SOLUTION OF CASE STUDIES

CASE 1

1. Explain the high points of the case:

• The organization, a leading tractor manufacturer in India, faced challenges
in the pre-liberalization era but decided to implement Total Quality
Management (TQM) and the Theory of Holistic Management for World-
class Performance in 1990.
• TQM implementation started with quality circles, involving one-third of the
workforce, leading to operational improvements and a shift in employee
mindset.
• The TQM journey comprised three phases: Introduction, Promotion, and
Development, focusing on continuous improvement, process control, and
a customer-centric approach.
• The organization worked on a strategic quality plan for ten years,
emphasizing mission and vision statements, customer requirements,
statistical process control, and supplier support activities.
• In the second phase, the organization obtained certifications such as ISO
9000 and QS 9000, introduced policy deployment and environmental
management systems, and achieved almost 100% employee involvement.
• The benefits of TQM implementation included substantial reductions in
rework and rejections, improved field quality, increased productivity,
customer satisfaction, and the introduction of 15 new models.
• The organization achieved market leadership around 2000 and maintained
it, expanding globally in recent years.
2. Discuss whether the case followed the "Theory of Holistic Management for
World-class Performance':
• Yes, the case followed the Theory of Holistic Management for World-class
Performance by incorporating TQM principles.
• The organization addressed various aspects, including quality
improvement, process control, customer focus, strategic planning, supplier
support, and employee involvement, aligning with the holistic
management approach.
3. Explain the factors that helped the organization to defend and retain its
market leadership:
• Implementation of TQM, emphasizing continuous improvement and
customer satisfaction.
• Strategic quality planning, including mission and vision statements, to
attain market leadership.
 • Obtaining certifications (ISO 9000, QS 9000, ISO 14001) and implementing
quality management systems.
• Substantial reduction in rework, rejections, and consumer complaints.
• Introduction of new models and global market expansion.
4. Enumerate the critical success factors (CSF) of the organization:
• Total Employee Involvement through quality circles.
• Strategic quality planning for long-term and short-term goals.
• Implementation of TQM in three phases: Introduction, Promotion, and
Development.
• Obtaining certifications for international quality standards.
• Almost 100% employee involvement in the second phase.
• Reduction in rework, rejections, and improvement in field quality.
• Market leadership achieved and maintained.
5. What have you learned from this case study?
• The importance of TQM and holistic management in achieving world-class
performance.
• The role of strategic quality planning in attaining market leadership.
• The significance of employee involvement in continuous improvement.
• The benefits of obtaining certifications and implementing quality
management systems.
• The impact of reducing rework and rejections on overall organizational
performance.
• The value of adapting to changing market conditions and global
expansion for sustained success.

CASE 2

1. Discuss the high points of the case:

a. The formation of a three-tiered promotion structure for TQM
implementation, involving a TQM Apex Council at the group level, TQM
Promotion Committee at the company level, and TQM Promotion Team at
the plant level.
b. Challenges encountered in changing the mindset of employees and top
management.
c. Training programs to create awareness about the utility of TQM and
motivate employees.
d. Overcoming the perception that TQM was only for manufacturing by
extending it to non-manufacturing functions such as finance, marketing,
and materials.
 e. Phenomenal benefits, including a threefold increase in sales, a significant
focus on customer satisfaction, a rise in the contribution of new product
sales, a decrease in customer line rejection, and a reduction in energy
costs.
2. What benefits did the organization derive from the implementation of total
quality management?
a. A threefold increase in sales.
b. Development of customer-oriented products and services.
c. Significant contribution (30%) of new product sales to total sales.
d. Reduction of customer line rejection from percentage (%) to ppm.
e. Decrease in energy costs vis-à-vis net sales from around 3% to 1.86%.
f. Intangible benefits such as improved business processes, system-
orientation, cross-functional working, and total employee involvement.
3. Based on this case, discuss the critical points for the implementation of
TQM and its various aspects:
a. Establishing a structured promotion structure at different organizational
levels to oversee TQM implementation.
b. Addressing the challenge of changing the mindset of both employees and
top management.
c. Conducting training programs to create awareness and motivation for
embracing TQM.
d. Recognizing and extending TQM practices to non-manufacturing
functions.
e. Monitoring TQM implementation through dedicated coordinators at both
company and plant levels.
f. Emphasizing the need for standard operating procedures (SOPs) and
Kaizen in all processes.
4. What have you learned from this case study?
a. The significance of a structured approach to TQM implementation,
involving multiple tiers of coordination.
b. The importance of addressing mindset and cultural changes for successful
TQM adoption.
c. The transformative impact of TQM on sales, customer satisfaction, product
development, and operational efficiency.
d. The need for broadening TQM practices beyond manufacturing to include
various organizational functions.
e. The role of continuous training and awareness programs in fostering a
TQM culture.
f. The tangible and intangible benefits that can be derived from a
comprehensive TQM initiative.
 CASE 3
1. Explain the high point of the case.

The high point of the case is the successful transformation of the American auto
manufacturer from an economic model to a Total Quality Management (TQM) model.
This transformation began in the early 1980s with a 'Quality is Job 1' initiative and
continued in the 1990s with a 'Quality People, Quality Products' initiative. The
organization achieved performance excellence by embracing the principles of TQM,
leading to better quality products, stable employment, increased profitability, and
improved customer satisfaction. The particular assembly plant described in the case
became a market leader in the mid-size auto market, dominating its class with award-
winning automobiles.

2. Explain in detail the process of the supplier-organization symbiotic relationship

for business performance excellence.

The supplier-organization symbiotic relationship is characterized by Total Organizational

Involvement (TOI), where suppliers, employees, and customers are actively involved in
the business processes of the organization. In this case, the organization has a
partnership with a Tier I supplier, who takes up the responsibility of supplying specified
raw materials and components and manages them directly. The supplier's representative
works in-house at the organization's plant and is responsible for not only the supply
chain but also for ensuring the quality of the output from the manufacturing process.

This collaborative relationship is outlined in a handbook that specifies the

responsibilities of each partner. The handbook emphasizes proactive collaboration,
focusing on mutual goals of increasing quality and productivity while decreasing
production costs. The supplier's representative and organizational employees are
empowered to contribute to the process through training programs, sharing knowledge
about raw materials, and implementing continuous improvement techniques. Financial
rewards, including profit-sharing and an active suggestion program, motivate both the
organization and the supplier to achieve continuous improvements.

The partnership is supported by statistical process control (SPC), which involves joint
efforts in establishing flow charts, control charts, and sampling techniques to measure
and control processes for quality assurance. The supplier is paid on a per-automobile
basis, and the compensation rate is determined collaboratively based on cost records
and negotiations, promoting a cooperative financial relationship. The supplier's
representative, being in-house, has access to information both before and after each
process, allowing for better decision-making, innovation, and improvements.

3. Elaborate on the areas where the TQM philosophy and techniques have been
deployed.

The TQM philosophy and techniques have been deployed in various areas of the
organization, including:

• Supplier-Organization Relationship: The case emphasizes the importance of a

collaborative and cooperative relationship with suppliers under a TQM
framework. The organization actively involves suppliers in its processes, fostering
a symbiotic relationship.
• Employee Involvement: TQM principles are applied to empower the workforce.
Employees are trained in the TQM philosophy, statistical process control, and
continuous improvement techniques. The organization encourages a culture of
active participation, with financial rewards for suggestions leading to savings.
• Continuous Improvement: The entire case revolves around the concept of
continuous improvement. The organization and the supplier focus on ongoing
enhancements in quality, productivity, and cost reduction. The supplier's
representative is empowered to run continuous improvements without
bureaucratic obstacles.
• Financial Systems: An innovative financial system supports the TQM partnership,
with the supplier being paid on a per-automobile basis. This system encourages
productivity improvements over the contract period, aligning financial incentives
with the TQM goals of quality and efficiency.

4. Describe how TQM has helped the organization to gain the market leadership
position?

Total Quality Management (TQM) has played a crucial role in helping the organization
gain a market leadership position in the automobile sector. Key contributions include:

• Quality Focus: TQM places a strong emphasis on quality, and the organization's
commitment to quality improvement has resulted in better quality products. This
quality focus is reflected in the awards received by the automobiles produced by
the organization, making them leaders in the mid-size auto market.
• Supplier Collaboration: The TQM approach involves total organizational
involvement, including suppliers. The collaborative relationship with a Tier I
 supplier has not only ensured a smooth supply chain but has also contributed to
improved quality, productivity, and cost reduction.
• Employee Empowerment: TQM empowers employees to actively participate in
the improvement process. By training both organizational employees and the
supplier's representative in process control techniques and continuous
improvement, the organization has created a culture of accountability and
innovation.
• Continuous Improvement: The TQM philosophy of continuous improvement is
a cornerstone of the organization's success. The focus on ongoing enhancements
in quality and productivity has allowed the organization to stay ahead of the
competition, meeting and overcoming the challenges of the dynamic auto
industry.
• Financial Alignment: The financial system, with payment to the supplier on a
per-automobile basis and incentives for productivity improvements, aligns
financial goals with the TQM principles. This has provided the organization with
control over production costs and ongoing opportunities for cost reduction.