TTMT 2018, SJBIT, Bangalore
Studies on the Implementation of TQM in the
Automotive SMEs
Praveen Chandra T 1, V. Bharat 2
1, 2 Global Academy of Technology, Bengaluru, India, 560098
Abstract— Total quality management (TQM) is a philosophy and
presents a business system that companies should adopt to achieve
organizational excellence. The present study describes the
methodology and findings of four industrial case studies
conducted on the implementation of TQM in automotive small and
medium-sized enterprises (SMEs) in the United Kingdom. The
study incorporates various interviews conducted to answer key
issues which were felt to be crucial to this study. In addition, the
studies also explored the feasibility of the TQM conceptual
framework, and subsequently its validation. The companies were
categorized as ``TQM’’ and ``lesser TQM’’ companies, and the
analysis was performed on this basis. Results from these studies
indicated that the SMEs used in the study had approached TQM
without the help of any specific framework, but they had
implemented the numerous quality initiatives or programs on a
``slice by slice’’ approach. Some similarities were observed
between the companies with regard to their approaches towards
building business excellence. People focus was one of the key
drivers for changing the culture, besides adopting the quality
standard and other initiatives such as the restructuring process
and the application of the necessary advanced quality planning
and statistical techniques. It was also observed that implementing
TQM was actually a progression or a sequence of relevant quality
initiatives within the overall ``spectrum of quality initiatives’’ that
enhances business performance and in helping produce high
quality products in meeting the ever changing demands and needs
of the customers.
Keywords: Total Quality Management; SMEs;
INTRODUCTION
Many of the companies that have implemented TQM are large
multinational corporations (MNCs) such as IBM, British Airways,
Hewlett-Packard, Motorola, etc. Except for the very few, in small
businesses many are still lagging behind when it comes to
implementing new management techniques such as TQM. This
seminar report looks at the various TQM implementation issues
particularly in small and medium enterprises (SMEs). The background
section reviews the concepts of TQM and some of the quality
initiatives undertaken by small businesses. Most of the studies found
to relate to quality assurance and the implementation of BS EN ISO
9000; very few focused on the application of the wider concept of total
quality. A short description of small business characteristics is also
given to provide an understanding of their problems. The seminar
report presents a detailed report of a study conducted in one SME
involved in manufacturing. Various issues for effective
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implementation such as management practices, the process of
implementation, results, and outcomes were investigated. The final
section presents the conclusions based on both the review and the case
study and suggests future research directions.
CASE STUDY
In an attempt to understand the reality of small business quality
initiatives, a case study in one small manufacturing company
was conducted through a structured interview approach. A
questionnaire was developed and formatted in such a way as to
elicit information and answer questions with regard to
management perceptions and practices on TQM, the
implementation of various quality initiatives, how the
implementation was conducted, the benefits and outcomes, the
problems encountered as well as the factors that contribute to
the success of TQM. Besides interviews, observations were
made from the documents supplied, and a short plant visit made
to the company.
To gain maximum benefit from this study, it was decided that
the company selected must have experience in implementing
TQM. By choosing a ``TQM company'', much of the lessons
learned can be transferred to other companies, a comparison can
be made with other companies on certain aspects which may be
lacking and it can serve as a model to emulate for
implementation purposes.
The company studied was PT Ltd, located in Birmingham, UK
(the name of the company is shortened to provide anonymity).
It is one of the leading manufacturers of springs, including
compression, tension, torsion, pressed, and wire shaped springs.
Of the 112 employees working in the company, 15 are at
staff/management level. Only six people are employed in the
quality department which is about 5 percent of the total
workforce and is considered very lean (much of the quality
inspection work has been empowered to the production
operatives). The company's organizational structure is still very
much triangular in shape where the chairman/chief executive
heads the company, assisted by a technical sales director and a
financial director. The second level of the structure comprises
departmental managers including quality, production (which is
divided into cells), maintenance, materials, and also an
improvement department. A series of awards, recognition, and
certifications are testimonies of this company's effort towards
TTMT 2018, SJBIT, Bangalore
becoming a TQ company and being world class in their trade.
They received the Ford's Preferred Supplier Award in 1991,
gained ISO 9002 certification in 1994, the Investors in People
(IIP) certification in 1997 and QS 9000 in February 1998. They
had previously submitted an application to the Midlands
Excellence Award for the SME sector.
If Q is greater than 1.0, then the customer has a good feeling
about the product and service. Of course, the determination of
P and E will most likely be based on the perception of the
organization determining performance and the customer
determining expectations [2]. A more definitive definition of
quality is given in ISO 9000: 2000. It is defined as the degree
to which a set of inherent characteristic fulfills requirements. A
degree means that quality can be used with adjectives such as
poor, good, and excellent. Inherent is defined as existing in
something, especially as a permanent characteristic.
Characteristics can be quantitative or qualitative. The
requirement is a need or expectation that is stated; generally
implied by the organization, its customers, and other interested
parties; or obligatory.
Quality starts with market research - to establish the true
requirements for Product or service and the true needs of the
customers. However, for an organization to be really effective,
quality must span all functions, all people, all departments and
all activities and be a common language for improvement. The
cooperation of everyone at every interface is necessary to
achieve a total quality organization, in the same way, that the
Japanese achieve this with companywide quality control.
Process of implementation
The main reason for adopting a TQM strategy in this company
was the realization by top management that it was necessary for
business survival; also their customers were demanding it. The
QC manager also indicated that another motivating factor was
the positive results that have emerged from carrying out
continuous improvement such as reduction in scrap levels.
Customer demand, as a motivational factor, is understandable,
since they work with large businesses which want their
suppliers to continuously improve quality. In general, the steps
taken to implement TQM and continuous improvement were
training and education, team development and support,
improvement projects, quality coordinating body formation and
developing business management systems.
Results and outcomes
An important aspect also investigated in this study was the
results and outcomes of implementing TQM. The types of
positive intangible outcomes ranged from employees realizing
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the importance of quality improvement, to pride in work,
quality improvement becoming a part of the culture and
improved communication. In addition, they mentioned
improved teamwork, the feeling that everyone was important,
and everyone was recognized for their contribution. During the
plant visit, a quality inspector was asked how he liked working
with the company, and he immediately replied that he was
proud. In response to whether a quality culture should be
developed prior to TQM implementation or whether it should
be allowed to develop as TQM progresses, the QC manager
agreed with the authors that it was an outcome of the whole
process and not something to be changed up front. Through the
development of proper systems and measures that promote
quality, as seen in this company, one would expect to see a
change in the culture. With regard to the tangible outcomes, this
company has achieved numerous improvements ranging from
improved product quality, increased sales, and an increase in
the number of employees involved in improvement activities,
and improved customer and employee satisfaction. They have
also experienced reductions in delivery times, costs of poor
quality, employee turnover, and absenteeism rate and inventory
levels. It was not intended for this study to inquire about the
actual magnitude of the improvements made. It was observed,
however, from a number of graphical results displayed in the
quality area, that drastic reductions in defect parts per million
of most production cells in the manufacturing area had been
achieved.
Problems and obstacles
PT faced very few problems but those indicated by them are
crucial in the context of small businesses. Their main ones were
lack of human resources, lack of involvement from non-
production functions and trying to achieve too much in a short
time frame. This company's quality department, with six
employees, has the overall responsibility for quality assurance,
product testing, ISO and QS 9000 compliance, dealing with
customer feedback, etc. With the limited number of available
personnel, it is vital that their human resources are properly
planned and utilized especially when embarking on new quality
initiatives. Since this company's core business is spring
manufacture, it follows that the majority of the improvements
would come from the manufacturing area. Non- production
departments such as sales and marketing, purchasing and
maintenance, probably comprise a small percentage of total
employees and do not justify being involved in improvement
activities. Nevertheless, a company must understand that
everyone does contribute directly or indirectly to the quality of
its products and services. Therefore, it is important that
improvement projects extend to these non-production
departments so that TQM will encompass the whole
organization to ensure that it will be sustainable.
TTMT 2018, SJBIT, Bangalore
Success factors
The success factors particularly related to this company were a
systematic approach, selective training, establishing a good
communication system, having a continuous improvement
system, a suitable measurement criterion, human resources
development, an effective and simple implementation
framework, and teamwork development. The QC manager laid
emphasis during the interviews on the process of TQM adoption
being all about continuous improvement and teamwork. The
tools and techniques are just the means whereby problems can
be solved to achieve the goal of continuous improvement.
Developing employees is vital so that they are continuously
upgraded in terms of knowledge and skills to contribute towards
improvement through training and education.
CONCLUSION
This paper has presented the case studies conducted in four
companies, all of which have implemented TQM. A wide range
of quality initiatives had been implemented by all of them.
Some similarities were observed between the case companies
with regard to their approaches towards building business
excellence. People focus was one of the key drivers for
changing the culture, besides adopting the QS 9000 standard
and other initiatives such as the restructuring process and the
application of the necessary advanced quality planning and
statistical techniques. Continuous improvement should be
focused on harnessing the potential of all available human
resources within an organization and initiating new techniques
without waiting for customers’ demand. The analysis
performed was able to differentiate between the case companies
as to the level of TQM adoption, called ``TQM companies’’ and
``lesser TQM companies’’. Having this differentiation will be
beneficial when attempting to finalize an implementation
framework suitable for SMEs. However, the manner in which
these companies have implemented TQM was primarily
customer-driven, e.g. ISO 9000 and QS 9000 adoption. It was
also observed that implementing TQM was actually a
progression or a sequence of relevant quality initiatives within
the overall ``spectrum of quality initiatives’’ that enhances
business performance and in helping produce high-quality
products in meeting the ever-changing demands and needs of
the customers.
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