Professional Documents
Culture Documents
POINT
11, H.I.G. DOUBLE STOREY, RATAN LAL NAGAR
KANPUR (LC CODE- 00918)
A
PROJECT REPORT
ON
CONTENTS
1. ACKNOWLEDGEMENT..
2. DECLARATION........
3. EXAMINERS CERTIFICATION.......
4. PREFACE......
5. EXECUTIVE SUMMARY...
6. INTRODUCTION TO INDUSTRY.. 10
7. COMPANY PROFILE. 24
8. COMPETITOR PRODUCTS... 45
9. AWARDS FOR TATA MOTORS.47
10. WHAT IS TOTAL QUILITY MANAGEMENT 54
11. RESEARCH METHODOLOGY............. 62
12. ANALYSIS AND FINDINGS..... 65
13. SUGGESTION.... 68
14. LIMITATIONS ............................70
15. BIBLIOGRAPHY.....71
16. CONCLUSION.... 72
17. QUESTIONNAIRE .............................73
ACKNOWLEDGEMENT
It is with real pleasure that, I record my indebtedness to my academic Guide,
Lecturer Mrs. Reema Saxena for his guidance during the preparation of this
project.
I am grateful to (Director) Mr. S.K. Arora and my sincere thanks to all faculty
members of The SMU, IT Point Kanpur (LC Code: 00918)
Place: Kanpur
( Vishal kashyap)
Date:
DECLARATION
I hereby declare that the project report entitled Study on Total Quality
Management on TATA MOTORS LTD Submitted in partial fulfillment of the
requirements for the Degree Master of Business Administration to Sikkim
Manipal University, India is my original work & not submitted for the award any
other Degree, Diploma fellowship or any other similar title or prizes.
(Vishal Kashyap)
DATE:
EXAMINERS CERTIFICATION
The project report of Vishal kashyap entitled Study on Total Quality
Management on TATA MOTORS LTD is approved and is acceptable in
quality and form.
Internal Examiner
(Name & Signature with date)
External Examiner
(Name & Signature with date)
Certified
(Mrs. Reema Saxena)
PREFACE
This project is a part of my academic curriculum required for the fulfillment of
two years full time programme, pursuing Post Graduation Programme in
SIKKIM MANIPAL UNIVERSITY
I have done this project in Total Quality Management on TATA
MOTORS LTD. Successful companies understand the powerful impact
customer-defined quality can have on business. For this reason many
competitive firms continually increase their quality standards. For example, both
the Tata Motor Company and the Honda Motor Company have recently
announced that they are making customer satisfaction their number one priority.
The slow economy of 2003 impacted sales in the auto industry. Both
firms believe that the way to rebound is through improvements in quality, and
each has outlined specific changes to their operations. Ford is focusing on
tightening already strict standards in their production process and implementing
equality program called Six-Sigma. Honda, on the other hand, is focused on
improving customer-driven product design.
This study focuses on TQM applications to the Information Systems
(IS) industry. The basic difference between manufacturing and IS industries can
be briefly described as follows. The manufacturing industry is a unit-production
system that produces a product to be sold to external customers of an
organization. On the other hand, the IS industry is an internal aspect of a process
that delivers information to be used by internal customers of an organization.
This project has given significance light to the different and various
aspect of TATA MOTORS like market share, positioning, views of consumers,
expectations of consumers, target market, the most efficient market, what need
to recommend. This project has given me opportunity to develop my practical
knowledge and also clear my concepts. And all learnings which I have got are
the real success to me.
Academically, the project provides a unique opportunity to have an
exposure to real life corporate world and to have insight Quality Management
that helped in making my learnings more purposeful.
EXECUITIVE SUMMARY
This project was undertaken to understand the working of TATA MOTORS
LTD, to know about consumer behavior towards Tata Motors, to know the
expectations of consumers from Tata Motors, to search most efficient Market for
Tata Motors, to know more about target customer so that quality of product and
techniques and strategies can be improve more efficiently.
This project reflects the information about the product and its different variants,
quality of product, its present competitors product quality in the market, the
reasons why competition is so high.
This project reflects the information about Quality Management In companies
where quality management has been fused with organizational behavior;
employees proactively manage the customer's experience to ensure satisfaction.
Employees need to have the authority and ability to provide optimal customer
service, part of which involves employees being trained on the needs of both
customers and the company's stakeholders.
Introducing quality management into a company's organizational behavior
involves modifying the organizational culture inside the company. Management
must engage in activities that alter the company's culture in a way that increases
the quality of a customer's experience, leading to increased customer satisfaction
and loyalty, as well as referral business from existing customers. Management
must help employees realize the importance of changing the organization's
culture quickly to stay ahead of the competition and to keep the company viable;
otherwise employees may resist changes to the culture they view as unnecessary.
TATAMOTORSLTD.
INTORDUCTION TO INDUSTRY
10
maintain. The car was exported to Europe, to UK and Italy. The second
generation of Indica, V2 was even more successful.
Indicas high success gave Tata Motors the financial power to take
over Daewoo Motors in 2004. This gave the company an opportunity to give
their brand international exposure. Today, Daewoos trucks are sold as Tata
Daewoo Commercial Vehicle in South Korea. In 2005, the company acquired
21% share in Hispano Carrocera SA, earning the controlling rights of the
company. In January 2008, the global automobile sector showcased the worlds
cheapest car in the form of Tata Nano. Launched by Tata Motors, the car cost
only Rs.1, 00,000 (US $2,500). In the March of that year, Tata Motors also
acquired the Jaguar Land Rover (JLR) business from the Ford Motor Company,
which included the Daimler and Lanchester brands.
Tata Motors formed 51:49 joint ventures with Marcopolo of Brazil and came up
with manufacturing and assembling fully-built buses and coaches targeting the
developing mass rapid transportation systems. Tata and Marcopolo jointly have
launched low-floor city buses that are widely used by Delhi, Mumbai, Lucknow
and Bangalore transport corporations. Tata Motors has been continuously
acquiring foreign brands to increase its global presence. The company operates
in the UK, South Korea, Thailand and Spain. Today, Tata Motors has its auto
manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow,
Ahmadabad and Pune in India, and in Argentina, South Africa, South Korea and
Thailand. It is further planning to set up more plants in Turkey, Indonesia and
Eastern Europe.
Company (NBFC) and offers fund and fee-based financial services to its
customers, under the Tata Capital brand.
A trusted and customer-centric, one-stop financial services provider, TCFSL
caters to the diverse needs of retail, corporate and institutional customers, across
various areas of business namely the Commercial Finance, Infrastructure
Finance, Wealth Management, Consumer Loans and distribution and marketing
of Tata Cards.
Tata Communications, also known as Tata VSNL, a communication
company acquired in 2002. Tata Communications is a USD $3.2 billion (FY13)
global communications and enterprise IT service provider that owns and
operates the worlds most advanced subsea cable network, delivering first-class
infrastructure, enterprise solutions and partnerships to carriers and businesses
worldwide. Tata Communications network is truly global, extending from
developed markets to the worlds fastest growing emerging economies. Here are
some fast facts around how we are at the centre of driving global connectivity
and collaboration.
Core to everything Tata Communications does, is its global infrastructure which
consists of one of the largest and most sophisticated subsea optic fiber
cable networks (including the worlds only wholly owned, complete
cable ring around the globe); its Tier 1 IP network; and world-class
data centers in key business capitals around the world. On top of this
robust backbone, sits Tata Communications voice and data businesses
and its comprehensive portfolio of managed enterprise services. These
include high speed connections and global MPLS virtual private
networks, the worlds largest network of Telepresence services, the
worlds most extensive DDoS mitigation and detection service, content
delivery networks, and cloud enablement solutions.
Tata Consulting Engineers Limited, Engineering, Design and consultancy for
all types of infrastructure and industrial developments. Specialized in power
sector. (Established in 1962).
The company offers integrated engineering consultancy solutions in most key
sectors. The services include concept to commissioning solutions in key sectors,
construction management, advanced technologies, etc. The company provides
engineering services and solutions for power, nuclear, infrastructure, industrial,
mining and minerals, steels and metals, transportation, water, building,
12
1968 by a division of Tata Sons Limited. Its early contracts included providing
punched card services to sister company TISCO (now Tata Steel), working on an
Inter-Branch Reconciliation System for the Central Bank of India, and providing
bureau services to Unit Trust of India.
In 1975, TCS conducted its first campus interviews, held at IISc, Bangalore. The
recruits comprised 12 Indian Institutes of Technology graduates and three IISc
graduates, who became the first TCS employees to enter a formal graduate
trainee programme.
In 1979, TCS delivered an electronic depository and trading system called
SECOM for the Swiss company SIS SegaInterSettle. TCS followed this up with
System X for the Canadian Depository System and automating the Johannesburg
Stock Exchange. TCS associated with a Swiss partner, TKS Teknosoft, which it
later acquired.
In 1981, TCS established India's first dedicated software research and
development centre, the Tata Research Development and Design Centre
(TRDDC) in Pune
Tata Defence: The Tata group, which has a strong presence in the Indian
defence sector, expects a 40 percent growth in revenues from its defence
Portfolio in fiscal 2014
13
The Tata group has increased its footprint in integrating and supplying systems
of strategic importance in the areas of mobility solutions, aerospace, missiles,
radars, network-centric warfare enablers, electronic warfare systems, manned
and unmanned platforms (land, aerial, marine and submarine), integration of C4I
(command, control, communications, computers and intelligence), command
and control systems for air defence and naval combat, battlefield transparency
systems, information assurance and home land security systems.
Tata Elxsi, another Tata IT company. Tata Elxsi is a design company that blends
technology, creativity and engineering to help customers transform ideas into
world-class products and solutions.
A part of the $100 billion Tata group, Tata Elxsi addresses the communications,
consumer products, defence, healthcare, media & entertainment, semiconductor
and transportation sectors. This is supported by a talent pool of over 4000
employees and a network of design studios, development centers and offices
worldwide. Key services include embedded product design, industrial design,
14
animation & visual effects and systems integration. Tata Elxsi is a listed
company.
Headquartered in Bangalore, India, our global network of offices includes
Dubai, France, Germany, Japan, Malaysia, Singapore, South Africa, UAE, UK,
and USA.
Tata Interactive Systems (TIS) is a provider of performance support systems
and e-learning platforms. Tata Interactive Systems (TIS) is a pioneer and global
leader in custom learning solutions.
With a team of over 800 multi-disciplinary specialists, TIS creates 3,000+ hours
of learning content across 220+ concurrent projects every year. TISs offerings
address training needs arising out of key organizational initiatives and its
solutions have proven their effectiveness at more than 500 clients, which include
Fortune 500 companies, leading educational institutions and government
departments.
TIS are the first and only learning solutions organization in the world to be
assessed at Level 5 in both the SEI-CMM and P-CMM. Its solutions have won
over 50 prestigious international awards in the past 10 years.
16
Tata Steel, World's 12th largest steel company. Tata Steels larger production
facilities comprise those in India, the UK, the Netherlands, Thailand, Singapore,
China and Australia. Operating companies within the Group include Tata Steel
Limited (India), Tata Steel Europe Limited (formerly Corus), Tata Steel
Singapore and Tata Steel Thailand.
The Tata Steel Groups vision is to be the worlds steel industry benchmark in
Value Creation and Corporate Citizenship through the excellence of its
17
people, its innovative approach and overall conduct. Underpinning this vision is
a performance culture committed to aspiration targets, safety and social
responsibility, continuous improvement, openness and transparency. In 2008,
Tata Steel India became the first integrated steel plant in the world, outside
Japan, to be awarded the Deming Application Prize 2008 for excellence in Total
Quality Management. In 2012, Tata Steel became the first integrated steel
company in the world, outside Japan, to win the Deming Grand Prize 2012
instituted by the Japanese Union of Scientists and Engineers.
Tata Global Beverages, the world's second largest tea business. Tata Global
Beverages is an incredible story, with almost 200 years of history behind us and
a heritage of consistent innovation and development.
It all started when Tata Finlay was set up as a joint venture between Tata Sons
and the UK-based tea plantation company, James Finlay and Company in 1962.
In 1983 Tata Tea was born after James Finlay sold his shareholding to Tata,
heralding the beginning of a new journey. The company set out on a path with
global ambitions, evidenced by the acquisition of Tetley in 2000. This was
followed by a string of strategic acquisitions including Good Earth, Jemca,
Vitax, Eight O Clock Coffee and Himalayan Water.
Tata Teleservices, India's second CDMA telecom company. Communications is
among the Tata Group's larger investments, with over $7.5 billion already
committed. The Group's objective is to provide end-to-end telecommunications
solutions for business and residential customers across the nation and
internationally. The Group's communications activities are currently spread
primarily over four companies-Tata Teleservices Limited, its associate Tata
Teleservices (Maharashtra) Limited, Tata Communications (erstwhile VSNL)
and Tata Sky. Together, these companies cover the full range of communications
services, including:
18
Tata DoCoMo, a GSM based mobile company with alliance with NTT docomo.
TATA DOCOMO is part of the Indian conglomerate Tata Group. The company
received the license to operate GSM services in nineteen telecom circles and was
allotted spectrum in eighteen of these circles and launched GSM services on 24
June 2009. It began operations first in South India and currently operates GSM
services in eighteen of twenty two telecom circles. It has licences to operate in
Delhi but has not been allocated spectrum from the Government. [1] Docomo
provides services throughout India. Tata DOCOMO offers both prepaid and
postpaid cellular phone services. It has become very popular with its one second
pulse especially in semi-urban and rural areas.
On 5 November 2010, Tata DOCOMO became the first private sector telecom
company to launch 3G services in India. Tata DOCOMO had about 42.34
million users at the end of December 2010.
In April 2011, TATA DOCOMO signed on Bollywood actor Ranbir Kapoor as its
brand ambassador on a three year contract. For the southern states of Tamil
Nadu and Andhra Pradesh, actors Vijay and Ram Charan Teja are the brand
ambassadors respectively
19
Tata Chemicals
Tata Chemicals has the second largest soda ash production capacity plant in
India. This was the second soda ash plant built in India by Shri Kapilram Vakil
that started operating in the year 1944. The township Mithapur derives its name
from "Mith" which means salt in Gujarati language.
Since 2006 Tata Chemicals has owned Brunner Mond, a United Kingdom-based
chemical company with operations in Magadi (Kenya) and General Chemicals,
in United States of America.
On 27 March 2008, Tata Chemicals Ltd acquired 100 per centstake in US-based
General Chemical Industrial Products Inc (GCIP) for US$1.05 billion to become
the worlds second largest maker of soda ash. With all these acquisitions,
combined capacity of production has increased to around 5.17 million tons of
soda ash.
In April 2010, Tata Chemicals acquired 25% stake in ammonia-urea fertilizer
complex in Gabon for US$290 million.The first phase of the plant will have a
20
full operational capacity of 2.2 billion tons of ammonia and 3.85 billion tons of
urea per day.
Tata Sky, a Direct To Home service company in alliance with British Sky
Broadcasting and News corporations STAR
Tata Sky is a joint venture between the TATA Group and STAR. Tata Sky
satellite television service was launched on 8th August, 2006. Its the second
DTH Company launched in India. In tata sky, TATA holds 60% stake, STAR
holds 30% and the remaining 10% holds by Temasek. Tata sky uses the brand of
British Sky Broadcasting Group (BSkyB)
Tata Projects is one of the fastest growing and most admired infrastructure
companies in India. It has expertise in executing large and complex Industrial
Infrastructure Projects. The company has structured its business into 7 business
verticals namely Power, Transmission, Railways, Metals, Oil & Gas, Water and
Quality Services.
21
Tata Technologies
23
INDUSTRY PROFILE
Tata Motors Limited is India's largest automobile company, with consolidated
revenues of INR 1, 88,818 crores (USD 34.7 billion) in 2012-13. It is the leader
in commercial vehicles in each segment, and among the top in passenger
vehicles with winning products in the compact, midsize car and utility vehicle
segments. It is also the world's fifth largest truck manufacturer and fourth largest
bus manufacturer.
The Tata Motors Group's over 60,000 employees are guided by the mission "to
be passionate in anticipating and providing the best vehicles and experiences
that excite our customers globally."
Established in 1945, Tata Motors' presence cuts across the length and breadth of
India. Over 8 million Tata vehicles ply on Indian roads, since the first rolled out
in 1954. The company's manufacturing base in India is spread across
Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh),
Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following
a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with
Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and
Tata cars and Fiat powertrains. The company's dealership, sales, services and
spare parts network comprises over 6,600 touch points.
Tata Motors, also listed in the New York Stock Exchange (September 2004), has
emerged as an international automobile company. Through subsidiaries and
associate companies, Tata Motors has operations in the UK, South Korea,
Thailand, South Africa and Indonesia. Among them is Jaguar Land Rover,
acquired in 2008. In 2004, it acquired the Daewoo Commercial Vehicles
Company, South Korea's second largest truck maker. The rechristened Tata
Daewoo Commercial Vehicles Company has launched several new products in
the Korean market, while also exporting these products to several international
markets. Today two-thirds of heavy commercial vehicle exports out of South
Korea are from Tata Daewoo. In 2006, Tata Motors formed a 51:49 joint venture
with the Brazil-based, Marcopolo, a global leader in body-building for buses and
coaches to manufacture fully-built buses and coaches for India - the plant is
located in Dharwad. In 2006, Tata Motors entered into joint venture with
Thonburi Automotive Assembly Plant Company of Thailand to manufacture and
24
market the company's pickup vehicles in Thailand, and entered the market in
2008. Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with Tata
Africa Holding (Pty) Ltd. set up in 2011, has an assembly plant in Rosslyn, north
of Pretoria. The plant can assemble; semi knocked down (SKD) kits, light,
medium and heavy commercial vehicles ranging from 4 tonnes to 50 tonnes.
Tata Motors is also expanding its international footprint, established through
exports since 1961. The company's commercial and passenger vehicles are
already being marketed in several countries in Europe, Africa, the Middle East,
South East Asia, South Asia, South America, CIS and Russia. It has
franchisee/joint venture assembly operations in Bangladesh, Ukraine, and
Senegal.
The foundation of the company's growth over the last 68 years is a deep
understanding of economic stimuli and customer needs, and the ability to
translate them into customer-desired offerings through leading edge R&D. With
over 4,500 engineers, scientists and technicians the company's Engineering
Research Centre, established in 1966, has enabled pioneering technologies and
products. The company today has R&D centres in Pune, Jamshedpur, Lucknow,
Dharwad in India, and in South Korea, Italy, Spain, and the UK.
It was Tata Motors, which launched the first indigenously developed Light
Commercial Vehicle in 1986. In 2005, Tata Motors created a new segment by
launching the Tata Ace, India's first indigenously developed mini-truck. In 2009,
the company launched its globally benchmarked Prima range of trucks and in
2012 the Ultra range of international standard light commercial vehicles. In their
power, speed, carrying capacity, operating economy and trims, they will
introduce new benchmarks in India and match the best in the world in
performance at a lower life-cycle cost.
Tata Motors also introduced India's first Sports Utility Vehicle in 1991 and, in
1998, the Tata Indica, Indias first fully indigenous passenger car.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano. The Tata
Nano has been subsequently launched, as planned, in India in March 2009, and
subsequently in 2011 in Nepal and Sri Lanka. A development, which signifies a
first for the global automobile industry, the Nano brings the joy of a car within
the reach of thousands of families.
Tata Motors is equally focussed on environment-friendly technologies in
emissions and alternative fuels. It has developed electric and hybrid vehicles
both for personal and public transportation. It has also been implementing
25
in
manufacturing
processes,
26
Unity: We must work cohesively with our colleagues across the group and with
our customers and partners around the world, building strong relationships based
on tolerance, understanding and mutual cooperation.
Responsibility: We must continue to be responsible, sensitive to the countries,
communities and environments in which we work, always ensuring that what
comes from the people goes back to the people many times over.
Tata Steel is among the top ten steelmakers, and Tata Motors is among the top
five commercial vehicle manufacturers, in the world. TCS is a leading global
software company, with delivery centres in the US, UK, Hungary, Brazil,
Uruguay and China, besides India. Tata Global Beverages is the second-
28
largest player in tea in the world. Tata Chemicals is the worlds second-largest
manufacturer of soda ash and Tata Communications is one of the worlds largest
wholesale voice carriers.
In tandem with the increasing international footprint of Tata companies, the Tata
brand is also gaining international recognition. Brand Finance, a UK-based
consultancy firm, valued the Tata brand at $21.1 billion and ranked it 34th
among the top 500 most valuable global brands in their Brand Finance Global
500 2014 report. In 2010, Business Week magazine ranked Tata 17th among the
'50 Most Innovative Companies' list.
Founded by Jamsetji Tata in 1868, Tatas early years were inspired by the spirit
of nationalism. It pioneered several industries of national importance in India:
steel, power, hospitality and airlines. In more recent times, its pioneering spirit
has been showcased by companies such as TCS, Indias first software company,
and Tata Motors, which made Indias first indigenously developed car, the
Indica, in 1998 and recently unveiled the worlds most affordable car, the Tata
Nano.
Tata companies have always believed in returning wealth to the society they
serve. Two-thirds of the equity of Tata Sons, the Tata promoter holding
company, is held by philanthropic trusts that have created national institutions
for science and technology, medical research, social studies and the performing
arts. The trusts also provide aid and assistance to non-government organizations
working in the areas of education, healthcare and livelihoods. Tata companies
also extend social welfare activities to communities around their industrial units.
Going forward, Tata is focusing on new technologies and innovation to drive its
business in India and internationally. The Nano car is one example, as is the Eka
supercomputer (developed by another Tata company), which in 2008 was ranked
the worlds fourth fastest. Anchored in India and wedded to traditional values
and strong ethics, Tata companies are building multinational businesses that will
achieve growth through excellence and innovation, while balancing the interests
of shareholders, employees and civil society.
29
This comprehensive document serves as the ethical road map for Tata
employees and companies, and provides the guidelines by which the group
conducts its businesses.
Foreword
The Tata Code of Conduct is a set of principles that guide and govern the
conduct of Tata companies and their employees in all matters relating to
business. First elucidated in 1998, the Code lays down the ethical standards
that Tata employees have to observe in their professional lives, and it defines
the value system at the heart of the Tata group and its many business entities.
The Code is a dynamic document that reinforces the Tata canon of honorable
behavior in business. While it has remained unaltered at its core, the Code
has been modified down the years to keep it in step with changing regulatory
norms in the different parts of the world that Tata companies now do
business. These modifications have reinforced the Code, and enable it to
reflect the diverse business, cultural and other factors that have a bearing on
the health of the Tata brand.
If all of us, in our professional and personal capacities, can internalise the
beliefs enshrined in the Tata Code of Conduct, the Tata groups legacy and its
future will remain in good hands.
30
31
The plant manufactures Tata Motors' entire range of medium and heavy
commercial vehicles, including the Tata Prima, both for civilian and defence
applications - over 200 truck variants, ranging from multi-axle trucks, tractortrailers, tippers, mixers and special application vehicles. Besides India, these
vehicles are sold in South Africa, Russia, Myanmar, the SAARC region and the
Middle East. On February 19, 2013, Jamshedpur Plant rolled out its two
millionth trucks.
The plant houses a world class Engineering & Research Centre. The centre is
responsible for the conceptualization and integration of Tata Motors' current and
future truck range. The centre undertakes complex digital design through 3D
visualization of new truck models, including that of its features and electrical
systems. It also houses a comprehensive facility for benchmarking, prototype
planning, vehicle assembly, chassis fabrication and a customization unit. The
testing unit also includes engine performance testing, indoor and outdoor vehicle
testing, NVH (Noise, Vibration, Harshness) testing, durability testing and other
performance related developments.
32
33
34
35
Lucknow Plant
Tata Motors Lucknow (TML-Lucknow) is an important production facility of
Tata Motors Limited, which was established in 1992 to meet the growing
demand for Commercial Vehicles in the Indian market. The state of art plant is
strongly backed up by an Engineering Research Centre (ERC) & Service set-up
to support with latest technology & cater to the complexities of automobile
manufacturing. Fully Built Vehicle business (FBV), which is one of the fast
growing areas of business, is also head quartered here. This plant rolls out
commercial vehicles & is specialized in the designing & manufacturing of a
range of modern buses which includes Low-floor, Semi Low-floor, and High
Deck & CNG Buses. Lucknow plant also specializes in integral bus
manufacturing & has recently commissioned JV Company, Tata Marcopolo
Motors Ltd. in the premises.
The major facilities at the plant comprise of:
36
Pantnagar Plant
The Company has set up a plant for its mini-truck Ace and the passenger carrier
Magic (based on the Ace platform) at Pantnagar in Uttarakhand. The plant began
commercial production in August 2007. This is the company's fourth plant, after
Jamshedpur (commercial vehicles), Pune (commercial vehicles and passenger
vehicles) and Lucknow (commercial vehicles). The plant is spread over 953
acres, of which 337 acres is occupied by the vendor park.
State-of-the-art facilities include weld shops, paint shops, engine and gear box
shops and assembly lines. The Company has invested over Rs.1000 crores in the
plant. Vendors for the vehicle have made additional investments to set up their
plants in the vendor park adjoining the plant. The operation has generated about
7500 direct and indirect jobs in the plant, among vendors and service providers
in the area.
Sanand Plant
Tata Motors' plant for the Tata Nano at Sanand, in Ahmedabad district of
Gujarat, marks the culmination of the Companys goal of making the Tata Nano
available to hundreds of thousands of families, desirous of the car a safe,
affordable and environmental friendly mode of transport. The capacity of the
plant, to begin with, will be 250,000 cars per year to be achieved in phases, and
with some balancing is expandable up to 350,000 cars per year. Provision for
further capacity expansion has also been incorporated in this location.
Built in a record time of 14 months starting November 2008, the integrated
facility comprises Tata Motors own plant, spread over 725 acres, and an
adjacent vendor park, and spread over 375 acres, to house key component
manufacturers for the Tata Nano.
In line with latest world-class manufacturing practices, the Tata Nano plant has
been equipped with state-of-the-art equipment. They include sophisticated
robotics and high speed production lines. Conscious of the critical need of
environment protection, the plant has energy-efficient motors, variable
frequency drives, and systems to measure and monitor carbon levels. These are
supplemented with extensive tree plantation, sustainable water sourcing through
water harvesting and ground water recharging and harnessing solar energy for
illumination.
37
Dharwad Plant
Tata Motors' Dharwad Plant, Located on the Pune- Bangalore highway around
425 km northwest from Bengaluru, became operational on "Founders Day" 3rd
March 2012. This is the latest green field project by Tata Motors being
commissioned for production of Ace Zip. Dharwad plant in a record time rolled
out 15,000 Ace Zip's in first year of operations.
In line with world-class manufacturing practices Dharwad Plant has installed
most advanced technology which includes robotics, automated line with
Automated Guided Vehicles and ultramodern manufacturing systems and
practices. The Plant has a high capacity paint shop which brings perfect harmony
between plant and conveyor equipment with RoDip technology.
Dharwad is a quiet and pleasant city is continuously growing and a promising
beehive for commercial activities. Plant is spread over an area of 400 Acres. It
has an installed capacity of 90,000 vehicles annually. Dharwad Plant is the one
of the first plant in automobile industry to obtain Platinum Rating by Indian
Green Building Council and it also holds the ISO 14001 and ISO 50001
Certification for Environment Management System and Energy Management
System respectively. Dharwad Plant was awarded with State Level Safety
Award' for development, implementation and practicing of sustainable safety
culture in its location.
The plant within a short period of time, has indulged itself in number of
initiatives like Green-Drives (with sapling plantation/donation campaign, Rain
Water Harvesting, Eco-friendly processes, use of wind energy) Blood Donation
Drive, Health & Education Camps in surrounding communities, innovative
employee engagement and communication activities.
Concept vehicles
2000 Aria Roadster
2001 Aria Coupe
2002 Tata Indiva
2004 Tata Indigo Advent
2005 Tata Xover
2006 Tata Cliffrider
2007 Tata Elegante
2009 Tata Prima
Commercial vehicles
Tata Ace
Tata TL/Telco line/207 DI Pickup Truck
Tata 407 Ex and Ex2
Tata 709 Ex
Tata 809 Ex and Ex2
Tata 909 Ex and Ex2
Tata 1109 (Intermediate truck)
Tata 1510/1512 (Medium bus)
Tata 1610/1616 (Heavy bus)
Tata 1613/1615 (Medium truck)
Tata 2515/2516 (Medium truck)
Tata Star bus (Medium Bus)
Tata Globus (Low Floor Bus)
Tata Marcopolo Bus (Low Floor Bus)
Tata 3015 (Heavy truck)
Tata 3118 (Heavy truck) (8X2)
Tata 3516 (Heavy truck)
Tata 4018 (Heavy truck)
Tata 4923 (Ultra-Heavy truck) (6X4)
39
40
A MINI ELEPHANT
Small is big
41
42
43
of commercial vehicle sales. There are also favorable Government polices and
regulations in place in order to help boost the auto industry. However, Tata has
not been able to capitalize on its global presence. Tata relies heavily on its sales
in India and has not yet managed to create a foothold in international markets
even though it has a number of well reputed subsidiaries. However, Tata Nano
may boost its international presence, at least in developing economies.
Though it has an advantage in India, thanks to low costs and government
policies it soon faces stiff competition from it multinational competitors all
eyeing for a share in the ever growing Indian auto sector. Earlier, a policy
required majority-owned subsidiaries of foreign car firms to invest at least $50
million in equity if they wished to set up manufacturing projects in India and
mere car
assembling operations were not welcomed. An Indian cabinet panel
has since announced a new automobile policy that sets fresh investment
guidelines for foreign firms wishing to manufacture vehicles in the country.
Investments in making auto parts by a foreign vehicle maker will also be
considered a part of the minimum foreign investment made by it in an automaking subsidiary in India. The move is aimed at helping India emerge as a hub
for global manufacturing and sourcing for auto parts. The policies adopted by
Government will increase competition in domestic market, motivate many
foreign commercial vehicle manufactures to set up shops in India, whom will
make India as a production hub and export to nearest market. Thus Tata Motors
will have to face tough competition in near future, which might affect its growth
negatively.
Currently, the presence of Suzuki through its subsidiary, Maruti Suzuki in the
Indian market may also be alarming. Maruti has aggressively launched family
cars to undermine the Tata models. Tata has continued to be strong in the MUV
and SUV sector due to lack of competition and correct pricing. However, Tata
now faces stiff competition from fellow compatriot Mahindra Group as well as
multinational brand like Toyota and Chevrolet. In addition, the growing presence
of fellow Indian competitors, Mahindra and Force Motors not only in the Indian
but also in the Global market may affect Tata's sales. Mahindra and Force have
formed joint ventures with Renault and MAN respectively. Mahindra has also
formed a 51:49 JV called Mahindra Navistar with ITEC, USA (parent Navistar
International), to manufacture commercial vehicles and to bolster its position in
the CV business Ashok Leyland, which is the second largest commercial
manufacturer in India has remained Tata's biggest competitor in the Indian heavy
commercial vehicle market and with its acquisition of Czech Republic-based
Avia it may manage to increase its presence in neighboring markets such as Sri
Lanka, Nepal where Tata Motors has a monopoly. To counter the growth of these
44
various companies Tata has come up with revised or new models like Indica
Vista, Indigo Vista, Xenon, Tata World Truck and a aggressive marketing policy.
45
Though sales in the mid-size segment increased 18 per cent, Tata Motors and
Fiat Industrial sales in the same segment declined 49 per cent last financial year,
resulting in a fall in market share to 9.6 per cent from 22 per cent. Tata Motors
sells the Indigo range, while Fiat sells the Linea in this segment.
Further, the company which also owns the two UK-based luxury brands, Jaguar
and Land Rover (JLR), is expecting the current financial slowdown in the
western world to have an impact on sales of the two brands. JLR contributes to
60 per cent of Tata Motors total sales and about 90 per cent of net profit.
JLR operations have significant presence in the UK, North America,
continental Europe and China, as well as sales operations in many major
countries across the globe. The global economic downturn significantly
impacted the global automotive markets, particularly in the US and Europe,
including the UK, where JLR operations have significant presence, said the
report.
Though the company is expanding its presence in China, which is pegged to
displace the US as JLRs second single largest market, and in Brazil and Russia,
it believes such efforts will be insufficient to counter-balance the impact of the
total slowdown.
The companys strategy with respect to JLR operations, which includes new
product launches and expansion into growing markets such as China, Russia and
Brazil, may not be sufficient to mitigate the decrease in demand for the products
in established markets and this could have a significant adverse impact on the
financial performance, added the report.
Tata Motors also said it had undertaken its most ambitious product development
programme in its history for JLR, and would launch several new sports sedans
and sports cars in the next two years to provide dealers with a more competitive
and wider product range.
The company will also be offering cars with new higher-powered, more fuelefficient engines to meet the customer preferences, Tata added. Face-lifted and
new models of the Range Rover, as well as a competitively-priced new line of
rugged, lifestyle vehicles under the Land Rover brand are also scheduled to be
launched. New manufacturing facilities are being considered in China to better
meet market demand for Jaguar and Range Rover in the region.
46
47
CVBU Lucknow bags Excellent Energy Efficient Unit-Award for the second
time in a row
CVBU Lucknow has been awarded the Excellent Energy Efficient Unit for the
second time in a row at the 11th National Awards for Excellence in Energy
Management 2010 conducted by CII - Godrej Green Business Centre at Chennai
on September 1-2, 2010.
The objective of the award is to recognize "Excellence" in Energy Management
in industries and facilitate sharing of information by excellent energy efficient
companies.
CVBU Pune declared winner of the MPCB Vasundhara Awards 2010
CVBU Pune has been declared the winner in the "industrial category" of the
inaugural edition of Vasundhara Awards 2010 organized by the Maharashtra
Pollution Control Board (MPCB).
The award process included submission of application, presentation, and site
assessment. The award includes a trophy, a citation and a cash prize of Rs. 1
lakh. Mr. M B Kulkarni, Sr. GM (Cons., CPED & Environment), Mr. V Gandhi,
GM (Auto Mfg.) and Dr. S A Dutta, DGM (IPR & Env. Science) received the
award from honorable Chief Minister of Maharashtra, Shri Ashok Chavan at a
function on the occasion of World Environment Day organized by Dept. of
Environment and MPCB at Mumbai.
This is first of its kind competition instituted by the Maharashtra Pollution
Control Board (MPCB) since its inception. The objective of Vasundhara Awards
is to recognize significant contributions to sustainable development and
highlight the winners as role models in their fields.
Car Plant Pune won three awards at the 25th Annual Chapter Convention
of Quality Circles on August 7, 2010.
Car Plant Pune won three awards at the 25th Annual Chapter Convention of
Quality Circles on the August 7, 2010.
The QC Team "Innovators" from Press Shop won the "BEST of the BEST"
Quality Circle Prize and were awarded the Thermax QC rolling trophy. This is
the second consecutive year that Press Shop team has won this award. The QC
Team "TPM" from Transaxle shop won the "Best TPM Kaizen Award" and the
48
QC team "Vedh" from Transaxle Shop won the 1st Runners up award in Kaizen
Category.
Tata Motors IT team bagged an award in IT Services Management
category
Remedy works like an IT ERP with complete visibility in IT assets, services,
application change management and service level management processes.
Remedy implementation has also enabled to run a centralized IT service desk in
the Company.
Tata Motors, CVBU was awarded the coveted Golden Peacock Award
Tata Motors, CVBU was awarded the coveted Golden Peacock Award for
Occupational Health & Safety for the year 2010 by the Golden Peacock Awards
Jury, under the chairmanship of Justice P. N. Bhagwati, former Chief Justice of
India and Member of UN Human Rights Commission.
Land Rover double header at the Auto Express 2010 new car awards
Land Rover's Freelander 2 and Discovery 4 models have reigned supreme once
again at the prestigious Auto Express 2010 New Car Awards, with the Freelander
2 winning Best Compact SUV and the Discovery 4 bagging Best Large SUV.
Auto Express Road Test editor, Ross Pinnock, said of the Freelander 2: "Can
anything stop the rugged Freelander 2? For the third year on the trot, the Britishbuilt machine has steamrollered the opposition to secure the compact SUV
honours. Premium looks, refined driving dynamics and unbeatable off-road
credentials have all helped the Land Rover maintain its grip on the top spot. If
you're looking for the best compact 4x4 by far, then your search ends right here.
Golden Peacock Award for Occupational Health & Safety for the year 2010
CVBU has bagged the "Golden Peacock Award for Occupational Health &
Safety for the year 2010" by the Golden Peacock Awards Jury, under the
Chairmanship of Justice P. N. Bhagwati, former Chief Justice of India and
Member of UN Human Rights Commission
49
Tata Motors has won top three honors at the annual Good Green
Governance (g3) Awards 2009
Tata Motors has won top three honors at the annual Good Green Governance
(g3) Awards 2009 instituted by Srishti Publications, New Delhi. The award
recognizes organisations for going beyond mere legal compliance for
environmental protection.
In the Manufacturing - Engineering category, CVBU Pune was the winner,
Jamshedpur Plant was declared "runner up", and Pantnagar Plant received a
"certificate of commendation"
Tata Nano bags the Gold Prize in the 2010 Edison Awards
Tata Nano has won the Gold prize in the Best New Product segment under the
Transportation category at the 2010 Edison Awards.
Pantnagar sweeps National Suggestion Summit awards
The Pantnagar plant team has virtually swept awards at the 12th National
Suggestion Summit 2010, on the theme 'Business Excellence through Employee
Engagement', of the Indian National Suggestion Schemes' Association
Northern India Chapter, New Delhi.
The plant won the prestigious INSSAN Benefaction Award. Besides it won the
first prize in Technical Paper Presentation, first prize in Hindi essay, second
prize in Hindi slogan, merit awards in posters, English slogan and English essay,
as also awards for the Best Divisional Coordinator and Best Suggestors.
Car Plant Pune bags Safety, Health & Environment Award
Car Plant Pune bagged the First Prize in Safety, Health & Environment (SHE)
competition organized by the Confederation of Indian Industry (CII), Western
Region, for the year 2009-10. The SHE Award acknowledges the exemplary
commitment of a company and its top management towards improving practices
in the area of Safety, Health & Environment. Car Plant bagged the first place
amongst 150 organisations, who participated in the competition
50
wheelers. In addition, the Prima 4028 S was adjudged the HCV Truck of the
Year in the Prime Mover category.
The awards were presented at a ceremony in Mumbai on March 8, attended by
the leadership of companies from across the country.
Tata Motors - Investor Relations ranked first in India
Tata Motors has been ranked first in India in Investor Relations, in the
Thomson Reuters Extel Asia (ex-Japan) Survey 2008.
This assessment is run across Asia (ex-Japan) among Fund managers and
Broking Houses, seeking their views on the Investor Relations performance of
quoted companies and IR professionals through a detailed questionnaire. The
independent audit agency - Deloitte verified the process and the information.
Thomson Extel is part of Thomson - Reuters, a leading provider of information
and technology solutions to the worldwide financial community.
Tata Motors awarded the Top Exporter Trophy by EEPC
Tata Motors has been awarded the 'Top Exporter Gold Trophy' by the
Engineering Export Promotion Council (EEPC). The company received this
recognition for its outstanding contribution to engineering exports during the
year 2006-07, in the "Large Enterprise" category. Atul K. Dhagat, Head - PCBU
International Business, accepted the award on behalf of Tata Motors from Shri
Pranab Mukherjee, Union Minister of External Affairs, at a function held in
Kolkata on August 9, 2008. Through its awards, EEPC honours meritorious
exporters for their excellent export performance.
Tata Motors receives Uptime Champion Award 2007
Tata Motors has received the Uptime Champion Award 2007 in the 'General
Industry' category. The award by Emerson Network Power and Express
Computer is given to an organization that is working to improve overall
reliability of its IT (Information Technology) infrastructure and has implemented
a solution that guarantees optimal infrastructure uptime 24x7.
Tata Motors has been given this prestigious award for selecting and deploying
the right technology for uninterrupted power supply in maintaining a high
52
uptime for the infrastructure -- mainly the Data Center and the critical
components that provide the connectivity.
Tata Motors bags National Award for Excellence in Cost Management
Tata Motors has won the National Award for Excellence in Cost Management for
the year 2006, conferred by the Institute of Cost and Works Accountants of India
(ICWAI). Tata Motors bagged the first prize in the 'Manufacturing' category in
the private sector. A high profile 17-member jury led by the former Chief Justice
of India, Mr J S Verma, chose the winners after a comprehensive selection
process. The criteria for selection were i) better practices for resource
management ii) efficient utilization of capacity and working capital iii) quality
augmentation programme and R&D efforts and iv) precise information on
performance.
Tata Motors Jamshedpur & Lucknow win awards
Tata Motors, Jamshedpur has been conferred the 'Enterprise Excellence Award
2002-2003' in the manufacturing sector (engg.) by the Indian Institution of
Industrial Engineering. The Company is being given this award for its financial
and operational strength assessed on five perspectives - Financial Strength,
Achievements, Internal Processes, Innovation & Learning and External
Customer Orientation. Mr A P Arya, Senior Vice President, Jamshedpur will
receive the Golden Shield and certificate at the inaugural function of the 7th
CEOs Conference in Hyderabad to be held on June 4, 2004.
Tata Engineering was conferred Bharat Gaurav Puraskar
53
development of
Manufacturing.
the
Indian
Economy, Indian
Technology
&
Indian
One issue that is still controversial from the literature on TQM is the definition
of quality. To date, there is no consensus on this definition (Wicks, 2009).
Quality has different meanings to different people in different institutions, public
or private, depending on their specific perspective. For those with a focus on
quality control, quality is a way of managing efficiently and effectively. It is
often referred to as the organizations best investment in competitiveness
(Feigenbaum, 1991). For those with a focus on the customer, quality is a way of
measuring customer expectations (Whiteley, 1991). In order to measure
customer expectations, quality is first defined as "meeting" customer
expectations, then as "exceeding" customer expectations, and finally as
"anticipating" customer needs (Wiggenhorn, 1991: 47). For that reason, Garvin
(1988: 216) refers to quality as "both a problem and an opportunity for American
companies." He elaborates further that it is a problem due to the fact that foreign
companies often offer products and services that appear to be superior in quality
than those offered by American companies, and with a better price.
TQM as operational strategy
TQM can be defined as a set of techniques and procedures used to reduce or
eliminate variation from a production process or service-delivery system in order
to improve efficiency, reliability, and quality (Steingrad & Fitzgibbons, 1993).
Vuppalapati, Ahire, and Gupta (1995) stated that TQM is an integrative
philosophy of management for the continuous improvement of product and
process quality in order to achieve customer satisfaction. According to Dean and
Bowen (1994), TQM is a management philosophy or an approach characterized
by principles, practices, and techniques. They pointed out three principles that
most quality frameworks had in common customer focus, continuous
improvement, and teamwork. Each principle is implemented through a set of
practices, and these practices, in turn, are supported by a broad set of techniques.
Anderson, Rungtusanatham, and Schroeder (1994) identified some core TQM
components derived from Demings 14-point programme using the Delphi
method. These components reflect Demings principles and are either explicitly
or implicitly similar to the factors included in the other quality management
frameworks. However, its weakness is the lack of a systematic scale
development and content validity (Motwani, 2001).
Joseph, Rajendran, and Kamalanabhan (1999) identified the following 10 TQM
factors organizational commitment, human resource management, supplier
integration, quality policy, product design, the role of the quality department,
quality information systems, technology utilization, operating procedures and
55
training. They also developed a measurement that can be used to evaluate the
extent to which these TQM practices are deployed in an organization.
According to Motwani (2001), the philosophy of TQM could be visualized as
constructing a house with top management commitment being the foundation or
base. On top of a solid foundation, four pillars are constructed that include
process management, quality measurement and control, employee training, and
customer focus.
Six studies by Saraph, Benson, and Schroeder (1989), Flynn, Schroeder, and
Sakakibara (1994), Powell (1995), Ahire, Golhar, and Waller (1996), Black and
Porter (1996), and Zeitz, Johannesson, and Ritchie (1997) are often cited as
examples of a holistic approach to TQM. Although different in the terminologies
used, these authors shared the common TQM factors in their models: the role of
top management, customer satisfaction orientation, teamwork structures,
employee empowerment, employee involvement, employee training,
product/service design, supplier management, continuous improvement, process
management/operating, quality improvement measurement systems, quality data
and reporting, planning, benchmarking, SPC (statistical process control),
corporate quality culture, and strategic quality management. These studies are
more comprehensive in nature, seem to integrate most of the TQM
implementation constructs and have proposed validating scales that take an
integrated approach to TQM (Motwani, 2001).
Dow et al. (1999) developed a TQM model in order to explore the impact of
TQM practices on the firms quality performance. They indicated that quality
practices can be categorized into nine dimensions: workforce commitment,
shared vision, customer focus, use of teams, personnel training, cooperative
supplier relations, use of benchmarking,
Advanced manufacturing systems, and use of just-in-time principles. These
constructs were similar with those identified in the six above studies, except for
the use of teams, and just-in-time principles. Sila and Ebrahimpour (2002)
analyzed survey-based research on TQM conducted in different countries that
was published in a variety of journals between 19892000.
They found that the empirically researched TQM practices could be grouped
under 25 categories. The first seven factors are considered to be the major
elements of TQM and Sila and Ebrahimpour (2002) say this concurs with many
authors ideas. It is not surprising that issues related to customer focus and
satisfaction received the most attention in the TQM survey literature because of
the major push toward a customer satisfaction orientation in virtually all types of
businesses. Two of the seven practices that received the highest coverage
(training and employee involvement) relate to human resource management, and
56
effect on performance through their effect on hard TQM elements. This study
also provided evidence that certain hard TQM elements have a significant
impact on performance and suggested that for having such an impact, hard TQM
elements need a support from elements of soft TQM.
The relationship between TQM and organizational characteristics
Many previous studies reveal that the size of a company (Gagnon & Toulouse,
1996; Germain, 1996) and principal ownership (Ahire et al., 1995; Swamidass &
Kotha, 1998) are related to management practices in implementation of TQM.
For example, organizational culture refers to attitudes, beliefs, and situational
interactions. It has been influenced by different types of ownership. As a result,
the degree of TQM use is different. To examine whether the organizational
characteristics are considered important factors determining investment in TQM,
literature reviews are summarized as following.
adopt TQM, and this was more likely for larger companies than smaller
companies. These findings demonstrated that although most small firms have
some weaknesses such as limited markets, inadequate resources and lack of
managerial expertise, they still had advantages in flexibility and innovation that
could allow them to implement TQM as effectively as large firms.
TQM and ownership
Organizational culture or behavior is influenced by the type of corporate
ownership (Yavas & Rezayat, 2003; Hui, Au, & Fock, 2004). Therefore,
management needs to understand how TQM strategy could be implemented
effectively. Pun (2001) found no evidence that culture in Chinese-owned
companies influenced employee involvement, which is one TQM practice.
Noronha (2002) studied the impact of cultural values on TQM implementation
in 385 companies in China, Hong Kong and Taiwan. The result of Structural
Equation Modeling (SEM) analysis shows that the underlying Chinese values of
abasement, addictiveness, harmony with people, harmony with the universe,
interdependence, and respect for authority influenced the dimensions of TQM. It
is also important to link cultural values (influenced by the different types or
ownership) to TQM practice and business results. Recently, Feng, Prajogo, Tan,
and Sohal (2006) compared the experience of organizations in Australia and
Singapore with respect to the multidimensionality of TQM and its relationship
with quality performance and innovation performance. They discovered
significant differences of TQM implementation between Australian-owned and
Singaporean-owned companies.
implementation of soft TQM elements. Prajogo (2005) suggested that, with the
exception of people management, there is no significant difference between
manufacturing and service firms in terms of TQM practices and quality
performance. He even identified the service sector has having higher scores in
People management than the manufacturing sector. According to Prajogo, the
plausible reason is that manufacturing firms essentially rely on advanced
manufacturing technology to achieve high level of quality (precision) and other
operational performance aspects. In service organizations, on the other hand,
human resources play a pivotal role in determining the product quality,
particularly on non-physical dimensions, such customer responsiveness,
courtesy, and empathy. In addition, beyond tools and techniques, TQM now has
developed into a management philosophy that comprises a set of generic core
principles applied in different industries (Dean & Bowen, 1994; Grant, Shani &
Krishnan, 1994, Sitkin, Sutcliffe, & Schroeder, 1994). This argument shows a
fundamental base to support the applicability of TQM in service firms that can
benefit from implementing this management philosophy (Prajogo, 2005).
However, scholars have also noted differences between manufacturing and
service organizations that could limit applying TQM in services
(Silvestro, 1998; Sureshchandar et al., 2001; Prajogo, 2005). Firstly, compared
to the measurable, standardized characteristics of manufacturing products, the
intangibility and heterogeneity of the service output makes a remarkable
difference. Secondly, the concept of service quality is dominated by nonphysical components (courtesy, responsiveness, and accessibility) (Zeithaml,
Parasuraman, & Berry, 1990) that are more difficult to define and, therefore,
more difficult to measure. Thirdly, the consumption and delivery processes in
the service organizations usually take place at the same time, making it difficult
to control the quality of services provided. The difference in TQM
implementation between manufacturing and service companies has also been
identified in a number of studies. Compared to manufacturing firms, service
organizations generally use fewer quality tools and show a lower level of TQM
implementation, particularly in hard TQM elements such as statistical process
control, information analysis, process management (Badri, Davis, & Davis,
1995; Beaumont, Sohal, & Terziovski, 1997; Woon, 2000). It is remarkable to
note the slight difference with Prajogos (2005) results mentioned above. One
reason could be the different sets of variables used to measure TQM
implementation. The other reason could be differences in defining the
differences between manufacturing and service industries. For example, the
construction industry contains a large portion of
60
61
TQMS collaborates with Tata companies, through long and short-term initiatives
in the following key areas:
Research methodology
TQM measures
62
The extensive literature review presented above provided the basis for
operational sing the constructs for measuring TQM implementation (dependent
variable). There are many definitions of TQM in the literature, and a variety of
approaches have been used by researchers to assess its implementation at the
firm level. By keeping all these contributions in mind, this study constructed a
TQM model comprising of the following 11 dimensions: leadership and top
management commitment, employee involvement, employee empowerment,
education and training, teamwork, customer focus, process management,
strategic planning, open organization, information and analysis system, and
service culture. These dimensions were selected because each of them matched
the following criteria:
a) Represent the hard and soft aspects of TQM.
b) Included in the world recognized quality awards and in line with the practices
proposed by the majority of TQM scholars and practitioners.
c) Correspond to the Vietnam Quality Award criteria, and therefore suitable for
Industry analysis in the context of selected country.
d) considered critically important for implementing TQM in both manufacturing
and service organizations (Powell, 1995; Samson & Terziovski, 1999;
Sureshchandar et al., 2001)
Organizational characteristics
The organizational characteristics (independent variable) adopted in this study
were company size, ownership, industry type, and degree of innovation
(measured by the number of new products/new services that the firm actually
had developed and commercialized over the last three years). For a size of
companies, this study refers to the Decree No. 681/CP/KTN issued by the
Vietnamese Government on 20 June 1998, in Vietnam. Company size is
distinguished within three categories: small firms with less than 50 employees,
medium size with 50200 employees, and large firms with more than 200
employees (Ministry of Planning and Investment, 1999). The Ministry does not
make any difference in these measures for the manufacturing and service
sectors.
Data collection
All the companies included in this survey had been ISO 9001 certified for at
least 2 years. This condition ensured that managers in the companies sampled for
the questionnaire survey had sufficient knowledge and experience with quality
63
management practices. As Carr, Leong, and Sheu (2000) noted, many Asian
firms are reluctant to participate in research surveys without first developing a
personal relationship with the researchers. We encountered the same attitude
among our target firms in Vietnam as managers very often hesitated to reply to
the questionnaire sent by mail. For this reason, we had to
Select a sample of companies in Hochiminh City and adjacent provinces that
offered us better conditions for data collection since we could rely on existing
personal contacts and relationships with the managers. The majority of
Vietnamese organizations that held the ISO 9001 certificate were located in
Hochiminh City (Vietnam Productivity Centre, http://www.vpc.org.vn).
Therefore, our sample chosen from the ISO 9001 certified firms in Hochiminh
City region could be considered as sufficiently representative of Vietnamese
companies that practice quality management. Questionnaires were sent to the
managers of 500 companies, resulting in a total of 222 questionnaires returned,
which is a response rate of 44.4% and one and a half times the average response
rate reported by previous research studies (Terziovski & Samson, 2000; Prajogo
& Sohal, 2003a, 2003b; Loan, 2004). Due to missing data, 18 questionnaires
had to be excluded, leaving 204 valid questionnaires for the analysis. In
accordance with the classification in Vietnam explained above, the companies in
our sample were categorized into three groups: small firms with less than 50
employees, medium-sized firms with 50200 employees, and large firms with
more than 200 employees (Ministry of Planning and Investment, 1999).
Since the small companies in our sample accounted for such a small share
(2.04%), we finally divided the firms into two groups: small or medium-sized
firms with less than or equal to 200 employees (32% of the sample), and large
companies with more than 200 employees (68%). Laosirihongthong, Paul, and
Speece (2003) used a similar classification in their study in Thailand. About 25%
of all firms were either foreign-owned or joint ventures, 56% were state-owned
companies and the remaining were privately owned. About half were in
manufacturing, 17% were in the service sector and the remaining produced both
manufactured products and services.
In order to assess a possible respondent bias, 30 non-respondent companies were
contacted by phone to collect the following information and compare this with
the respondent firms:
. size (number of employees);
. type of industry (manufacturing or service);
. Ownership type.
64
Similar to the respondent sample, the first two above dimensions were
categorized into two groups: small or medium-sized firms and large companies;
and manufacturing and service companies. Ownership was divided into three
categories: 100% foreign owned and joint venture, state-owned and private
companies. The results of the comparison between the respondent and nonrespondent samples showed a higher share of large companies, state-owned
companies, and manufacturing companies in the non-respondent sample with
76.7% of the companies being large compared to 67.9% in the respondent
sample; 76.7% being state-owned companies compared with 56.4% in the
respondent sample; and 63.3% in manufacturing compared with 47.3% in the
Respondent sample (see Table 2). However, these differences are not large
enough to indicate a substantial difference between respondents and nonrespondents. All chisquared values for size, type of industry and ownership were
smaller than the chi-square table value for 0.05 significance (3.84 for 1 degree of
freedom, and 5.99 for 2 degree of freedom), and all p-values were greater than
0.05. Thus, the respondents and non respondents can be considered as similar.
SAMPLE SIZE
In this study, sample size of 100 respondents is chosen who are using the Tata
car.
SAMPLING TECHNIQUE
Non-probability sampling was the only sampling technique available for the
present study. Which produce an objective measure of the reliability of sample
estimate? Here simplest non-probability sampling technique convenience
sampling was applied. Respondents were approached must all the places e.g.
on the road, colleges, markets, houses, offices, etc., by the way of
questionnaires.
The data collected were edited, coded and tabulated to make study
meaningful. Then data were interpreted and analyzed to get the results for
conclusions and Recommendations. The data so collected has been analyzed
with help of various tools and techniques to fulfill the research objectives. These
include percentage table, frequency table, and mean keeping in context with the
objective of the study. It was further suitably analyzed by Multi Dimensional
Scaling (MDS) method.
65
Frequency
33
56
9
2
100
Percent
33.0
56.0
9.0
2.0
100.0
From the data of sample collected regarding the time period of car they have , it
is clearly understand by the data collected are that 33% of them have the car
upto the 1 year, 56% have the car in between 1-5 years , 9% have the car in
between 5-10 years and only 2% have the car between 10-15 year.
Table 2- Purpose of using the Tata car
Particulars
Commercial Purpose
Personal Purpose
Both
Total
Frequency
10
80
10
100
Percent
10.0
80.0
10.0
100.0
Frequency
44
56
66
Percent
44.0
56.0
Total
100.0
Particulars
Yes
No
Total
Frequency
41
59
100
Percent
41.0
59.0
100.0
Particulars
Relatives
Media
Friends
Frequency
18
4
19 4
Percent
43.9
9.8
6.3
Frequency
97
3
100
Percent
97.0
3.0
100.0
From the data of sample collected regarding that are customers regularly taking
the preventive maintenance of their Tata car its clearly understand by data that
97% customers take the maintenance and only 3% are not take preventive
maintenance
Table 7- Sources of preventive maintenance
Particulars
Authorized Dealer
Road side Mechanic
Total
Frequency
89
8
97
Percent
91.75
8.25
100
Implications
Satisfied
Satisfied
Satisfied
Satisfied
Satisfied
Satisfied
Satisfied
Satisfied
Satisfied
SUGGESTION:
The duty of every organization that has implemented a quality management
system is the implementation of continuous quality improvement through the
improvement of all processes and activities in various stages of the production
68
69
should review the analysis of the output data from the measurements of
satisfaction and processes, from the records of the quality management system
of self-assessment results and the like.
Improving the quality has to be understood as activities to increase capacity to
Meet customer requirements and expectations that cannot be understood only in
a restricted plane of technical specifications. It is absolutely necessary to
understand quality in relation to such factors as productivity, flexibility, delivery
Terms, the minimization of costs and the like. In this sense, it should be
implemented for the improvement of projects and organizations should use the
Appropriate methodology.
In terms of improving quality management, systems comes to the wide spread
use of new methods and techniques that are still insufficiently being applied in
Slovak industry and therefore the improvement of this situation requires a major
effort of the concerned workers in individual organizations and also an increase
in the initiatives of experts in the field of quality management when promoting
new trends of quality management in business practice.
LIMITATIONS:
The management did not agree to disclose all the confidential data.
Number of respondents are very less, so clear conclusion cant be drawn.
There was time constraint as this research was to be completed within a
specified period of time.
During personal interview some of the customer was not available so the
visit was done 2-3 times and it takes more time to complete this project.
Totally a high class people product beyond the imagination and
understanding of middle class people.
People have still traditional thinking of using product of formulized
manner.
70
BIBLIOGRAPHY
There were several sources which provided me with the valuable
information about Tata Motors limited. This information helped me in
enhancing the affectivity of this presentation.
Some of my valuable sources are:
www.google.com
www.tatamotors.com
www.tataquality.com
www.yahoo.com
71
www.answers.com
www.indiainfoline.com
www.wikipedia.com
www.businessworldindia.com
www.financialexpress.com
CONCLUSION:-
To conclude, most of the respondents are very much satisfied with the service
provided by the TATA MOTOR. Looking into the long term perspective it is
very best sign for the company. By measuring respondents satisfaction level it
will bring out positive benefit to TATA MOTOR, sale person and customers.
Respondents satisfaction boosts more sales and faithful customer to the TATA
MOTOR; it will also help to the TATA MOTOR to introduce more and more
promotional activities, good margin and better service. And also customer
perception towards to TATA MOTOR is very much helpful in the selling of
products more with the help of store loyalty, as many of the customers are loyal
with the Tata Motor.
72
QUESTIONNAIRE:
73
a) Yes.
b) No.
c) Cant say
Q.9: Does your organization have quality information system?
a) Yes.
b) No.
c) Cant say
Q.10: Are the information system is regularly updated?
a) Yes.
b) No.
c) Cant say
b) No.
Q.14: Does the organization have the certification of ISO 14000 or
any other, if any please mention?
a) Yes.
b) No.
c) Dontknow
Q.15: Do you find that your job makes the best use of your abilities?
a) Yes.
b) No.
c) Some Times
76