TQM in Automobile ServicesReporters:

Cabiten, John EduardClavecillas, Dara

Tabara, Krisna AngelaTajanlangit, Stephie Marie

In times of sever competition, it is of crucial importance to create a competitive advantage to differentiate from the competitors and to sustain the business of the company. This shows that a customer-focused quality management is one way to create a sustainable competitive advantage. Quality controls along the whole value chain-before, during and after production- leads to failure free products, which save costs on the one hand and have thus a positive customers’ expectations lead to satisfied customers who build up a brand loyalty and brand retention sales, which have a positive influence on the company’s sales, market share as well as the overall image.

Furthermore, it is important to listen to ‘the voice of the customers’ and get an insight in the customer’s needs and wants. To fulfill or even exceed their expectations leads to customer satisfaction which is a key to success in today’s business world. In addition, the customer demands in regard of quality are growing continuously and new technologies are appearing on the markets on a regular basis. Therefore th producers are forced to keep to the

latest technology development and to get hold on the changing customer needs. But even without this external pressure, quality improvement is justified from a cost point of view.

Today’s business environment creates a growing need for quality management. Tougher competition leads to the demand for cost savings and higher profitability. These days the consumer can choose from a variety of similar products, which are often exchangeable in the eyses of the customer. If they are not satisfied with a product’s

performance, they switch to the competitors brand. Thus the focus on the customer’s needs and wants in line with quality is one way of differentiation from the vast number of competitors. Satisfied customers are likely to build up a brand loyalty and this helps to ensure long term sales. The explosive growth of technology led to a higher product complexity and thus favored the quality movement.

QUALITY ASSURANCE MANAGEMENT IN AUTOMOBILE INDUSTRY

The accent on quality was lost in American industry in the post World War II era, when the country’s industry could sell almost anything that it can make, at a time when the quality level of foreign made products was of no great worry. To be sure, there were advocates of quality control in the United States (US), such as Edward Deming, however, American industry was in no mood to listen to them. Unfortunately for American industry, someone else did listen to Deming the Japanese. The superior quality control procedures of today’s Japanese industry were originally

developed under the guidance and tutelage of Edwards Deming. Further, the statistical and mathematical element of Deming’s procedures, and, in turn, those of Japanese industry were based on the work of another American quality control expert, Walter Shewbart.

Deming insisted that true quality control began with a real commitment from top management. American companies, particularly automobile manufacturers, however, made quality control a minor function of middle or lower level management.

Creating a positive stress-free work environment, eliminating fears and anxieties is important for any company. Employees working in a supportive non-threatening work atmosphere display significant better results.

QS 9000- QUALITY MANAGEMENT SYSTEMS IN AUTOMOBILE SECTORS

QS-9000 is the industry specific adaption of the ISO-9000 standards for the North American auto industry. It applies to all first-tier suppliers, i.e. companies selling components to be used or installed directly in the products of the Big Three automakers. It is a QUALITY SYSTEM REQUIREMENT STANDARD developed by the three U.S. automobile giants:CHRYSLER: Supplier quality assurance manual.FORD: Q-101 quality system standard.GENERAL MOTOR: NAO targets for excellence

QS-9000 defines the fundamental quality system expectation of Chrysler, Ford, General Motors, Truck Manufacturers and other subscribing companies for internal and external suppliers of production and service parts and materials. These companies are committed to working with suppliers to ensure customer satisfaction beginning with conformance to quality requirements, and continuing with reduction of variation and waste to benefit the final customer, the supply base, and themselves.

How Toyota Achieve Its Objective By Implementing TQM Marketing

The Toyota company of Japan has taken this challenge seriously and has proved its ability to compete with the once emperors of the industry such as Ford, Volvo, Chevrolet et al. buy careful adoption of cutting edge technologies such as Total Quality Management, Toyota has turned itself into a game changer in the industry.

Company Overview

Toyota Motor Company (TMC) is the crown of Japanese auto industry. Started as a small car manufacturer on August 28, 1937 it gifted many quality innovations to the world throughout its history. In the early 1980s Toyota won its first quality control award in Japan.

The company launched its luxury brand Lexus in 1989 which became a massive success. It also manufactures Scion an economical automobile brand that targets young adults. Toyota also conquered the hybrid car market with the launch of its iconic car Prius in 17.

Today with a work force of 71,116 and an annual sale of US$228+ billion, Toyota is as profitable as all the other car companies combined. In 2007, it became the world’s largest auto manufacturer beating General Motors.

According to Deming TQM involves 14 principles

1. Create constancy of purpose2. Adopt a new philosophy of cooperation3. Cease dependence on mass inspection to achieve quality4. End the practice of awarding business5. Improve constantly, and forever6. Institute training7. Adopt and institute leadership for the management of

people.8. Drive out fear and build trust

9. Break down barriers between departments.10. Eliminate slogans, exhortations, and targets asking zero defects or new level of productivity11. Eliminate numerical goals, numerical quotas and management by objectives12. Remove barriers that rob people of joy in their work13. Institute a vigorous program of education and self-improvement.14. Put everybody in the company to work to accomplish the transformation.

SWOT Analysis

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Value Chain Analysis of Maruti Suzuki

A value chain is a chain of activities. Products pass through all activities of the chain in order and at each activity the product gains some value. The goal of these activities is to offer the customer a level of value that exceeds the cost of the activities so that the company can charge a premium price for the product hereby resulting in a profit margin,