RESEARCH PROJECT

ON

Total Quality Management in Indian

Two Wheeler Industry: A Study on
Bajaj Auto
 ACKNOWLEDGEMENT

I express my sincere obligation and thanks to for his

valuable advice in guiding me at every stage in bringing out
this report.
No words can adequately express my overriding debt of
gratitude to my parents whose support helps me in all the
way. Above all i shall thank my friends who constantly
encouraged and blessed me so as to enable me to do this
work successfully.

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 INDEX

1. EXECUTIVE SUMMARY

2. INTRODUCTION

3. THEORETICAL REVIEW

4. COMPANY BACKGROUND

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5. RESEARCH METHODOLOGY

46

6. DATA ANALYSIS

50

7. CONCLUSION AND RECOMMENDATIONS

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 62

8. BIBLIOGRAPHY

64

9. APPENDIX

65

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 EXECUTIVE SUMMARY

Total Quality Management (TQM) describes the culture, attitude, and organization of a
company striving to produce high quality products and services that meet or exceed customer
expectations. Bajaj Auto excellence in quality is the core value of their philosophy. Bajaj Auto
has realised operational excellence will continue to be the critical determinant of success in the
years to come. This case deals with the strategy adopted by Bajaj Auto for its turnaround and
operational excellence. Also we are going to see about the Production System. In today's
competitive business environment, total quality has become the essential ingredient for the
success of any organization. The project would lead to the fullest satisfaction of its customers
which is a must for remaining and sustaining the competition vis-à-vis with other companies
in the trade particularly Bajaj Auto which is a formidable contestant.

In times of severe competition, it is of crucial importance to create a competitive advantage to

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

Data were collected from both primary and secondary sources. With the above back ground,
we wanted to find out and analysis to current scenario of quality concepts understood and
implemented by Bajaj Auto.

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RESEARCH OBJECTIVES

• The study aimed to examine about Bajaj Auto and how it has implemented its TQM
practices in its premises.

• To study specific quality policies adopted by Bajaj Auto

• To know in the ways it had gains its quality outputs by implementing its TQM practices.

• To study continuous control of the TQM system using both feed forward and feedback of
information and the analysis of result, and comparison with prevalent standards.

• To analyse the Bajaj Auto’s Quality Tools or Techniques for Problem Solving in Indian
Automobile sector

CONTRIBUTION OF THE STUDY

The project to be taken in hand would make a marked difference once it is implemented. It'll
place the company on a higher pedestal or performance of Customer Service and would also
place the company on a better footing to face the customers fairly and squarely. The project
would lead to the fullest satisfaction of its customers which is a must for remaining and
sustaining the competition vis-à-vis with other companies in the trade particularly Bajaj Auto
which is a formidable contestant

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 THEORETICAL REVIEW
According to John F. Welch “Quality is not any single thing but a aura, an atmosphere, an
overpowering feeling that a company is doing everything with Excellence.”

Meaning of Quality

Quality is a Customer’s determination and not manufacturer’s determination and not

marketer’s determination. The modern view of quality is that products should totally satisfy
the customer’s needs ad expectations in every respect on a continuous basis. Hill Stephen
(1999) The concept of quality calls for Well designed product along with functional perfection.
First time right; Providing satisfaction beyond customer’s expectation; Excellence in service;
Absolute empathy with customers.

There are two aspects of Quality; the quality of design and the quality of conformance. Quality
of design pertains to quality obtained through changes or manipulation in design parameters.
The differences in quality are a result of differences in size materials used, tolerance in
manufacturing , reliability, equipment utilized in a temperature. Quality of conformance is a
measure of how will the product conforms to the specifications ad tolerances required by the
design. Such factors training, the reduction process, motivation levels, procedures, and quality
assurance systems can have an effect on the quality of conformance.

ISO 9000 IMPLEMENTATION PROCESS TIPS AND TECHNIQUES.

Understanding the building blocks behind ISO 9000 is the first step towards making the right
choice of a quality system. However, it is the strength of your implementation plan that turns
theory into practice and ultimately makes the difference between the success and failure of
your program.
The author has applied the following implementation start up activities with several industries
including aerospace/military and manufacturing. The challenge for any company is to integrate
the many suggestions that have been successful elsewhere into a implementation plan that
works for your environment.
Phase 1 : Define The Quality System

1. Develop a relationship with an external ISO 9000 implementation consultant early on.
The use of a knowledgeable resource will help you achieve your goal faster.
2. Identify a senior management champion to support the Quality System effort.

3. Identify the right ISO 9000 program for your company, (ISO 9001, 9002 or 9003).

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4. Establish a Quality System management team to coordinate and lead the quality effort.
Recruit member from a cross section of all major acres. This group will set the
foundation for establishing a future Quality system organization structure.
5. Establish an information meeting early on to promote the benefit of building a quality
System using ISO 9000 as the foundation.
6. Develop a realistic plan of action (POA&M) including milestones, deliverable, dates
and responsibilities. Make this a living document which is regularly reviewed and
updated.
7. Complete a Quality System Policy Manual (Level 1) as the first tangible building block
in the ISO 9000 implementation process. The Policy Manual will set the foundation for
all other activities.
8. Rollout the ISO 9000 Quality System Policy Manual to all decision makers and senior
managers. Obtain formal approval of the Policy manual as an official company
document.

Phase 2 : Quality System Implementation Strategy

1. Develop a "Three Front Implementation Approach" to include:

a) Management training and involvement,
b) People training and participation, and
c) Improvement of team activities for ISO 9000 implementation
2. Provide ISO 9000 training using the Policy Manual as the foundation. Train all
managers, supervisors and team leaders first. Use a training team made up of a
combination of management team members and the consultant expert.
3. Develop communication tools to educate, inform and update the rest of the company
on the progress of the ISO 9000 implementation activities. Some good examples are
newsletters, bulletins and regular information sharing meetings.
4. Identify initial prototype team activities that would benefit from implementation of the
Quality System Policy Manual and provide early success stories. Get senior
management buy-in.
5. Establish a Quality System organization structure. If no full time resources are available
or not readily identified, collateral duty resources can still provide a strong foundation
for coordinating the quality effort.

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6. Establish a Quality System / ISO 9000 "Subject matter expert team" with membership
from the cross section of the organization. Train this "expert team" to be a resource to
the organization in implementing the ISO 9000 Quality System, providing internal
audits and ongoing training.
7. Prepare for internal audits of the Quality System. Provide audit training and develop
internal audit leans bases on ISO 9000 auditing techniques.
8. Provide senior management with periodic updates on the progress of the
implementation activities and the formal audits.
9. Establish employee teams to review existing procedures and work instructions.
Develop and / or revise existing procedures (Level 2) and work instructions (Level 3)
to support your Quality System Policy Manual requirements.
10. Ensure that all relevant supporting records and documentation.
THE NEXT STEPS IN IMPLEMENTATION STRATEGY
• Identify additional product/process teams for the Quality System implementation.
• Develop a comprehensive Quality System implementation tool kit including:
1) team implementation guide, 2) ISO 9000 training curriculum, 3) team leadership
tips and techniques, 4) audit training and guidelines.
• Establish "a team leader resource pool" for ongoing team implementation activities.
• Establish continual involvement of management in the process.
• Assess the overall readiness of your Quality System.
• Develop a corrective action plan to establish compliance with ISO 9000 requirements.
• Emphasize the importance of meeting customer requirements.
• Empower employees to make suggestions and improvements based on compliance to
your ISO 9000 Quality Policy Manual.

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HOW AUTOMOBILE COMPANIES ORGANIZED FOR QUALITY (CORPORATE
LEVEL)

Customers

Chairman President & CEO

Bajaj Auto Senior

Quality Council

EVP's VP's Finance,

Human Resources

Others VP's Quality Risk

SQC Roles Listen to customers strategies for Monitor progress

& employees Bajaj overall and provide
resources

HOW TO ORGANIZE FOR QUALITY AT FUNCTIONAL LEVEL?

CUSTOMERS

Work Team Quality Work Team

Members Improvement Leaders
Project Teams

Quality Senior Quality Department

Leaders Council Heads

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 RESEARCH METHODOLOGY
Research Methodology is a scientific and systematic way to solve research problems. A
researcher has to design his methodology i.e. in addition to the knowledge of
methods/techniques, he has to apply the methodology as well. The methodology may differ
from problem to problem. Thus the scope of research methodology is wider than research
methods

To understand what practices should be followed by organisation trying to build up a quality

culture:

Will be Conducted a comprehensive review of quality management literature and other

researches conducted in the similar area.

To identify the approaches used by Bajaj Auto, we reviewed documents provided by the
organisation, such as their quality manual and staff handbook.

Interviewed the manager and a few employees, regarding their views about the organisation's
approaches to implement TQM.

RESEARCH APPROACH
Keeping in mind the purpose and nature of this dissertation, an ‘Inductive Approach’ was found
more appropriate due to its flexible and exploratory nature. This is the kind of approach where
you collect data and hence develop a theory as a result of your data analysis. Hence this
approach has been appropriately used to gain in-depth information about Statistical Quality
Control in Bajaj Auto.

It was felt that apart from fulfilling the objectives, the data collected from the Bajaj Auto
employees using this approach would provide additional useful information that would widen
the scope of the research and add to the existing knowledge on Quality control.

Data Collection
For the purpose of this study, a combination of secondary and primary data has been used. The
secondary data offered an in-depth knowledge of the concept of ‘Total Quality Management’
and provided a base for conducting primary research.

Primary Sources: Primary data is one which is collected by the investigator himself for the
purpose of a specific inquiry or study. Such data is original in character and is generated by

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surveys conducted in individual or research institutions. The aim of the primary research in the
present study on Bajaj Auto is based on the quality improvement process in cross section of
Indian two wheeler Industry. The principle thrust of the study was how Bajaj Auto become
motivated to improve their service quality and the ways in which the quality improvement
process can get started and water are the barriers to improvement and the key factors of success.
Collection of data from the Bajaj Auto employees was done through ‘Structured Interviews’,
i.e. interviews where the interviewer physically meets the respondents and there is a definite
schedule of questions.

The questionnaire has a list of questions to be asked and spaces in which the respondents record
the answers. Each question is worded exactly as it is to be asked. Also, the questions are listed
a established sequence. Questionnaire construction are in nine steps. There are Nargolkar
(2004) -

1. Decide what information is wanted

2. Decide hat type of questionnaire (personnel interview, mail, telephone) to use

3. Decide on the content of individual questions

4. Decide on the type of question (open, multiple choice, dichotomous) to use

5. Decide on the wording of the questions

6. Decide on question sequence

7. Decide on lay out and method of reproduction of questionnaire

8. Make a preliminary draft and pretest it

9. Revise and prepare the final questionnaire

Secondary sources - When an investigator uses the data which has already been collected by
others, such data is called secondary data. This data is primary data for the agency that collects
it and become secondary data for someone else who uses this data for his own purposes. The
secondary data can be obtained from journals, reports, journals, business magazines, research
organizations, websites and so on.

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 CONCLUSION AND RECOMMENDATIONS

GOING BY THE STRATEGY THEORY, THE STRATEGIES AND POLICIES PLAY A VITAL ROLE
IN THE ULTIMATE ADVANCEMENT OF TECHNOLOGY SECTOR ESPECIALLY IN
DEVELOPING COUNTRIES LIKE INDIA THAT ARE UNDERGOING A TECHNOLOGICAL
CHANGE. THE STUDY HAS EXPLORED ON THE ROLE OF THE MAJOR AUTOMOBILE FIRM -
BAJAJ AUTO IN
IMPROVING…………………………………………………………………………………………………….

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 BIBLIOGRAPHY

Mehra, Satish & Kumar, Sampath. (2018). Implementing total quality management with a
focus on enhancing customer satisfaction. International Journal of Quality & Reliability
Management. 25. 913-927

Dean, J.W. and Bowen, D.E. (2019).”Management theory and total quality. Improving research
and practice through theory development”. Academy of Management Review 19 (3): 392-418.

Saunders M, Lewis P. and Thornhill A. (2014), Research Methods for Business Students,
Pearson Education.

Bhattacharya D.K. (2009), Research Methodology, 2nd Edition, Excel Books, New Delhi

Mohanty R.P. & Lakhe R.R. (2012), Handbook of Total Quality Management, Jaico Publishing
House

Oliker L.R. (2011), Total Quality Management: A Case Analysis, Productivity.

Joseph and Berk. S. (2017) Total Quality Management, First edition, Shri Jainendra Press, New
Delhi.

Evans J.R. & Dean J.W. (2013), Total Quality: Management, Organization and Strategy,
Second Edition, Thomson

Sohal A.A., Tay G.S., Wirth A (2016), Total Quality Control in an Asian Division of a
Multinational Corporation, International Journal of Quality and Reliability Management, pp.
60-74

https://www.qad.com/blog/2020/01/total-quality-management-in-the-automotive-industry

http://www.surfindia.com/automobile/bajaj-auto-ltd.html
https://cdn.bajajauto.com/-/media/Quality-Policy.ashx

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