PROJECT REPORT ON

COMPARISON OF SUCCESS FACTORS OF TOTAL QUALTY MANAGEMENT IN MANUFACTURING AND SERVICE INDUSTRY
SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION (MBA)

Submitted by: ANUBHUTI JHINGRAN Enrol. No. – 02312303909

DELHI INSTITUTE OF ADVANCED STUDIES
Guru Gobind Singh Indraprastha University, Delhi MBA 2009-11

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ACKNOWLEDGEMENT
Success comes to those who strive for it. To achieve one’s goal, one outs in a lot of hard work efficiency. In this process, one takes all the encouraging and helping hands of the people. Apart from my efforts, the success of this project depends largely on the encouragement and guidelines of many others. I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project. I would like to show my greatest appreciation to Ms. Ritika Maheshwari, for her tremendous support and help.

ANUBHUTI JHINGRAN 02312303909 MBA (2009-2011)

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DECLARATION
I hereby declare that the project work entitled “Comparison of Total Quality Management Success factors in Manufacturing and Service Industry ” submitted to the Delhi Institute of Advanced Studies (Guru Gobind Singh Indraprastha University) is a record of an original work done by me under the guidance of Ms. Ritika

Maheshwari, Faculty Member, Delhi Institute Of Advanced Studies, and this project work has not performed the basis for the award of any Degree or diploma/ associate ship/fellowship and similar project if any.

ANUBHUTI JHINGRAN 02312303909 MBA (2009-2011)

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which should be given special attention for ensuring successful implementation of TQM program. The literature is deeply studied and the critical factors that influence the TQM success in industry are determined. They provide an early warning system for management and a way to avoid surprises or missed opportunities.Critical Success Factors (CSFs) are internal or external factors that can seriously affect the firm for better or worse. etc. The purpose of this project is to understand concept of TQM in both industry sectors and to identify the significant differences (if any) in TQM practices in Indian service and manufacturing organisations based on critical success factors. it is essential that the organizations identify a few key critical success factors.EXECUTIVE SUMMARY OF THE PROJECT Total Quality Management is an integrative management philosophy aimed at continuously improving the performance of products. The variable questions are grouped in to seven factors such as• • • • • • • Customer focus Continuous Improvement Team work and Involvement Top management Commitment and Recognition Training and Development Communication in Company Measurement and feedback Questionnaires were sent to both types of industry. 4 . The first few questions are related to the company background and demographic data such as name of the respondent. position of the respondent. For this purpose related literature is collected. then questionnaires were collected back and the data was managed in a usable format and the independent t-test was applied on the data with the help of SPSS. variable questions and ranking questions. There are many differences in manufacturing and service industries. processes and services to achieve and surpass customer expectations. In the context of TQM. sector of business. Based on these factors a questionnaire was prepared which includes two types of questions.

....................... PAGE NO 2 3 4 5 6 8 9 2 3 Conceptual Framework... 5.....................................................3 Relevance to the organizations…………………… 1. Conclusion and Suggestions.....................1 Introduction............................. 5...................................... 3............................................................... 3....................2 Suggestions......2 Sectors involved……………………………………........................6 Limitations…………………………………………...............5 Research Methodology..........2 Ranking Of Data…………………………………… 4...... 1. 1...................................................4 Research Objectives.2 Differences between manufacturing and services… 3.......4 Key findings and discussion………………………....1 Conclusion...................TABLE OF CONTENTS CHAPTERS CHAPTER PARTICULARS 1 Introduction..................................... 4.......................... 1. Literature review..................3 Case study of TATA STEELS(MFG) Case study of DABBAWALAS(service) Findings and Analysis.................................................................1 Cross tabulation of factors………………………… 4........1 Concept of TQM..................... 1........ 12 13 21 23 25 25 26 35 41 51 52 53 54 4 5 ANNEXURE Questionnaire………………………………………........... 1............... REFERENCES…………………………………… MISCELLANEOUS Evaluation Sheet Attendance Sheet 56 60 5 ............3 Independent T test………………………………… 4.......................................................

CHAPTER ONE CONTENTS- • INTRODUCTION OF THE TOPIC • SECTOR INVOLVED • RELEVANCE TO THE ORGANIZATIONS • OBJECTIVES OF THE RESEARCH • RESEARCH METHODOLOGY 6 .

As a result of this process. right the first time. Although originally applied to manufacturing operations. just as applicable in service and public sector organizations.. outdated mode of operating to a newer.you need to improve and do everything You can to bring about customer satisfaction" • TQM views an organization as a collection of processes. It does this by focusing on people first — in particular.1. and people in the community. followed by analysis of survey results. and evolve continuously. The simple objective of TQM is "Do the right things. research methodology and data collection. an organization moves from a traditional. TQM is now becoming recognized as a generic management tool. every time". more progressive way of running the enterprise Along the way. the organization learns how to change. This project discusses the results of a survey on Critical success factors (CSFs) of TQM implementation in Indian manufacturing and service industries. and for a number of years only used in that area. Systems. and responsibilities are transformed to support the employee's desire to serve the passenger and the community. measures. employees. It maintains that organizations must strive to continuously improve these processes by incorporating the knowledge and experiences of workers. reliability and validity tests conducted on the CSF instrument. improve.. TQM is infinitely variable and adaptable. on passengers. structure. with different sectors creating their own versions from the common ancestor.1 -INTRODUCTION TQM is a comprehensive and long-term transformational process. There are a number of evolutionary strands. TQM PRINCIPLE "It's an ongoing process. procedures. • • 7 . The project begins with an overview of the CSFs for TQM.

Jindal Steels. technology. 8 . Infosys. a change in the form and utility of resources. as in mining. Ranbaxy. In this research. PNB.SECTORS INVOLVED MANUFACTURING SECTOR -50 QUESTIONNAIRES collected from manufacturing companies. farming and heavy engineering. Reliance Fresh. HDFC SLIC. FORTIS Hospital. service companies are defined as those which produce intangibles with a service operations focus. BIG BAZAR.2. in to an output i. Spencer Manufacturing is considered to be associated with those organisations where there is a very low level of direct contact with the customer. AIRTEL. IDEA. Namely-Axis Bank. service”. Namely-Tata steels. In this research. manufacturing companies are defined as “those which produce tangible products with a significant element of their operations function involving manufacturing activities. skills etc. ITC Maratha. Shopper’s Stop. Shree cements. Manufacture requires a physical transformation. Mother dairy. APPOLO Hospital. LG SERVICE SECTOR -50 QUESTIONNAIRES collected from service companies. Services are defined as “a process which transforms inputs such as strategy. Asian Paints. Luxottica India Eyewear Pvt Ltd. such as raw materials being transformed to a product”. ICICI Bank.e. Dabur.1.

Purchasing is another important part of the TQM process. The goal of TQM is to satisfy customer needs by producing the exact product that customers want. Every person and every function is responsible for quality and is affected by poor quality. IS should work closely with a company’s TQM development program in order to understand exactly the type of information system best suited for the firm. TQM efforts cannot be accurately monitored and their financial contribution assessed if the company does not have accurate costing methods. and customer commitment. including the form of the data. 9 .3. This serves as a baseline for monitoring the financial impact of quality efforts and can be a great motivator. TQM requires the close cooperation of different functions in order to be successful. An information system (IS) is highly important in TQM because of the increased need for information accessible to teams throughout the organization.1. dedication. Marketing plays a critical role in the TQM process by providing key inputs that make TQM a success. purchasing is responsible for acquiring the materials needed to make the product. and operations needs to include marketing in any planned product changes. Marketing needs to accurately pass customer information along to operations. cooperation. Human resources is critical to the effort to hire employees with the skills necessary to work in a TQM environment.RELEVANCE TO THE ORGANIZATIONS Total Quality Management has impacts on every aspect of the organization. That environment includes a high degree of teamwork. the summary statistics and frequency of updating. General Definitions of quality need to be translated into specific dollar terms. Human resources is also faced with challenges relating to reward and incentive systems. Whereas marketing is busy identifying what the customers want and engineering is busy translating That information into technical specifications. Engineering efforts are critical in TQM because of the need to properly translate customer requirements into specific engineering terms. identifying specific parts and materials needed. Accounting is important in the TQM process because of the need for exact costing. We depend on engineering to use general customer requirements in developing technical specifications. Finance is another major participant in the TQM process because of the great cost consequences of poor quality. A company cannot achieve high quality if its accounting is inaccurate or the marketing department is not working closely with customers. and identifying equipment that should be used.

10 . To find out Benefits of Total Quality Management in manufacturing and service organisations as stated in literature. To find out significant difference (if any) in importance of Total Quality Management success factors in manufacturing and service organisations. 5. 3.1. To study the Concept of Total Quality Management in manufacturing and service organisations 2. In order to accomplish this following are the objectives1.4 OBJECTIVES OF THE RESEARCH This PROJECT has been undertaken to carry out Total Quality Management in manufacturing and service organizations. 4. To do Survey and classification of literature on Total Quality Management. To find out Short comings of Total Quality Management in manufacturing and service organisations.

1. which has selected for this project is 100 employees. they are primary data and secondary data. This method was chosen due to the advantage that the designed questionnaire could be sent to a large number of organizations in a limited time. • The method used for gathering data is postal survey. The list of critical factors [Garg. Sample Size: The sample size. Top level employees were approached. The questionnaires were sent to various service and manufacturing organizations. 50 each of Manufacturing and Service Industry. • (b) Secondary Data: Published work of leading academics in TQM research and the various articles given by researchers. 11 .5 RESEARCH METHODOLOGY Research Methodology guides researchers to meet the objectives of the research in a structured and organized manner. position of respondent etc. DATA USED IN STUDY The data collected for the purpose of the study has been collected from two main Sources. The first eight questions are related to the company background and demographic data such as Name of the employee. conceptual and survey articles. • • The variable questions are grouped in to 7 factors. (2005 & 2002)] is shown in Appendix-A. Each factor is then divided in to variables or statements. Research Design: Exploratory Research cum descriptive. Sampling Technique: The sampling technique used in the study is convenience sampling Research Instrument: The research instrument for the study is survey through questionnaire. sector of the business. type of industry. (a) Primary data: The primary data is collected by survey method using questionnaire which is based on the seven critical factors identified from case study. Presentation reports etc. The questionnaire included two types of questionsVariable questions and Ranking questions.

Independent two sample T TEST was used. • ALTERNATIVE HYPOTHESIS (H1) .TOOLS OF ANALYSIS • • Cross tabulation to compare the data. Independent two sample T-Test An independent samples t-test is used for comparing the means on an interval/ratio variable between two categories on a nominal/ordinal variable. To do this test. 1 = group one. HYPOTHESIS• NULL HYPOTHESIS (Ho) .There is difference in importance of success factors in manufacturing and service industry. you need two variables from one population and sample. 12 . The denominator of t is the standard error of the difference between two means. the degrees of freedom for this test are 2n − 2 where n is the number of participants in each group. The independent variable is nominal/ordinal and the dependent is interval/ratio.There is no difference in importance of success factors for manufacturing and service industry. For significance testing. It answers the question of whether the difference between means is statistically significant in the population of interest (assuming good sampling) or whether the difference is due to sampling error. The t statistic to test whether the means are different can be calculated as follows: where is the grand standard deviation (or pooled standard deviation). 2 Here = group two.

1. • Numbers of respondents are very less. survey was not very high. a postal questionnaire survey was applied for this project. However. 13 .6 LIMITATIONS • Employees of the organization may hide the fact. • It would have been better to carry out factor analysis on the data for identifying the critical success factors of TQM in both industrial sectors with statistical significance. these were disregarded and only the completed questionnaires were considered for the analysis. semi-structured interviews would have enabled to have a greater understanding of the TQM practices in these companies. • Owing to the time limitation. • It was found during the course of this research that the response rate for the postal • Another factor was that some of the questionnaires were returned incomplete. so clear conclusion can’t be drawn. So as not to bias any adjustment.

CHAPTER 2 LITERATURE REVIEW 14 .

Juran and Crosby were those who have shaped the dimensions. Juran defines quality as fitness for use in terms of design. • Juran. 1951). His lecture introduced the managerial dimensions of planning.al. 1995). correction and failure. as with any other change management initiatives. Thus. • Crosby (1979) stresses motivation and planning and does not dwell much on statistical process control and the problem-solving techniques of Deming and Juran. and quality-improvement efforts of the various groups in an organization so as to enable production and service at the most economical levels which allow for full customer satisfaction” (Dale. Like Deming. costs will decrease and productivity will increase. greater market share and long term survival. He developed what is known as the Deming Chain reaction. safety and field use. engineers and practitioners. resulting in more jobs. quality maintenance. organizing. His philosophy begins with top management but maintains that a company must adopt the fourteen points of this system at all levels. • Armand Feigenbaum also achieves visibility through his work with the Japanese. However. and controlling and focused on the responsibility of management to achieve quality and the need for setting goal (Juran. like Deming was invited to Japan in 1954 by the Union of Japanese Scientists and Engineers (JUSE). 1994). 1994) 15 . availability. • Deming is best known for developing a system of statistical quality control. the prominent quality gurus such as Deming. as quality improves. He believes that quality is free because the small cost of prevention will always be lower than the cost of detection. one must first have a clear definition and an understanding of the basic philosophy being pursuit.Literature review is the prime source for assessing the state of TQM. his concept more closely incorporates the point of view of the customer. practices and mechanisms which underpin the concept although none of them actually uses the term (Dale et. Unlike Deming and Juran. It traces the origins of the term TQM and describes the numerous definitions employed by academics. conformance. Feigenbaum and Ishikawa are perhaps the greatest contributors to the development of the term. This chapter provides with an overview on various aspects of Total Quality Management (TQM) relating to the research. He advocated ten steps to quality improvement that has a broader concept than Deming which emphasis more on the responsibility of management to achieve total quality. consultants. In embarking on the quality journey. Crosby has his own fourteen points that he believes to be good quality practices for a company to adopt. He defined TQC as “an effective system for integrating the quality development. he used a total quality control (TQC) approach that may very well be the forerunner of today’s TQM.. although his contribution goes substantially beyond those techniques (Saunders.

These critical factors are: Role of divisional top management and quality policy. training. which were classified into eight critical factors to measure the performance of total quality management in an organization. Schroeder & Sakakibara. Crosby. 2000). teller transactions in banks. various studies have been carried out and different instruments were developed by individual researchers and institutions such as Malcolm Baldrige Award. These are top management support. 1995). (1994) developed another instrument to determine critical factors of total quality management. A Survey of TQM and continuous improvement programs indicates 12 common aspects: Committed leadership. increased profits. process improvement. The commitment to continuous improvement historically originated in manufacturing firms. 1995). and reduced costs (Kanji & Wallace. 1998). and measurement (Powel. techniques. Management awareness of the importance of total quality management. benchmarking. and systematic empirical investigation have been generated. Accordingly. zero defects mentality. Total quality management is the culture of an organization committed to customer satisfaction through continuous improvement. quality information. and customer involvement. order processing in catalog firms. process management. Based on these studies. Ishikawa and Feigenbaum defined the concept of quality and total quality management in different ways. product and service design. closer customer relationships. process management. Saraph. (1989) developed 78 items. 1991). identified seven quality factors. open organization. there is no consensus on the definition of quality. EFQM (European Foundation For Quality Management). Flynn et al. 16 . but has certain essential principles which can be implemented to secure greater market share. Juran. to determine critical factors of total quality management. employee empowerment. The notion of quality has been defined in different ways by different authors. study.• • • • • Although the literature on total quality management includes a rich spectrum of research. • • • • Furthermore. adoption and communication of TQM. a wide range of management issue. quality data and reporting. Surveys point at the widespread interest and application of TQM: 95% of manufacturing companies and 70% of service companies have used one form or other of quality improvement programs and 55% of American executives and 70% of Japanese executives use quality improvement information at least monthly (Olion & Rynes. alongside business process reengineering and other continuous improvement techniques was stimulated by the benchmarking movement to seek. product design. increased training. Deming. implement and improve on best practices (Zairi & Youssef. supplier involvement. but spread quickly to the service sector (e. supplier quality management. flexible manufacturing. and the Deming Prize Criteria. and employee relations. An international survey of over 4000 managers in 15 countries indicated TQM usage by approximately 60% in 1997 (Rigby. This culture varies both from one country to another and between different industries. (Rigby.g. 1998). Flynn.). Gurus of the total quality management disciplines such as Garvin. role of the quality department. Benson & Schroder. workforce management. etc. approaches.

and customer satisfaction. They reduced the number of concepts from 37 to 7 using the Delphi Method. this instrument is very similar to the preceding instrument that was developed by Saraph et al. learning.• • As it is seen. (1994) developed the theoretical foundation of quality management practice by examining Deming’s 14 points. Edgbaston) 2. Rungtusanatham & Schroeder. PARETO ANALYSIS OF TOTAL QUALITY MANAGEMENT FACTORS CRITICAL TO SUCCESS FOR SERVICE INDUSTRIES (Mechanical Engineering Section. SEVERAL RESEARCHES DONE1. Schroder & Sakakibara. internal and external cooperation. These are visionary leadership. Aligarh Muslim University. Aligarh. University Polytechnic. (1989). Flynn. employee fulfillment. In another noteworthy study. India) Department of Management Studies. India 17 . process management. A COMPARATIVE STUDY OF TQM CRITICAL SUCCESS FACTORS IN MANUFACTURING AND CONSTRUCTION UK INDUSTRIES BY-DAVID JOAQUIN DELGADO HERNANDEZ (School of Engineering. University of Birmingham. Indian Institute of Technology Roorkee. Anderson. (1995) measured the impact of total quality practices on quality performance and competitive advantage. continuous improvement.

CHAPTER 3 CONCEPTUAL FRAMEWORK 18 .

stability. 1990. : every person is involved (its customers . and some of them even monopolized the market. Quality of products and services to satisfy some specific needs of the consumer(end user) and Quality of life to satisfy the needs of the people in the organization. Wilkinson and Wither (1990) defines TQM as (Ho. The new policy has resulted in open doors through which global corporate players have entered the Indian markets. 19 . However. Definition of TQM Numerous definitions have been given on Total Quality Management (TQM) by quality gurus. As a result complacency set in. controlling. with customers having little or no choice. practitioners and academician. in the recent years TQM is even regarded as absolutely essential for growth. namely planning. and prosperity. This has compelled the managers of local companies to look for those tools and techniques. 1999): Total Quality Management What is total quality? Total quality is called total because it consists of 3 qualities : Quality of return to satisfy the needs of the shareholders.For more than four decades after independence the companies in India enjoyed a protected market with virtually no competition. organizing. One such policy or philosophy that has captured the attention of industry and the business community is TQM. Joiner 1993). and no pressure existed for improvement or change. Besterfield (1995) defined TQM as both a philosophy and a set of guiding principles that represents the foundation of a continuously improving organization.suppliers) : customer requirements are met exactly : senior executives are fully committed Management Management is concerned with five basic activities. This has been sharpened by Deming who introduced the concept of Plan-Do Check/StudyAct (PDSA). Particularly. proven and tested. Using a three-word definition. the policy of globalization and liberalization adopted by the Indian Government has thrown open new avenues and challenges to companies in India. directing. using quality as a weapon. which would help them to maintain and improve their strategies and positions in the market. and are threatening the domestic manufacturers and suppliers. and improvement (Stoner.

tools. This philosophy stresses a systematic. organization-wide perspective involving everyone and everything. in order to produce products and services which meet and hopefully exceed the needs and expectations of customers. Similarly. The system provides customer satisfaction and improves the performance of organizations by eliminating product defects and speeding service delivery. This can be done through the ability of companies to respond quickly to the demands of their customer and offering them with a better value added services.TQM is described as the mutual cooperation of everyone in an organization and associated business processes. efficiency and flexibility for a whole organization. It focuses primarily on total satisfaction for both internal and external customers within a management environment that seeks continuous improvement of all systems and processes. 1993) TQM is a corporate culture that is characterised by increased customer satisfaction through continuous improvement. integrated. which aims to earn higher profits by remaining competitive with a bigger market share. Internal improvements refer to the utilization of resources and preventing defects and problems in the process. 1989).(Shiba et al.. consisting of practices. consistent. 20 . TQM is an approach to improve competitiveness. (Dahlgaard et al. (Oakland. Continuous improvements can be achieved through internal and external quality improvements. and training methods for managing organizations in a rapid changing context. TQM is an evolving system. 1999) The TQM philosophy provides the overall concept that fosters continuous improvement in an organization. 1999). (Dale.. external quality improvements put more emphasis on designing quality into the product. involving all employees in the organization. Gradually. this result in the effectiveness of controlling and minimizing production cost which in turn yield to higher profits.

This factor covers the investigation of customer complaints. 1992). it is aimed at winning and keeping customers keeping them delighted. This requires a disciplined continuous improvement system based on trust. Employee involvement. Saylor (1992) suggested a continuous system cycle that involves 5 stages :The cycle starts by defining the vision or mission of the organization. established. The next phase after defining their vision includes listing all improvement opportunities. throughout the organization. the specification of internal and external customer requirements and their satisfaction. employees. Any potential problems are identified during this process. A continuous improvement system gears the organization toward attainment of the vision (Richardson. that it will begin to see increases in both quality and productivity. It is important to obtain an understanding of the process of determining improvement opportunity at this stage.TQM BASIC PRINCIPLES TQM calls for a cultural transformation that requires employee involvement at all levels and a spirit of teamwork among customers. Continuous improvementIt is only when management supports. Moreover. Continuous improvement of all systems and processes in an organization is essential for TQM success. in both word and deed. participation and empowerment form the cornerstones of TQM (Saylor. are identified and their needs and expectations understood. understood and supported by all. Wheeler & Chambers This factor covers the continuous improvement activities on the system. processes and continuous monitor of employee’s performance. suppliers. 2. and managers. the focus and priorities of the vision are determined. 1979). Customer focus- If TQM is aimed at anything. 1997). For the third stage of selecting improvement 21 . both internal external. but also consistently. 1. The improvement system must not only be continuously applied. the review on the quality issues and identification of opportunities for improvement are also included in this factor. Then everyone in the organization ascertains his specific mission to accomplish the overall vision. the goal of continuous improvement. In doing so this. with everyone in the organization striving to improve the system (Crosby. Suppliers also are matched with requirements. Customers. with input from everyone. Top leadership determines the vision.

opportunity. Training and developmentWorld-class companies realize that all firms have access to the same equipment. specific improvement opportunities are selected based on the critical processes that have the greatest impact on customer satisfaction. companies set aside time in the workday for team meetings. The “half-life” of any academic degree is extremely short. it places great emphasis on teamwork. The contributions of teams are considered vital to the success of the company. The use of teams is based on the old adage that “two heads are better than one. The participation of all employees in quality activities. . The teams usually meet weekly during work hours in a place designated for this purpose. The cycle is never ending in a continuous improvement system. the results for the impact of improvements are evaluated against the overall mission. therefore. The circle is usually composed of eight to ten members. Ernest &Young 22 . they do important work for the company and have been very successful in many firms. the real difference among companies is the degree to which employees are developed. and quality control tools. 5. They follow a preset process for analyzing and solving quality problems. and different types of teams solve different types of problems. 3. a team of volunteer production employees and their supervisors whose purpose is to solve quality problems. and criticism is not allowed. One of the most common types of teams is the quality circle.This factor includes the awareness and support of top management on the quality systems.” Rather. To facilitate the solving of quality problems. implementation of quality improvement teams. improve a process and solve problems throughout the organization. discussion. teams work regularly to correct problems. a sixth stage can be added as a reminder: Do it again and again and again. it is serious business. Teamwork and involvement- 4. Top management commitment and recognition. financing. For this reason. These problems are solved using a disciplined methodology such as statistical process control. team rewards and teamwork structures are included in this factor. TQM stresses that quality is an organizational effort. Teams vary in their degree of structure and formality. quality function deployment and process analysis and should be used consistently to complete a mission. Open discussion is promoted. and people. similar to Shewhart PDCA cycle. Although the functioning of quality circles is friendly and casual. and decisions are made through group consensus. In this case.” Using techniques such as brainstorming. Quality circles are not mere “gab sessions. The recognition of quality improvement and employees contribution is also covered in this factor. Finally. technology.

suppliers and customers. This training should be given only as it is needed to the people who will use it immediately. integrated. Training in TQM philosophy. 6. Furthermore. Communication within the company.The cooperation between various departments or units with in a company is covered in this factor. Supervisors must keep open airways where employees can send and receive information about TQM. It deals with internal measures of performance. Training programs include the statistical improvement techniques. the education for the suppliers and subcontractors are also covered. supplier assessment and development. Measurement and feedback. Measurement process involves two way flow of information between organization and its customer’s and suppliers. 7. so that work can be more coordinated and effectively done. This factor accentuates the use of cross functional teams for problem solving and team working.wide effort . the rest of the organization should be trained to ensure a systematic. 23 .The measurement of the performance of processes. Upward communication would allow employees to provide suggestions which top management can implement and sideways communication would breakdown all barriers between different departments. consistent organization. The success of TQM demands communication with and among all the organization members. Personal and team interaction skills must be continually refined. Downward communication helps supervisors make TQM clear to employees. It should start with specific training for management. quality related matters and teamwork.This factor is related to the availability of training programmes to the employees. This pillar enables the voice of the customer to be translated into measures of performance with which the organization can identify and on which it can improve. guiding principles and tools and techniques is never ending. performance in financial and non financial terms and feedback provision are embedded into this fact. Once management has the skills to lead the TQM process. These parties should be consulted as part of the process of deciding what measurements to make.

viewing only short term benefits ahead of long term goals. not responding to changing environment. intensifying competition. The company improved the problem solving capacity through quality circles. in its pioneering effort in promoting awareness about quality among Indian industries. time consuming data storage and retrieval. lack of accountability for actions. preferring quantity to quality. lack of national quality policy. The TQM initiatives were first set by the Confederation of Indian Industries (CII) in the early 1980s.Improvement In Quality • The economic reforms that started in 1992 have ushered in a new era of progress and prosperity in the country while all these developments are seen at the gross level. slow inspection rates. Compelling reasons to adopt TQM are: pressure set in due to decreased profits. inadequate economic resources. rigid inspection schedules. These weaknesses based on the study are: lack of trust and credibility in the working system. lack of management commitment.The Strategic Choices • Total quality management (TQM) has become a part of the corporate management parlance on a global scale. cartel formation. lack of consciousness of time as money. politicalization of labor unions. inability to penetrate into new markets. and quality database at each stage. lack of team spirit. lack of clarity/seriousness for achieving target. frequent errors in measurement. Due to protected business environment many positive attributes of the Indian industry have been lost and weaknesses have surfaced. inadequate infrastructure. and state that the Indian company was able to overcome many quality related problems which included: high rejection levels. • • • Post-liberalization scene: . and quality plans not adjusted to varying batch sizes. low quality of supplies and components. inconsistency in interpreting inspection data. lack of indigenous technology. Thus the success is attributed to systematic application of TQM • • 24 . The post-independent era did not witness any spectacular improvement regarding the quality of goods and services produced in the country.TQM :. companies in India have been trying individually to improve their product quality. and seller’s market. and above all quality conscious customers demanding better and improved products and services from the companies. besides overall performance through TQM practices. lack of precise observance of rules and norms. Total quality control in an engineering company through the extensive use of personal computers. Comprehensive information systems enabled the personnel to obtain better guidance leading to improved decision making.

or fail to have shown significant impact on business performance. Although there is evidence that supports the effectiveness of TQM initiatives in organisations. a large number of studies have shown that between 60% and 80% of TQM initiatives fail. 25 .An Overview of the Problems & Barriers with the Implementation of TQM TQM is recently concerned to imply that it is a way of managing organisation to improve product/service quality and the overall efficiency of production or companies operations. Researchers with in TQM fraternity have suggested the following reasons for these failures: Lack of Top Management Commitment. Inconsistent management commitment from department to department. No supporting infrastructure for cultural change. Fear of Change. Lack of focus on the Process. Misperception that TQM is a set of tools rather than a way of thinking. Organisations are more concerned about short-term business returns rather than long-term sustainability of business performance. Poor management leadership. Lack of rewards and recognition. Research has also indicated that many organisations have encountered difficulties in implementing TQM. Lack of synergy between quality improvement programmes and overall business strategy.

This perishability presents a problem of synchronizing supply and demand. services must rely upon a sequence of measures to ensure the consistency of output. and Heterogeneity. The differences between manufacturing and service industries are as follows: Inseparability • This involves simultaneous production and consumption. which characterizes most services. feel and oftentimes test its performance before purchase. Perishability • This refers to the concept that a service cannot be saved or inventoried. Inseparability.3. inseparability ‘forces the buyer into intimate contact with the production processes. When buying a product. 26 . they cannot be seen. Attempting to offer a consistent service or to measure the variability of different performance types can be difficult. empty airline seats. with services. This simultaneous production and consumption eliminates many opportunities for quality control intervention. This thereby greatly influences the expectations aspect of quality measurement in services. from customer to customer. Intangibility • Because services are performances. and from day to day. tasted. ideas or concepts rather than objects. These are: Intangibility. the consumer is usually able to see.2 Differences between Services and Manufacturing • Several researchers have identified four characteristics of services that distinguish service organisations from manufacturing organisations. The implications for customer satisfaction are quite obvious. Perishability. However. felt. in which the product is inspected before delivery. Since the customer must be present during the production of many services. causing customers to wait or not be served altogether. the consumer must often rely upon the reputation of the service firm. Heterogeneity • Since the same service can be provided by various employees at the same facility or different facilities. and unfilled appointment times for a doctor are all examples of opportunity losses. the quality and essence of the service can vary from provider to provider. heard or smelled in the same manner in which goods can be sensed. The inability to store services is a critical feature of most service operations. Unlike manufacturing. Hotel rooms going vacant.

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TATA STEELS Jamshedpur: It may not make sense to many in the steel industry to invest in various quality control drives during such a tough time. It is only the application of the steps involved in Deming and the consequent effects that emerged gives one the real insight into its working. like zinc consumption. etc). which expects to emerge strongly from the ongoing global recession.. The steel major’s commitment to the best practices. right from the raw material side to marketing & sales. pursuing such goals has been a passion and the very essence of its existence. coke rate. in sports or education. costcutting contributions from its ‘Aspire’ projects (problem solving. would.3 “MANUFACTURING” CASE STUDY. The plan includes techniques/benefits learnt in Deming and the target has been set in crores. 28 .." said Avneesh Gupta. The steel major. etc. coal rate.." He was speaking at the ‘JJ Irani award for excellence in education in Jamshedpur schools’. Six Sigma application. Tata Steel. the only steel company in the world outside Japan to bag the award.. which in earlier years had been saving around Rs 300-400 crore annually. TQM chief of Tata Steel. including whether any delays were taking place or not. whether it is in running a business." Gupta told FE here recently. it is purely internal—from improvements in the work processes the company has brought about. Various items. the results will take care of themselves. "Each key performance indicator (KPI) is being tracked by the company.3. he added. aided by Deming this year (200910). The company has recently won the Deming Application Prize for its excellence in total quality management (TQM). has already put in place a revised plan for the second half of 2009-10 (Oct onwards). can be gauged by the remarks of Tata Steel managing director B Muthuraman recently: "In every walk of life." Gupta said. but for Tata Steel. efforts from supply chain management by following inventory replenishment models (while ensuring that whatever the customer was wanting was readily available to him) have been listed. Even the monthly performance improvement review of the company’s TQM efforts by chief operating officer HM Nerurkar ensures that things were moving in the right direction. "It (Deming) is a very robust and a very involving process in which you cannot escape the enlightenment at the end of it. if you take care of the processes. several daily management items which could be done better while bringing about cost reduction.. "This is not because of the effect of market prices or impact of raw material costs going up or down. target to save around Rs 800 crore.

And Mumbai Dabbawalas’ DPMO is less than 3. there was also an All-Dabbawala ‘Deal Ya No Deal’ show in Sony Entertainment TV. They face the same crowded pavements. The people at work are not from any high academic background.“SERVICE” Case Study – DABBAWALAS Mumbai’s 5000 plus Dabbawalas are world famous for their impeccable service standards. Sometime back. the process is said to have met Six Sigma level. 29 . Their way of doing business has.4. It is the positive square root of the arithmetic mean of the squares of deviations of given observation from their arithmetic mean.000 homes/ apartments. on-road dense vehicular traffic and overloaded suburban trains. They steal all attention just because their service is of Six Sigma quality. deliver them to some 80. When the Defects Per Million Opportunity (DPMO) doesn’t exceed 3.00. A Dabbawala figured among a handful few from India who got invitations to witness the marriage ceremony of Prince Charles.4 or precisely. become a case study destination for every Management guru and B-school. rather many of them are almost illiterate. it is 2! ‘Sigma (r)’ denotes ‘Standard deviation’ – a statistical measure of dispersion/ variance. They pick up lunch boxes/ tiffin carriers from over 2. therefore.000 destinations and again ensure their safe return to those homes/ apartments – all on the same day with each lap of journey & route accomplished within the specified time limits.

CHAPTER 4 FINDINGS AND ANALYSIS 30 .

CUSTOMER FOCUS (cross tabulation of mean values) Sector * customer focus Cross tabulation MEAN VALUES 2. hence more importance is given to focusing on the customer.8 20 9 29 4.744 MEAN FOR SERVICES IS MORE In service industry there is direct interaction with customers.4 0 2 2 Total 50 50 100 Total Mean:MANUFACTURING=3.4 7 7 14 3. 31 .2 Sector M S Total 1 0 1 4.0 4 18 22 Sector * customer focus Cross tabulation Customer focus 4.8 Sector M S Total 2 0 2 3.6 SERVICE=3. while in manufacturing there is no face to face interaction with the customer.0 4 0 4 3.6 10 9 19 3.2 2 5 7 3.1 .

0 12 4 16 Sector * continous improvement Cross tabulation Continous improvement 4.880 SERVICE=3.2 0 10 10 3.8 24 4 28 4.0 0 4 4 3. CONTINOUS IMPROVEMENT Continous improvement 2.464 In manufacturing use of machines is more and more focus is on product quality. 32 .4 3 10 13 3.2 Sector M S Total 9 0 9 Total 50 50 100 Total Mean:MANUFACTURING=3.8 Sector M S Total 0 1 1 3. thus to decrease errors this factor is given more importance.6 2 17 19 3. Continuous improvement is only possible when the quality objectives can be measured and quantified.2.

4 4 8 12 3.0 5 16 21 3.8 2 6 8 3.4 Sector M S Total 2 0 2 2. TEAMWORK AND INVOLVEMENT Team work and involvement 2.8 15 4 19 Sector * teamwork and involvement Cross tabulation Teamwork involvement 4.6 15 4 19 3.2 3 12 15 3.512 SERVICE=3.3.200 Manufacturing requires more interdependency of departments and involves set procedures 33 .0 Sector M S Total 4 0 4 Total 50 50 100 and Total Mean:MANUFACTURING=3.

4 17 10 27 3.8 Sector M S Total 1 0 1 3.4. thus support and guidance of top level management is more important 34 .0 3 2 5 3.592 Service is to be consumed where it is produced.476 SERVICE=3.2 Sector M S Total 0 2 2 Total 50 50 100 Total Mean:MANUFACTURING=3.2 6 8 14 3.0 2 10 12 Sector * top management Cross tabulation Top management 4.8 7 4 11 4. TOP MANAGEMENT COMMITMENT AND INVOLVEMENT Top management 2.6 14 14 28 3.

412 SERVICE=3.4 Sector M S Total 2 0 2 2. 35 .8 3 0 3 3. TRAINING AND DEVELOPMENT Training and development 2.8 6 2 8 Sector * training and development Cross tabulation Training and development 4.2 0 2 2 Total 50 50 100 Total Mean:MANUFACTURING=3.0 3 10 13 3.5.396 Training and development is equally important in both.2 5 10 15 3.0 Sector M S Total 1 2 3 4.4 12 13 25 3.6 18 11 29 3.

6 8 10 18 3.220 SERVICE=3. 36 .6.8 1 12 13 4.2 Sector M S Total 0 1 1 Total 50 50 100 Total Mean:MANUFACTURING=3. customer expectation is too high and thus it has to be delivered efficiently.2 13 8 21 3.584 This factor is more important in service industry because services are perishable and cannot be stored.0 15 1 16 3. Services are heterogeneous .0 0 6 6 Sector * communication in company Cross tabulation Communication in company 4. it deals directly with customer and customer satisfaction is the prime important factor.8 Sector M S Total 4 0 4 3.4 9 12 21 3. COMMUNICATION IN THE COMPANY Communication in company 2.

412 SERVICE=3.0 2 10 12 3.6 Sector M S Total 2 0 2 3.336 This factor is almost equally important in both the industries. MEASUREMENT AND FEEDBACK Measurement and feedback 2.8 4 0 4 Sector * measurement and feedback Cross tabulation Measurement and feedback 4.2 9 15 24 3. 37 .0 Sector M S Total 0 3 3 Total 50 50 100 Total Mean:MANUFACTURING=3.6 16 10 26 3.4 17 12 29 3.7.

464 3. FACTOR Customer Focus Continuous improvement Teamwork and Involvement Top management commitment Recognition Training and development MEAN 3. 6 7.INTERPRETATION RANKING OF FACTORS ACCORDING TO THE VALUE OF MEANS MANUFACTURING INDUSTRY.744 3.Table 2 S. 4.200 and 3. 4. 2.592 RANK 1st 4th 7th 2nd 5th 3rd 6th 3.412 SERVICE INDUSTRY.Table 1 S.584 3.880 3. 5.476 3. 3. 2.NO 1.627 3.512 and 3. 6 7. 3.396 Communication In the company Measurement and Feedback 3. FACTOR Customer Focus Continuous improvement Teamwork and Involvement Top management commitment Recognition Training and development MEAN 3.220 3.412 RANK 2nd 1st 3rd 4th 5th 7th 6th Communication In the company Measurement and Feedback 3. 5.336 38 .NO 1.

COMPARISON OF FACTORS ON THE BASIS OF MEANS IN BOTH MANUFACTURING AND SERVICE INDUSTRY 39 .

It is rather surprising to note from table-3 that communication in company is seem to be unimportant in Indian manufacturing & service industries. The scores were then added together to determine the list of factors in a hierarchical manner. o This observation and finding also explains why some service managers or respondents thought that some of the TQM success factors in the questionnaire did not apply to them. The rank 1 means the most important factor for implementation of TQM and rank 7 means the least important. although a strong communication in company is one of the key drivers in the successful journey towards TQM. Table-3 illustrates the total scores of each critical factor in both manufacturing and service organisations. o These figures indicate that the total scores associated with the levels of quality management practice of factors are lower for service organisations when compared to manufacturing organisations. • • 40 .2 Ranking of Data (as per questionnaire) • The respondents were asked to rank the factors in descending order of importance in their company from 1 to 7. o This finding is consistent to the research of Jiju Antony and Craig Fergusson (2004). o Table 3 present the scores of each factor in manufacturing and service industries respectively. most service firms were not ready to digest and understand some of the factors of quality management.4. According to Jiju Antony.

6.Table-3 Total of scores of ranking of factors in manufacturing and service industries as per preferences of employees in their companies current situation. No. Factor Customer Focus Continuous Improvement Teamwork & Involvement Top Management Recognition Commitment Score in Manufacturing 108 63 147 & 195 Score in Service 62 131 116 210 5. 41 . 3. 2. Training & Development Communication in Company Measurement & Feedback 296 335 256 247 331 303 These figures indicate that the total scores associated with the levels of quality management practice of factors are lower for service organisations when compared to Manufacturing organisations. Sr. 7. 1. 4.

9 14.3 13.6 INTERPRETATIONCONTINUOUS IMPROVEMENT HOLDS COMMUNICATION THE LOWEST.9 CUSTOMER FOCUS CONTINOUS IMPROVEMENT TEAMWORK AND INVOLVEMENT TOP MANAGEMENT AND RECOGNITION TRAINING AND DEVELOPMENT COMMUNICATION MEASUREMENT AND FEEDBACK TOTAL 108 63 147 195 296 335 256 1400 1205 1104 1065 1144 8400 14.3 15.6 13. HEIGHEST POSITION AND 42 .1 12.MANUFACTURING INDUSTRY FACTOR SCORE CUMULATIVE SCORE((TOTAL WEIGHTED SCORE-SCORE AVG OF FACTOR) 1292 1337 1253 15.

7 MEASUREMENT AND FEEDBACK TOTAL 256 1400 1097 8400 13.1 15.SERVICE INDUSTRY FACTOR SCORE CUMULATIVE SCORE(TOTAL WEIGHTED SCOREAVG SCORE OF FACTOR) 1338 1269 1284 15.7 12. 43 .CUSTOMER FOCUS HOLDS HEIGHEST POSITION AND COMMUNICATION THE LOWEST.2 CUSTOMER FOCUS CONTINOUS IMPROVEMENT TEAMWORK AND INVOLVEMENT TOP MANAGEMENT AND RECOGNITION TRAINING AND DEVELOPMENT COMMUNICATION 108 63 147 195 296 335 1190 1153 1069 14.3 INTERPRETATION.1 13.9 15.

It is surprising to note from table-4 that communication in company seems to be unimportant in Indian manufacturing & service industries 44 . 2. Top Management Commitment & Recognition Training & Development Communication in Company Measurement & Feedback According to ResearchIn case of manufacturing organizations continuous improvement is holding the first rank and in case of service organizations customer focus is holding the first position. 6. The ranks obtained for factors in manufacturing match with that obtained through mean values. 5. 4. 7. Factor Customer Focus Continuous Improvement Teamwork & Involvement Manufacturing Service Industry Industry 2 1 3 4 5 7 6 1 3 2 4 5 7 6 1. 3. while in case of service industry this is not the case.Table-4 Results of Ranking data Sr. No. This shows that employees still are not satisfied with the practices and there is lot of scope for improvement in service industry for TQM practices.

p-value and significant correlation for different factors at 5% significance level 45 . t-test is conducted with the help of SPSS. In order to compare the average scores of each factor in manufacturing & service industries. 5% is chosen to analyse the data. • The software provides the so called p-value.COMPARING TQM IMPLEMENTATION IN THE MANUFACTURING AND SERVICE ORGANIZATIONS. if the p-value is smaller than the alpha value. then the null hypothesis (there is no difference in the mean score for a critical factor between manufacturing & service industries) shall be rejected. it can be concluded that the difference in the mean scores for a critical success factor is statistically significant. standard deviation. Table-5 shows the different statistical values such as mean. which is used as the criterion to see as if there is any significant difference between the average scores in these two industries. it is important to define the question “Is there any significant differences on the mean for each factor between manufacturing and service sectors?” • The levels of significance i. Here p-value refers to the probability of obtaining the results of a statistical test by chance.e. In other words. • If the p-value is less than the predetermined alpha level or significance level. • In order to compare the levels of TQM practice in both industrial sectors.

1.3052 Std. • 46 . Deviation .0457 .3232 .3 Independent T-Test for perceptions Manufacturing and Service Organisations TABLE 5 . . thus alternative hypothesis is accepted that there is difference in the importance of CUSTOMER FOCUS in service and manufacturing industries.05.808 Test for Equality t-test of N 50 50 Mean 3.600 3.1440 Error Difference .0432 between for Equality of Means t -2.059 Sig. Error Mean . CUSTOMER FOCUS Group Statistics SECTOR Customer focus M s Independent Samples Test Levene's Variances F Customer focus Equal variances assumed .024 Mean Difference -.291 df 98 Std.744 Std.0629 INFERENCE• Value of p is .024 which is smaller than . The mean score of service industries for this particular factor is more compared to manufacturing this shows that customer focus is more important in service organizations because here the customer directly interacts with the service provider.4. (2-tailed) Customer focus Equal variances assumed . Sig.

000 Mean Difference . Deviation .2067 .0292 .000 which is less than .0402 Independent Samples Test t-test Levene's Variances F Continuous improvement Equal variances assumed 5. Error Mean .05.383 Sig. The value of mean of this factor for manufacturing industries is much more than that of service. and thereby focus more on decreasing errors.2841 Std.464 Std. this shows that this factor is more significant for manufacturing organizations. CONTINOUS IMPROVEMENT Group Statistics SECTORN Continuous improvement M s 50 50 Mean 3.4240 INFERENCE• Value of p is . • • 47 . thus alternative hypothesis is accepted that there is significant difference in the importance of CONTINOUS IMPROVEMENT factor in service and manufacturing industries.022 Test for Equality Equality of Means t 8.888 3. Manufacturing firms focus more on production and use of machines.534 for of df Continuous improvementEqual variances assumed 98 Sig.2. (2-tailed) . .

3120 for of 50 50 Mean 3.0552 . Deviation .3900 . . All the activities in a manufacturing organization are interlinked.563 Mean Difference .590 df Teamwork and involvement Equal variances assumed 98 Sig.0404 INFERENCE- • • • Value of p is .3.003 Test for Equality Equality of Means t 4. All departments need to be interconnected.2857 Std.200 Std.003 which is less than .061 Sig. thus alternative hypothesis is accepted that there is significant difference in the importance of teamwork and involvement factor in service and manufacturing industries.512 3. from production to inventory to delivery.05. (2-tailed) . TEAMWORK AND INVOLVEMENT Group Statistics SECTORN Teamwork and involvement M s Independent Samples Test t-test Levene's Variances F Teamwork and involvement Equal variances assumed 3. 48 . Teamwork and involvement is considered more important in manufacturing than in service industries. Error Mean .

TOP MANAGEMENT RECOGNITION Group Statistics SECTORN Top management commitment M s 50 50 Mean 3. 49 . .592 COMMITMENT AND Std. Service organizations involve direct interaction with the customer. Thus a smart check is required all the time.476 3.3155 Std. More of hierarchy in organizations often defeat this objective. Error Mean . Deviation .05.046 which is less than . Error Difference -.046 Mean Difference Std.0361 .171 Test for Equality t-test for Equality of of Means t -2. top management need to regulate all processes so that best could be delivered on the spot.1160 .2552 .0446 Independent Samples Test Levene's Variances F Top management Equal variances assumed commitment Sig. thus alternative hypothesis is accepted that there is significant difference in the importance of top management commitment and recognition factor in service and manufacturing industries.4. (2-tailed) Top management variances assumed Equal .900 Sig.021 df 98 commitment INFERENCE- • • Value of p is .0574 1.

5. TRAINING AND DEVELOPMENT
Group Statistics SECTORN Training and development M s Independent Samples Test t-test Levene's Variances F Training and development Equal variances assumed .124 df Training and development Equal variances assumed 98 Sig. .726 Sig. (2-tailed) .808 Test for Equality Equality of Means t .244 Mean Difference .0160 for of 50 50 Mean 3.412 3.396 Std. Deviation .3438 .3117 Std. Error Mean .0486 .0441

INFERENCE-

• •

Value of p is .808 which is more than .05, thus null hypothesis is accepted that there is no significant difference in the importance of Training and development factor in service and manufacturing industries For every new technology or any new TQM practice training must be provided in the most modernized and well versed manner so that employee get encouraged to work ahead.

50

6. COMMUNICATION IN THE COMPANY
Group Statistics SECTOR N Communication in company M s Independent Samples Test t-test Levene's Variances F Communication in company Equal variances assumed .700 df Communication in company Equal variances assumed 98 Sig. .405 Test for Equality Equality of Means t -6.749 for of 50 50 Mean 3.220 3.584 Std. Deviation .2563 .2824 Std. Error Mean .0363 .0399

Sig. (2-tailed) Mean Difference .000 -.3640

INFERENCE-

• •

Value of p is .000 which is less than .05, thus alternative hypothesis is accepted that there is significant difference in the importance of communication in service and manufacturing industries It is considered more important in service industries than manufacturing industries as per the value of means because here direct interaction with customer takes place and also internal customer i.e the employees also need to work with each other for which they need to communicate.

51

7. MEASUREMENT AND FEEDBACK
Group Statistics SECTORN Measurement and feedback M s Independent Samples Test t-test Levene's Variances F Measurement and feedback Equal variances assumed 1.020 df Sig. .315 Sig. (2-tailed) Test for Equality Equality of Means t 1.452 Mean Difference Measurement and feedback Equal variances assumed 98 .150 .0760 for of 50 50 Mean 3.412 3.336 Std. Deviation .2569 .2663 Std. Error Mean .0363 .0377

INFERENCE• Value of p is .150 which is more than .05, thus null hypothesis is accepted that there is no significant difference in the importance of measurement and feedback factor in service and manufacturing industries. Both the types of companies require time to time inspection and measurement of performances of employees and provide them feedback accordingly.

52

315 -2.343 .266 1.255 .003 4.808 6.024 2.412 3.512 3.584 .256 . 3.000 3.390 .29 . 3. 3.200 .336 .45 .880 3.150 53 .744 .285 4.256 .53 .412 3.NO MEAN (MFG) MEAN (SER) Std T Std deviation(S) deviation(M) VALUE P VALUE 1.046 5.021 .000 7. 3.284 8.305 -2.56 .311 .TABLE 6 S.476 3.464 .282 -6. 3.396 .206 .244 .74 .627 3. 3.323 .220 3.592 . 3.

which is less than . which is less than . • Top management and recognition is given more importance in service industry.05. which is less than . TEAMWORK AND INVOLVEMENT• P VALUE-. 2.05. 4. • Team work and involvement is given more importance in manufacturing industry..046. • H1 accepted: there is difference in important of this factor in manufacturing and service industry. • H1 accepted: there is difference in important of this factor in manufacturing and service industry. TOP MANAGEMENT AND RECOGNITION• P value-.024 .05. 3.INTERPRETATION OF THE TABLE 6 1. • Continuous improvement is given more importance in manufacturing industry.003.05 • H1 accepted: there is difference in important of this factor in manufacturing and service industry. • H1 accepted: there is difference in important of this factor in manufacturing and service industry.000. • Customer focus is given more importance in service industry. 54 . CONTINUOUS IMPROVEMENT• P VALUE. CUSTOMER FOCUS• P VALUE-. which is less than .

55 . • H1 accepted. there is no difference in importance of this factor in manufacturing and service industry. MEASUREMENT AND FEEDBACK• P VALUE-. which is more than .5. which is less than . • H0 accepted. which is more than .. • This factor is given more importance in service industry. • H0 accepted. COMMUNICATION IN THE COMPANY• P VALUE-.05. TRAINING AND DEVELOPMENT• P VALUE.000. there is difference in importance of this factor in manufacturing and service industry.05.808.05. 7. 6. there is no difference in importance of this factor in manufacturing and service industry.150.

but in case of ranking given by employees customer focus is most important but communication is considered to be the lowest of all. • Service industries exceed manufacturing industries in customer consideration and satisfaction. which is not the case with service industry.4. top management and recognition.05) indicate that there is difference between importance of customer focus. • From table-3 and table-4 it can be seen that the communication in the company has the least importance in both manufacturing and service industries. P values (>.4 KEY FINDINGS • From the various tables it can be seen that there is significant difference in the critical factors for the implementation of TQM in manufacturing and service industries. More importance is given to the critical factors in manufacturing industry as indicated by more value for means. • Manufacturing industries exceed service industries in many aspects of quality management. • In manufacturing industry all the ranks of the factors obtained coincides with that given by the respondents. • From table -5. This shows that there is lot of scope for improvement in TQM for service industry. Continuous improvement Teamwork and involvement. • From the table-1 and table -2 it can be seen that according to mean values continuous improvement is most important in manufacturing organizations while customer focus is most important in service industry. 56 . • In case of services according to mean values customer focus holds prime importance and team work and involvement the last. and Communication in service and manufacturing industry both But there is no significant difference in training and development and measurement and feedback in both the industries.

CHAPTER FIVE SUGGESTIONS AND CONCLUSION 57 .

A number of organizations. The main stress of the application of total quality management in case of the manufacturing industry is to make sure that the production process runs smoothly. private and Government are actively propagating TQM through a variety of training and educational programs. they cannot be stockpiled and must be produced 'on demand'. • Thus it can be concluded that both manufacturing and service industry must learn from each other. This is in contrast to manufacturing organizations where although time may be an important aspect in the delivery of the goods it is rarely regarded as a feature of the goods which will affect its quality. • As service products are perishable. It may be opined that total quality management process is extremely important in case of the manufacturing industry. With quality based competition intensifying. 58 . and now has its permanent roots in the ``mission and vision'' of the Indian corporate sector. • There is a high correlation between the concepts of total quality management and manufacturing as the system of total quality management is pretty important in the context of the manufacturing industry. Manufacturing industry must learn to pay more focus on customer satisfaction and service industry should lay more stress on continuously improving the processes and delivering the best. The result is that the process for delivering a service may be highly complex involving the co-ordination of primary and support systems in what is usually a very time sensitive relationship with the customer. TQM has proved to be a vital ingredient for success. The emphasis is also on minimizing the amount of products that are of an inferior quality. Indian industries and business people are showing keen interest in improving the quality of products through TQM.CONCLUSION • This project revealed that awareness on quality of products and services has picked up in India.

Self-potential system should be encouraged. Management should clear their vision mission and goals towards the employees in the organization. Service industry must focus more on customer satisfaction. • Employees should be surveyed to find their needs and they should be included in • Management should involve the workers’ representatives in managerial activities so • • • that the transparency could be maintained and through this they can win the confidence of the employees It is very important to provide the opportunity to the employees of the organization to express their ideas. Conversely. New idea may face resistance therefore HR machinery must counsel on importance of TQM and communication Top management commitment should be increased through quality circles and other procedures. learning quality assurance. • In MANUFACTURING INDUSTRY-There should be regular review and comparison of current & past performance to detect gradual deterioration in the strategy. Customer feedback about quality of product should be taken and institutionalized system should be there for corrective and preventive action. Modern methods of training should be used and fundamentals of TQM should be taught from top to bottom. service companies should maintain a balance between external customer satisfaction and internal productivity and profitability. In SERVICE INDUSTRY.complaint resolution must be spontaneous. learning service quality management and customer satisfaction techniques from leading service companies. Better communication could reduce the misunderstanding and confusion of the requirements from internal and external customers.SUGGESTIONS • TQM is a long term investment thus before making decision to jump into it a complete research should be done. Create custom surveys to capture customer needs Constantly improve lead times Quickly responding to customer questions. improvement projects. Providing detail information on company website. • • • 59 . For this they must• • • • • Hold the customer hand through installation.. There should be effective feedback system for the product. Manufacturing companies that focus solely on process and product quality should include service quality as a concern. management and methods from leading manufacturing companies.

ANNEXURES 60 .

APPENDIX A: QUESTIONNAIRE 61 .

62 .

63 .

64 .

Garg and Raj Kumar (2006). 391-395.citehr.com/research.html http://papers. p. p. Jiju and Fergusson. Vol.634-641 WEBSITEShttp://www. [6] D. March. AISN.cfm?abstract_id=1481924 http://www.articlealley. p.org/Total-Quality-Management-Tools.com/TQM. Garg.ssrn.gd. Journal of advances in Management Research.id/ http://eprints.com/sol3/papers.com/article_1270720_11.co.wikibooks.com/papers/TQM.K.html http://www.in/#hl=en&biw=1280&bih=685&q=tqm+case+study+in+india http://academic. T. Garg. No.emeraldinsight.4.edu/gregelvers/psy216/spss/descript1.net/pdf/TQM_vs_Poka_Yoke.infocheese.K.perfnet.1 (2).bexcellence.htm http://en. “Total Quality Management: an approach to success”.pk http://www.org/wiki/Using_SPSS_and_PASW/Independent_Samples_t-test 65 . Talley Human Resource Management – C B gupta RESEARCH PAPERSAntony.html http://my. D.php?q=role-of-total-quality-management-inmanufacturing-industry http://geodesy.itb. “Comparing TQM success factors in UK manufacturing and service industries”.pdf http://www.ac.gov.google.businesstrainers.com/book/quality-management/9781405142793/aframework-for-the-introduction-of-tqm/measurement_and_feedback http://www.htm?articleid=1901490&show=pdf http://www.pdf http://www.safaribooksonline.REFERENCES BOOKSTotal Quality Management: Performance and Cost Measures By : Dorsey J. 45. Craig (2004).udayton.com/journals. Garg and Raj Kumar (2005). Vol.hec. Productivity. “Perspectives of TQM in Indian industries”. T.32-45.

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