TQM Presentation - Pratik Bhosale
TQM Presentation - Pratik Bhosale
TQM Presentation - Pratik Bhosale
By
Mr. Pratik Prakash Bhosale
Submitted to
ABMTC
In the current era of globalization and technological advancement it’s the need of
hour to be highly competitive and complex if you need to stay in the market.
The customer's needs, wants and expectations are changing at an exponential
rate. For surviving and thriving in this scenario companies need to develop
effective brand positioning strategies.
In the current global scenario of global automobile industry Tata struggled to cope
up with the advancements. While facing tough competition Tata needs to will need
to take preventive and preparatory action against these threats as well as expose
and capitalize on the different opportunities.
The high barriers of entry results in a low threat of entry for new competitors,
but the access to affordable substitute goods makes competing in the auto
industry exceptionally difficult. The fact that Tata failed to work on TQM
ultimately resulted in poor workmanship, poor quality passenger vehicles,
resulting in a brand image maligned.
Indian Automotive Industry
The Indian auto industry became the 4th largest in the world with sales increasing
9.5 per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. It
was the 7th largest manufacturer of commercial vehicles in 2017.
The Two Wheelers segment dominates the market in terms of volume owing to a
growing middle class and a young population. Moreover, the growing interest of
the companies in exploring the rural markets further aided the growth of the
sector.
India is also a prominent auto exporter and has strong export growth expectations
for the near future. Automobile exports grew 15.54 per cent during April 2018-
February 2019. It is expected to grow at a CAGR of 3.05 per cent during 2016-
2026. In addition, several initiatives by the Government of India and the major
automobile players in the Indian market are expected to make India a leader in
the two-wheeler and four wheeler market in the world by 2020.
Indian Automotive Industry
Indian
Automotive
Industry
Tata Group
The top 10 competitors in Tata Motors' competitive set are Honda, Nissan,
Ford Motor, Ashok Leyland, Mandovi Motors, Maruti Suzuki, Eicher Trucks And
Buses, Suzuki Sport Owners Club, Hero Motocorp and SML Isuzu.
Together they have raised over 756.0M between their estimated 605.0K
employees.
Tata Motors has 81,090 employees and is ranked 4th among it's top 10
competitors. The top 10 competitors average 68,605.
The top 10 competitors in Tata Motors' competitive set are Honda, Nissan,
Ford Motor, Ashok Leyland, Mandovi Motors, Maruti Suzuki, Eicher Trucks And
Buses, Suzuki Sport Owners Club, Hero Motocorp and SML Isuzu. Together they
have raised over 756.0M between their estimated 605.0K employees. Tata
Motors has 81,090 employees and is ranked 4th among it's top 10 competitors.
The top 10 competitors average 68,605.
Honda
Ford Motor has been one of Tata Motors's top competitors. Ford Motor's
headquarters is in Dearborn, Michigan, and was founded in 1903. Ford Motor
operates in the Automobile Manufacturers industry. Ford Motor generates
403% of Tata Motors's revenue.
https://www.owler.com/company/tatamotors
SWOT Analysis
Strengths
Tata Motors is one of the most established company in automobile sector in India
Tata Motors has a wide & extensive distribution and service network
Good market penetration in the taxi & rental segment
Expert service professionals available
Many associations like Jaguar Land Rover, Hispanso, Macropolo etc increases Tata
Motors' international presence
Dedicated engineering and R&D department
More than 70,000 employees are present with Tata Motors
Highly diversified product portfolio
Strong brand legacy owing to parent brand Tata
SWOT Analysis
Weakness
Limited international presence as compared to international car manufacturers
Controversies like Singur plant for Nano etc hurt Tata Motors
Weak Marketing Policies
Indifferent to changes
Lack of service to consumers
Quality issues.
SWOT Analysis
Opportunities
Expanding automobile market can be a boon for Tata Motors
Increasing per capita income and purchasing capability of potential customer base
Leveraging customer engagement experience to acquire new customers can be
done by Tata Motors
Leveraging mergers and acquisitions to acquire newer technology
Tata Motors can boost business by augmenting the distribution and service network
in various countries
SWOT Analysis
Threats
Increasing fuel costs
Competition from other big automobile giants means reduced market share
for Tata Motors
Competitive products offering same level features at a lesser price
Product innovations and frugal engineering by competitors
Importance of Quality
TQM Tools
Benchmarking
Failure analysis
Plan-do-check-act (PDCA) cycle
Process management
Product design control
Statistical process control
TQM Advantages
• When applied consistently • Since the company has • TQM has a strong emphasis • The ongoing and proven
over time, TQM can better products and on improving quality success of TQM, and in
reduce costs throughout services, and its within a process, rather particular the
an organization, especially interactions with than inspecting quality participation of employees
in the areas of scrap, customers are relatively into a process. This not in that success can lead to
rework, field service, and error-free, there should only reduces the time a noticeable improvement
warranty cost reduction. be fewer customer needed to fix errors, but in employee morale,
• Since these cost complaints. Fewer makes it less necessary to which in turn reduces
reductions flow straight complaints may also mean employ a team of quality employee turnover, and
through to bottom-line that the resources assurance personnel. therefore reduces the cost
profits without any devoted to customer of hiring and training new
additional costs being service can be reduced. employees.
incurred, there can be a • A higher level of customer
startling increase in satisfaction may also lead
profitability. to increased market
share, as existing
customers act on the
company's behalf to bring
in more customers.
Quality Costs
Quality costs are the costs associated with preventing, detecting, and
remediating product issues related to quality. Quality costs do not involve
simply upgrading the perceived value of a product to a higher standard.
Instead, quality involves creating and delivering a product that meets the
expectations of a customer.
Thus, if a customer spends very little for an automobile, he will not expect
leather seats and air conditioning - but he will expect the vehicle to run
properly. In this case, quality is considered to be a vehicle that functions,
rather than a luxury experience.
Quality Costs fall into 4 categories
Prevention costs. You incur a prevention cost in order to keep a quality problem from occurring. It is
the least expensive type of quality cost, and so is highly recommended. Prevention costs can include
proper employee training in assembling products and statistical process control (for spotting
processes that are beginning to generate defective goods), as well as a robust product design and
supplier certification. A focus on prevention tends to reduce preventable scrap costs, because the
scrap never occurs.
Appraisal costs. As was the case with a prevention cost, you incur an appraisal cost in order to keep
a quality problem from occurring. This is done through a variety of inspections. The least expensive
is having production workers inspect both incoming and outgoing parts to and from their
workstations, which catches problems faster than other types of inspection. Other appraisal costs
include the destruction of goods as part of the testing process, the depreciation of test equipment,
and supervision of the testing staff.
Internal failure costs. An internal failure cost is incurred when a defective product is produced. This
appears in the form of scrapped or reworked goods. The cost of reworking goods is part of this cost.
External failure costs. You also incur an external failure cost when a defective product was
produced, but now the cost is much more extensive, because it includes the cost of product recalls,
warranty claims, field service, and potentially even the legal costs associated with customer
lawsuits. It also includes a relatively unquantifiable cost, which is the cost of losing customers.
Recommendation
The recruitment policies of the company must be changed or modified as per the current
trends of the market. Employees will shift to other companies if they found competitive
advantage in the required designation. However, Tata has many advantages in the schemes of
HR policies.
However, there are lack of people that are eligible in the designations that are involved in the
internalization. Organizational culture is not followed properly in many verticals of Tata
automobiles. The senior management should focus on this issue particularly to cope up the gap
created by the officials of the organization.
Tata motors have to formulate sustainable strategies related to the manufacturing sites that
are present in foreign location. It should also focus on formulating strategies that controls the
cost of production of the cars in the manufacturing sites of the company. Research and
development department should find some new features and systems that attract the
customers compared to other products of the market.
Innovation in the field of the research and development is an example of development of new
products in the market. Various policies of management should be introduced in the
organizational level and its impact on other operational process of the company is essential for
the long-term success. Short-term policies are involved in the change of the environment and
process of operations in the manufacturing facilities of Tata motors at different foreign
locations.
By
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