768 2654 2 PB
768 2654 2 PB
Porter (1996) study were important to US quality commit sufficient amount of resources for successfully
assurance professionals as well. Research conducted by accomplishing quality objectives. Top management
Tsang and Antony (2001) showed the 11 critical commitment should be collaborative throughout the
success factors for the successful implementation of entire supply chain for achieving competitiveness in
TQM in the UK service sector are : customer focus, world market place using a common vision of quality
continuous improvement, teamwork and involvement, excellence which starts with focus on total customers’
top management commitment and recognition, training satisfaction.
and development, quality system and policies,
supervising leadership, communication within the
company, supplier relationship and supplier 3. Framework of study
management, measurement and feedback and culture
change in employees’ behavior and attitudes.
2.4..Matwani (2001) found seven critical In this paper, a frame work is developed which
success factors for TQM implementation after facilitates to find the importance of different factors on
examining six empirical studies. He recommended that TQM implementation. In addition, ANP is applied for
attention should be given mostly to those 5 constructs : the 1st time to assess the readiness of automobile
top management commitment, employee training and industry in India to adopt TQM based on the survey on
empowerment, quality measurement and benchmarking, Maruti Suzuki, a leader in automobile industry in India.
process management and customer involvement and
satisfaction. Ugbaro and Obeng (2000) conducted
research among 800 members of the Associations for 4. Total Customers satisfaction and TQM
Quality and participation. According to their study, top
management leadership and commitment, teamwork, In a TQM approach most important goal is customers'
flow of information within the organization, employee satisfaction. Only satisfied customers come back and
involvement and empowerment are the critical bring more business. Therefore, companies must design
strategies for successful TQM programme. their products to satisfy their customers, Products
should not only meet the needs but exceed the
expectations of the customers, to make customers
happy. A company must know its customers and their
2.5 Total Quality Management (TQM) in a Supply expectations about its products. This information must
chain -An Intense study be regularly collected by marketing department through
customer surveys.
Total Quality Management (TQM) involves
management and control of quality throughout the
entire organization or the entire supply chain. (Strongly
Customer Survey
opined by A. V. Fiegenbaum in the U.S. and Kauro
Ishikawa in Japan,) Many companies in India regularly collect customer
expectation data for designing a new product and for
TQM emphasizes continuously upgrading existing products. Customers'
expectation data related to product's quality gathered by
1. Top management commitment. customer survey are generally passed to the product
2. Focus on customer satisfaction. design department.
3. Product design and manufacturing for quality.
4. Continuous improvement. Product design and manufacturing and
5. Extensive education and training of employees. TQM
6. Employees involvement and empowerment.
7. Development and maintenance of an effective Product design translates the customer expectation data
in house quality assurance system, as well as into technical specifications of the product design not
an effective suppliers quality management only to meet the needs but also to exceed the
system. expectations of the customers.
Innuchi Taguchi recommended a number of methods
2.6 Top management commitment and TQM such as
(1) design of experiments, a statistical technique for
Top management commitment is essential for TQM. analyzing customer expectation data, and prioritizing
Top management must commit to quality by clearly expectations for building them into the quality of
stating quality objectives in mission statements and product design.
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Int. J Sup. Chain. Mgt Vol. 2, No. 2, June 2013
(2) failure mode analysis, for building reliability in the For total customer satisfaction zero defect
products operating life. quality must be assured by outgoing inspection before
(3) robust design techniques for designing the product any product is packaged and shipped to customer.
to withstand any changes in its operating environment. Therefore, at the outgoing department 100% inspection
It is the product designer who set the quality of the is generally carried out. Each and every finished
product at the first place. Therefore, product designers product is run through all possible test procedures and
must be qualified and well trained inTaguchi's methods thoroughly inspected before it is packaged and shipped
of product design for quality. Then, the product's to customers. In India, auto sub-assemblers and auto
drawings with specifications, dimensions and tolerances assemblers generally run 100% inspection before
developed by product designers must be verified and packaging and shipping their finished products.
validated by appropriate authority, and properly
recorded and passed down to process engineering.
Work-in-progress inspection in TQM
Process engineering and TQM
Work-in-progress inspection involves the
Process engineering prepares processing inspection of parts at various stages of their production.
instructions for manufacturing of the product Inspection of works in progress may involve 100%
conforming to product design specifications and inspection, sampling inspection and process control. In
tolerances. Sometimes, product design and process order to insure zero defect quality, 100% inspection
engineering work simultaneously to speed up the must be carried out. 100% inspection can be carried out
process of designing the product and developing the by the operator or an inspector or by a robot at the
processing instructions and tooling requirements for workstation. Sometimes, a "Pokay Okay" or a mistake
manufacturing. This practice is commonly known as proof system may be installed on-line to prevent
simultaneous engineering, and has been successfully making bad product at the first attempt. Where zero
applied by Cadillac Motor Company which won the defect quality is not required, sampling inspection may
Malcom Baldridge Award in 1990. Processing prove to be economical. However, the most effective
instructions are passed down to the shop floor where the and economical way to control quality for work in
product is manufactured and quality control verify and progress is Statistical Process Control ( SPC) in which
insures conformance using inspection and process the process is continuously monitored against the upper
control. and lower control limits of a SPC chart predetermined
for the process under control using statistical
Quality Control and TQM techniques.
The company has been built by its employees, terms of the highest safety with regard to timely
its vendors and dealers and the support of shareholders fulfillment of its financial obligations.
and the customers The company was with the high QUALITY
thought for long term benefits and not to be carried The Company has again been awarded ISO:
away by short term benefits. 27001certification by STQC Directorate
(Standardizations, Testing and Quality Certificate),
Ministry of Communications and Information
Financial results Technology, Government of India after re-assessment.
The Company’s financial performance during the year The Company is thus certified to meet international
2011-12, as compared to the previous year 2010-11 is standards for maintaining information security. During
summarized below: the year, ISO 14001 re-certification audits were carried
out by M/s AVI, Belgium and the auditors renewed the
Particulars 2011 -2012 2010 -011 (` in millions) ISO 14001 certificate till 2014. The quality
Total revenue 364,139 371,272 management system of the Company is certified against
Profit before tax 21,462 31,088 ISO 9001:2008 standard.
Tax expense 5,110 8,202
Profit after tax 16,352 22,886
Balance brought forward 118,578 100,499 Awards/recognition/rankings
Profit available for appropriation 134,930 123,385 J D Power Customer Satisfaction Index (CSI) Study
Appropriations: ranked the Company highest for the 12th time in a row.
General reserve 1,635 2,289 J D Power Asia Pacific 2011 India Vehicle
Proposed dividend 2,167 2,167 Dependability Study ranked Zen Estilo and Swift DZire
Corporate dividend tax 351 351 as the ‘most dependable cars’.JD Power IQS ranked
Balance carried forward to balance sheet 130,777 Zen Estilo and Swift DZire highest in the ‘compact’ and
118,578 ‘entry midsize’ segment respectively.
Financial Highlights J D Power APEAL Study 2011 ranked Alto and Zen
The total revenue (net of excise) was ` 364,139 million Estilo highest in the ‘compact’ segment. Swift DZire
as against ` 371,272 million in the previous year received an award in the ‘entry midsize car’ segment for
showing a marginal decline of 1.92 per cent. Sale of a fourth consecutive year.
vehicles in the domestic market was 1,006,316 units as
compared CNBC TV 18 Overdrive awarded ‘Compact Car of the
to 1,132,739 units in the previous year. Total number of year 2012’ to new Swift.
vehicles exported was 127,379 as compared to 138,266
in the previous year. NDTV CNB’s ‘Premium hatchback of the year’
Profit before tax (PBT) was ` 21,462 million against ` awarded to new Swift.
31,088 million and profit after tax (PAT) stood at `
16,352 million against ` 22,886 million in the previous BBC India Top Gear’s ‘Small car of the year 2011’
year. awarded to new Swift.
The Company’s subsidiary ‘True Value Solutions translates to an average of 5.15 days of training per
Limited’ has contributed towards smooth operations of employee.
business processes and supported the dealerships in
enhancing the sale of certified pre-owned cars under the
brand ‘Maruti A. Energy Conservation
True Value’. It has contributed significantly to the
efforts of customer retention by facilitating sale and re- The Company continued its energy conservation drive
purchase of new cars through exchange and has made more prominently through various energy saving
significant contribution towards enhancing dealers’ activities and adaptation of new technology.
rofitability. Energy saving initiatives throughout the plant helped
In terms of the general circular dated 8th February the Company in reducing energy consumption by 2 per
2011issued by the Government of India, Ministry of cent in most of the areas. Some of the activities carried
Corporate Affairs, the balance sheets, profit & loss out during the year towards environment, energy and
accounts, reports of the board of directors and auditors water conservation are mentioned under: Fluidised bed
of the subsidiary companies have not been attached type incinerator was installed in Manesar plant for
with the balance sheet of the Company. Annual cleaning of paint booth gratings instead of direct
accounts of the subsidiary companies and the related burning type incinerator to reduce emission.
detailed information shall be made available to
shareholders of the Company and subsidiary companies In order to utilise the exhaust gases of the Gas Turbine
seeking such information at any point Generators (GTGs), Waste Heat Recovery Boilers
of time. The annual accounts of the subsidiary (WHRB) & Steam Turbine Generators (STGs) were
companies shall also be available for inspection by any installed in Gurgaon plant which will reduce the cost of
shareholder at the head office of the Company and of energy by 20 per cent. Newly built plant at Manesar
the subsidiary companies. Hard copy of details of was designed in a special way so as to make maximum
accounts of subsidiaries shall be furnished to any use of natural light. New generation Electro Deposition
shareholder on demand. Further, (ED) paint coating on car body was introduced which
pursuant to Accounting Standard – 21 issued by the operates at low voltage and thus consumes less energy.
Institute of Chartered Accountants of India, Gravity conveyors were used in weld shop. Light
consolidated financial statements presented by the Emitting Diodes (LED) lights were used in shop floors
Company include the financial information of its in stockyards, Manesar and Gurgaon plant.
subsidiaries. Aerodynamic energy efficient Fibre Reinforced Plastic
(FRP) blades were used in lieu of standard blades for
cooling towers which consume less energy.
Human Resource Development Voltage was optimized in shops for lighting and motor
loads.
The Company provides tremendous learning and Improvement was achieved in efficiency of air washers
development opportunities to its employees starting by replacing spray zone with celdec media. Desiccant
from induction and orientation when a new employee type air dryers were introduced to reduce energy
joins the Company. The Company believes that to have consumption. Direct cooling type system was
a sustainable competitive advantage in the new introduced for air conditioning system. Utilization of
knowledge economy,learning would be the key catalyst cooling towers was optimized.
for an organisation’s survival and success. The Energy efficient motors were used in water treatment
Company’s extensive training calendar encompasses plant at Manesar.
training programs for all categories of employees i.e. Use of natural light was substituted for artificial lights
associates, supervisors and those at junior, middle, for achieving energy saving. Air cooled cooling towers
senior and top management level. To have a well were used in Gurgaon and Manesar plants. Air cooled
rounded development of employees, the training air dryers were used in compressed air plant.
calendar comprises of behavioral, functional and safety Usage of recycled water was increased in lieu of fresh
trainings. The training programmes vary according to water.
the need of the employees at various levels and business
requirements and are designed after doing a thorough
process of three stage need identification. B. Research & Development:
In 2011 - 12, a total of 47,000 man-days of training The Company’s R&D team has been working with the
were conducted for employees across all the levels. This following vision - “Build on our engineering skills to
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Int. J Sup. Chain. Mgt Vol. 2, No. 2, June 2013
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