also broaden our abilities while making more profit at the end. Now the main question arises that what are those parameters which are related to quality?

  • Quality of a motor vehicle is to cost efficiently mobilize its customer.

  • Quality of a clock is to show accurate time.

  • Quality of a heater is to efficiently warm the environment with minimum cost and fuel efficiency.

We do not buy a product but we buy its function and value, its performance which based on the value of its usability and our need on how much extent it meets.

Quality is variable w.r.t. person to person and it is compared with attributes such as cost, efficiency, market and needs.

If you produce quality beyond customers need and want they will not appreciate you for that work they want their needs meet with certain level of economy, all they care about. But they will not tolerate anything below their need.

Quality means for front line operators too meets the SOP of the process operators first of all needs to understand what good quality production process is.

Transition of Quality Concept

Quality is a concept which has attributes related to consumers but somehow they all varies by consumer to consumer and how they rate the product when they compares different products in market with other products.

Manufacturer parameters are somehow different when they look at quality w.r.t. consumers.

Basically cost of quality is adjusted manually and by experience, The SOP follows the Plan-Do-Check-Act (PDCA), which includes planning work done till the final execution and after that checking of the results weather they matches with requirements or not.

Its general thinking that quality costs but when we look at the final economics of production sales and after warranty then we can easily understands that actually cost of quality saves much more cost than it takes, but there must be a fine line that how much it needs and how much it can be saved by putting certain processes (Figure 2).

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