REPORT ON SUPPLY CHAIN MANAGEMENT,

TOTAL QUALITY MANAGEMENT AND SIX SIGMA

KARTHIKA SASIKUMAR

SCHOOL OF MANAGEMENT STUDIES

CUSAT, KOCHI-22

E-mail: karthikask012@gmail.com

ABSTRACT: This report presents a general information about what supply chain
management is and how is it important to both organisation and our society. It also
includes what total quality management is; its principles; models and tools -using which
total quality management in an organisation can be ensured. TQM applications help
reduce process variance, which has a direct impact on supply chain performance
measures. A brief about six sigma concept ; its models and its implementation process
are also included .Six Sigma processes are essential tools that supply chain managers
use to identify and solve supply chain problems.

Key Words: Supply chain management , Total quality management (TQM), Six Sigma

1
 1.0. INTRODUCTION

Total quality management (TQM) and supply chain management (SCM) have been
identified as the two most important strategies for manufacturing, services and small-to-
medium size enterprises (SMEs); and have become a prerequisite for success in the global
market. TQM and SCM act as important tools to achieve competitive advantage together
with strengthening organizational competitiveness.
TQM is an integrated approach, consisting of principles and practices, whose goal is to
improve the quality of an organization’s goods and services through continuously meeting
and exceeding customer’s needs in most competitive ways. TQM focuses on enhancing
customer satisfaction.
On the other hand, SCM is seen as an approach to improve competitive performance by
integrating the internal functions of an organization and linking these with the external
operations of suppliers, customers and other members of the supply chain. SCM focuses
on coordination and configuration of the processes that are necessary to make products on
time (no delay), reproducibly, and in a satisfactory condition (quality assurance) together
with handling procurement of the material/service inputs. , TQM is a total system approach
which works horizontally across functions and departments, involving all employees, top to
bottom, and extends backwards and forwards to include the supply chain and customer
chain. SCM takes a vertical view of the relationship between the buyer and supplier,
focusing on the performance of upstream and downstream organizations.
Quality plays an important role in the success and failure of an organization. Neglecting an
important aspect like quality, will not let you survive in the long run. Six Sigma is a business
management strategy which aims at improving the quality of processes by minimizing and
eventually removing the errors and variations. Six Sigma ensures superior quality of
products by removing the defects in the processes and systems. Six-Sigma is a relatively
newer concept than Total Quality Management but not exactly its replacement. Both Six
Sigma and Total Quality Management are effective tools for quality management but a thin
line of difference does exist between them. Although the methodologies and procedures
involved in both the two appear quite similar but there are certain major differences.

2.0. TOTAL QUALITY MANAGEMENT

TQM was developed by William Deming, a management consultant whose work had a
great impact on Japanese manufacturing. Total quality management (TQM) is the continual
process of detecting and reducing or eliminating errors in manufacturing, streamlining
supply chain management, improving the customer experience, and ensuring that
employees are up to speed with training. Total quality management aims to hold all parties
involved in the production process accountable for the overall quality of the final product or
service. Total quality management (TQM) is a structured approach to overall organizational
management. The focus of the process is to improve the quality of an organization's
outputs, including goods and services, through continual improvement of internal practices.
According to British Standard BS7850, TQM is defined as ,”Management philosophy and
company practices that aim to harness the human and material resources of an
organisation in the most effective way to achieve objectives of the organisation”.
The five pillars of TQM are :
a. Product
b. Process
c. Systems
d. People
e. Leadership

2
 Fig 2: Five Pillars of TQM

2.1. PRINCIPLE OF TQM

1. Customer-focused: The customer ultimately determines the level of quality. No matter

what an organization does to foster quality improvement—training employees, integrating
quality into the design process, or upgrading computers or software—the customer
determines whether the efforts were worthwhile.
2. Total employee involvement: All employees participate in working toward common goals.
Total employee commitment can only be obtained after fear has been driven from the
workplace, when empowerment has occurred, and when management has provided the
proper environment. High-performance work systems integrate continuous improvement
efforts with normal business operations. Self-managed work teams are one form of
empowerment.
3. Process-centered: A fundamental part of TQM is a focus on process thinking. A process is
a series of steps that take inputs from suppliers (internal or external) and transforms them
into outputs that are delivered to customers (internal or external). The steps required to
carry out the process are defined, and performance measures are continuously monitored
in order to detect unexpected variation.
4. Strategic and Systematic approach: A critical part of the management of quality is the
strategic and systematic approach to achieving an organization’s vision, mission, and goals.
This process, called strategic planning or strategic management, includes the formulation of
a strategic plan that integrates quality as a core component.

3
5. Continual improvement: A large aspect of TQM is continual process improvement.
Continual improvement drives an organization to be both analytical and creative in finding
ways to become more competitive and more effective at meeting stakeholder expectations.
6. Fact-based decision making: In order to know how well an organization is performing,
data on performance measures are necessary. TQM requires that an organization
continually collect and analyze data in order to improve decision making accuracy, achieve
consensus, and allow prediction based on past history.
7. Leadership : an organisation’s senior leaders need to set directions and create clear and
visible quality values, high expectations and a customer-orientated approach. The leaders
need to ensure the creation of strategies, systems and methods of achieving excellence.
8. Mutually beneficially supplier relationships : The ability of the organisation and its
suppliers to create value is enhanced by mutually beneficial relationships.

2.2. KEY ELEMENTS OF TQM

Quality is an essential parameter which helps organizations outshine their competitors and
survive the fierce competition.
The success of total quality management depends on following eight elements which are
further classified into following four groups.
1. Foundation
2. Building
3. Building Bricks
4. Binding Mortar
5. Roof

I. Foundation
The entire process of Total Quality Management is built on a strong foundation of Ethics,
Integrity and Trust. Total Quality Management involves every single employee irrespective
of his designation and level in the hierarchy.

1. Ethics: Ethics is an individual’s understanding of what is good and bad at the workplace. A
thin line of difference does exist between good and bad, which is for you to decide. Ethics
teach an individual to follow code of conduct of organization and adhere to rules and
regulations.

2. Integrity: Integrity refers to honesty, values and an individual’s sincerity at workplace. You
need to respect your organization’s policies. Avoid spreading unnecessary rumours about
your fellow workers. Total Quality Management does not work in an environment where
employees criticize and backstab each other.

3. Trust: Trust is one of the most important factors necessary for implementation of total
quality management. Employees need to trust each other to ensure participation of each
and every individual. Trust improves relationship among employees and eventually helps in
better decision making which further helps in implementing total quality management
successfully.

II. Building Bricks

Bricks are placed on a strong foundation to reach the roof of recognition. The foundation
needs to be strong enough to hold the bricks and support the roof.

4
4. Training: Employees need to be trained on Total Quality Management. Managers need to
make their fellow workers aware of the benefits of total quality management and how would
it make a difference in their product quality and eventually yield profits for their organization.
Employees need to be trained on interpersonal skills, the ability to work as a team member,
technical know-how, decision making skills, problem solving skills and so on. Training
enables employees to implement TQM effectively within their departments and also make
them indispensable resources.

5. Teamwork: Team work is a crucial element of total quality management. Rather than
working individually, employees need to work in teams. When individuals work in unison,
they are in a position to brainstorm ideas and come up with various solutions which would
improve existing processes and systems. Team members ought to help each other to find a
solution and put into place.

6. Leadership: Leadership provides a direction to the entire process of Total Quality

Management. Total Quality Management needs to have a supervisor who acts as a strong
source of inspiration for other members and can assist them in decision making. A leader
himself needs to believe in the entire process of TQM for others to believe in the same.
Proper downloads, briefs about TQM must be given from to time to employees to help them
in its successful implementation.

III. Binding Mortar

Binding Mortar binds all the elements together.

7. Communication - Communication binds employees and extracts the best out of them.
Information needs to be passed on from the sender to the recipient in its desired form.
Small misunderstandings in the beginning lead to major problems later on. Employees need
to interact with each other to come up with problems existing in the system and find their
solutions as well.
Three types of Communication takes place between employees:
Downward Communication: Flow of information takes place from the management to the
employees
Upward Communication: Flow of information takes place from the employees to the top
level management
Sideways Communication: Communication also takes place between various departments.

IV. Roof
8. Recognition: Recognition is the final element of Total Quality Management. Recognition is
the most important factor which acts as a catalyst and drives employees to work hard as a
team and deliver their lever best. Every individual is hungry for appreciation and
recognition. Employees who come up with improvement ideas and perform exceptionally
well must be appreciated in front of all. They should be suitably rewarded to expect a
brilliant performance from them even the next time.

5
 Fig 3: TQM- Key Elements

2.3. TQM MODELS

1. The Deming Application Prize was created in Japan in 1950 by the Union of Japanese
Scientists and Engineers (JUSE) to acknowledge companies and individuals from around
the world for their successful efforts at implementing TQM. Winners have included Ricoh,
Toyota, Bridgestone Tire, and many others.

2. Congress established The Malcolm Baldrige National Quality Award (MBNQA) in 1987
to raise awareness of quality and reward US companies who pursue it. The National
Institute of Standards and Technology (NIST) administers the award. It is given to large and
small companies and nonprofit entities that demonstrate excellent performance in the
following areas:

 Delivery of increasing value to customers and stakeholders, contributing to organizational

sustainability
 Improvement of overall organizational effectiveness and capabilities
 Implementation of organizational and personal learning

6
3. The non-profit European Foundation for Quality Management (EFQM) was established
in 1989 to provide a quality framework for organizations throughout Europe. They maintain
the EFQM excellence model, which embraces the following precepts:

 Adding value for customers

 Creating a sustainable future
 Developing organizational capability
 Harnessing creativity and innovation
 Leading with vision, inspiration, and integrity
 Managing with agility
 Succeeding through the talent of people
 Sustaining outstanding results

4. The International Organization for Standards (ISO 9000) publishes guidelines and
specifications for parts, processes, and even documentation to ensure that quality is
consistent across companies, organizations, and borders.

2.4. TQM TOOLS

Quality Management tools make the data easy to understand and enable employees to
identify processes to rectify defects and find solutions to specific problems.

Following are the quality management tools:

1. Check List - Check lists are useful in collecting data and information easily .Check list also
helps employees to identify problems which prevent an organization to deliver quality
products which would meet and exceed customer expectations. Check lists are nothing but
a long list of identified problems which need to be addressed. Once you find a solution to a
particular problem, tick it immediately. Employees refer to check list to understand whether
the changes incorporated in the system have brought permanent improvement in the
organization or not?
2. Pareto Chart - The credit for Pareto Chart goes to Italian Economist - Wilfredo Pareto.
Pareto Chart helps employees to identify the problems, prioritize them and also determine
their frequency in the system. Pareto Chart often represented by both bars and a line graph
identifies the most common causes of problems and the most frequently occurring defects.
Pareto Chart records the reasons which lead to maximum customer complaints and
eventually enables employees to formulate relevant strategies to rectify the most common
defects.
3. The Cause and Effect Diagram - Also referred to as “Fishbone Chart” (because of its
shape which resembles the side view of a fish skeleton) and Ishikawa diagrams after its
creator Kaoru Ishikawa, Cause and Effect Diagram records causes of a particular and
specific problem .The cause and effect diagram plays a crucial role in identifying the root
cause of a particular problem and also potential factors which give rise to a common
problem at the workplace.

7
4. Histogram - Histogram, introduced by Karl Pearson is nothing but a graphical
representation showing intensity of a particular problem. Histogram helps identify the cause
of problems in the system by the shape as well as width of the distribution.
5. Scatter Diagram - Scatter Diagram is a quality management tool which helps to analyze
relationship between two variables. In a scatter chart, data is represented as points, where
each point denotes a value on the horizontal axis and vertical axis.
Scatter Diagram shows many points which show a relation between two variables.
6. Graphs - Graphs are the simplest and most commonly used quality management tools.
Graphs help to identify whether processes and systems are as per the expected level or not
and if not also record the level of deviation from the standard specifications.

3.0. SIX SIGMA

Six Sigma (6σ) is a set of techniques and tools for process improvement. Six Sigma is a
disciplined, statistical-based, data-driven approach and continuous improvement
methodology for eliminating defects in a product, process or service. It was developed by
Motorola and Bill Smith in the early 1980’s based on quality management fundamentals,
then became a popular management approach at General Electric (GE) with Jack Welch in
the early 1990’s. The approach was based on the methods taught by W. Edwards Deming,
Walter Shewhart and Ronald Fisher among many others. Hundreds of companies around
the world have adopted Six Sigma as a way of doing business.
Six sigma engages each employee in the organistaion from top executive to the employee
on the manufacturing or service floor. It focuses on quality improvement, cost reduction,
cycle time reduction and improved delivery performance. This results in higher profits and
customer satisfaction.
Six sigma stands for six standard deviations from mean. The six sigma methodology
provides the techniques and tools to improve the capability and reduce the defects in any
process. A six sigma quality level is said to equate to 3.4 defects per milion opportunities.

3.1. KEY SIX SIGMA CONCEPTS

At its core, six sigma revolves around the following key concepts:
1. Critical to quality (CTQ) : attributes most crucial for the customer.
2. Defect: failing to deliver what the customer wants.
3. Process capability: what one’s process can deliver.
4. Variation: what customer sees and feels.
5. Stable operation: ensuring consistent, predictable processes to improve what the
customer sees and feels.
6. Design for six sigma: designing to meet customer needs and process capabilities.

3.2. SIX SIGMA’S BELT SYSTEM

Six Sigma makes expert use of statistical measurement and quantitative analysis, and while
this is true, Six Sigma’s greatest strength may be the way it organizes people. Six Sigma’s
greatest asset in coordinating and managing the people who employ it may just be its belt
system.
The belt system is composed of a ranking system similar to the hierarchy in some martial
arts disciplines. The belt system helps establish a chain of command among employees
with Six Sigma training. Belt rankings help employees understand the role they play on
project teams and what will generally be expected of them.
There are several roles in Six Sigma belt ranking. Among them:

8
 Champions – These individuals typically come from upper management. Champions act
as sponsors and leaders to conduct and implement Six Sigma projects. As part of the
leadership team, Champions help remove obstacles and acquire resources for Six Sigma
project teams.
Master Black Belts (MBB) – These individuals have more Six Sigma training and
experience than any other member of the organization. MBBs maintain a close relationship
with upper management and often provide advice and counsel regarding Six Sigma. MBBs
also provide training and mentoring to Black Belts and Green Belts.
Black Belts – Black Belts are full-time Six Sigma professionals. They help select Six Sigma
projects and prepare project charters. They train team members and help them design
experiments and analyze data. Black Belts are responsible for communicating progress to
Champions and process owners. They may be tasked with recommending additional Six
Sigma projects.
Green Belts – Green Belts are typically part-time Six Sigma practitioners who spend about
25% of their time working on Six Sigma projects. They select project team members and
provide training on the fundamentals of Six Sigma. Green Belts communicate progress to
Black Belts and Champions as the project advances.
Yellow Belt- it is an introductory training in the fundamentals of six sigma. An yellow belt
certification gives an overall insight to the techniques of six sigma, its metrics and basic
improvement methodologies. They do not lead projects on their own and they are usually
responsible for the development of process maps to support Six Sigma Projects.

3.3. APPROACHES TO SIX SIGMA

Six Sigma can improve new or existing processes using its defined methodology.

I. DMAIC – This method improves existing processes. The acronym stands for the
stages of define, measure, analyze, improve and control. It requires teams to look
objectively at problems and use fact-based statistical analysis to find ways to
improve them.

DMAIC has Five Phases

D - Define the Problem. In the first phase, various problems which need to be addressed to
are clearly defined. Feedbacks are taken from customers as to what they feel about a
particular product or service. Feedbacks are carefully monitored to understand problem
areas and their root causes.
M - Measure and find out the key points of the current process. Once the problem is
identified, employees collect relevant data which would give an insight into current
processes.
A - Analyze the data. The information collected in the second stage is thoroughly verified.
The root cause of the defects are carefully studied and investigated as to find out how they
are affecting the entire process.
I - Improve the current processes based on the research and analysis done in the previous
stage. Efforts are made to create new projects which would ensure superior quality.
C - Control the processes so that they do not lead to defects.

II. DMADV – This acronym stands for define, measure, analyze, design and verify. It
is used to develop a new product or service or to redesign a process that has
reached its limits. This model forces project teams to identify and translate
customer needs into a product or service that satisfies the customer.

9
 D - Design strategies and processes which ensure hundred percent customer satisfaction.
M - Measure and identify parameters that are important for quality.
A - Analyze and develop high level alternatives to ensure superior quality.
D - Design details and processes.
V - Verify various processes and finally implement the same.

3.4. IMPLEMENTATION OF SIX SIGMA

Step 1: Successful performance improvement must begin with senior leadership. Make
sure all top level management is on board and that financial and managerial resources are
available. Systems are developed to maintain close communications with customers,
employees and suppliers. Policies and guidelines are established. Training needs are
rigorously assessed and training programmes are conducted for employees. Commitment
is made to the project.
Step 2: Define the project scope and goals based on customer feedback and needs.
Inspiration for six sigma projects can come from surveys, studies or existing projects. Set
goals for the whole organisation or for specific level of the organisation that need
improvement.
Step 3: analyse the system to find defects and problems. Measure the defects in the
current system and performance. Explore possible solution and asses their possible effects
on the organisation. Use statistical data analysis.
Step 4: improve the system by finding ways to do things faster, cheaper or better. Use
management and planning tools to put the improvement projects into place. Test the
improvement with statistical data.
Step 5: control the new process by modifying systems and measuring processes to
continue to achieve results. Use customer feedback and statistical tools. State what was
done to improve performance. Document method to recognise and solve future problems.

4.0. SUPPLY CHAIN MANAGEMENT (SCM)

Supply chain management is the management of the flow of goods and services and includes
all processes that transform raw materials into final products. It involves the movement and
storage of raw materials, of work-in-process inventory, and of finished goods from point of
origin to point of consumption.
Sourcing of raw materials and vendors to supply the right quality, quantity and at right price
calls for dynamic procurement strategy spanning across countries. companies have to
procure materials globally from various vendors to supply raw materials to their factories
situated in different continents. The finished goods out of these different factory locations
then pass through various chains of distribution network involving warehouses, exports to
different countries or local markets, distributors, retailers and finally to the end customer.
Thus, managing all these activities to meet the demand and supply globally, is supply chain
management. SCM is also called the art of management of providing the Right Product, At
the Right Time, Right Place and at the Right Cost to the Customer.
CSCMP’s (Council of Supply Chain Management Professionals) Definition of Supply
Chain Management:
Supply chain management encompasses the planning and management of all activities
involved in sourcing and procurement, conversion, and all logistics management activities.
Importantly, it also includes coordination and collaboration with channel partners, which can
be suppliers, intermediaries, third party service providers, and customers. In essence, supply
chain management integrates supply and demand management within and across
companies.

10
 Fig 1: Supply Chain Stages

4.1. COMPONENTS OF SUPPLY CHAIN MANAGEMENT

There are six components of traditional supply chain management:
 Planning – Plan and manage all resources required to meet customer demand for
a company’s product or service. When the supply chain is established, determine
metrics to measure whether the supply chain is efficient, effective, delivers value
to customers and meets company goals.
 Sourcing – Choose suppliers to provide the goods and services needed to create
the product. Then, establish processes to monitor and manage supplier
relationships. Key processes include ordering, receiving, managing inventory and
authorizing supplier payments.
 Making – Organize the activities required to accept raw materials, manufacture the
product, test for quality, package for shipping and schedule for delivery.
 Delivering (or logistics) – Coordinating customer orders, scheduling delivery,
dispatching loads, invoicing customers and receiving payments.
 Returning – Create a network or process to take back defective, excess or
unwanted products.
 Enabling – Establish support processes to monitor information throughout the
supply chain and assure compliance with all regulations. Enabling processes
include: finance, human resources, IT, facilities management, portfolio
management, product design, sales and quality assurance.

11
4.2. IMPORTANCE OF SUPPLY CHAIN MANAGEMENT

1. Boost Customer Service

 Customers expect the correct product assortment and quantity to be delivered.
 Customers expect products to be available at the right location. (i.e., customer
satisfaction diminishes if an auto repair shop does not have the necessary parts in
stock and can’t fix your car for an extra day or two).
 Right Delivery Time – Customers expect products to be delivered on time (i.e.,
customer satisfaction diminishes if pizza delivery is two hours late or Christmas
presents are delivered on December 26).
 Right After Sale Support – Customers expect products to be serviced quickly. (i.e.,
customer satisfaction diminishes when a home furnace stops operating in the
winter and repairs can’t be made for days)
2. Reduce Operating Costs
 Decreases Purchasing Cost – Retailers depend on supply chains to quickly deliver
expensive products to avoid holding costly inventories in stores any longer than
necessary. For example, electronics stores require fast delivery of 60” flat-panel
plasma HDTV’s to avoid high inventory costs.
 Decreases Production Cost – Manufacturers depend on supply chains to reliably
deliver materials to assembly plants to avoid material shortages that would
shutdown production. For example, an unexpected parts shipment delay that
causes an auto assembly plant shutdown can cost $20,000 per minute and
millions of dollars per day in lost wages.
 Decreases Total Supply Chain Cost – Manufacturers and retailers depend on
supply chain managers to design networks that meet customer service goals at
the least total cost. Efficient supply chains enable a firm to be more competitive in
the market place. For example, Dell’s revolutionary computer supply chain
approach involved making each computer based on a specific customer order,
then shipping the computer directly to the customer. As a result, Dell was able to
avoid having large computer inventories sitting in warehouses and retail stores
which saved millions of dollars. Also, Dell avoided carrying computer inventories
that could become technologically obsolete as computer technology changed
rapidly.
3. Improve Financial Position
 Increases Profit Leverage – Firms value supply chain managers because they
help control and reduce supply chain costs. This can result in dramatic increases
in firm profits. For instance, U.S. consumers eat 2.7 billion packages of cereal
annually, so decreasing U.S. cereal supply chain costs just one cent per cereal
box would result in $13 million dollars saved industry-wide as 13 billion boxes of
cereal flowed through the improved supply chain over a five year period.
 Decreases Fixed Assets – Firms value supply chain managers because they
decrease the use of large fixed assets such as plants, warehouses and
transportation vehicles in the supply chain. If supply chain experts can redesign
the network to properly serve U.S. customers from six warehouses rather than ten,
the firm will avoid building four very expensive buildings.
 Increases Cash Flow – Firms value supply chain managers because they speed
up product flows to customers. For example, if a firm can make and deliver a
product to a customer in 10 days rather than 70 days, it can invoice the customer
60 days sooner.

12
 4.3. DECISION PHASES IN SUPPLY CHAIN

Decision phases can be defined as the different stages involved in supply chain management
for taking an action or decision related to some product or services. Successful supply chain
management requires decisions on the flow of information, product, and funds that fall into
three decision phases.
The three main decision phases involved in the entire process of supply chain. The three
phases are described below −
1. Supply Chain Strategy
In this phase, decision is taken by the management mostly. The decision to be made
considers the sections like long term prediction and involves price of goods that are very
expensive if it goes wrong. It is very important to study the market conditions at this stage.
These decisions consider the prevailing and future conditions of the market. They comprise
the structural layout of supply chain. After the layout is prepared, the tasks and duties of each
is laid out.
All the strategic decisions are taken by the higher authority or the senior management. These
decisions include deciding manufacturing the material, factory location, which should be easy
for transporters to load material and to dispatch at their mentioned location, location of
warehouses for storage of completed product or goods and many more.
2. Supply Chain Planning
Supply chain planning should be done according to the demand and supply view. In order to
understand customers’ demands, a market research should be done. The second thing to
consider is awareness and updated information about the competitors and strategies used by
them to satisfy their customer demands and requirements. As we know, different markets
have different demands and should be dealt with a different approach.
This phase includes it all, starting from predicting the market demand to which market will be
provided the finished goods to which plant is planned in this stage. All the participants or
employees involved with the company should make efforts to make the entire process as
flexible as they can. A supply chain design phase is considered successful if it performs well
in short-term planning.
3. Supply Chain Operations
The third and last decision phase consists of the various functional decisions that are to be
made instantly within minutes, hours or days. The objective behind this decisional phase is
minimizing uncertainty and performance optimization. Starting from handling the customer
order to supplying the customer with that product, everything is included in this phase.
For example, imagine a customer demanding an item manufactured by your company.
Initially, the marketing department is responsible for taking the order and forwarding it to
production department and inventory department. The production department then responds
to the customer demand by sending the demanded item to the warehouse through a proper
medium and the distributor sends it to the customer within a time frame. All the departments
engaged in this process need to work with an aim of improving the performance and
minimizing uncertainty.

4.4. PROCESS VIEWS OF A SUPPLY CHAIN

A Supply chain is a sequence of processes and flows that take place within and between
different stages and combine to fill a customer need for a product. There are two ways to
view the process performed in a supply chain.
1. Cycle View
The processes in a supply chain are divided into a series of cycles, each performed at the
interface between two successive stages of a supply chain.

13
 2. Push / Pull View
The processes in a supply chain are divided into two categories depending on whether they
are executed in a response to a customer order or in anticipation of a customer order. Pull
processes are initiated by a customer order, whereas push processes are initiated and
performed in anticipation of customer orders.

5.0. APPLICATION OF TQM IN BUSINESS

5.1. TVS Motor Company

TVS Company Limited, the manufacturer of motorcycles and other two wheelers, is a part
of the almost one-century-old TVS Group of companies that was first established in the
year 1911. he company began its TQM journey the year 1987. During 2002 the company
won the internationally coveted Deming Application Prize; it was the first two wheeler
company in the world to get that prize.
The company’s philosophy towards quality is reflected in its following statements.

Our Understanding of TQM:

TQM is the company wide effort of continuous quality improvement of all processes,
products and services through total employee involvement that results in increasing
customer satisfaction and loyalty and improved business results.

Quality Policy:

TVS Motor Company Limited is committed to achieving total customer satisfaction through
excellence in TQC. We will continuously strive to provide the customer the best value for
money by supplying quality product at the right time and at the right price. We shall provide
superior after sales service to maintain and reinforce customer satisfaction. This objective
will be achieved by continuous improvement through total employee involvement.

What is most striking about the company’s TQM program is the tremendous emphasis that
is laid on Total Employee Involvement (TEI). The above two statements also clearly
mention that it is through TEI that they would achieve the TQM objective. TEI is at the very
foundation of the TQM movement at TVS Motors as depicted in the company’s TQM Model
presented.

The company tries to obtain TEI basically through:

1. Suggestions scheme
2. Quality Circle activities
3. Cross Functional Teams (CFTs),
4. Supervisory improvement Teams (SITs),
5. Task forces

The notional relative allocation of responsibilities among the different levels of employees in
the organization i.e. top and senior management, middle management and workers is clear
at the company. Following are three kinds of responsibilities which are shared by three
levels (however, the time spent by each of these levels is different):

14
 (a) Retainment (i.e. Retaining the performance levels achieved)
(b) Improvement and
(c) Breakthroughs

Staff and workers would be more involved in ‘retainment’ part through good daily
management practices and contribute to improvement through Employee Suggestions
System and through participation in the Quality Control Circles (QCCs). The middle level
people such as the executives would be more into ‘improvement’, while the top
management would be mainly responsible for breakthroughs.

6.0. APPLICATION OF SIX SIGMA

6.1. Six Sigma in Wipro

Why Wipro undertook Six Sigma?

To reduce the data transfer time. To reduce the risk. To avoid interpretation due to
LAN/WAN downtime. For parallel availability of the switch for the other administrative tasks
during the same period. To have products and services meet the global benchmark. Ensure
robust processes within the organization. Consistently meet & exceed customer
expectation. Make quality a culture within.
Challenges faced during implementation of six sigma program:
Changing the culture: Restructuring the organization culture, infrastructure, training and
confidence building took time.
Project Selection: Choosing a suitable project in the first year was a challenge. Wipro
decided to select those projects which had higher chances of success and targeted to
complete this project in a short time span.
Training: Finding the right people and training those people presented a tough job at Wipro.
Training was rolled out in 5 phases:
Defining, measuring, analyzing, improving and controlling the process and lastly increasing
customer satisfaction.
Wipro implemented the Six Sigma Program for different service lines:
Developing New Processes Improving Existing Processes Reengineering Different
methodologies used by Wipro for implementing six sigma For Developing New Processes:
Developing six sigma software (dsss methodology): for software development that ensures
defect-free delivery and lower customer cost of application development. Designing six
sigma process and product (dssp methodology): for designing new products and
processes. Design for customer satisfaction and manufacturability (dcam method) For
Improving Existing Processes:
Transactional quality using six sigma (TQSS): For defect reduction in transactional
processes.
DMAIC: For process improvement in non-transactional process.
For Reengineering: 1. Cross-functional process (cfp methodology) - The process followed
for the implementation of the above methodologies is explained below: Built the culture:
Implementation of Six Sigma required support from high-level managers. For this, the
company restructured the organization and provided infrastructure, training, and confidence
in the process. Selection of the project: For the selection of the right project the field data
was collected, process map was developed and the importance of the project was judged
from the eyes of the customers. Resources: Resources were identified on the basis of short
term and long term requirements. The project selected was a crucial factor in determining

15
 the resources required. Controlling: Wipro developed a team of experts in reviewing the
projects. It was done (Six Sigma implementation at wipro ltd.)to see the timeliness of the
project completion, targeting of gaps, weak areas, and deviations.

7.0. CONCLUSION

Supply chain management (SCM) is critical to a company’s procurement to production

lifecycle; however, it is not highly publicized. With the advent of emerging technologies such
as cloud computing, big data and more, the need for a SCM system is becoming more
prominent.
A primary focus of TQM and most Quality Management Systems is to improve customer
satisfaction by having a customer focus and consistently meeting customer expectations.
Customers are almost always satisfied when their expectations are met. When they expect
a certain product or service, and you delivere it without problems and at a fair price, you’ve
built a solid customer relationship. Happy, satisfied customers become repeat customers
and they provide word-of-mouth marketing – the most powerful kind.
Unlike TQM, SCM basically satisfies customers in terms of delivery or time-based
performance. Efficient delivery always leads to cost effectiveness in the supply chain. SCM
aims to respond to customers as quickly as possible, at the right time and place at the
lowest cost possible. SCM also aims to achieve speed-to-market, agility and the flexibility
to respond quickly to customer requirements at minimum cost. Moreover, several SCM
researchers have agreed that SCM emphasizes the flow of materials and information
throughout the entire supply chain. This might be because traditional SCM focused on
physical distribution.
Although TQM and SCM share the same ultimate goal, which is customer satisfaction,
their primary goals are different, as implied by the emphasis on “quality and supply.”
Better quality and a faster delivery always lead to lower costs.

8.0. REFERENCES
1. Charantimath, P. .. (2017). Total Quality Management. uttarpradesh: Pearson.
2. Elements of total quality management. (n.d.). Retrieved from management study guide:
https://www.managementstudyguide.com/elements-of-total-quality-management.html
3. Faisal Thalib, Z. R. (2010). A study of total quality managemnt and supply chain practices.
Emerald insight, 21.
4. A Quality Principle: Everything You Need to Know about Total Quality Management. (n.d.).
Retrieved from smartsheet: https://www.smartsheet.com/total-quality-management
5. Quality Management Tools. (n.d.). Retrieved from Management study guide:
https://www.managementstudyguide.com/quality-management-tools.html
6. Total quality management. (2019, june 25). Retrieved from Investopedia:
https://www.investopedia.com/terms/t/total-quality-management-tqm.asp
7. Total quality management and elements. (n.d.). Retrieved from ASQ: https://asq.org/quality-
resources/total-quality-management
8. Fundamentals of using six sigma in supply chain. (n.d.). Retrieved from Alison:
https://alison.com/course/fundamentals-of-using-six-sigma-in-supply-chains-revised-2018
9. How does Six Sigma work? (2018, march 15). Retrieved from Villanova University:
https://www.villanovau.com/resources/six-sigma/how-does-six-sigma-work/

16
10. Six sigma and quality management. (n.d.). Retrieved from Management study guide:
https://www.managementstudyguide.com/six-sigma-and-quality-management.html

11. Six Sigma Orientations. (2010, june 2). Retrieved from Slide Share:
https://www.slideshare.net/vivekissar/basic-six-sigma-presentation
12. Six sigma ppt. (2012, march 22). Retrieved from slide share:
https://www.slideshare.net/bumbz/six-sigma-ppt
13. Stamatis, D. H. (2004). Six Sigma Fundamental. New York: Productivity Press.
14. Chopra, S. (2013). Supply Chain Management. Noida: Pearson.
15. CSCMP Supply Chain Management Definitions and Glossary. (n.d.). Retrieved from
Council of Supply Chain Managemnt Professionals:
https://cscmp.org/CSCMP/Educate/SCM_Definitions_and_Glossary_of_Terms/CSCMP/Ed
ucate/SCM_Definitions_and_Glossary_of_Terms.aspx?hkey=60879588-f65f-4ab5-8c4b-
6878815ef921
16. Supply Chain. (n.d.). Retrieved from wikipedia:
https://en.wikipedia.org/wiki/Supply_chain.html
17. Supply Chain Management. (n.d.). Retrieved from Investopedia:
https://www.investopedia.com/terms/s/scm.asp
18. Supply chain management - decision phases. (n.d.). Retrieved from tutorials point:
https://www.tutorialspoint.com/supply_chain_management/supply_chain_management_dec
ision_phases.html
19. Supply Chain Managemnt- Definitions and its importance. (n.d.). Retrieved from
Management Study Guide: https://www.managementstudyguide.com/supply-chain-
management-definition.html
20. Supply chain mangement. (n.d.). Retrieved from wikipedia:
https://en.wikipedia.org/wiki/Supply-chain_management.html
21. Supply chain mangement. (n.d.). Retrieved from IBM: https://www.ibm.com/topics/supply-
chain-management.html
22. importance of supply chain mangement. (n.d.). Retrieved from Council of Supply Chain
Management Professionals:
https://cscmp.org/CSCMP/Develop/Starting_Your_SCM_Career/Importance_of_SCM/CSC
MP/Develop/Starting_Your_Career/Importance_of_Supply_Chain_Management.aspx?hkey
=cf46c59c-d454-4bd5-8b06-4bf7a285fc65
23. An illustration of TQM in TVS Motor Company. (2009, feb 19). Retrieved from Citemsn:
https://www.citeman.com/4989-an-illustration-of-tqm-at-tvs-motor-company.html
24. Six Sigma implementation at wipro ltd. (n.d.). Retrieved from Grsde Fixer:
https://gradesfixer.com/free-essay-examples/six-sigma-implementation-at-wipro-ltd/
25. TQM and SCM shared goals. (n.d.). Retrieved from Emerald Group Publishing:
http://www.emeraldgrouppublishing.com/learning/management_thinking/articles/pdf/tqm_sc
m.pdf

17