ASSIGNMENT ON TOTAL QUALITY MANAGEMENT EXEMPLARY ORGANISATIONS

SUBMITTED TO: PRAVEEN SIR

SUBMITTED BY: B.BENONY JOHN 121410672063 MBA II B

FORD : While a believer in Six Sigma these days, back in the 1980s, Ford believed in TQM after its executives saw what the methodology did for Toyota. A new slogan “Quality People, Quality Products” emerged, especially after Ford partnered with ChemFil, their paint supplier—a company that helped produce quality paint products customers desired. As with many other automakers, the emergence of customer surveys was vast and from survey responses came more quality based on customer needs. Actually, top executives at Ford say TQM was a “light -bulb” idea from Henry Ford who improved on his assembly line practices to manufacture even more vehicles, while keeping quality levels high. With their entrance into the Six Sigma methodology, the slogan has changed again at Ford —“We’ve got a better idea!”

Exxon Mobil : Not only does TQM ensure quality, it also considers the customer or the end-user. With the fuel business ever so competitive, Exxon felt the need to explore customer-related issues by using TQM rather than only relying on competitive pricing—becoming one of the companies that benefited from TQM. According to BrainMass, Exxon “treated quality as an opportunity for process improvement rather than as cost.” The challenge for Exxon was to re-brand the company as a “trusted” fuel provider, and that also meant their service stations—owners were asked to emulate Exxon’s corporate beliefs into their franchises or gas stations that bore the Exxon name and sold their products. Through analyzing customers' need and wants and by using TQM to implement those wants and needs—they re-branded themselves from the disaster of the Exxon-Valdez oil spill of

1989. They looked at 4 areas of the end-user and consumer confidence including higher quality products, efficient and easy-to-use services and products, better explanations of warranties and guarantees, and being truthful in all of their advertising efforts. By doing so, the company was able to embark on the new and the workable and leave the “consumer view” of the company on the back burner.

XEROX : According to Mark Chatfield’s article TQM: It Really Works, published on the All Business website, many American companies between “1960 to 1990 lost 40 percent of market share to foreign competitors, while Japan increased its foreign market by 500 percent.” With fear of closing down, Xerox fought back using TQM to regain their market share. They implemented TQM by opening the Palo Alto Research Center (PARC), which focused on ways to emerge as a leader in the printer/copy/fax market. Their main goal: “Innovation is everywhere; the problem is learning from it.” The also focused on benchmarking and leadership and re-thought their suppliers to come up with the best quality products that could compete globally. Xerox later went on to win the Baldridge Award for their TQM efforts.

RELIANCE INDUSTRIES : During the year, several new initiatives were taken to improve and strengthen quality management systems at our sites. • At the newly acquired RPCL facility, QA/QC systems were put in place at the time of plant start up - resulting in reliable results from the start.

• Total Quality Management was introduced in all the laboratories at Jamnagar. • The 5 S programme was introduced at laboratories for inventory and document management. • Inter laboratory testing across the Reliance group has been made a regular feature to monitor the reliability of analytical services. • Suggestion schemes have been introduced to encourage the involvement of all employees in quality related activities - eighteen employees received awards. Reliance's efforts on the quality front continued to receive recognitions. • The Jamnagar laboratory received recognition on the analytical front from CEMILAC Reliance Industries Limited, Maker Chambers IV, Nariman Point, Mumbai. 2(Centre for Military Airworthiness and Certification) for its high level of Quality Confidence and Control Measures. • For each month during the year, Reliance received Golden certificates from Shell GlobalServices for Excellence in Reliability of Testing and Results. • Reliance's laboratory was accredited for conforming to QMS as per ISO/IEC 17025 by NABL.

GE (General Electric): GE has taken the six sigma process and developed it into an amazing feat that has brought about a change in their organization that cannot be looked over or disregarded when trying to fine an example of an exemplary performance of any organization. They have done so by using the six sigma quality system and implementing it every aspect of their business. GE defines six sigma as a “highly disciplined process that helps us focus on developing and delivering near-perfect products and services.” (http://www.ge.com/en/company/companyinfo/quality/whatis.htm) The article from the website goes on to say that to achieve six sigma qualities a process must produce no more than 3.4 defects per million opportunities.” (http://www.ge.com/en/company/companyinfo/quality/whatis.htm An "opportunity" is

defined as a chance for a nonconformance or an issue with a raw material or supplier. We all know the jingle that we have seen on GE commercials for years, “GE, we bring good things to life.” But, how does that affect the workforce and business as a whole with the implementation of six sigma? What kind of culture is present there and what does it do for their bottom line at the end of the day? Their people are among the most highly trained work force on the planet as they try and solve the issues that are plaguing the world today. They are also involved in environmental movements as the website boasts that GE employees are responsible for, “reducing GHG emissions by 250,000 metric tons and saving the company 130 million dollars by organizing ecomagination treasure hunts world wide.” (http://www.ge.com/company/culture/index.html)

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