Introduction

Most of the time SCM and TQM are studied separately, but both are critical for
organisational competitiveness. Therefore, this research aims to investigate the relationships
between total quality management practices (TQMP) and supply chain management
practices (SCMP) and how it affects the performance of entire supply chain (SCP) with
respect to internal supply performance and critical components of the whole supply chain.

Brief About Literature Review

I.

The journal: The Quality Management in an Automotive Supply Chain in United

States written by Bandyopadhyay, Jayanta K. and Sprague and David A. gives the
evidence how a TQM approach can be implemented for achieving supply chain
management in manufacturing industry and uses the automotive industry in the
United States as an example.

II. The journal: Relationship between TQM and performance of Singapore Companies
written by Shaukat A. Brah, Serene SL Tee and B. Madhu Rao supports the
proposition that TQM implementation correlates with Quality performance. Gives
evidence that behavioural factors and TQM tools contributes to successful
implementation of TQM.
III. The journal: How Improving Quality Improves Supply Chain Management: empirical
study written by Marti Casadesus, Radolfo de Castro is the first to analyse the
effects of the implementation of Quality Management Standards ,through SCM

Issues Addressed

This research investigate the set of TQM and SCM practices which companies
follow
To Identify the relationship between these practices
To develop some instruments to measure SCM, TQM and FSP practices
To ensure reliability and validity in structural equation modelling
To see how TQM practices have a significant direct positive impact on SCM practices
and firms supply performance
To see the indirect impact of TQM practices on firms performance through SCM
practices
To study firms supply performance in a developing country

Insight Gained
The research shows that total quality management practices can directly facilitate the
implementation of supply chain management. TQM can directly enhances the supply chain
performance (SCP). Total quality management practices can also, indirectly improve the
firms supply chain performance. The reason why TQM can bring this changes is because it
has been broadened to cover some SCM practices and firms performance dimensions such
as cost and responsiveness. Thus, it can be concluded that, TQM can be used as a
foundation for implementing SCM and improving firms supply chain performance. Therefore

1 | Page

for excellent results in the firms related to supply business should implement both the
techniques together and should not consider them separate.
However, the firms that experienced some negative effects of disruption was
because they were strict with applying TQM standards and did not understand SCM
requirements. The companies must understand industry-specific TQM systems and
introduce them before implementing SCM. The firms characteristics and differences in
scope and maturity of TQM & SCM implemented can affect the results. The TQM foundation
has to be comprehensive enough to support SCM implementation. Training in quality
awareness, communication, goal alignment or adopting industry-specific total quality
management system are recommended before supply chain management implementation.

Understandings
This is an extensive overview where the core concept of TQM and SCM are examined from
literature and are then compared to explore how the philosophical perspectives, goals,
evolution and integration of these concepts could be further developed. TQM and SCM have
different starting points and primary goals, which makes it difficult to integrate and
implement. However they are evolved in similar ways to reach ultimate goal: customer
satisfaction. TQM emphasize internal participation and SCM focuses on external (business
partners) partnerships but there is a need to emphasize both internal and external
partnership to further strengthen the emphasis on total quality management and the entire
supply chain in SCM. A comparative understanding of the philosophies, goals, evolution, and
integration of both the approaches therefore could improve opportunities for integrated
implementation and further research. Thus, paper can be used for empirical studies.

Actions Suggested
Since this research was done on Thai automotive industry, in future the research should
apply different random samples for more generalised result. Instead of using paper-based
method for data collection other method should be used to increase multiple respondent
rates. In order to confirm general validity we should use more adaptive instruments for future
research that can be used for different industries or for developing countries, instead of
hypotheses. The research sample only comprises of automotive part supplier, but in future
we should consider all the upstream suppliers and downstream business partner of the
respective industry in order to investigate the relationship along the whole supply chain. The
effect of individual TQM practices on individual SCM practices and individual firms supply
chain performance dimensions may also be researched.

Indian Companies
1. Mahindra & Mahindra Farm Equipment Division
2. Tata Steel
International Company
1. Ford Motor Company

Mahindra & Mahindra Farm Equipment Division

2 | Page

Mahindra & Mahindra automotive and farm equipment division was established in 1945.
Mahindra & Mahindra works on core values like Customer first and Quality focus. To
achieve this it worked on understanding the customer, involvement of suppliers and business
partners, setting the annual business objectives aligned with our vision, total employee
involvement, adopting a process approach and delivering first time right product. Total
quality management was introduced in FES in 1985.

I.

Enablers

TQM implementation was broadly divided into four phases:

Orientation Phase- 1985 to 1989

Quality Circle movement for employees and workmen was the main focus during this
period. Almost 50 % of the workforce was involved in this process which reduced
hundreds of problems in operational areas to improve quality, housekeeping, safety
and reduction in waste and cost.

Introduction Phase- 1990 to 1994

Process quality improvement for problem solving and statistical process control
played important role. Focus was on solving major cross-functional quality problems
through involvement of managers and on improving the product quality by improving
quality of manufactured and bought components.

Promotion Phase- 1995 to 1999

Re-engineering (BPR) was implemented in manufacturing and implementation of
robust systems was the focus during this period.

Development Phase- 2000 to 2003

Rapid pace to progress towards the vision of Global Leadership and Deming Price
was the focus. The New Product Development process was also improved

Leadership and employee participation supported this entire journey of implementing TQM in
M&M farm equipment division.
II.

Challenges and Barriers

The issues was to understand the customer, develop a product that translates customer
needs and affordable, continuously develop new and better product by developing
process for product development, policy development, knowledge exchange,
involvement of work force and synchronize TQM with companies needs and
requirements.

Tata Steel
Tata steel was founded by J.N. Tata in 1907. Tata Steel is worlds second most diversified
steel producer with a crude steel production. It is a benchmark in value creation and
corporate citizenship because of the excellence of its people and innovative approach and
over all conduct.
I.

Enablers

Various techniques helped in implementation of TQM in Tata steel, like- operator, foreman,
inspection, SPC, DOE, Taguchi etc. A committed and involved management, effective
involvement and utilization of work force, establishment of performance measures for
processes also enabled TQM.
3 | Page

The journey was divided into five phase:

II.

Standardization phase- 1988 to1992

Modernization of Mind - 1992 to 1996
Cost Competitiveness- 1997 to 2004
Global Outlook Growth- 2005 to 2008
Seeking World Class- 2009 & beyond
Challenges and Barriers

Continuous improvement was the biggest challenge in front of Tata Steel. For this they
required to understand customer needs, infrastructure improvement, improvement
philosophy, locate early success areas, change in performance culture, knowledge
exchange and people involvement. And important of all was how to integrate SCM practices
with TQM practices. Last was to raise the standards high enough to compete with
international players.

Ford Motor Company

Ford is an American automaker company founded in 1903 by Henry Ford.
I.

Enablers

Techniques like six sigma, quality operating system (QOS) enabled TQM. They developed
their quality process or 5S and the DMAIC (define, measure, analyse, improve and control)
process that has built an overall strategy for consistency in their teams.
II.

Challenges and Barriers

The major challenges in faced by Ford were system approach to management, factual
approach in decision making, involvement of people, process approach, continual
improvement and mutually beneficial customer-supplier relationships.

4 | Page