Total Quality Management at Mahindra & Mahindra Limited, Benefits of TQM

1. Mahindra & Mahindra Limited
Total quality Management

2. RAHUL BABAR

3. ABOUT M&M
• It is one of the largest automobile manufacturers by
production in India and a subsidiary of Mahindra
Group conglomerate.
• It is ranked #21 in the list of top companies of India
in Fortune India 500 in 2011.
• Mahindra & Mahindra was set up as a steel trading
company in 1945.
• 34,612 employees in automobile manufacturing.

4. History of M & M
Multinational automaker headquartered in
Mumbai, Maharashtra, India.
• The company was founded in 1945 in Ludhiana
as Mahindra & Mohammed by brothers K.C.
Mahindra and J.C. Mahindra and Malik Ghulam
Mohammed.
• The company changed its name to Mahindra &
Mahindra in 1948.

5. CORE VALUE
 Good Corporate Citizenship
Long term success
Ethical business standards
Professionalism
Best people for the job
Innovation and well reasoned risk taking
Customer First
Respond to the changing needs and expectations
Quality focus
First time right
Dignity of the individual

6. QUALITY POLICY
“ Customer first and quality focus are our core values.
For this, we shall respond to the changing needs and
expectation of the customers speedily and effectively.”
Achieved By:
Understanding customer requirements
Involvement of suppliers and business partners
Setting the annual business objectives aligned with
their vision
Total employee involvement
Adopting a process approach
Delivering ‘first time right’ products.

7. TQM JOURNEY WITH M&M
The TQM journey was in Four phases:
Previous to TQM
Introduction phase from 1990 – 94
Promotion phase from 1995 – 99
Development phase from 2000 onwards

8. PREVIOUS TO TQM (1990)
• Tractor division was sellers market (A market
condition characterized by a shortage of goods
available for sale)
• Focus was more on quality
• No emphasis on development of new models
• Manufacturing activity was more inspection oriented
detection
• Interaction with suppliers purely need based
• Sales and service activity lacked standardization
• Rework rejection percentages were high
• Employee involvement in improvement activity was
very limited

9. INTRODUCTION PHASE
(1990 – 94)
In the first phase objective were:
Improving manufacturing quality through process
control.
Improving the quality of bought out components and
Increasing productivity and reduce the cost of poor
quality
 (COPQ) by Solving chronic cross functional quality
problems.
Introduction of initiatives like:
Juran’s process of quality improvement (JQI)
Statistical process control (SPC)
Supplier support activity

10. Statistical Process Control (SPC) is
an industry-standard methodology for
measuring and controlling quality during
the manufacturing process. Quality
data in the form of Product
or Process measurements are obtained
in real-time during manufacturing.
Business process reengineering (BPR)
is the analysis and redesign of workflows
within and between enterprises in order to
optimize end-to-end processes and
automate non-value-added tasks.JURAN’s Trilogy

11. PROMOTION PHASE (1995 – 99)
• The focus was not only the standardization of
all operations as per international guidelines,
but also to improvement upon them.
• Certifications ISO 9000 and automotive sector
specific standard QS 9000 were obtained
• Upgradation of manufacturing facilities
• Initiation of Deming prize guidelines

12. The Deming Cycle, or PDCA Cycle (also known as
PDSA Cycle), is a continuous quality improvement model
consisting out of a logical sequence of four repetitive steps
for continuous improvement and learning: Plan, Do, Study
(Check) and Act.

13. DEVELOPMENT PHASE (2000 ONWARDS)
• Improvement in core process like new product
development, manufacturing, supplier
management and sales and customer operations
• Introduction of policy development daily work
management technique
• Certification to environment management system
standards ISO 14001
• Continuous improvement activity stepped up to
touch employee involvement of 100 percent
during period

14. BENEFITS DUE TO TQM
• Reduction in rejection at suppliers end as well
at receipt stage.
• Reduction in no. of consumer complains
• Increased productivity, customer satisfaction,
employee involvement in continuous
improvement
• Introduction of new models – 15 models in
three years

15. • Won the Japan quality medal in 2007, the only
tractor company worldwide to be bestowed this
honors.
• First tractor company globally to win the
Deming application prize in 2003 from JUSE.
• Total productive maintenance (TPM) Excellence
award first category form Japanese institute of
plant maintenance (JIPM) for the company’s
automotive division

16. Total productive maintenance (TPM) is a system of
maintaining and improving the integrity of production and
quality systems through the machines, equipment,
processes, and employees that add business value to
the organization.

17. DEMING PRIZE
The Deming prize, established in December 1950 in
honor of W. Edwards Deming
 It was originally designed to reward Japanese
companies for major advances in quality improvement.
 Over the years it has grown, under the guidance of
Japanese Union of Scientists and Engineers (JUSE) to
where it is now also available to non- Japanese
companies.
 The awards ceremony is broadcast every year in
Japan on national television.