MANAGEMENT THESIS 1

FINAL REPORT

A Detailed study on TQM In various automobile Industries.

BY ANAND K C002BB2325AG0AB

UNDER THE GUIDENCE OFMr. NAGESH FACULTY GUIDE GEMS B SCHOOL, MYSORE

A report submitted in partial fulfillment of the requirement of MBA program at SOUTH ASIA UNIVERSIT Y .

Faculty Member G E M S B S C H O O L , M ys o r e

CERTIFICATE

This is to certify that this management thesis entitled A DETAILED STUDY ON PROMOTIONAL ACTIVITIES OF AIRTEL BROADBAND SERVICES FOR MYSORE EAST embodies the sincere work done by Mr. ANAND K [Enrollment Number:C002BB2325AG0AB], under my guidance and supervision in the academic year 2008-2010 in partial requirement for the award in MBA Program in SOUTH ASIA UNIVERSITY.

ACKNOWLEGDEMENT

It gives me immense pleasure to thank the following members for their kind co-operation and guidance towards me during the completion of my project work.

I would like to thank Mr. Nikhil Gowda and Mr.Mohammed Abbaz from Industries for their continuous support. I express my sense of deep gratitude to our faculty guide, Mr. NAGESH for his kind cooperation and support extended and for sparing valuable time in guiding and helping me in successful completion of this project. A special thanks to my Parents whose consistent encouragement, blessings and undivided support have paid rich dividends to form a successful project. Finally, I would like to thank my friends and well wishers for their enthusiastic support which has directly or indirectly helped me in making this project a successful one.

DECLARATION

I, Mr ANAND K student of MBA of GEMS B SCHOOL, Mysore hereby declare that this project entitled A DETAILED STUDY ON THE PROMOTIONAL ACTIVITIES OF AIRTEL BROADBAND SERVICES FOR MYSORE EAST has been prepared by me under the guidance and supervision of Mr NAGESH, Faculty Guide in GEMS B SCHOOL, Mysore.

P l a c e : M ys o r e Date : 27/09/2010

ANAND K

INTRODUCTION Total Quality Management The fourth chapter of this Master Thesis is about Total Quality Management. First, we started with the roots and then found a definition of TQM. In the definition we explained the benefits and reasons for failures of TQM. In the end, we regarded the TQM to the automotive industry. Figure 10 illustrates our proceeding of the TQM chapter with its core aspects customer focus, continuous improvements and total participation (Boaden, 1997; Rao et al., 1996). This chapter also discusses theoretical benefits of TQM, which are mainly seen in a reduction of COPQ through quality improvements. In the end, we presented reasons why many companies fail implementing TQM. Outsourcing TQM Impact on Quality Costs Benefits of TQM Failures of TQM Customer Focus Continuous Improvement Total Participation Reduction of COPQ TQM in the Automotive Industry The Roots of TQM Total Quality Management was not investigated by a single person but a small group of individuals; the roots of TQM were explored, found and written by five different thinkers in the 1950s (Huggins, 1998). Deming, Juran and Crosby are the most well-known gurus for TQM but Feigenbaum as well as Ishikawa have been as important as Master Thesis Total Quality Management the others regarding to define the scope of TQM (Rao et al., 1996). These authors did not really use the term of TQM on purpose; but retrospective, they wrote about it (Boaden, 1997). It is hard to say where the origin of TQM is, but it is assumed that TQM has its origin in Armand V. Feigenbaums book Total Quality Control from 1951. He was the first one who came up with this big theme. And the other authors who wrote about TQM acknowledged afterwards that his work were the first approaches for TQM. In 1979, Philip B. Crosby continued in Quality is free about the affecting of quality and quality management on business costs. He belongs also to one of the gurus of TQM. Kaoru Ishikawa amplified with his book What is total quality control? the concepts of quality management of Feigenbaum for almost all kinds of business management. Shortly after Ishikawa, W. Edwards Deming (1986) and Joseph M. Juran (1988) began to write about TQM. They are the latest specialists in TQM, and they concentrated on the statistic of quality control. (Huggins, 1998) Deming was the first American who introduced the quality principles to the Japanese on a large scale (Rao et al., 1996). Definition of TQM Total Quality Management is a widespread and ample theme. Hence, there are found several definitions of TQM in the literature because of different aspects from the authors. Jack Hradesky (1995) gave a good and summarized overview about TQM in his Total Quality Management

Handbook: Total Quality Management (TQM) is a philosophy, a set of tools, and a process whose output yields customer satisfaction and continuous improvement. [] TQM combines cultural-changing tactics and structured technical techniques whose focus is on satisfying the needs of internal and external customers. TQM requires that the executives are involved and committed, not just interested, and that the focus is on implementation. Results of TQM include error-free processes which deliver products and services fit for use, on time, with competitive pricing and good value. When properly carried out, TQM becomes integrated into all aspects of the corporate identity. TQMs scope covers all functions within a company from sales and marketing through design, production, and service. The formula for success is one part effective training, two parts effective implementation, and three parts executive involvement. Master Thesis Total Quality Management The training is analogous to a football teams practice; the implementation is the real game action. Broadening the concept of quality is the aim of TQM, so that quality moves from a product appraisal function to a corporate imperative for excellence and the refusal to be satisfied with the status quo. The objective of TQM practices is to improve the performance of an organization. Over the years Deming summarized in 14 points his knowledge that a company needs for working with a successful quality management at all organizational levels. (Rao et al., 1996) Jurans concept comprised the managerial dimensions of planning, organizing and controlling, and focused on trying to reach quality improvement. He established ten steps for quality improvement. The third guru Feigenbaum created four points which were indispensable for a good quality management. Today, it is known that these authors wrote about quality control in general, and not only specified on TQM. (Ross, 1993) For this reason we would like to present Boadens list with his eleven points. In his article he investigated and specified on TQM. Hence, we decided to use his eleven statements for a successful TQM in a company. According to Boaden (1997) TQM involves: (1) Customer focus, with emphasis on the customer-supplier relationship, internally and externally. (2) The commitment of everyone to quality improvement, especially managers. (3) Training and education considered as an investment. (4) The involvement of everyone within the organization in quality improvement. (5) A focus on processes. (6) The use of teams and teamwork. (7) The use of appropriate tools and techniques, reviewed regularly.

(8) Goal-setting, measurement and feedback for all aspects of the business. (9) Continuous improvement as a philosophy. (10) A change in the culture of the organization, for example the way people think and behave. (11) The inclusion of quality principles into product and service design. Master Thesis Total Quality Management TQM Customer Focus Management Commitment Training & Education Involvement of Everyone Process Focus Teams & Teamwork Use of appropriate Tools & Techniques GoalSetting, Measurement & Feedback Continuous Improvement Change in the Culture: Attitude & Behavior Inclusion of Quality Principles Figure 11: Eleven Aspects which TQM involves (Boaden, 1997) So, this prior list of Boaden but also Demings 14 tools, Jurans ten steps and Crosbys four points can be assigned to three dominant broad categories. They want each employee to accept a way of life which comprises (Boaden, 1997; Rao et al., 1996): Customer focus (customer = any person affected by what you do)

organization-wide focus on customers Continuous improvement (lots of statistical tools)

processes that create products and services Total participation (which requires respecting others) mprovement are best attained by collaboration throughout an organization as well as with customers and suppliers Summing up it is safe to say that all authors agree that TQM seeks to improve productivity by focusing on satisfying the customer and involving the employees in the Master Thesis Total Quality Management process. TQM has the practical goal of improving the bottom line and at the same time raising the employee morale. (Rao et al., 1996) Benefits of TQM Many scientists state that TQM results in a competitive edge for companies (Shin et al., 1998; Powell, 1995; Seetharaman et al., 2006; Tari, 2005). The implementation of TQM takes much time, effort, and is connected with costs in the beginning. Nevertheless, if the philosophy is implemented properly TQM has many benefits. (Ahire et al., 1996) This chapter provides an overview of benefits arising from TQM. The main result of TQM should be a profitable company. Hence, TQM wants to lead to a more efficient company. This is gained through

satisfied customers which is the basis for profitability. TQM strongly focuses on customers to meet customer needs and expectations, and to achieve satisfied customers. Therefore, the company concentrates on quality as TQM suggests. This means the company wants to create value for customers, and all processes, which are not valuable, are unnecessary. (Powell, 1995; Seetharaman et al., 2006; Tari, 2005) The way to an efficient and profitable company starts with the implementing of TQM characteristics. If the implementation is successful the company gains several benefits which lead to a better performance. Some main results of a successful TQM are improved quality through reduction of COPQ, easier problem solving, and improvement of products, processes and efficiency of employees. (Powell, 1995; Seetharaman et al., 2006; Tari, 2005) TQM focuses on quality improvements and tries to cut valueless processes for customers. A main activity to quality improvements is the reduction of COPQ. Due to the fact that the whole company, this includes every worker, tries to reduce COPQ the productivity can be increased. COPQ contains internal and external failure costs as well as appraisal and prevention costs, and this is explained in detail in chapter 3.2.1.2 (De Feo & Barnard, 2004; Juran, 2000). (Seetharaman et al., 2006) TQM strongly involves employees in its philosophy. Employees take part at the development. They need to understand what they are doing and should be able to react independently on occurring situations. TQM improves teamwork, creativity, innovation, Master Thesis Total Quality Management training, communication, trust and decision making (Karia & Asaari, 2006). Furthermore, employees become more motivated and encouraged to control, manage, and improve processes as well as solve problems within their responsibility. Moreover, TQM provides an atmosphere in which continuous improvements are very welcome. All these results of TQM lead to a competitive edge for an efficient and profitable company. (Powell, 1995; Seetharaman et al., 2006; Tari, 2005) Reasons for Failures of TQM If TQM is implemented properly the philosophy leads to quality improvements and excellence in business performance (Shin et al., 1998). However, the implementation is not as easy as some manager think. Many variables must be considered and if TQM were not implemented in a proper form the approach would lead to no progress. Furthermore, TQM is always connected to costs in the beginning, and if the system does not result in expected outcomes the implementation would be inefficient (Ahire et al., 1996). Many companies fail implementing a successful TQM. The failure quote presented in the literature is between 60% and 67% like Shin et al. (1998) state. This chapter states reasons for failure of TQM. (Seetharaman et al., 2006; Shin et al., 1998; Ahire et al., 1996) Seetharaman et al. (2006) identified six major reasons for TQM failure: Lack of management commitment and management understanding on quality. Lack of awareness on the benefits of TQM implementation in the organization.

Inadequate knowledge of TQM and improper understanding of the measurement techniques that are used to measure the effectiveness of TQM implementation. Lack of clarity in the guideline, implementation plan and implementation methods. Lack of understanding about positive results of continuous improvements. Ignoring the importance of customers. TQM often fails due to the fact that there is a lack of knowledge about the proper implementation. The six major reasons for TQM failure are explained in detail in the next paragraphs. The first problem arises because of the lack of management commitment and understanding of quality. This means that TQM implementation is not successful if the top management does not play a special role in improving companies Master Thesis Total Quality Management quality performance. The management needs to show commitment to TQM activities. This also results in increased employee awareness. Otherwise, if even the top management does not concentrate on TQM activities how should employees live TQM? For a successful TQM implementation the management must mainly support four areas, which are allocation of budgets and resources, control through visibility, monitoring progress and organizational change. (Seetharaman et al., 2006) If the company is not aware of possible TQM benefits the implementation will fail. Employees must work towards improvements and must therefore know what the advantages and benefits of TQM are. Only then employees accept changes and concentrate on the philosophy. The benefits of TQM are explained in detail in chapter 4.2.1 (Seetharaman et al., 2006) The third reason for TQM failure is the misunderstanding of TQM philosophy and its measurements. It is one problem not understanding TQM philosophy. If management and employees do not know what TQM is about they cannot implement and live the philosophy in a proper form. Another problem is if measurements are not done or done in a wrong way. Only if the changed activities and quality concentration is measured the company is able to assess whether the implementation is valuable or not. If statistical analyses and benchmarking are not done correctly the TQM implementation cannot be assessed and improved. (Seetharaman et al., 2006; Khanna et al., 2003; Shin et al., 1998; Ahire et al., 1996) Lack of clarity in the guideline, implementation plan and implementation methods are also reasons for the failure of TQM. If the procedure of TQM implementation is not done accurately the systems fails. A proper strategy, capability, and control are necessary for TQM. Thereby, the implementation needs some time, and quality is a never ending process. Furthermore, the implementing employees should be skilled in TQM in order that the implementation does not fail. (Seetharaman et al., 2006) Moreover, TQM fails if the importance of continuous improvement is misunderstood. If TQM is not understood as a system which improves all the time it could not work. Nowadays, the world and business live changes very quickly, and so must the TQM model. Furthermore, continuous improvements provide a very smooth changeover from one technology to another. (Seetharaman et al., 2006) Master Thesis Total Quality Management

The customers are the center for every TQM philosophy. If the company does not focus on its customers it is not able to implement a successful TQM. The management and employees have to accept the importance of customers. (Seetharaman et al., 2006; Shin et al., 1998; Ahire et al., 1996) Todays customers are more knowledgeable then ever before. They expect low prices and high quality at the same time. (Fawcett et al., 2000; Seetharaman et al., 2006) Hence, the customer focus is essential for companies to achieve customer satisfaction, and only satisfied customers are profitable for companies. Thus, organizations want to provide value to their customers, and this is only possible if the TQM focuses on its customers. (Seetharaman et al., 2006) The following figure visualized the six discussed critical factors for a valuable TQM implementation. Effective TQM Implementation Understanding customers as the main contributors for organizational success Understanding of TQM guidelines, methods and implementation plan Understanding the importance of continuous improvement Understanding of TQM philosophy and its measurement technique The benefits of TQM implementation The importance of management commitment and the Management understanding on Quality Figure 12: Critical Factors for a Successful TQM (Seetharaman et al., 2006) Master Thesis Total Quality Management ~ 40 ~

4.3 TQM in the Automotive Industry Product quality in an automobile supply chain can be attained through TQM. Many OEMs use this philosophy to achieve customer satisfaction. However, the current market situation is characterized by an outstanding tough competition which means for the automobile OEM that it has to provide top-quality at low price. Nowadays, this is the main challenge for automobile manufacturers and TQM helps to handle low costs and high quality to meet the challenge. Hence, TQM is in connection with TS-2 the main approach of the automotive industry to treat the cost and quality pressure. (Fawcett et al., 2000; Bandyopadhyay, & Sprague, 2003)

Significance of TQM in price sensitive automotive industry AUTOMOTIVE sector has been dynamic in inventing new manufacturing strategies owning to prevailing high level of competition. With this scenario the challenges faced by Original Equipment Manufacturers (OEM) have also multiplied over the years. Customers are demanding individualized final products. This is especially true of the OEM. While the organizations will have some standard base products, the total number of options that they have to offer to the consumers should be plenty. ERP will allow management of these configurations. Through the supply chain there is need for innovation and new product development with much reduced life cycle for development. Hence, the NPI (New Product Introduction) will greatly help in promoting concurrent engineering. Automotive industry is characterized by the presence of dedicated customer-supplier relationships and the competition in the market is between supply chains and not individual organizations. Hence, supply chain efficiency is thus very important. The principles of Just-inTime (JIT), Lean Manufacturing and others become very important here. ERP will help in promoting these concepts. Another challenge faced by automotive industry is the pressure to reduce delivery time and cost. A comprehensive supply chain solution that crosses the organization boundaries (B2B) is required. Different elements of the supply chain interact very closely.

Quality Management module with support for advanced features like TQM will help to promote quality at source. This receives significance owing to the continuous pressure exerted to cut cost and improve quality. As the automotive market is extremely price sensitive, the features of comprehensive costing and kaizen costing will be of special relevance here. Understanding the accurate cost of manufacturing and identifying all potential areas for reduction of costs is one of the keys to success. I. Continuous Improvement in the Automotive Industry Over the last 30 years, the manufacturing industry has undergone a notable shift in terms of pushing geographic and cultural boundaries. An increased dependence on global trade, offshore labor and a worldwide supply chain are the determining factors for where, what, when and how produced goods reach consumers in an increasingly level global playing field. This shift has been particularly prevalent in the automotive sector, as automotive manufacturers obtain parts from hundreds of suppliers, and the standards for quality are becoming more stringent. A complex organizational structure is therefore required to line up the end-to-end logistics of supply chain management, financials, customer relations and human resources. With a centrally developed and coordinated manufacturing strategy, individual facilities must execute the various tactics for quality management. In this environment, opportunities for business success can be fleeting. Even under ideal circumstances, an unforeseen, outlying factor can determine whether a company wins or loses an important contract. It is critical to establish a competitive advantage in order to simply maintain profits, let alone increase revenues. Businesses can simultaneously reduce costs and remain competitive by investing in process improvements that increase quality. For example, identifying and implementing efficiencies in production methods can result in reduced scrap, rework and even labor costs. Automotive manufacturers are rapidly adopting technologies for the automation of not only processes, but quality control functions. Methodologies such as statistical process control (SPC), six sigma, lean manufacturing, and total quality management (TQM) have arisen out of the steadily emerging culture of continuous improvement. They are key aspects of the operations management strategies that help manufacturers gain the competitive advantage needed to remain profitable. In the automotive industry, focusing on comprehensive process improvements leads to the creation of more precise parts with less variability. Many companies have adopted a hierarchy system to organize and execute six sigma and continuous improvement efforts according to Kaizen.1 The hierarchy is built around a champion, whose responsibility is to define and coordinate business objectives and provide the necessary resources to team members. The champion organizes team responsibilities and determines the scope of involvement necessary to execute tasks. The black belt, an expert in engineering process improvement, works in conjunction with the champion to identify innovations that contribute to quality initiatives.

II. Statistical Process Control: A Scientific Methodology More and more manufacturers are implementing automated Statistical Process Control (SPC) systems 1 Kaizen is Japanese for improvement. In business, the term applies to the culture of applying continuous quality improvement functions. 3

as part of their continuous improvement efforts. Simply stated, SPC uses statistical equations and graphs to create acceptable limits for process variationcontrol limits. Control limits fall well within product specification limits so that unstable processes can be identified before problematic product characteristics are produced. With real-time SPC, operators monitor processes on the production floor. Typically, there is an alarming system in place to alert operators of processes that have exceeded the defined control limits, so that they can take an immediate corrective action. The core objectives of SPC are to provide productivity and quality information about production processes in real-time. The principles of SPC take into account the following: Success in real-time SPC requires that measurement data be accurate, and collected in a timely manner. Various gauging devices are used to ensure that a specific measurement is taken and recorded. SPC software programs collect and store this data, analyzing it and creating graphs instantaneously. As a factory floor application, that can be extended up to corporate offices and throughout the enterprise, SPC software delivers vital quality data upstream to Manufacturing Execution Systems (MES). By integrating live production data into enterprise-wise systems, SPC plays a vital role in the business continuous improvement strategy. SPC solutions are designed to allow companies to plan and structure long-term strategies and bring short term quality improvements into view. The scope, detail and accessibility of quality data helps manufacturing facilities avoid unscheduled downtime. Analyzing tool wear metrics gives quality departments the opportunity to minimize downtime by creating detailed maintenance schedules that extend out for many years. To execute process improvements, workers participate in the PDCA cycle as in Plan Do Check Act, also known as the Shewhart cycle. PDCA involves planning a process adjustment, executing the adjustment, reading the results of the process adjustment to validate results, and taking corrective action if the results dont align with the original goals. This pattern is repeated until there is a minimal statistical margin of error.2 The PDCA cycle illustrates one of the most valuable concepts of SPC: out-of-control processes present opportunities for improvement. When applied correctly, control charts and limits identify an inconsistency that manufacturers need to know about. Control limits denote what is normal behavior, and conversely, whats abnormal. By addressing inconsistencies properly, manufacturers proactively approach process changes that, if ignored, could potentially disrupt future operations.3 All processes have unique characteristics or hidden personalities that are inherent within them Data analysis provides in depth understanding of process variations and identifies improvement opportunities 2 Statistical Method from the Viewpoint of Quality Control. Shewhart, Andrew. New York: Dover, 1939. 3 Taming the Control Freak. Fair, Douglas C. Quality Digest - Quality Insider, October, 2007. 4

III. A Case Study In SPC for Continuous Improvement: Cooper Tire Background Cooper Tire & Rubber Company is a global organization that specializes in the design, manufacture, marketing and sales of passenger car, light truck, medium truck tires and subsidiaries that specialize in motorcycle and racing tires. With headquarters in Findlay, Ohio, Cooper Tire has 67 manufacturing, sales, distribution, technical and design facilities within its family of companies located around the world. In 2007, Cooper reported record sales of $2.9 billion with an operating profit of $134 million, a marked improvement since restructuring and other cost saving initiatives were undertaken in 2006. Cooper delivered $100 million in cost savings and profit improvement initiatives while successfully launching the CS4 line and ramping up production of Cooper Kenda Tire. The Cooper brand is one of the most well established names in the automotive industry. The company always ensures that it is on the leading edge of industry innovations for quality improvement and production efficiencies in high-volume environments that produce thousands of tires each day.. Although the functional purpose of a tire has remained the same for over a century, improvements to materials and design are allowing Cooper to bring a more effective, longer lasting tire to the market. To maintain its competitive advantage, Cooper is working to establish long term strategies for continuous improvement, operational effectiveness and product differentiation. Cooper differentiates its products with a winning portfolio of high performance tires marketed under the brand name Zeon. This portfolio also includes the Cooper CS4, Discoverer and Roadmaster lines as well as associate brands Avon, Mastercraft, Dean and Kenda. The Cooper brand is distributed and well positioned in passenger, light truck, sport utility vehicle, commercial and high performance markets. Challenge Along with creating cost effective operations, Cooper has sought to streamline its supply chain with low-cost, high quality raw materials that include natural rubber, synthetic rubbers, carbon black, reinforcing fabrics and steel. Coopers continuous improvement activities are leading the company to continue to develop innovative quality improvements. To achieve their objectives for establishing highly efficient production processes, they first had to understand and benchmark their baseline capabilities. One goal was to make better use of production data and, from an operations standpoint, use the data to help guide the decision making process. They needed a quality solution that could satisfy their scalability needs while offering insight into potential quality improvements. We were trying to gain a perspective about what the data is telling us. What does it point to about 5

opportunities we have? We wanted to do less troubleshooting and work on improving processes rather than resolving production issues, said Donald S. Bruce, Director of Reliability Engineering. Logistically, Cooper needed an enterprise-wide standard for reports in a system that would initially be implemented in North American, with the ability to go world wide. As a global entity, Coopers implementation would take place in phases, so they needed a solution that was flexible with training, consulting and support. One of Coopers objectives was to employ a quality expert at each location to oversee the implementation and ensure the stability of corporate standards. Solution To achieve their process improvement goals, Cooper standardized with InfinityQS Statistical Process Control (SPC) software. Because quality is synonymous with the Cooper brand, we looked to InfinityQS to ensure that every process met the Cooper standard, said Bruce. We investigated a few different options and decided that InfinityQS provided the best SPC solution to handle the complexities of our manufacturing operations. InfinityQS integrates with MES and ERP systems to provide realtime detailed quality analysis capabilities at the process level that MES and ERP products were never designed to provide. The unique capabilities of InfinityQS solutions contribute to more fluid processes and allow the quality personnel to take a proactive approach to improving the capabilities of the various processes throughout the operations. As opposed to the other real-time SPC solutions that Cooper was initially considering, InfinityQS uses a relational database structure, a simple, flexible format that was able to give Cooper the versatility they needed for a thorough analysis of parts across various production processes. InfinityQS unique relational databases allows users to quickly and easily manage thousands of parts in a single set-up (project) as opposed to the hundreds of thousands of data files other SPC systems force users to configure. This structure allows Cooper to conduct comparative analysis of any part running across any process with just a few clicks of a mouse. InfinityQS International is currently helping Cooper instill a culture of innovation throughout all the manufacturing sites. Rather than a reactive approach that dedicates resources to putting out fires, Cooper is bringing about change with a data-driven culture. InfinityQS data analysis functions give Cooper a full grasp of their process capabilities. InfinityQS control charts illustrate process control limits, and create automated alerts when a process exceeds these limits. Instituting process control across production lines helps ensure that each Cooper tire is produced to the highest quality standards. This robust data analysis allows Cooper to shift resources away from processes within specification and control limits toward areas that can enhance the overall operations. The first phase of Coopers corporate-wide InfinityQS implementation took place in four North American facilities. Work has also begun to install the software package at Cooper manufacturing sites in China. 6

Results Cooper was able to drive and sustain continual improvement using the InfinityQS SPC system. The software gave them additional tools to help them as they head down the path to become ISO 9001 certified in 2008. With InfinityQS, Cooper effectively monitors processes to ensure effectiveness, keeps adequate records, checks output for issues and applies CAPA where necessary all requirements of ISO 9001. Cooper Tire & Rubber Company was able to use InfinityQS software to drive operational process improvements with significant cost savings and increased productivity. In one plant, Cooper realized $400,000 in annual savings on the belt line by analyzing the dimensional data of components. These cost savings represent just one line in one plant. Similar savings were recognized on other production lines and throughout other facilities using InfinityQS software. Cooper also attained measurable process performance index improvements in the inner line, extrusion, and cutting processes. Coopers road to success is driven by a combination of lower production costs and increased productivity. The significant annual savings on the belt line alone demonstrates how Cooper is able to significantly reduce its costs of production. In addition to cost savings, Cooper also made substantial improvements in process performance index. With the InfinityQS solution, Cooper Tire is systematically driving process improvements that ensure the optimal quality levels that consumers have come to expect from the Cooper brand.

QUALITY ASSURANCE MANAGEMENT IN AUTOMOBILE INDUSTRY The accent on quality was lost in American industry in the post World War II era, when the country's industry could sell almost anything that it can make, at a time when the quality level of foreign made products was of no great worry (Halberstam, 1986, p. 313). To be sure, there were advocates of quality control in the United States (US), such as Edwards Deming; however, American industry was in no mood to listen to them. Unfortunately for American industry, someone else did listen to Deming the Japanese. The superior quality control procedures of today's Japanese industry were originally developed under the guidance and tutelage of Edwards Deming (p. 314). Further, the statistical and mathematical element of Deming's procedures, and, in turn, those of Japanese industry, were based on the work of another American quality control expert, Walter Shewhart (p. 314). Deming insisted that true quality control began with a real commitment from top management. American companies, particularly automobile manufacturers, however, made quality control a minor function of middle or lower level management (Halberstam, 1986, pp. 312-313). People would agree that fear is the enemy of success. According to Deming, fear is the enemy of innovation and improvement. "No one... can put in his best performance unless he feels secure. Secure means without fear...," stated Deming (Schmoker, 1993, p. 13). Creating a positive stress-

free work environment, eliminating fears and anxieties is important for any company. Employees working in a supportive non-threatening work atmosphere display significantly better results. Most importantly, people "become more open and honest about discussing barriers to performing their jobs... workers cooperate to ensure the long-term survival of the company " (Gitlow, 1987, p. 133). Dr. Deming's philosophy does not target a specific area of business. If implemented, it will be extremely beneficial to any organization, institution, or business that has growth, prosperity, and customer satisfaction as its goal. What Deming sought was a mathematical means of controlling the level of quality by seeking "ever finer manufacturing tolerances" (Halberstam, 1986, p. 312). While this system of quality control demanded a commitment from the highest management levels, it depended upon the participation of personnel from all levels of the organization involved in the production process. Participation meant more than

input from production workers. It also meant that managers must be a part of the production process. In American industry in the 1950s and 1960s, however, the concept of the professional manager developed though an MBA education and a fast track management development program meant that managers would have little or no contact with the actual production process (Halberstam, 1986, p. 313). Short term financial goals took precedence over all else particularly quality control. Thus, the American automobile manufacturing industry in the 1960s demanded an increasing accommodation by the production function for the norms established by the organizational finance function (Halberstam, 1986, p. 461). Lee Iacocca, who, at that time, headed Ford, established the Profit Improvement Program (PIP), the purpose of which was to reduce costs by taking them out of an existing budget (p. 461). This program was financially based, and had a detrimental impact on product quality at Ford. As an example, a decision was made to equip Mercury automobiles with less expensive Ford automobile upholstery, with an underlying philosophy that the customer would be unaware of the quality deterioration (p. 461). It was this approach to product quality, with its patronizing attitude toward consumers, which has been cited by some analysts as the underlying of the company's Pinto automobile disaster in 1970. Cost control was the imperative with American automobile manufacturers, and quality control and safety were considered to be undesirable initiatives from annoying industry outsiders (p. 461). At Ford under Iacocca, production line facilities and equipment were worked hard, and maintained lightly. In an effort to push for maximum profit, both physical facilities maintenance and product innovation were sacrificed (Halberstam, 1986, p. 498). In turn, product quality was sacrificed by each of these factors. In the late 1950s, Ford developed a paint application process (E coat), which improved significantly both the external finish and rust proofing on automobiles. Ford would not introduce the process into its North American production, because (1) top management believed that the competition did not demand it, and (2) it would increase costs. Ford did, however, introduce the process into

its European production, because competition did demand it (p. 499). Ford's, and Iacocca's, arrogance toward quality and the North American consumer was not shared by all automobile manufacturers. The Japanese

automobile manufacturers and General Motors paid Ford a royalty to incorporate the E coat process into their production. By the mid 1970s, Ford had introduced the process into only about one half of the company's North American production plants (pp. 500-501). The process was introduced into the last of ford's North American plants only in 1984. A continued emphasis on product quality control may be expected in the American automobile manufacturing industry. It is not just the Japanese now, but also the Koreans who are maintaining quality level pressures on the domestic manufacturers. People involvement through quality circles may be expected to continue. Additionally, new innovations in online precision testing and measurement may be expected (Ealey, 1987, p. 21).

Automotive Industry Five Forces of Competition Model Threat of New Entrants The threat of new entrants is very low in the automobile industry. The industry is very mature and it has successfully reached economies of scale. In order to compete in this industry a manufacture must be able to achieve economies of scale. For this to occur, manufacturers must mass-produce the automobiles so that they are affordable to the consumer. Another barrier to entry is that it takes an incredible amount of capital to manufacture the automobiles. It takes an extreme amount of capital not only to be able to manufacture the products but also to keep up with the research and development that is necessary for the innovation requirements. Access to distribution channels is another high barrier to entry. A company must find a dealership to sell their automobiles or have their own dealership. Space in the dealerships lots is very limited making it difficult to have a wider variety of inventory.

Bargaining Power of Suppliers The bargaining power of suppliers is very low in the automobile industry. There are so many parts that are used to produce an automobile, that it takes many suppliers to accomplish this. When there are many suppliers in an industry, they do not have much power. There are so many suppliers to this industry; manufactures can easily switch to another supplier if it is necessary. Bargaining Power of Buyers The bargaining power of the buyers is moderately high. The buyers being consumers purchase almost all of the industries output. The manufacturers depend on them to stay in business. The buyers also are a significant portion of the industries revenue. If they can not keep their buyers happy then they risk losing them to their competitors. The buyers have low switching cost if they are not happy. All the buyer has to do is sell the car they own and purchase a new one. The reasons why the power is not completely high is that the buyers are not large and few in number. The buyers do not have the ability to integrate backwards into the industry. If they want a car then they have to purchase it from a dealership. Threat of Substitute Products There are not many substitute products for automobiles. Some of the substitutes are walking, riding bike or taking a train. Substitutes products all depend on the geographic location of the consumer. In some cities such as New York or Chicago, a car is not as necessary. In cities such as those, the subway is the most effective means of transportation. However, in most places a person must have access to an automobile in order to get around. Intensity of Rivalry among Competitors Rivalry among the competitors is very strong is this industry. The major competitors are so closely balanced that it increases the rivalry. In order to gain market share in the automobile must gain market share by taking it from their competitors. One of the other reasons there is such high rivalry is that there is a lack of differentiation opportunities. All the companies make cars, trucks or SUV's. The competitors are compared to one another constantly. The price, quality, durability, and many other aspects of different manufacturers are greatly taken into consideration when deciding what type of vehicle to purchase. When the different manufacturers advertise they even compare their products to their competitors. For example, the commercials will focus on areas where the company outperforms its competitors. General Motors SWOT Analysis The strengths, weaknesses, opportunities, and threats, are quite dynamic for General Motors and

each can be integrated into another. For example, what might be a threat in one category for General Motors, can turn into an opportunity or become a new strategy for General Motors in the future. One of the major strengths that General Motors possess is the global awareness and presence it holds in today's market. General Motors today has manufacturing operations in 32 countries and its vehicles are sold in 192 countries (www.gm.com). To gain a better idea of General Motors position in today's market, refer to table 1. By having such a strong presence globally, General Motors can integrate its operations so each manufacturer can concentrate on its core competencies. For example, automakers are trying to drive down costs by sharing costs through their own global alliances, or in joint ventures or partnerships with other companies (Harbour, 2001). This has become one of Europe's strategies for the problem where small vehicle continue to dominate the market and provide only small profit margins for General Motors. Through global alliances, General Motors can stay in business in Europe and continue to satisfy its' customers. Another strength for General Motors is having the largest amount of annual sales at $185,524.00 million, reaching about 15 percent of the global market (Company Press Release). Leading the industry in sales enables General Motors to spend time and money in its' R&D department. One of General Motors' current projects is releasing two Hybrid cars in China and hopefully more in the United States in the year 2007 (Stein, 2004). Troy Clarke, president of Asian-Pacific, claims that developing Hybrid cars is the new strategy for General Motors (Stein, 2004). One reason that General Motors is sitting at the top of the industry could be due to the fact that it also lead the industry in ad spending. Last year, General Motors spent close to $2.12 billion on advertising in the United States alone. This large amount of spending has reached customers through the first internet coupons worth $500 towards a Buick Regal (Halliday, 1999), and is another method of how General Motors' innovation strategies enables them to remain at the top of the industry. The opportunities for General Motors globally are almost endless and the ways in which General Motors turns threats into opportunities proves why they are number one in the industry. With sales growing at 60 percent in the Middle East last year, General Motors would like to institute a dealership network in Iraq (Ridder, 2004), which would help Iraq's economy recover from the war. Another threat of losing "safety professionals" due to retirement at General Motors has been turned into an opportunity of developing the recruiting and training program at General Motors (Minter, 2002). In terms of taking a threat, such as losing any global market share, General Motors has made advances in the E-Business strategy and technology for the Asian automotive industry, and turned this threat into an opportunity. It is crucial for every company to try and turn threats into opportunities for improvement and development. However, not all threats can be turned into a positive. General Motors CEO never thought that

the price war he launched three years ago would still be going on. This has caused General Motor's market share to fall in the past year (Welch, 2004). The main problem with General Motor's plants in the United States is that they have too much capacity, which in turns causes them to make bad long-term business decisions. Other major threats have to deal with worker dissatisfaction. The dissatisfaction of the workers is not only in America, but is occurring globally. A strike in Germany has squeezed some of European production due to lack of two essential parts that are usually provided by the German plants (Three, 2004). As one can see, a strike at one plant or factory can have a domino affect on other plants or factories. In this particular case, the strikes of one plant in Germany, causes other plants in Europe to lay-off close to 12,000 jobs across the continent. This demonstrates the importance of keeping each plant happy. Nationally, General Motors has plans to make 10,000 temporary layoffs (G.M., 2004). What General Motors needs to do is make sure that the people who are laid off are treated with respect. This entails helping them find other jobs, or promising them the opportunity to come back work when it is available, and keeping this promise. This is crucial to keep employee morale high for those workers who still have a job. The main weakness that General Motors has been battling for the last century is employee satisfaction which leads to constant strikes throughout the corporation. Managers have been battling with employees and unions on keeping wages, hours, and retirement plans fair. General Motors is currently spending a large proportion of their earnings on health care for their retirees as compared with newer automakers. In the past, General Motors has offered generous plans to attract workers to its plants (Hakim, 2004), but no one thought about what would happen when these workers got to the age of retirement. Well, that time has arrived and General Motors is facing a difficult future as these costs of retirement continue to rise. Critics have been criticizing General Motors for waiting so long to develop what is now the new wave of vehicles, the Hybrid cars. However, General Motors is first in line when it comes to the HydroGen3 fuel cell prototype. Recently, General Motors has sped up the pace of innovation with the successful completion of a trans-Europe endurance run for its HydroGen3 fuel cell prototype (Kisiel, 2004). Although General Motors is just now releasing a Hybrid car in China, it hopes to be the leader in the future with hydrogen fuel. As dynamic as General Motors is, it must have multiple strategies being implemented at the same time to keep up with the fast, changing pace of the industry. One of the major strategies which General Motors is changing is the switch from producing seventy percent light trucks to producing seventy percent cars. General Motors does not plan on letting the production of light trucks slip away however. Gary Cowger, president of GM North America, still believes there is a strong market for trucks, but America is switching to a more economic commercial car (Guilford, 2003). General Motors also plans on implementing a line of compact pickups which include more car-like creature comforts and style. This change has come about to match what the

customers want with one of General Motors' slogans: 'A car for every purse and purpose' (Greensberg, 2003). General Motors has realized that it can make the add-ons, such as CD and DVD players, affordable for those who desire them. Another add-on which has become the most popular add-on and almost a standard for General Motors vehicles is the OnStar feature. OnStar has expanded its premium services to let the customer check his or her E-mail as well as trade stock via different voice commands (Galvin, 2001). General Motors has started licensing the technology of OnStar to other companies which might erode its brand name. With everything that General Motors is doing right and with what little it is doing wrong, there is still room for improvement. Recommendations can be given in the fields of employee satisfaction, innovation, and new markets. Being one of General Motors' main weaknesses, it is imperative that the managers and executives review the policies and procedures which the lower employees must abide by and determine if these rules are fair or not. With every strike that General Motors goes through, the competition gains a little bit of ground on the leading corporation. Open communication and open minds between the managers and the unions' needs to become a must in the General Motors Corporation. If the money to pay for the rising health care costs cannot be found by cutting costs, then management needs to find other ways to give benefits and incentives to the employee staff that will keep everyone happy. Implementing the process of improving customer satisfaction is a timely and excruciating process. The major advantages of improving employee satisfaction are higher worker morale, higher productivity, and an overall sense of corporate loyalty both internally and externally. Employee satisfaction has a domino effect on the corporation. As the morale of the worker increases, workers tend to be more efficient and profit margins rise, which increases stakeholders' satisfaction and everyone, becomes more loyal to General Motors. The disadvantages of trying to improve employee satisfaction are that it cost a lot of money to have external consultants work with the corporation to figure out what exactly is wrong, and it takes a lot of time. However, in the long run scheme of things, increasing worker satisfaction will have an overall positive effect on the corporation. Innovation is the backbone for any corporation these days, and it is crucial that General Motors stays a leader in innovation as well as sales. Although General Motors might be the leader in hydrogen fuel in the future, currently the competition is way behind the rest if its competitors in Hybrid automobiles. It has been recommended by critics across the globe that General Motors should pick up the pace and not let the competition gain an edge in the next few years with the Hybrid cars. General Motors needs to be extremely careful on how far in the future it is looking ahead. It would only seem wise to be at the same level, if not ahead of the competition with what is going to be the new fad in the years to come. If General Motors does not see the customers adapting to Hybrid cars then it might be making a good decision on jumping ahead to the next level of fuel efficiency. It would be extremely difficult for General Motors to catch up with Honda, Toyota, and Accura, and their manufacturing of Hybrid cars. The advantage of doing so

however is that in case Hybrid cars are the future of the automobile industry and not hydrogen fuel, General Motors will still be able to contend with the rest of the industry. Hopefully, the technology on how to produce Hybrid cars with economy of scale will be shared throughout the industry, enabling General Motors to compete at the same level as its competitors. The disadvantage of waiting for the improvement of technology and for it to be shared is of course the waste of time not improving the corporation. And as has been discussed before, time is money, and no one can compete with out money. General Motors has recently entered into the retail industry with its first ever General Motors Collection store in Detroit's McNamara Terminal. General Motors Collection store was the third highest in net sales at the McNamara Terminal in August, 2002 (Geist, 2002). The retail stores sells merchandise from miniature models of General Motors manufactured cars and racing cars, to hats and t-shirts with its most popular automobiles on them. With sales on average of $2,000 a day, this retail store is a perfect template for General Motors to use in other cities where General Motors manufacturing is a large part of the community. By targeting cities that have large manufacturing plants, General Motors will continue to sell to its employees who take pride in where they work. Also, large cities with high tourist rates will have more flow in the shops and will in turn have higher sales. It would also be interesting to see if such retail stores could do as well in foreign markets who might not as ego-savvy as Americans and their possessions. Before General Motors starts putting these collection stores all over the world, it is essential that much research be put into the location selection. If a store enters into a market place and fails miserably, the consumers in the market may in turn form a negative view about General Motors. This would come about through the association of the store failing to survive and the lack of quality decision General Motors produces. The opposite effects however is what General Motors would like to see. General Motors already leads the industry in advertising and by offering the public the choice of supporting their favorite sports car or any General Motors product, General Motors gains free advertising. Not only will free advertising be gained, but customer's brand loyalty will be increased and more cash flow will be available for General Motors. DamilerChrysler SWOT Analysis As the number two auto manufacturer in total revenues DaimlerChrysler has positioned itself as an industry leader, with this come many strengths. The DaimlerChrysler umbrella covers many well-known brands such as Dodge, Chrysler, Mercedes Benz, and Jeep. This means DaimlerChrysler has strong brands that are recognizable in almost every part of the world. Within these brands DaimlerChrysler also has wide variety of automobile products that span all price ranges and model types, from economy cars to luxury models. Brands such as Jeep are recognized worldwide for off-road and SUV vehicles, while Mercedes Benz is one of the highest quality luxury car makers in the industry. DaimlerChrysler is even represented in the realm of ultra luxury with its Maybach brand which competes directly with manufacturers such as Bentley

and Rolls Royce. In the arena of American car makers the Chrysler brand stands out as a leading innovator in vehicle design. Chrysler is well known for category breaking models such as the PT Cruiser and Plymouth Prowler. The Dodge Viper is a vehicle that broke away from the mold of other American sports cars to drive the imagination of car buyers, and increase the connection of style and image with DaimlerChrysler vehicles. The merger of Chrysler and Daimler Benz which created DaimlerChrysler gave the company a large worldwide presence. This presence is a quality one because DaimlerChrysler is considered to be one of most respected companies worldwide according to a Financial Times survey of world corporate leaders. This presence is further increased by DaimlerChrysler's strategic partnership with Japanese car maker Mitsubishi. This partnership gives DaimlerChrysler presence in the Asian regions which is does not currently enjoy with its current stable of brands. This partnership will not only allow for greater product visibility for DaimlerChrysler in one of the largest automobile markets, but will also allow for sharing of technology between DaimlerChrysler and Mitsubishi. DaimlerChrysler is currently a leader in hydrogen fuel cell technology. Hydrogen, considered to be the next big breakthrough in automobile engines, has the ability to revolutionize the industry. If or when this is the case DaimlerChrysler's commitment to research and development of the technology will help ensure the company remains on the top of the automotive world. With all of the strengths that come with being a top auto manufacturer every company must also face weaknesses that can arise from the current business landscape and DaimlerChrysler is not immune to these shortcomings. As the automotive industry continues to move in the direction of globalization it is important for manufacturers to be strongly represented in all large and emerging world markets. Although DaimlerChrysler is well represented in the American and European markets they are not strongly represented in the Asian markets. DaimlerChrysler has no brands of its own that command significant market share in either the Japanese or emerging Chinese markets. DaimlerChrysler's partial stake in Mitsubishi was supposed to be an answer to this problem but current drops in Mitsubishi's market share accompanied by other problems has left DaimlerChrysler's future investments in Mitsubishi uncertain, and more importantly with no strong plan to compete in Asian markets. Related to the problem of Asian representation is the reality that none of DaimlerChrysler's brands are truly marketable to worldwide consumers. Brands such as Dodge and Chrysler are strong in the US, but have had limited success in other markets. The Mercedes Benz brand is the most recognizable world wide, but as a luxury car maker it is harder to market to a majority of consumers in different markets. The Jeep brand is well known and respected throughout most

markets, but its appeal is limited to the specialized group of SUV and off-road buyers. The growing use of hybrid engines could also cause problems for DaimlerChrysler. There strategy to focus on the entirely new hydrogen technology has left them behind many other major manufacturers in the development of hybrid technology. As other major car companies are preparing to roll out hybrid options for many of there most popular models DaimlerChrysler does not plan to do the same anytime soon. By hitching there wagon to hydrogen power and not trying to capitalize on rising hybrid trends DaimlerChrysler could be missing out. What has been billed as a merger between America's Chrysler and Germany's Daimler Benz has turned out to be more of an acquisition of Chrysler by Daimler Benz. The result is that most top managers of DaimlerChrysler are from Daimler Benz and many of the leaders of Chrysler choose to leave or retire. Many have speculated this "brain-drain" of Chrysler executives could hurt the innovative reputation of the American brands in DaimlerChrysler's portfolio of manufacturers. Much of the operations of DaimlerChrysler have also been moved to Germany where current wage rates and labor laws have made it hard for DaimlerChrysler to cut costs and bolster its bottom line. With the evolution and changing environment of the Automotive industry DaimlerChrysler has many opportunities to increase its strengths and fix some weaknesses. With DaimlerChrysler's current shortage of Asian market share there Jeep brand could be a bright spot. With the growing trend of consumerism in China it is currently the fastest growing auto market in the world, and the Chinese desire for all things American could provide DaimlerChrysler with a golden opportunity. In Chinese surveys of the most sought after American brands in China, Jeep is in the top 5. DaimlerChrysler has also recently inked deals to build manufacturing plants for Mercedes Benz in Beijing, China. These recent developments provide DaimlerChrysler with more chances to push its products into a hugely coveted consumer market. The decision to focus on hydrogen power research and development could also bode well for DaimlerChrysler if the current prices of oil and gas become a future standard. The high prices will help to put more focus and energy into viable fuel alternatives which could push the demand for hydrogen powered vehicles, as well as provide opportunities for government subsidies for continuing advancement of the technology. As a leader in hydrogen power DaimlerChrysler is poised to be a large benefactor of any of these scenarios. Along with new opportunities come the inevitable threats and opportunity costs associated with any course of action which have the ability to affect DaimlerChrysler. A current major threat is the shaky alliance between DaimlerChrysler and Mitsubishi. The current downturn of Mitsubishi has left DaimlerChrysler in a very vulnerable condition. If they

continue in the partnership and hope Mitsubishi can pull out of its slump DaimlerChrysler could still face the consequences of not finding other ways to bolster presence in Asian markets even is Mitsubishi does right the ship. Even worse if Mitsubishi continues to flounder DaimlerChrysler may have to cut its losses and find itself even further behind other manufacturers in the race to sure up some of the largest auto markets in the world. Another great threat is due to DaimlerChrysler's decision to put all its eggs into the hydrogen fuel basket. If the current trend of hybrid engines continues to catch on and grow throughout world markets DaimlerChrysler's reluctance to follow suit could cause loss of market share to rivals who offer better hybrid engines in more vehicle models. Even worse, if hydrogen proves not to be a viable energy source in the near future than DaimlerChrysler would not be able to profit from recent heavy investments in the technology and be faced with huge sunk and opportunity costs. DaimlerChrysler has embarked upon a strategy of becoming a world wide leader in the automobile industry, representing all vehicle types across all world markets. This is summed up by DaimlerChrysler's four-pillar strategy. The four pillars include: Global presence, Strong Brands, Broad product range, and Technology leadership. DaimlerChrysler, formed by a merger of the American Company Chrysler and the German Daimler Benz in 1998, was instrumental in the achievement of many of these pillars. DaimlerChrysler currently sells products in over 200 countries and manufacturing plants in 17. DaimlerChrysler also has headquarters covering all major geographic regions on every continent except Antarctica. After the merger DaimlerChrysler had ownership of several major car manufacturers with certain geographic presence. Daimler Benz was one of Europe's largest car manufacturers, while Chrysler was a leading American country. This gives DaimlerChrysler a large presence in two of the largest auto markets in the world. They also choose to purchase a 30 percent stake in the Japanese Mitsubishi Motors as a way to penetrate the Japanese markets. These three markets are the largest in the world and gives DaimlerChrysler a strong global presence. DaimlerChrysler also wished to produce strong brands of automobiles with broad product ranges to be offered in these markets. DaimlerChrysler currently lays claim to passenger vehicle brands such as Chrysler, Dodge, Jeep, Mercedes, Maybach, and Smart. They also have ownership of Freightliner, which is one of the largest commercial truck producers in the world. These brand names represent all vehicle types currently offered to consumers. From Dodge and Chryslers cars and trucks covering all price ranges and styles to Mercedes' and Maybach's representation in the luxury market. Even specialized vehicles are represented; Jeep is a top producer of off-road and SUV vehicles, while the smaller Smart brand produces economical

urban vehicles for sale in Europe and the Freightliner brand gives DaimlerChrysler a strong share of the market in the commercial shipping and transportation. In the arena of Technology leadership DaimlerChrysler boasts that it is a world leader in the development of hydrogen fuel cell powered automobiles. DaimlerChrysler hopes that its research into the new power technology will result in affordable vehicles powered by the alternative fuel source in the neat future. This Technology has the potential to be the next industry standard for engines and DaimlerChrysler is heavily invested in assuring that if or when it is they will be positioned to offer the best hydrogen engines available. They are also looking in the direction of cleaner, more efficient diesel engines as an alternative to hybrid technology. DaimlerChrysler believes that advances in diesel engines are superior to the improvements made by gas/electric hybrids currently offered by many competitors. DaimlerChrysler that strong research into these alternative power sources will facilitate their desire to be a technological leader in innovation among other companies in the automobile manufacturing industry. Not all strategies are implemented seamlessly and DaimlerChryser is no exception to this. One of DaimlerChrysler's biggest current problems is its weak market penetration in Asia. While they do have a strategic partnership with Mitsubishi motors it is apparent that Mitsubishi isn't fulfilling the high expectations DaimlerChrysler expected. DaimlerChrysler is already on the right track with its plans to open manufacturing facilities in China, but a more immediate impact might be needed to ensure DaimlerChrysler doesn't fall behind in the region. A more immediate presence could be achieved through another strategic partner, specifically with one of the Korean builders Daewoo or Hyundai. Both companies have successful small car divisions, which are a need for DaimlerChrysler, and more importantly they come with distribution centers throughout the Asian market. Both companies have been recently seeking a large partner which provides an opportunity for DaimlerChrysler. The addition of a new Asian partner to the DaimlerChrysler stable can prove to be a great advantage through the immediate presence DaimlerChrysler could gain presence in the underrepresented Asian market, but it could also turn out to be a drawback. By taking on another acquisition or strategic partner DaimlerChrysler could face the same problems it is currently experiencing with Mitsubishi. By only being partners with another Asian firm DaimlerChrysler would not have ultimate control of the partner firm leaving more of a liability than if DaimlerChrysler opted to simply acquire of the company. DaimlerChrysler could also hedge its bets on hydrogen engines by investing more in hybrid technology to provide more immediate returns. DaimlerChrysler's resistance to go ahead with full scale implementation of hybrid engines has come from a number of sources, most notably their focus on hydrogen and a belief that other fuels, such as diesel, may hold greater promise than hybrids. DaimlerChrysler believes that hybrid power is only an interim step until the before mentioned technologies are realized. Nevertheless, if DaimlerChrysler's assertions about the future of hydrogen power are incorrect they could face large consequences of not embracing

hybrid engines. To fill this gap DaimlerChrysler could purchase plans for hybrid engines to hedge their bets of the upcoming market for more efficient fuels. Many manufacturers have begun licensing their hybrid technologies to other manufacturers, and while this isn't as good as DaimlerChrysler producing there own technology, it will allow them to introduce hybrid engines in there own models quicker and not lose precious market share to rivals. This would be an advantage for DaimlerChrysler because the promises of hydrogen power, while great, are still many years away and the use of hybrid engines and technology is growing exponentially in the present. However, DaimlerChrysler believes that more efficient Diesel technology is the better near-term solution t increase fuel economy. If Daimler were to follow the crowd into hybrid technology they could face a loss of investment in new diesel technologies that may well be a better answer than current hybrid technologies. Toyota Motor Corporation SWOT Analysis The Toyota Motor Corporation was incorporated in 1937 and has many strengths being one of the industry leaders in the automotive industry. Toyota has three major brands underneath the company umbrella; Toyota, Lexus, and Scion. By having these three distinct brands, it lets the company reach many sectors of the globe in a choice of vehicle for customers. They produce their vehicles and target specific global regions, such as the Carina E for the European segment (Amherst). Toyota has traditionally also been the leader in Total Quality Management or TQM. The belief that no process could ever be declared perfect, and that therefore there was always room for improvement was introduced by Toyota Sakichi (Financial Times). This brought about the Japanese word, Kaizen meaning continuous improvement (Financial Times). By using the Kaizen theory of continuous improvement, Japan caught up the U.S. auto makers during the 1980's (Financial Times). Toyota has also introduced it's newest hybrid power car, Toyota Pirus, at the 2003 New York Auto Show and hit the dealerships in the fall of 2004 (Toyota). In September of 2003, orders for the new and improved Pirus totaled 17,500 which is five times more then the company target of 3000 (MSNBC). With the price of gasoline and oil ever rising, this is a great market for Toyota to exploit. Toyota does have some company traits that are portrayed as a weakness in the industry. The brand Toyota is not perceived as many to be prestigious (Amherst). Another perceived weakness is that it is in the top five of sales but not in the top five in dividend payouts or stock performance (Yahoo Finance). This may put up a red flag to investors around the globe that Toyota is not paying dividends as frequent or as efficiently as they should to their shareholder of the company. In Europe, the Lexus brand sold 18,206 vehicles last year compared with 509,720 BMW's. The reason for this is the Lexus brand lacks the diesel V-8 engine (Bloomberg). In certain European countries such as Belgium and Greece, diesels make up 90 percent of BMW sales in part to the tax subsidies the consumer receives (Bloomberg).

The opportunities for the Toyota Motor Company seem to be endless. Today, Toyota has passed the Ford Motor Company to become the world's second largest automaker in the world trailing only GM (Forbes). Toyota has also rounded out it's product line to suit the U.S. market with the redesigned passenger trucks and SUV, but they have also hit the market hard with eco-crazed society with the introduction of the second generation hybrid car, the Prius (Business week). The company is also being pushed in the right direction for opportunity with the strengthening of the Japanese Yen (Bloomberg). With the yen gaining strength and shifts in other world currency, the operating profits dropped during the April-June quarter by fifteen percent or seventy billion yen (Bloomberg). Because of the saving the company acquired in currency shifts, Toyota has extra money on hand to use possibly in R&D to improve on their vehicles or in several other areas causing great opportunities for the company. Toyota has doubled its market share in Europe in the past four years to 5.1 percent due to import restrictions being dropped in the 1990's (Bloomberg). The opening up of imports in the European market is a great opportunity for Toyota because that enables them to put their luxury line of automobiles Lexus, up against the European BMW and Mercedes Benz. Toyota is considering the idea of introducing a beefy threequarter-ton pickup truck into the U.S. Market (Big News). This model would combat the Ford F250 and the heavy-duty Chevy Silverado and these two pickups typically sell for more than $30,000 (Big News). If Toyota will decide to enter the heavy-duty truck market now it could be very profitable with construction, where the use of heavy-duty trucks are needed, booming all over the United States. Threats to the Toyota Motor Company are an everyday occurrence. A major threat to Toyota is the Hyundai motor company. On average, Hyundai usually has thirty more horsepower in their vehicles, and costs around 3000 dollars less than a comparably segmented Toyota vehicle (Amherst). In the luxury line of Lexus, they are still losing ground to BMW in sedan sales and in SUV sales (Business week). Technology increases in cars today is a major driving force in the automobile industry, and if Toyota can't keep up with its other competitors, they could quickly lose market share in sectors they are involved in. The latest trend in the U.S. market is the ecofriendly vehicle that uses less gas and even more use of electronic power (MSNBC). Toyota has introduced the Prius hybrid vehicle, but Honda also is selling a hybrid car right now and Ford, GM and DaimlerChrlsyer have all announced plans for a soon release of their hybrid vehicles (MSNBC). If the Toyota Company can gain market share before the other big three release their hybrid, this won't become much of a threat, but if the Pirus does not fit consumer's needs in the hybrid sector, they will quickly switch and try the other products on the market. The Toyota Motor Company has a slogan that is plastered across one of its assembly plant; Yoi kangae, yoi shina (Business week). That slogan translates to "Good thinking means good products", and that sums up what Toyota is all about as a company (Business week). There combination of speed and flexibility is world class with the 30 plants they have worldwide with some of them able to produce up to eight models of on the same line (Business week). Toyota

also lives by the word Kaizen which translate into continuous improvement (Financial Times). Toyota introduced TQM and Kaizen to the world with the help of Edwards Demming to take the world by surprise and focus on quality and improvement constantly instead of just the bottom line and this focus has helped the Japanese company to become one of the leaders in the auto manufacturing industry (Financial Times). Toyota, to be as profitable in the future as they are right now needs to keep their focus on the hybrid sector when selling in the U.S. market. Toyota has also launched a joint program with it's suppliers to drastically cut the number of steps it needs to make cars and car parts. Over the past year, the company chopped out 2.6 billion dollars out of its 113 billion dollar manufacturing costs without any plant closure of layoffs (Business week). They are also putting the finishing touches on a plan to create a more flexible manufacturing system. In this new plan, plants Indonesia to Argentina will be designed to make more customized cars that fit the demand in the local markets and Toyota believes that by doing this at their plants the can save 1 billion dollars normally needed to build a new factory (Business week). These are the recommendations that the Toyota Motor Company needs to take into consideration to keep their company moving in the right direction globally. The advantage that Toyota would have by being the leader in the hybrid car sector is unknown right now. Nobody knows for a certain fact if the "green trend" will be a large factor in the future. In the U.S. market, it appears that having a marketable hybrid car in their line up of automobiles will be a good plan for Toyota in the future. The advantage of producing automobiles customized to a certain market is a good plan to keep a competitive advantage over the competitors in the same geographic region. The hybrid car market could be a failure in the U.S. market and others in better technology increases before Toyota's Pirus begins to turn profits for the company. If this happens, Toyota could have a huge failure with all of the R&D and advertisement they have put into their new hybrid vehicle. Toyota also has an advantage over their customers today using the TQM model of operations. If the rest of the industry begins to implement this also, and Toyota fails to keep improving, this could prove to become a disadvantage for the company. Ford Motor Company SWOT Analysis "Ford Motor Company is a global company with two core businesses: Automotive and Financial Services. The Automotive business consists of the design, development, manufacture, sale and service of cars, trucks and service parts. In 2003, the Company organized its Automotive business as two primary segments, Americas and International. The Americas segment includes primarily the sale of Ford, Lincoln and Mercury brand vehicles and related service parts in North America and Ford-brand vehicles and related service parts in South America. The International

segment includes the sale of Ford-brand vehicles and related service parts outside of North and South America and the sale of Premier Automotive Group brand vehicles and related service parts throughout the world" (Yahoo Finance). Ford's chairman and CEO, Bill Ford has a simple strategy, "Our vision for the future is simple: We want to build great products, a strong business, and a better world." Ford's vision is, "To become the world's leading consumer company for automotive products and services" (Ford.com). Ford has been focusing on cutting costs to increase margins more than its competitors. In 1997, Ford cut $1 billion in costs as a result of work suggestions and using standardized parts for different Ford models. As a result of using standardized parts, Ford was able to decrease the number of inventory parts, which decreased the chance of inventory parts not in stock. This meant the assembly plant would be shut down less for out of stock parts, saving Ford money (Stevenson 548). Ford has used reverse engineering in the development of their products. The Taurus is one example of this tactic. Ford examined the close competitors of the Taurus to see which parts on each car were the best of the group. Ford then designed the same parts as well or even better than the competitions. Since the Taurus had the best parts when compared with its competitors, the Taurus was viewed as the best-in-class car. This tactic allowed Ford to "leapfrog" ahead of the competition in the family sedan category (Stevenson 130). Ford has been an innovator in the auto industry when it comes to technology. "Ford Motor Company has aggressively adopted videoconferencing and computer-assisted design and manufacturing technologies." These innovations have led Ford to staying successful and efficient in the auto industry. Another technology innovation is the "use an online computer network to share ideas, create the actual designs, integrate the designs for the various parts and components, and build and test prototypes via computer simulations" (Thompson and Strickland 157). Ford has recently added Voice over IP phones to help control costs. Ford paid SBC $100 million to install and manage a network of 50,000 VoIP phones. "The immediate benefit is going to be efficiencies in cost and operations related to moves, adds and changes" (Pappalardo 14). Ford is hoping that VoIP phones will become a long term cost saver and help the company save their profit margins. "Ford Motor Co's state-of-the-art F-150 truck-assembly facility, expected to be operational by summer and running at full capacity by year's end, is a body shop and final staging area where trucks are assembled and prepped before being shipped to dealers. It's also Ford's first completely wireless assembly factory." The factory utilizes a flexible body shop, automated-materials-replenishment system, "self-adjusting platforms at each bay station, and software-driven systems that monitor maintenance for tooling, conveyers, robots, and other machines. The wireless infrastructure Ford is deploying for parts replenishment and vehicle

tracking comes from WhereNet Corp Inventory replenishment is driven by Ford's Auto Call, part of its synchronous material-replenishment trigger system, with assistance from about 58 antennas around the compound" (InformationWeek 26). This wireless technology will allow Ford to be more effective and efficient in all operations of manufacturing vehicles at this facility. Bill Ford said, "We've made solid progress in the last two and a half years and we're building momentum. We're not going to let up on our efforts to raise our quality, lower our costs, or improve on the fundamentals of our business, and we'll continue the biggest product roll-out in our company's history" (Company News). Ford has been introducing new products to the market which include the all-new Ford Mustang, Ford GT, Ford Five Hundred, Ford Freestyle, and the redesigned F-Series Super Duty; the all-new Mercury Montego and Mercury Mariner; the allnew Ford Escape Hybrid - the world's only hybrid SUV; the redesigned Ford Focus in Europe and Asia; the Land Rover LR3; the Volvo S40 and V50; and the long wheelbase Jaguar XJ" (Company News). The first quarter of 2004 was a great quarter for Ford Motor Company. Ford reported earning of $1.9 billion. This was "twice as much as the company had told Wall Street to expect and far more than historical rival General Motors, which made only $ 1.3 billion." Ford's management says that "Rather than relying on windfall profits from a couple of hot-selling models that might cool off later, the company showed a mastery of the myriad small but important details that bolster the bottom line. It reduced overheads, cut product expenditures and slashed warranty costs. At the same time, it boosted revenues by targeting incentives and increasing the mix of high-profit vehicles, such as sports utility vehicles (SUVs) with four-wheel-drive packages" (Taylor 10). "Behind the earnings hoopla, something even more interesting is beginning to emerge: Bill Ford's strategy for the company. It is uncharacteristically audacious and sweet in its apparent simplicity. Ford wants to make more money selling fewer cars. In Detroit that makes him a virtual heretic and threatens to turn accepted industry practice on its head. This is a business where the fixed costs are so enormous that bosses like DaimlerChrysler's Juergen Schrempp have staked their company's future on selling more cars, whatever the immediate impact on profits. Pushing fewer cars out of the factory also means accepting lower market share, blasphemous to some ears, particularly since Ford has been losing share since 1995. And prioritizing profits might also threaten brand loyalty, a fragile commodity. Customers who shop elsewhere because Ford's prices are a few dollars higher could be lost forever" (Taylor 10). Bill Ford is taking a very new outlook on the automobile industry. While economies of scale always determined if an automobile was successful or not, Bill Ford wants to make money by selling fewer cars. This viewpoint is an unbelievable stance from the CEO of an automobile manufacturer.

Ford has been struggling to maintain consistent sales numbers. Its first quarter numbers were twice what was expected, but the rest of the quarters have been lagging. Ford hopes that the release of the many different new vehicles will revitalize Ford. The financial numbers will turn out decent for the year due to the money made on the financing side. Some critics say that the financing side of Ford is what makes the money. Ford counters with saying that they must sell vehicles before the financing side can make the money. Some recommendations are needed for Ford to maximize profits. Ford needs to capitalize on all the new vehicles coming on to the market. Aggressive advertising campaigns might entice consumers to go to a Ford dealer and look at the new products. The only way Ford can make money from theses new vehicles is to sell a lot of them. Costs need to be reasonable for the appropriate class of vehicles. Along with selling all the new vehicles, Ford must make sure that the new vehicles are what the consumer wants. The consumer won't buy the car if he or she doesn't like its appearance, performance, and price. If Ford can meet these three needs better than its competitors can, Ford will gain market share. Extensive testing is needed before a new vehicle is launched onto the market. If Ford has not done enough testing and surveys of potential customers, sales might lag causing Ford not to get much return on its investment. Ford needs to stop using reverse engineering on the development of their automobiles. If reverse engineering is used, then Ford is behind its competitors. Ford must stay on the cutting edge for developing new ideas. Stealing its competitor's ideas does not make Ford first to the market with a new concept. Ford appears that it wants to be seen as an innovator. This is seen with the first wireless truck manufacturer facility and using VoIP phones. Ford needs to find ways to cut costs while maintaining or improving efficiency. To be viewed as an innovator, Ford must continue to be the pacesetter for anything new related to the auto manufacturer sector. An advantage for releasing new products by Ford would be the potential profit making opportunity. Humans have a natural tendency to be competitive. This competitive nature carries over to automobiles. One person will usually want a better car or truck than his or her neighbor. If a new car or truck is released on the market, the neighbor with the new car or truck that very few others have will have bragging rights. This explains why brand new vehicle sales are very large immediately after the release date. People want what others don't have. Ford is playing this game. Releasing several new cars and trucks will hopefully entice the masses to purchase a new automobile. The down side of this is the cost to create the new vehicle. Millions and even billions of dollars are put into designing, developing, testing, and producing a new vehicle. In order to make a profit on the specific car or truck, thousands of that type of vehicle must be sold in order to cover the development costs. If that number of sales is not met, the car or truck was

not a success. Ford would not make a profit on it and would end up losing money on the project. There are many advantages for Ford to be an innovator in its industry. Costs can usually be saved in the long run. The publicity of the new innovation will help sales. Newer efficient ways of running the company can be found. The major disadvantage of innovation is the initial cost of the innovation. Savings in the long run might be large, but the costs to switch from the old way of doing something to a new way are usually a sizeable amount. If the innovation doesn't work, the company will lose lots of money. They would lose the initial investment to switch and create new costs to switch back to the old way of doing something. Honda Motor Company SWOT Analysis Honda motor company is not your average Japanese car manufacturer. Originally know for motorcycles, Honda has managed to elude the dominate keiretsu system in Japan and become one of the dominant automobile manufactures in the world. There are many strengths to Honda. Honda has a reputation for producing high quality products from cars to motorcycles to lawn mowers. In fact they are the largest manufacturer of motorcycles in the world. Honda has won many awards for initial quality and customer satisfaction. Their automobiles are reliable and generally fuel efficient. Their research has afforded them competitiveness in innovative products. The cutting edge Asimo robot and a successful motor sports programs provide innovations that are passed to consumers as well as press recognition. Honda won the MotoGP manufacturers title and came in second in the F1 constructors' championship. While these race cars and motorcycles are much different than production vehicles, the lessons learned on the track transfer to better performance and engineering of future consumer vehicles. They were a pioneer in engineering low emissions internal combustion and hybrid technology. Honda is the only other manufacturer outside of Mitsubishi to branch out into many other areas outside of automobiles. However there are weaknesses, Hondas products are fairly bland and inoffensive in terms of styling. Their prices are higher for non-luxury vehicles than comparable modes by other manufactures. They do not have a strong offering in a truck line. Their vehicles also have a reputation for being underpowered or pokey econo-boxes. Even for a broadly diversified company like Honda, there exist opportunities. An offering in a pickup type truck would be profitable, even if priced under competitors. These are types of vehicles have among the highest profit margins. Another opportunity would be to continue progressing low emission vehicles and alternative power sources. While they have made progress in this area, the technology is still overpriced for the consumer, and the infrastructure does not exist. Another area of opportunity would be developing nations like china and India. These are large markets, and cheap dependable transportation would be a hot seller.

Honda's success has not gone unnoticed by its competitors. Like racing, if you don't come up with something new this year, competitors will beat you with last year's technology. Not that other companies are taking Honda's technology, but for others to catch up is for Honda to fall behind. While once upon a time Honda cut the low emissions trail, now they are no longer at the vanguard. Honda's strategy is to create value through expanded sales via innovation in research and manufacturing. Instead of having one large manufacturing plant Honda uses an idea of "manufacturing products where they are sold". In this way manufacture is increased in areas where sales increase. This practice has led to over one hundred manufacturing plants in over thirty countries, a process they call "globalization". They also are guided by a commitment to the future. This ideal is reflected in several ways. Low emissions vehicles are one example, anther are manufacturing plants that are focused on environmental friendliness as well as efficiency and quality. Honda needs to come out with a truck, which evidently is in the making (the "Ridgeline" coming spring 2005) and progress with efficient low emissions vehicles. It also wouldn't hurt if they were to come up with some sort of distinctive styling. Research should be continued because that has provided the innovative and competitive products, and Honda's diversification into areas other than automobiles should also be continued as this has been historically and asset by providing synergies in technology and distribution as well as name recognition. Also as mentioned earlier, a simplified inexpensive transportation is it motorcycle or car would sell like hotcakes in China and India. After further review Honda's extensive web site, it appears that they are expanding into India and China. China expansion includes a new plan that will quadruple production by 2006. Meanwhile in India production has started on a motorcycle that will cost less than two thousand US dollars. This appears to be the right move and is in line with Honda's production in the location of sales. These actions should put Honda in a position for much more sales. As far as new low emissions vehicles, they need to put something on the market soon to recapture their image as the green leader. The new hybrid Accord looks to fill that gap on paper. However even higher performance than the regular Accord; the hybrid is well just uninspiring. Yes is quicker and gets better mileage and has more power, but it looks the same, a car your parents would drive. The expansion into China an India will provide increased sales and spread the image of Honda. However caution should be taken. If Honda can put a affordable transportation in the hands of the masses then great, but if instead of affordable they opt for cheap, then the two largest

concentrations of people on the planet will know Honda as crap. Regaining the lead of low emissions is a risky proposition. If Honda goes fuel cell and every one else goes electric, then they just rolled craps. But to be the leader, they need to put something out to be recognized. Even though the Accord hybrid has better performance, it still looks the same to the guy on the street. Financial Comparisons of Major Competitors Our competitors' financial ratios from three areas were compared. Ratios in liquidity, asset management, debt management, and profitability were compared. Data for the years 1999 through 2003 was obtained from research insight. While data for the year 2004 is available from various sources, it was not used in comparison because the methods of computation would have been various as well, thus rendering the comparison meaningless. The first area of comparison is liquidity. Historical data for Ford and GM was not available as well as two years of data for Daimler Chrysler. DCX had the highest current ratios and managed to raise them by over thirty percent over 5 years. Likewise DCX also improved their quick ratios to lead the comparison group, but not by a decisive margin. Toyota had the highest cash to current liabilities, and with all 3 companies with marginal change in this area, TM decreased by almost twenty percent. And lastly DCX led net working capital to total assets, doubling this ratio over 5 years. Generally DCX had the most liquidity of the three firms that were compared in this area, and for the most part their ratios changed in a scale larger than the group (caveat n=3). The second area of comparison is asset management. All companies had data for asset management ratios, so the whole group can be compared in this area. Ford strongly led the group in days to sell inventory in the high teens. After the closest rival TM, other competitors had numbers around the forties. Poor GM had increased its days to sell inventory by nearly eighty percent over five years to seventy one days while Honda had the only improvement decreasing by nearly ten percent. Honda led fixed asset turnover, while Toyota was most improved. DCX made negative progress in this area. None of the companies manage an improvement in total asset turnover with GM doing the worst over all and in change, while HMC kept their turnover higher than competitors. So while Ford had the lowest days to sell inventory, HMC pulled better turnovers to be the winning asset manager. The third area is debt management. GM and Ford lead total debt to total assets by a wide margin. They also lead long term debt to total capital decisively by a wide margin. Toyota and Honda had interest coverage, while the big three had interest coverage between one and one and a half, the two Japanese companies had almost doubled their already high interest coverage to 56 for Honda and 43 for Toyota. So GM and Ford use much more debt. This could be good or bad.

They assume more business risk, while the Japanese companies could in theory take more debt to exploit opportunities. The last and arguable most important area of comparison is profitability. Data was incomplete for price to book comparisons, so those will not be used. Toyota holds a whopping fourteen percent, while the big three barely have any margin. The two Japanese companies also have very strong return on assets compared to domestics. Surprisingly GM has double the ROE of Toyota or Honda, with the others in the middle, with all facing declines since 1999. Return on investment has slid for all except GM, who nearly doubles the Japanese returns. Price to earnings run around 15 with the exception of GM at 10 and Toyota at 17, this is the markets reward to Toyota for producing a superior product, and punishment for GM for turning out unexceptional products. Even though efforts were taken to keep these numbers accurate and meaningful, it should be understood that there are several factors working against this effort. The two Japanese companies operate in a different business environment and face different regulations than the domestic firms. Also the effects of Daimler's merger/takeover of Chrysler should have affected numbers in ways that would make data not as suitable for comparison. With companies on three continents doing business in dozens of countries, currency translation also becomes an issue. The five companies have different business models and search out different parts of the market (even though they compete in areas). They have different regulations to face and varied access to capital. These differences are reflected in the difference in the ratios, as much as management effectiveness is shown.

TQM Total Quality Management (TQM) emphasized using multi-functional teams (professional staff and workers from all departments involved) to solve problems. The teams were trained to use basic statistical tools to collect and analyze data.

Check sheets Pareto diagrams

Histograms Run charts Flow charts Cause and effect diagrams Force field analysis Scatter diagrams

Flow charts or process maps were used to visualize the flow of product or documents through a series of process steps. The predominant goal of Process Improvement Teams was to eliminate the non-value adding steps and to resolve quality problems in order to reduce the (cycle) time needed to complete the process. ISO / QS9000 ISO9000 was developed as a standard for business quality systems. To be certified, businesses needed to document their quality system and insure adherence to it with reviews and audits. A key element was the identification of non-conformances and a Corrective Action System to prevent reoccurences. Specific quality improvement methodologies were not prescribed. The automotive industry adopted the QS9000 standard for their suppliers to require the use of specific practices in quality planning and in production operations.

Advanced Product Quality Plans Design / Process Failure Mode and Effects Analysis (FMEA) Production Part Approval Process Control Plans (for production) Measurement Systems Analysis

The Juran methodology was central to maintaining control of special product and process characteristics (CTQs). Design of Experiments (DOE) Six Sigma process improvement emphasizes getting quantitative data on the effect of key variables in production, service, or administrative processes. Many process improvement efforts go astray because people assume they know all of the key variables -- key variables and especially interactions between variables are not always obvious. Simple statistical data gathering or testing can be used to verify or determine these key variables.

In DOE, a series of experiments (tests) are conducted to determine the relative importance of the key variables and to assist in selecting optimum operating values. The number of variables is usually limited so that the time, effort, and cost of testing is not excessive. After the array of tests (experiments) are complete, graphical techniques -- such as at the right -- can be used to illustrate the results. DOE is especially useful in simplifying the improvement process for complex technical and administrative processes.

Brecker Process Improvement Brecker Associates integrated the

Team-based Process Improvement of TQM Data gathering and brainstorming of VA Quality methodologies of QS9000 Statistical process control of Juran Process capability analysis and DOE techniques of Six Sigma

into a more powerful Process Improvement methodology that gets better results, faster, and with less effort. Identifying the most promising and rewarding process improvement opportunities and re-designing the products and processes involved are the focus of workshops in Phases 2 and 3 of the Brecker Six Sigma Improvement Methodology.

Phase 2: Process improvement solutions are identified and quantified. Value Analysis techniques are used to collect business, product, and process data on productivity, quality, and costs. Workshop participants include marketing, design, operations, quality, purchasing, service personnel as well as suppliers, workers, and customers as appropriate. Customer requirements are determined and quantified using QFD techniques. Process mapping (from TQM) is used to develop an understanding of the product / service and the processes used to produce and deliver it. Quality issues are raised and root causes are sought. VA brainstorming is used to identify potential improvements. Ideas are refined and the benefits of the most promising improvements are quantified. Specific product and process re-design projects are selected for Six Sigma Leaders and / or teams to undertake in Phase 3. Phase 3: Multi-functional teams improve key products and processes. Design and operations teams (with other members as appropriate) are charged with re-designing specific components and / or processes. They examine the product and process information in detail. Critical-To-Quality parameters are determined for products and for processes. DOEs may be run to identify CTQ parameters and assign target values. Process capability data is obtained. Additional productivity and quality tools, such as

Design for Manufacturability Lean thinking Design for Assembly Set-up reduction

are used as appropriate to identify specific improvement opportunities. VA brainstorming may be used to identify and refine specific design changes. Specific re-design recommendations are quantified. When approved, implementation plans are made and executed. The PDCA cycle is used until the desired improvements are obtained.

Project Management for the Automotive Industry

Project Management can be seen in many different industries: software, construction, films, automotive, etc. In the automotive industry the need for a more efficient way of doing business

has become absolutely essential. It is said that projectized organizations are approximately forty times more efficient than functional organizations. This chapter will look more in depth into the history of project management in this industry and also delve into the organizational structure that a firm in this industry might want to utilize. Computer-aided Design is briefly discussed as well as a glimpse into the future of the automobile. History Project management did not become a major part of the Automotive Industry until the Modern Era of the automobile, which defines the industry that has existed for the past 25 years. However, this shift to a more efficient projectized organizational structure had to be made because rising fuel costs following the OPEC crisis and increased competition from new firms entering the industry required companies to increase their efficiency to reduce costs. One of the first automotive manufacturers to introduce this practice was Toyota, which likely owes much of their current success to switching to a projectized structure earlier than most automotive manufacturers. Following the Second World War, General Douglas MacArthur was given the responsibility for governing post-war Japan, with him he brought W. Edwards Deming and Joseph Juran (two quality control experts of the time) from the US to teach the Japanese people the fundamentals of quality control. The official story of how what is known as the Toyota Production System came to be has not been confirmed. It is also possible that the strict army training that the Japanese received was enough to increase their efficiency. Yet, many still recognize Piggly-Wigglys just-in-time distribution system for the credit. Masaaki Imai, inspired by the book Total Quality Control by Armand Feigenbaum (1951), created a new business philosophy in Japan known as Kaizen, which can be defined as a means of continuing improvement in personal life, home life, social life, and working life. These practices would later evolve into many others, including Total Quality Management(TQM), Six Sigma, and Twelve Sigma.

Organizational Structure The most prevalent of all the projectized organizational structures closely mirrors the Matrix structure where projects are listed top to bottom and functional areas listed from left to right. Employees under a Matrix structure report to both a functional manager and a project manager. Kentaro Nobeoka and Michael A. Cusamano from MITs Sloan School of Management further studied the structure of automotive companies to find that they do not use this exact structure, yet in fact they use a slight variation. In their research paper entitled Multi-project Management: Stratagy and Organization in Automobile Product Development they found that the basic Matrix model was much too function-orientated, that is to say that there was a lack of interdependency between project teams. Interdependency is necessary in the automotive industry because a vehicle has many parts that all must work together, so it becomes necessary to have many project teams collaborate to create the finished product.

Nobeoka and Cusamano interviewed Japanese firms and found a variation of the matrix structure known as the Differentiated Matrix In this version of the Matrix Structure one can see that the functional departments have been further broken down into individual parts of the automobile (Body, Chassis, etc) and also that some of these functional areas share resources across many project teams. This increased interdependency was found to lower the cost and time needed for the overall project; however, it was also apparent that such a structure requires not only a very strong project manager to ensure inter-project coordination, but also a very strong functional manager to ensure crossfunctional coordination as well. Computer-aided Design (CAD) In 1982, a company known as Autodesk, Inc. released AutoCAD, and although it was only 2d at the time, it still revolutionized the automotive industry. It was the first Computer-aided Design software to run on a home PC (rather than a large mainframe computer).The use of this software by automotive firms has allowed them to optimize time, cost and scope of their projects during the design phase. Future of the Automotive Industry Automotive firms in the economic climate that we currently live in have no choice but to choose a more efficient projectized way of planning, designing and manufacturing their products. Soaring fuel prices have caused many consumers to reconsider if they should even be driving a car; therefore, automotive firms now face competition from the public transportation sector of the economy. China and India, the worlds two largest countries by population, have now entered the market and are producing cars at a fraction the cost that Japanese or American firms must pay. Also, global climate change has had a huge effect on this industry, as firms try to make their vehicles more fuel efficient or even make use of new technologies. On the forefront of electric automobiles is the Tesla Roadster manufactured by Tesla Motors of San Carlos, California, U.S.A. Not only is this car 100% electric, but it is also fast enough and stylized enough to be considered a sports car. Tesla Motors uses project teams and has many project management career opportunities. The following indicative list gives some of the functions that a firms logistics managementsystem is supposed to perform4: 1. Customer Service: All the activities that are done to keep the existing customers satisfied come under the gamut of customer service. 2. Demand Forecasting: This process includes various statistical measures that enable the firm to estimate the demand in the future, which inturn helps in proper demand management. 3. Documentation Flow: This process covers the movement of the paperwork that accompanies the movement of physical product.

4. Interplant Movements: This is only applicable to those firms where production process is accomplished in more than one plant, requiring the movement of semi-finished products from one plant to another. 5. Inventory Management: Inventory management requires a cost effective maintenance of stocks of goods and materials. 6. Order Processing: Order processing starts with the receipt of an order from a customer and ends when the order is ready for packaging. 7. Packaging: Packaging is done mainly to protect the product when it is being transported from the source to the destination. It can also be used for promotional purposes. 8. Parts and Service Support: This covers the whole after-sales service process. 9. Plant and Warehouse Site Selection: This function is carried to determine where the plant and the warehouse are going to be located, keeping cost-benefit analysis in mind. 10. Production Scheduling: This functions task is to balance demand for products with the existing plant capacity and availability of inputs. 11. Purchasing: This is a very important function in the logistics management as the quality of inputs that are purchased determines the quality of the finished product. Vendor selection is an important sub-process of this function. 12. Returned Products: There are many categories of returned products. A few are subjects of product recalls, meaning that a safety defect or hazard has been discovered. E.g. laptop battery recall by Dell. These products are removed from the shelves, and both retailers and consumers attempt to return them to the manufacturer. This is a form of reverse distribution, with goods moving in the opposite direction of their usual flow. 13. Salvage Scrap Disposal: How a firm takes care of its waste material is covered in this function. The firm might recycle its waste or sell the waste to various processors who specialize in recycling it. 14. Traffic Management: All the transport requirements needed to move a firms freight is known as traffic management. 15. Warehouse and Distribution Centre Management: This logistics activity involves management of the locations where the firms inventories are stored.

1 APPLICATION OF TOTAL QUALITY MANAGEMENT TO LIBRARY AND INFORMATION SERVICES IN INDIAN OPEN UNIVERSITIES Dr.G. Saroja Dr.G. Sujatha Documentation Assistant Assistant Librarian Dr.B.R.Ambedkar Open University, Dr.B.R.Ambedkar Open University, Road No.46, Jubilee Hills, Road No.46, Jubilee Hills, Hyderabad-500 033. Hyderabad - 500 033.

Andhra Pradesh, India. Andhra Pradesh, India. E-Mail : braouap@hd1.vsnl.net.in E-Mail : braouap@hd1.vsnl.net.in Phone : 0091-040-244771-Extn.256 (Off.) sujatha@hd2.vsnl.net.in 0091-040-238729 (Res.) Phone : 0091-040-244771-Extn.230 (Off.) FAX : 0091-040-244830. 0091-040-3312442/3396336 (Res) FAX : 0091-040-244830. INTRODUCTION The Indian Higher Education System comprises 210 conventional universities and a single mode open universities. The conventional universities have more than a hundred years of tradition and many have international recognition as centres of excellence in specific disciplines. In this competitive educational environment, open universities in India are thriving to establish reputation by way of imparting quality education to the distance learners. The DEC, the apex body in open and distance education in India has initiated several projects to ensure quality in higher education through distance mode. It is in this context that the study of Total Quality Management (TQM) of library and information systems and services becomes crucial. This paper intends to study the application of TQM to the provision of library and information services. OBJECTIVES The specific objectives of the study are to : Management;

particular reference to Distance Education Libraries; information services; I. UNDERSTANDING THE CONCEPTS In order to critically analyse and examine the applications of TQM to Library and Information Services, it is essential in the first place to understand the various related concepts. 1.1 QUALITY Quality is often used synonymously with excellence. However, for proper quality management, defining quality and its measurement are essential. Quality has been defined variedly in different contexts. There is wide range of definitions or

approaches to quality, describing the relative nature of the concept in the context of higher education. Some of the definitions are discussed here. 2 Green and Harvey (1993) identified five different approaches to quality in higher education. These are, quality : * in terms of exceptional (high standards); * in terms of consistency; * as fitness for purpose (meeting stated purposes); * as value for money; and * as transformative (transformation of the participant). Nunan and Calvert (1992) point out that: The term quality defies any definition which will be universally accepted. When it is linked to performance, quality implies evaluation for comparative purposes; `measures of quality involve norms and standards and judgments of quality are assisted through use of norm or criterion referenced indicators. Where measurement focuses on the student as a product of education, quality is seen as `value-based by the process of education. When the emphasis is management of quality, attention focuses on strategies for achieving or improving quality. Garvin (1988) identified five approaches to define quality:

-based approach -based approach. In the context of Information Systems, Quality pertains to:

e for money spent (cost-benefit) and value for information content (cost-effectiveness). Therefore, the Quality Management Strategies should integrate these various approaches for achieving improved Quality Information Services. Performance of the Information System mainly relates to: 1. accuracy of the services; 2. adequacy of and need-based services; 3. timeliness of the services. Quality of information products

The information products in LIS Sector can be Information Abstracts, Bibliographies, indexes, Current Awareness Bulletins, etc. These products should be produced according to set norms or criteria (like - following CCF; circulation before the information becomes absolete). User-based approach lies on the idea that quality lies in the eyes of the beholder and that the customer or user is the ultimate quality judge. ISO 8420 defines quality as : `The totality of features and characteristics of a product, process of service that bear on its ability to satisfy stated or implied needs. However, there are certain limitations to this approach. The usefulness of user-based quality definition is dependent on how well the user or customer is informed about opportunities and limitations of a product or service offered. User satisfaction level may also vary in terms of value for money and value for information content received. In the value-based definition, quality is defined in terms of costs and prices. Thus, a quality product is one that provides conformance at an acceptable price or cost. Peter Brophy (1993) defines it as: Quality is . the closest fit to user needs that resources permit. 3 The managers of quality must have an intention to assess the product; sound knowledge of product features and characteristics; customer preferences and resources. 1.2 QUALITY CONTROL Although the demarcating line between the terms `Quality Control and `Quality Assessment is very narrow, some scientists attempted to draw a line of distinction between these terms. Tannock (1992) states that quality control Consists merely of the operational techniques and activities that are used to fulfill requirements for quality, usually interpreted to mean conformance to the required specifications. 1.3 QUALITY ASSURANCE Carley and Waldron (1984) defines quality assurance as planned, deliberate actions or activities instigated and carried out with the intent and purpose of maintaining and improving the quality of learning for participants. While the above definition provided a general understanding of the concept, it does not explain the unique nature of quality assurance. According to Frazer (1992), a university which takes quality assurance seriously emerges as a self-critical community of students, teachers, support staff and senior managers each contributing to and striving for continued improvement.

The observation of various definitions of quality assurance as expressed in the literature of higher education reveals that Quality Assurance is a continuing, active and integrative process for maintaining and improving quality rather than simply a system of evaluation and checking for errors. 1.4 TOTAL QUALITY MANAGEMENT (TQM) Total Quality Management takes an integrative approach for assuring quality in an organisation. The four basic principles explain the nature of Total Quality Management. What service would delight the customer ? What are the requirements of the customer ? Knowing the current quality standards of the product is the first step in the process of improvement. Knowledge of facts at all levels is an essential aspect of continuous improvement. -based Management. Systems, standards and technology themselves will not provide quality. People must understand what to do, how to do and must be ready to review the progress of their own work, for continuous improvement of quality. 1.5 QUALITY STANDARDS Within quality management, a variety of quality management standards, evaluation forms and schemes for self-appraisal have evolved. These standards are practice-oriented tools whose basic function is to create and sustain confidence in a customer-supplier relationship and provide a systematic approach to quality management. The ISO 9000 series of standards is widely used as the most recent international standards for quality management. In the LIS Sector, the Common Communication Format (CCF) evolved as the bibliographic format. 4 II. QUALITY ASSURANCE SYSTEMS IN DISTANCE EDUCATION There is a marked difference in the `teaching of an Open University from that of a conventional university. The `teaching in Distance Education (DE) in the absence of traditional classroom environment is characterised by: 1. Preparation and delivery of printed self-instructional course material; 2. Audio-visual broadcasts; 3. Limited contact cum face to face counselling sessions; 4. Evaluation of assignments. Therefore, most of the Quality Assurance Studies in DE mainly focussed on -

1. the processes and production of course and programme materials; and 2. delivery of distance education to learners. The processes and production of course should be continuously reviewed through set norms and procedures. In the production and process of materials, production standards and technical quality are employed as mechanisms to assess their quality. The quality of delivered materials can be assured in a variety of ways, eg. Sophistication of print, design of material, institutional support, etc. In the delivery of distance education to learners, the role of tutor in improving quality in distance education is emphasized. Assuring quality by the evaluation of student / learner satisfaction is found to be difficult, due to the uncertainty of the learning situation. In summary, quality assurance literature has addressed a number of areas of consideration which typically fall within processes and production of material, and delivery of distance education to learners. While the assurance of such activities is critical to the success of distance education institutions, the consideration of separate parts of a dynamic system does not imply an integrative quality system that includes a comprehensive set of procedures for assuring quality. Therefore, quality assurance mechanisms should be built up in all the units of the University set up in order to integrate quality in all facets of institutional activity. III. TOTAL QUALITY MANAGEMENT IN LIS SECTOR The practice of Quality Management in Library & Information Science sector existed since the evolution of the subject itself, but the terminology used for these varied widely. Performance indicators; performance evaluation; evaluation of reference sources using check-list of criteria; Evaluation of Information Retrieval systems using Precision and Recall rations; Cost-Benefit and costeffectiveness studies; user surveys electing opinions on library services - all these studies make part and parcel of Quality Studies using different mechanisms of assessment and methodologies. In early 1980s, numerous studies were made on automated data validation, error rates and patterns, authority control which belong to quality control in online databases. However, customer and employee satisfaction are seldom in focus. Quality assurance studies were mostly restricted to special libraries and academic libraries. Although quality assurance studies based on ISO 9000 and other accreditation schemes were conducted in libraries in UK, USA and Canada, such studies are rarely reported in Indian libraries and information systems. The quality assurance initiative in LIS has primarily came from the parent organisation to

which it provides services. However, in the later years, the quality assurance system has become as essential feature of LIS management. Quality studies in LIS sector are mostly isolated and are made on different aspects of library management, services, user-studies, etc. The evidence produced by the few TQM cases in the LIS sector indicates that TQM is a highly relevant management theory for information sector. 5 IV. TQM IN DISTANCE EDUCATION LIBRARIES Though the basic library functions and services are same for conventional and open university libraries; due to the very nature of distance from learners demands some special kinds of services in libraries of distance education institutes. Distance learners are provided with limited access to books and journals available at the Study Centre Libraries. Lending of books to distance learners is difficult in practice, as the learners are scattered at various places. Therefore, to keep the learners informed about the nascent information, the library has to undertake steps to provide current awareness services like indexes, abstracting, bibliographic services. Selection, acquiring and processing of books and sending them to the various study centre libraries not only requires additional library budget but also requires sufficient manpower to handle the various jobs. Evaluation of these various functions and feedback from learners; counsellors, study centre personnel are important for continuous improvement in the quality of library and information services. In this study an attempt is made to list out the essential criteria and suggests a framework of quality assurance in Distance Education Libraries in Indian situation. V. EXPERIENCE OF Dr.B.R.AMBEDKAR OPEN UNIVERSITY IN PROVIDING QUALITY INFORMATION SERVICES Established in 1983, Dr.B.R.Ambedkar Open University library is functioning with the following objectives: 1. To develop appropriate collection in various subjects for satisfying the needs of its diverse clientele at the University, Regional and Study Centres; 2. To provide reading, lending, reference, information and documentation facilities to all categories of staff students; 3. To develop a special collection of books and journals on Distance Education at the Central Library. With its various services, the library supports the faculty in the preparation of

course material, support the self-learning of distance learners. The library started as a small unit in 1983 with a collection of 2500 books and has grown to 38000 books in Central Library and 55200 books in Study Centres Libraries collection in 1998. Along with the growth in collection, it has also expanded its services and started Documentation Service in 1993. `OPVARSITY DOCUMENTATION BULLETIN (Monthly) and `OPVARSITY ABSTRACTS (Bi-Monthly), `NEW ADDITIONS TO THE LIBRARY (Quarterly) are the outcome of the documentation services provided to the faculties as well as the distance learners. Realising the need for computerisation and networking, the library recently has taken up the project of computerising its various services at the central library at a cost of Rs.32.47 lakhs, in collaboration with the Central University. The computerisation project envisages to be operational by February, 1999. The project is planned in three phases. I. Creation of database at Central Library and computerisation of all services; II. To develop local area network connecting various faculties / departments with the central library; III. To establish a wide area network with study centre libraries. 5.1 QUALITY COMPONENT OF LIBRARY SERVICES The library committee consisting of the Vice Chancellor as the Chairman, Rector as the Vice-Chairman and all Directors / Deans of faculties as members, with Librarian as Convenor, meets once in four months to review the progress and problems in the library. Based on the recommendations of the Committee the library conducted surveys on the use of books, journals and documentation reports by the counsellors, learners at the Study Centre Libraries. Study revealed certain important points for consideration. These include:1. Lack of sufficient infrastructure for maintaining libraries at the Study Centres; 2. Irregularities in the receipt of journals at the 12 PG Study Centres; 3. Good use of books / journals and documentation reports by the counsellors and the learners. 6 Considering the difficulties, library committee has recommended for improvement of infrastructure for libraries at Study Centres and withholding subscription of books temporarily for the Study Centres. Journals for Study Centres are subscribed timproveA ourse material, etc. Only then, it is possible to achieve Total Quality Management of the University, which helps it to achieve its motto of `Quality Education at your doorstep. VI. TQM FRAMEWORK FOR DISTANCE EDUCATION LIBRARIES - A PROPOSAL Systematic implementation of quality management in LIS requires a concise and exhaustive

service marks of the General Systems Company. The Power of Management Capital, Management Capital, Management Innovation, and Total Quality are trade names of the General Systems Company. 2010 General Systems CompaDeming's 14 points Deming offered fourteen key principles for management for transforming business effectiveness. In summary: 1. Create constancy of purpose for the improvement of product and service, with the aim to become competitive, stay in business, and provide jobs. 2. Adopt a new philosophy of cooperation (win-win) in which everybody wins and put it into practice by teaching it to employees, customers and suppliers. 3. Cease dependence on mass inspection to achieve quality. Instead, improve the process and build quality into the product in the first place. 4. End the practice of awarding business on the basis of price tag alone. Instead, minimize total cost in the long run. Move toward a single supplier for any one item, based on a long-term relationship of loyalty and trust. 5. Improve constantly, and forever, the system of production, service, planning, of any activity. This will improve quality and productivity and thus constantly decrease costs. 6. Institute training for skills. 7. Adopt and institute leadership for the management of people, recognizing their different abilities, capabilities, and aspiration. The aim of leadership should be to help people, machines, and gadgets do a better job. Leadership of management is in need of overhaul, as well as leadership of production workers. 8. Drive out fear and build trust so that everyone can work more effectively. 9. Break down barriers between departments. Abolish competition and build a winwin system of cooperation within the organization. People in research, design, sales, and production must work as a team to foresee problems of production and use that might be encountered with the product or service. 10. Eliminate slogans, exhortations, and targets asking for zero defects or new levels of productivity. Such exhortations only create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond the power of the work force. 11. Eliminate numerical goals, numerical quotas and management by objectives. Substitute leadership. 12. Remove barriers that rob people of joy in their work. This will mean abolishing the annual rating or merit system that ranks people and creates competition and conflict. 13. Institute a vigorous program of education and self-improvement. 14. Put everybody in the company to work to accomplish the transformation. The transformation is everybody's job.

Seven Deadly Diseases The Seven Deadly Diseases: 1. 2. 3. 4. 5. 6. 7. Lack of constancy of purpose. Emphasis on short-term profits. Evaluation by performance, merit rating, or annual review of performance. Mobility of management. Running a company on visible figures alone. Excessive medical costs. Excessive costs of warranty, fueled by lawyers who work for contingency fees.

Basic Principles of Total Quality Management (TQM) by Ron Kurtus (28 May 2001) The basic principles for the Total Quality Management (TQM) philosophy of doing business are to satisfy the customer, satisfy the supplier, and continuously improve the business processes. Questions you may have include:

How do you satisfy the customer? Why should you satisfy the supplier? What is continuous improvement?

This lesson will answer those questions. There is a mini-quiz near the end of the lesson. Satisfy the customer The first and major TQM principle is to satisfy the customer--the person who pays for the product or service. Customers want to get their money's worth from a product or service they purchase.

Users If the user of the product is different than the purchaser, then both the user and customer must be satisfied, although the person who pays gets priority. Company philosophy A company that seeks to satisfy the customer by providing them value for what they buy and the quality they expect will get more repeat business, referral business, and reduced complaints and service expenses. Some top companies not only provide quality products, but they also give extra service to make their customers feel important and valued. Internal customers Within a company, a worker provides a product or service to his or her supervisors. If the person has any influence on the wages the worker receives, that person can be thought of as an internal customer. A worker should have the mind-set of satisfying internal customers in order to keep his or her job and to get a raise or promotion. Chain of customers Often in a company, there is a chain of customers, -each improving a product and passing it along until it is finally sold to the external customer. Each worker must not only seek to satisfy the immediate internal customer, but he or she must look up the chain to try to satisfy the ultimate customer. Satisfy the supplier A second TQM principle is to satisfy the supplier, which is the person or organization from whom you are purchasing goods or services. External suppliers A company must look to satisfy their external suppliers by providing them with clear instructions and requirements and then paying them fairly and on time. It is only in the company's best interest that its suppliers provide it with quality goods or services, if the company hopes to provide quality goods or services to its external customers.

Internal suppliers A supervisor must try to keep his or her workers happy and productive by providing good task instructions, the tools they need to do their job and good working conditions. The supervisor must also reward the workers with praise and good pay. Get better work The reason to do this is to get more productivity out of the workers, as well as to keep the good workers. An effective supervisor with a good team of workers will certainly satisfy his or her internal customers. Empower workers One area of satisfying the internal suppler is by empowering the workers. This means to allow them to make decisions on things that they can control. This not only takes the burden off the supervisor, but it also motivates these internal suppliers to do better work. Continuous improvement The third principle of TQM is continuous improvement. You can never be satisfied with the method used, because there always can be improvements. Certainly, the competition is improving, so it is very necessary to strive to keep ahead of the game. Working smarter, not harder Some companies have tried to improve by making employees work harder. This may be counterproductive, especially if the process itself is flawed. For example, trying to increase worker output on a defective machine may result in more defective parts. Examining the source of problems and delays and then improving them is what is needed. Often the process has bottlenecks that are the real cause of the problem. These must be removed. Worker suggestions Workers are often a source of continuous improvements. They can provide suggestions on how to improve a process and eliminate waste or unnecessary work. Quality methods There are also many quality methods, such as just-in-time production, variability reduction, and poka-yoke that can improve processes and reduce waste.

Summary The principles of Total Quality Management are to seek to satisfy the external customer with quality goods and services, as well as your company internal customers; to satisfy your external and internal suppliers; and to continuously improve processes by working smarter and using special quality methods.

Job Description

Brief Description of the Organization

Citibank India in assistance with the Citi Right Placement Office has established a new company in India to house existing Shared Services functions; Knowledge based Analytics functions serving Citi globally and units/ individuals providing oversight over Operations and Technology suppliers in India. The new company is called Citicorp Services India Limited (CSIL). CSIL is a public limited company under Indian regulation and a 100% owned subsidiary of Citibank Overseas Investment Corporation (COIC). The above activities are currently housed in different companies and it is more appropriate to have these processed in an outsourcing BPO/ KPO type of entity. Further, the current model also creates certain challenges in managing them with full administration and middle office support. It also restricts the flexibility of diversification. In light of these, it is felt that we should realign these activities to ensure efficiencies and correct placement as well as appropriate admin support. This company will enable greater efficiencies and will simplify our corporate structure in South Asia. CSIL will

report into South Asia Management for country matrix & governance perspective. Treasury Risk Analyst 2-12052188

Description
Grade - C9 Financial Reporting Organization (FRO) is seeking an individual whose primary responsibility would be Liquidity Risk Reporting and maintain IT infrastructure for Liquidity Risk Reporting group The position will work closely with Risk Reporting/Risk Management, Finance/Product Control, as well as members of Treasury to report on, monitor, and forecast the company's liquidity position. The candidate will develop an understanding of the business dynamics and funding strategies that result in liquidity risk as well as the related policies and measures of liquidity risk under business as usual and stressed conditions. Description/Responsibilities: Responsible for reporting on and analyzing o Current liquidity/interest rate risk position through the production of the daily Gap Analysis Report o Calculation of liquidity ratios to allow management to monitor changes in structural liquidity o Supplying information for the production of stress scenarios to quantify the likely impact of certain events on the balance sheet and to report on what incremental funding may be required o Also responsible for producing cash flow and various other ad-hoc regulatory reporting. Assist members of Risk Reporting/Risk Management, Finance, and Treasury to establish reporting requirements and develop the tools, analysis and reporting necessary to proactively identify and manage risk with respect to portfolios and products, and continuously update the reporting process to reflect the current business structure. Aid and assist senior member of the various disciplines to identify ways to streamline and automate process flows in order to create more accurate and timely results, as well as improving efficiency Maintaining IT infrastructure for Liquidity Risk Reporting group ( Excel Macros, VB, MS Access)

Qualifications
Qualifications:

The ideal candidate will have Masters and 0-2 years of work experience in finance or accounting or related control discipline (e.g. Risk Management,). Must possess strong knowledge of balance sheet composition. Must possess knowledge of system workflows, front-end and management reporting application systems. Proficiency in understanding and coding for VBA / Macros is a huge plus Treasury experience including asset and liability management is a plus. Highly proficient in MS-Excel and MS-Access Attention to detail and accuracy are essential.

Primary Location
: APAC-IND-MH-Mumbai

Schedule
: Full-time

Education Level
: Master's Degree

Shift
: Day Job

Employee Status
: Regular

Travel
: Yes, 10 % of the Time

Office Location / Address

: Mumbai

Pune PricewaterhouseCoopers Pvt Ltd

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Pune PricewaterhouseCoopers Pvt Ltd

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Pune Lovelock & Lewes/Price Waterhouse/Dalal & Shah

Mutha Towers - 5th Floor, Suite 8 Off Airport Road Yerawada Pune 411006 India Telephone: [91] (20) 4100 4444 Telecopier: [91] (20) 4100 6161