Effectiveness of TQM

Effectiveness of TQM
EXECUTIVE SUMMARY Total Quality Management (TQM) is a managerial philosophy that focuses attention upon identifying and producing a product that meets or exceeds customer expectation within the environment. That fosters the cooperative effort of knowledgeable employees who are empowered to strive for continuous improvement of the organizations product process. TQM looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement and quality assurance. In this project I try to reveal the effectiveness of TQM with reference to the Digila Devices India Pvt.LTD. Digila Devices India LTD. having a well defined Quality Circle, their recommendations has resulted in a reduced number of defects, reduced absenteeism and improvement in productivity and job satisfaction. The quality planning is carried out through a well planned Quality Management system. The quality control is carried out by one of the popular QC tool flow chart, which helps to the pictorial representation of the stages in a process. Effective organizations use standards such as ISO 9000 and certifications such as AQSR, NQAQSR, MBNQA to provide guidance for establishing their quality management systems structure, maintaining records, and using quality techniques to improve processes and systems. The Digila Devices India Pvt.LTD successfully implemented the TQM and we can say without any doubt that implementation makes a positive effect on the entire organization.
SEA College of Engineering & Technology
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CHAPTER-1
INDUSTRY PROFILE Introduction Over view of the electronic industry in India Electronics is one of the fastest growing segments of the Indian industry. The electronic industry in India constitutes less than 1% of the global market. The demand for these products however is growing rapidly and the investments are flowing in to augment the manufacturing capacity. Among manufacturing industries, the electronics industry occupies a key position in modern science and technology. It plays a vital role in the fields of atomic energy, communications, defense, education, entertainment and space technology. Until the 1970s the electronic industry was the most protected of all the Indian industries. The countrys electronics policy strongly favored selfreliance and technology and capital imports were strongly discouraged. This resulted in the electronics industry being highly underdeveloped till the late 1980s. The Indian electronics industry today stands at US $ 25 billion. It is ranked 26th in the world in terms of sales and 29th in the world in terms of production. It is growing at over 25% CAGR and is expected to be worth US $ 158 billion by 2015. The electronic industry is one of the fastest growing industries in the country and is driven by growth in key The demand for electronics is expected to be fuelled by the growth of Telecommunications. Broad-Band connectivity reaching rural. Notes books and laptops sectors.
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Electronics is something that has blended into our lives. The written matter that is now being read has also been written with the aid of electronics or more specifically electronic equipments. Therefore as a part of life, electronics and electronic devices and equipments hold major significance. We regularly use television, telephones, computers, ovens, radios and other such equipments. It is interesting to know how all this came into existence and how with time there have been major innovations and improvements in the existing products.
Over view of the automobile industry in India
History of the automobile In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled, military tractor that made the use of a steam engine. The range of the automobile, however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the steam engines made them very heavy and large, and required ample starting time. Oliver Evans was the first to design a steam engine driven automobile in the U.S. A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were amongst the first to invent more applicable automobiles, making use of non-rechargeable electric batteries in 1842. Development of roads made travelling comfortable and as a result, the short ranged, electric battery driven automobiles were no more the best option for travelling over longer distances. The automobile industry finally came of age with Henry Ford in 1914 for the bulk production of cars.
SEA College of Engineering & Technology Page 3
CHAPTER-2
COMPANY PROFILE
2.1 Background and inception of the company: Digila Devices India Pvt.LTD, an ISO 9001-2008 Certified Company, manufactured and marketed by wide verities of electronic devices and automobile equipments with reliable technology. The registered office of the company is situated in the state of Kerala. The main objectives to be pursued by the company on its incorporation are to do the business of manufacture, distribution and service of electronic and electrical devices, equipments and connected accessories. Digila Devices India Pvt.LTD. introduced low cost and easy install electronic cash register, coin pay phones, charge indicators and speed governors are on the brand name MERCYDA. The industrial arts continuous and exhaustive testing of these machines assures on undoubted reliability and good performance.
2.2 Nature and business carried Digila Devices India Pvt.LTD. an ISO9001-2008Certified
company, they are doing the business of manufacture, distribution and service of electrical devices, equipments and connected accessories. The company manufactured and marketed a wide range of products that are highly innovative and best in the industry. Manufactured after extensive, research and development, these products are highly demanded all around.
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2.3 Vision, Mission & Quality Policy
Vision: Manufacturing worlds most advanced communication and automobile equipments with reliable technology
Mission: To develop and promote cost effective and environment friendly technologies for a better and safer tomorrow.
Quality policy:
The company provides value and satisfaction to customers on products and services. This will be achieved through: Systematic training and motivation of employees. Complying with customer requirements and applicable
statutory/regulatory requirements. Continually improving the efficiency and effectiveness of the Quality Management Systems.
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2.4 Product Profile Digila Devices India Pvt. LTD manufactured and distributed a wide range of products that are highly innovative and best in the industry. Manufactured after extensive, research and development, these products are highly demanded all around.
Automobile Equipments: Speed Governor
Communication Equipments MERCYDA coin pay phones -Wall mounted pay phones -Table top pay phones MERCYDA 2001 STD PCO monitors MERCYDA local call monitor MERCYDA conference unit
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2.5 Area of Operation In the last few years, the company has sold more than 21,000 Speed Governors across India, which is the highest amount by Speed Governor Manufacturer. By providing 360 degree service to clients, they have gained success in setting up huge sales & after sales network in following states:

Kerala Andhra Pradesh Punjab Gujarat Karnataka Goa Tamil Nadu Maharashtra
Major Distributors: Dars Automobiles Pvt.LTD-Bangalore PSN Automobiles Grace Automotives Grace agencies Automotive marketing Pvt.Ltd 2.6 Ownership Pattern Digila Devices India Pvt.LTD is a family driven ownership pattern. Mr.Biju Paulose an electronic engineering graduate, he is the Managing Director of Digila Devices India Pvt.LTD.
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2.7 Competitors Information
The Automobile division of Craysol technologies is a fast growing division of the company which has set its mark in the history by developing numerous technologies for enabling better safety and improving efficiency. Craysol is a part of the XL Group, founded in 1974, driven by the same team with the highest ambition, vision and strive for perfection. Craysol is the first company around the world which developed IFMS (Intelligent Fuel Management System) and used it in Speed Governors. The Research and Development Division of Craysol is accredited with several award winning technology in hardware, embedded software as well as in systems programming. Way back in 2003, the first concept of Fuel based Speed Management System was conceived in the minds of the management and in two years, the dreams came to the light with the first Speed Governor XSP0403. The perfection and refinement that Craysol has brought in fuel based technology over past so many years is very evident as XSP0403 is the only Speed Governor model from India approved for VOLVO vehicles.
WHY CRAYSOL The first Company to Develop IFMS Technology. Perfected over years of Research and Development. More number of Installations that any other company in India. Fully Online Billing and Spare Mgmt System called WIBS. ISO 9000:2001 Certified for production facility. All major Transporters are Customers of Craysol.
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ROSMERTA AUTOTECH PVT. LTD.
An ISO 9001:2008 certified company offering highly innovative Speed Governor (Fuel Based), Speed Governor (Cable / Actuator Type), Vehicle Tracking System (VTS) and others.
The company incorporated under the Companies Act 1956. Rosmerta Autotech Pvt. Ltd. "Previously Known as MULTI SPEED GEARS PVT. LTD." is a highly specialized manufacturer and exporter in the field of automobile. With their products, they are offering highly innovative technology solutions to clients, domestic as well as international, which includes statutory authorities, Government sector, OEMs and after market clients in the transport sector. Their product range includes Speed Governor (Fuel Based), Speed Governor (Cable / Actuator Type), GPS Based Variable Speed Governor (VSG) (Patent Pending), Variable Speed Governor with Tracker (VSG + VTS) and many others.
The products can be categorized into road safety solutions and are approved as well as certified by ARAI (Automobile Research Association of India, Pune) and iCAT (International Centre for Automotive Technology, Manesar, Gurgaon).
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Pricol have a very good market leadership through customer delight. The company will be a responsible corporate citizen and share the benefits with society. They make their customers, employees, suppliers and shareholders feel proud of their association and long-term relationship .
Product profile:
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2.8 Infrastructural Facilities The company has developed a huge infrastructure, which is well equipped with a series of machines and facilities. These enable in ensuring the best quality of their Speed Governor pay phone and others. It comprises a manufacturing setup and R&D set up. The manufacturing set up is located at North Kerala. Owing to their infrastructure, they have always met the client's expectations and acquired their complete satisfaction. Location: NH 212, Industrial layout Near Govt:Technical High school Sulthan Bathery North Kerala-673592 Physical Facilities:The plant is designed to accommodate the Processing hall Raw material storage Finished goods storage Administrative office. R&D Block 2.9 Quality Certification Digila Devices India Pvt.LTD an ISO 9001:2008 certified company and hence are offering only the flawless products. They have been awarded with this certification for adhering to international quality & system standards. In addition, they have also acquired various technical approvals such as: ARAI (The Automotive Research Association of India) certification DOT-TEC Approved ISO Certification
2.10 Work flow model
Deale r enqui ry/or der
Review including Design& resource
Pr od uct ion Purc pla hase nni ng Re cei pt of
Ok
Verify Resource s
S t o Iss r ue e to pr Manuf od acturin uct g ion Produc ts In proc ess &
Ok
In co mi ng Maintai ins n the pe machin cti ery & on tools
Purchase
order
to
approved supplier & sub contract. Follow non conformation procedure DDIL/QSP/8.3
Not ok
at eri al
Train ing
Cor rect
Not ok
Final insp ectio n Receive customer complaint if any and take suitable actions
ive/ pre ven tive acti on
Ok
Di sp E at N ch SEA College of Engineering & Technology D
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CHAPTER-3 The McKinsey 7S Framework The McKinsey 7S framework developed in the early 1980s by Tom Peters and Robert Waterman, two consultants working at the McKinsey & Company consulting firm, the basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful. The 7S model can be used in a wide variety of situations where an alignment perspective is useful, for example;

Improve the performance of a company. Examine the likely effects of future changes within a company. Align departments and processes during a merger or acquisition. Determine how best to implement a proposed strategy.
The Seven Elements The McKinsey 7S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements: Hard Elements Strategy Structure Systems Soft Elements Shared Values Skills Style Staff
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"Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems. "Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. However, these soft elements are as important as the hard elements if the organization is going to be successful. The way the model is presented in Figure 1 below depicts the interdependency of the elements and indicates how a change in one affects all the others.
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STRATEGY: The strategy which means the plan devised to maintain and build competitive advantage over the competition.Digila Devices India Pvt.LTD having the strategy to do the business of manufacture, distribution and service of electronic and electrical devices, equipments and connected accessories. The industrial
arts continuous and exhaustive testing of these machines assures on undoubted reliability and good performance. SYSTEMS: The system means the daily activities and procedures that staff members engage in to get the job done. The decision making systems within the organization can range from management intuition to structured computer systems to complex expert systems. STYLE: The style means the style of leadership adopted. The leadership approach of top management and the companys overall operating approach. All the decision here is participative. Organization Culture: A large family Basic trust in people MBO Pride in company and its products Top management-visible and accessible Top management- fair and firm.
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SKILLS: People-in a real sense, a lasting competitive advantage of any organization; people are the engine driving of their business successfully. Everything else almost everything else can be replicated products, brands, services, assets and infrastructure but not people resources. What an organization indeed requires is developing a strong foundation of capable and competent human resources. Through sustained training and development activities the company ensures that competences, skills, knowledge and capabilities of their employees are continuously sharpened. Through the continuous product improvement and up gradation that provides worlds most advanced communication and automobile equipments with reliable technology.
STAFF: The company ensures that a new family member is fully acclimatized with the organizational environment and understands his job responsibilities very well .So that he can perform very well in a challenging environment with structured goals but with a comfortable feeling that he/she is being cared for and helped in every possible way. Employee welfare: Welfare fund Emergency assistance
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SHARED VALUE: Shared Values were called "super ordinate goals" when the model was first developed. These are the core values of the company that are evidenced in the corporate culture and the general work ethic. Build Trust: the company conducts all their business dealings with fair and ethical business practices and strive to build trust in minds of all their customers. Belief in Excellence: the company believes in setting higher levels of excellence in all their actions and will recognized and reward the excellence achieved by our team members. Delighting customers: the company delights their customers by providing them world class products and services and thereby enhances their quality of life. Ensuring accountability: the company will work in a transparent, performance oriented environment and define clear accountability for their employees, while empowering them to achieve their performance goals with speed and efficiency. Encouraging team work: the company ensures dignity and respect for the individual while encouraging team work. Personal growth: every employee will be enabled to learn at the work place with significant opportunities for the personal growth and contribution to the organization.
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ORGANIZATION STRUCTURE:
Managing Director
Management Representative
Sr.Production Mgr
Marketing Mgr
Purchase Mgr
Administration Mgr
Production Mgr Service Engineer Sr.Technical Assistant Marketing Executives Receptionist Assistants
Technical Assistant
Quality Assurance Mgr
Trainees &Helpers
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CHAPTER-4
SWOT ANALYSIS
STRENGTHS: Innovative Strong brand positioning to drive growth Dominating market value in its product categories Good working environment ISO Certification ARAI approval. WEAKNESSES: Publicity of these products are less in mass media Distribution network is less in number in many cities.
OPPORTUNITIES: Good progress of speed governor in business market.
THREATS: Competition from other brand like Pricol, MSG, Craysol.
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Trading and Profit & Loss a/c for the year ended 31 st March 2010
2008-2009 INCOME Sales A 8,237,650.00 8,237,650.00 12,653,467.00 12,653,467.00 2009-2010
EXPENDITURE Material consumed Opening stock Add purchases Less closing stock Add direct expenses Freight charge Job work expenses Salary and allowances-pdn B GROSS PROFIT Indirect incomes A-B 373000.00 344700.00 6434777.00 1802873.00 43262.40 1846135.40 Less expenditure 28282965.83 14,492,850.00 396,627.00 14889477.00 9172400.00 5717077.00 5,474,919.00 16,863,551.17 22338470.17 14492850.00 7845620.17 882639.00 468893.00 627349.00 9824501.17 2828965.83
salary and allowances advertisement managing directors remuneration rent interest and bank charges printing and stationery electricity charges professional charges telephone charge travelling expenses directors sitting fee ISO certification expenses R&D expenses
154200.00
187000.00 53107.00 480000.00 118800.00 46578.20
300000.00 108000.00 14280.00
44650.00 14091.00 3000.00 39837.00 5865.00 31200.00 792750.00
141488.50 28612.00 36750.00 53352.00 7890.00 31200.00 28472.00 1061832.00
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67910.00 11250.00 1500 10000.00 47809.00 1218.00 81240.00 43039.00 29040.00 1710.00 129543.00 10000.00 88945.00 62986.52 1100.00 106382.00
Provident fund Accounting charges Income tax and FBT Taxes and fees Central excise duty paid Audit fee Sundry expenses Repairs &maintenance Periodicals Transportation charges
D 1728800.00 Profit/Loss before depreciation Less depreciation C-D

117335.40
2747827.22 81138.61
34820.68
36842.81
NET PROFIT/ LOSS
82514.72
44295.80
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BALANCE SHEET AS ON 31 st MARCH 2009
SOURCE OF FUNDS
31/03/2009
31/03/2008
Share capital Authorized capital (100000 shares of Rs .10 each) Issued, subscribed & paid up capital (95000 shares of Rs .10 each) 1975000.00 SHARE APPLICATION MONEY Total 2925000.00 4950000.00 4000000.00 950000.00 950000.00 1000000.00 1000000.00
APPLICATION OF FUNDS Fixed Assets Tools and equipments Gross block Depreciation 557880.74 333525.51 A 224355.23 557880.74 298704.83 259175.91
Net block Current assets loans and advances Sundry debtors Deposits Advance to directors Closing stock Cash and bank balances Indian overseas bank s.Bathery Cash in hand
162680.00 218732.00 292907.00 9172400.00
162680.00 218732.00 257953.00 14492850.00
23604.31 89498.52 B 9959821.83
188933.70 105776.63 15426925.33
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Less current liabilities & provisions Audit fee KVAT payable Duties and taxes Salary payable Sundry creditors C 20000.00 9196.00 65500.00 7189682.77 7284378.77 10000.00 6615.00 994.90 65500.00 10760707.77 10873817.67
Net current assets
(B-C)
2675443.06
4583107.66
Miscellaneous expenditure not w/off Preliminary expenses E 12250.00 12250.00
PROFIT &LOSS A/C
12951.71
95466.43
TOTAL (A+D+E+F)
2925000.00
4950000.00
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LEARNING EXPERIENCE As a management student the ten weeks project work which gave me an amazing experience about industrial exposure of the firm Digila Devices India Pvt.LTD. Digila Devices India Pvt.LTD, an ISO 9001-2008 Certified Company, manufactures and market by wide verities of electronic devices and automobile equipments with reliable technology. Digila Devices India Pvt.LTD has been successfully following their quality management systems through a well defined TQM. The TQM is an opportunity for management to control the company on its overall quality.TQM is an overall business strategy, that all activities of the company will be focused on satisfying all stakeholders of the company. In theoretically the TQM has quality of life as its primary objective. But in reality, it is perceived to be an instrument to achieve high product quality through continuous improvement. On the basis of this study I understood that the company following very good documentation process. They maintained list of quality procedures, list of work instruction, list of control plans and the list of quality records. We can concise this project that the company is successfully following their quality management system through a well defined TQM and this effectiveness reflect a positive effect on the companies productivity, work life ,market share and each department of the company.
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CHAPTER-7 GENERAL INTRODUCTION Research Methodology: Research methodology is a way to solve the research problem in a systematic manner. The methodology of research work provides an outline and a framework of how the work conducted. The methodology may differ from problem to problem, yet the basic approach towards the research remains the same. Research Design: The research design is logical and systematic plan prepared for directing a research study. It is a conceptual structure within which the research would be conducted. It find what, where, when, how much, by what means a research is to be conducted. It specifies the objective of the study, the methodology and techniques to be developed for achieving the objective it constitutes the blue print for the collection measurement and analysis of data. Thus we can say that research design is a plan that states the sources and types of information required for the study of the problem. 7.1 Title of the study A study on the Effectiveness of Total Quality Management with special reference to Digila Devices India Pvt.LTD
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7.2 Statement of the problem TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, human resource, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives. TQM views an organization as a collection of processes. It maintains that organizations to continuously improve these processes by incorporating the knowledge and experiences of workers. The simple objective of TQM is Do the right things, right the first time, every time. TQM is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations TQM looks at the overall quality measures used by a company including managing quality design and development, quality control and maintenance, quality improvement and quality assurance. In this project I try to reveal the effectiveness of TQM with reference to the Digila Devices India Pvt.LTD.
7.3 Objective of the study To study the effectiveness of TQM with reference to Digila Devices India Pvt.LTD.
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7.4 Scope of the study The study is carried out at Digila Devices India Pvt.LTD provides an insight into the implementation and the effectiveness of the TQM. TQM takes into account all quality measures taken at all levels and involving all company employees. TQM has already implemented in the Digila Devices India Pvt.LTD and this study reveals the effectiveness of that implementation. 7.5 Research design and methodology Type of research: Exploratory in nature. Sample size : 50 respondents
7.6 Source of data Primary data: Direct personal interview Structured questionnaire Secondary data: Web sites Journals and magazines Company brochures Text books
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7.7 Limitations of the study The study is confined to only one firm The study has been carried out and complied on the assumption that the information rendered by the respondents is true.
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7.8 OPERATING DEFINITIONS TOTAL: Everyone associated with the company is involved in continuous improvement, in all functional area, at all level. QUALITY: Quality means fitness for use. Quality means conformance to specification and standard. TOTAL QUALITY MANAGEMENT: Total Quality Management is an approach to the art of management that originated in Japanese industry in the 1950's and has become steadily more popular in the West since the early 1980's. TQM Defined TQM is a management philosophy that seeks to integrate all organizational functions (marketing, finance, design, human resource, and production, customer service, etc.) to focus on meeting customer needs and organizational objectives. Total Quality Management which focuses attention upon identifying and producing products that meets or exceeds customer expectation within the environment. That fosters the co-operative effort of knowledgeable employees who are empowered to strive for continuous improvement of the organizations product process.
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Total Quality Management, TQM, is a method by which management and employees can be involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses.
Total Quality is a description of the culture, attitude and organization of a company that aims to provide, and continue to provide, its customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company's operations, with things being done right first time, and defects and waste eradicated from operations.
Important aspects of TQM include customer-driven quality, top management leadership and commitment, continuous improvement, fast response, actions based on facts, employee participation, and a TQM culture. Quality Circle: A Quality Circle is a small group (8 to 10) of employees who meet voluntarily on a regular basis to share ideas in on attempt to identify, analyze and solve quality or job related problems. In many companies, their recommendations have resulted in a reduced number of defects, reduced absenteeism and improvement in productivity and satisfaction. job
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QUALITY STANDARDS AQSR American Quality Standards Rating
American Quality Standards Rating (AQSR) will provide buyers and importers valuable information about the company and products, allowing them to buy with confidence. The AQSR will provide valuable information about the company's products, their operating history, financial stability, experience in exporting to the United States and other information to help the decision about doing business with them.
The National Accreditation Board for Certification Bodies (NABCB) undertakes assessment of Certification Bodies applying for accreditation as per the Board's criteria in line with international standards and guidelines. The Board offers accreditation to the Certification bodies and Inspection Bodies. Accreditations offered

Quality Management Systems (QMS) Environmental Management Systems (EMS) Food Safety Management Systems Inspection Product Certification Occupational Health and Safety Management Systems
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ISO (International Organization for Standardization) is the world's largest developer and publisher of International Standards.ISO is a network of the national standards institutes of 161 countries, one member per country, with a Central Secretariat in Geneva, Switzerland, that coordinates the system. ISO is a non-governmental organization that forms a bridge between the public and private sectors. On the one hand, many of its member institutes are part of the governmental structure of their countries, or are mandated by their government.
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DATA ANALYSIS AND INTERPRETATION
Table 8-1 shows the number of employees knows the implementation of TQM: Levels Total Respondent Yes
number
No % 100 100 82 90
number
% 0 0 18 10
Top Level Middle Level Lower level Total
7 15 28 50
7 15 23 45
0 0 5 5
Analysis: From the above table it can be seen that the all top level and middle level employees knows the implementation of TQM. But in lower level out of 28 respondents only 23 knows the TQM implementation
Inference:
Hence from the above analysis, it can be inferred that 90% 0f total respondents knows the implementation of TQM.
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Fig no 8.1 shows the number of employees knows the implementation of TQM
100 90 80 70 60 50 40 30 20 10 0 Top Level Middle Level Lower Level Total Yes % NO %
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Table 8.2 shows the number of employees aware the ISO certification: Levels Total Respondent Yes
number
No % 100 100 100 100

number
% 0 0 0 0
7 15 28 50
7 15 28 50
0 0 0 0
Analysis: From the above table it can be seen that the all top level, middle level, and lower level employees knows the ISO certification of the company.
Inference: Hence from the above analysis, it can be inferred that 100% 0f total respondents knows the ISO certification of the company
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Figure 8.2 shows the number of employees aware the ISO certification
100
90
80
70
60 Yes % 50 NO %
40
30
20
10
0 Top Level Middle Level Lower Level Total
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Table 8.3 shows the employee awareness about the companys quality circle Levels Total Respondent Yes
number
No % 100 100 71 84
number
% 0 0 29 16
7 15 28 50
7 15 20 42
0 0 8 8
Analysis: From the above table it can be seen that the all top level and middle level employees knows the Quality Circle of the company. But in lower level out of 28 respondents only 20 knows the Quality Circle.
Inference: Hence from the above analysis, it can be inferred that 84% 0f total respondents knows the Quality Circle of the company.
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Fig no 8.3 shows the employee awareness about the companys quality circle
100
90
80
70
60 Yes % 50 No %
40
30
20
10
0 Top level Middle level Lower level Total
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Table 8.4 shows the length of service of employees at Digila Devices
Si.no 1 2 3 4 5
Length of service 0- 5 years 5-10 years 10-15 years Above 15 TOTAL
No. of respondents 22 28 0 0 50
Percentage 44 56 0 0 100
Analysis: From the above table it can be seen that 56% of total respondents are working at Digila Devices India PVT.Ltd for more than 5 years period and followed by 44% of respondents between 0-5 years.
Inference: Hence from the above analysis, it can be inferred that majority of respondents are permanent workers in Digila Devices India Pvt.LTD and have served the organization for more than 5 years.
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Figure number 8.4 shows the length of service of employees at Digila Devices
No.of respondent (%)

60
50
40
30
No.of respondent (%)
20
10
0 0-5 years 5-10 years 10-15 years above 15
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Table 8.5 shows how the working environment rated in the organization
Parameter Highly satisfied Satisfied Neither satisfied or nor Dissatisfied Total
No of respondents 10 40 0 0 50
% of respondents 20 80 0 0 100
Analysis: From the above table, it is found that 80% of respondents are satisfied and 20% of respondents are highly satisfied with the working environment in the organization.
Inference: From the above analysis, it is inferred that majority of the respondents are satisfied with the working environment of the organization.
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Figure number 8.5 shows how the working environment rated in the organization
Percentage Of respondent
Highly satisfied Satisfied Neither satisfied or nor Dissatisfied
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Table 8.6 shows the opinion about employee training program which improve their skill.
Parameter Strongly agree Agree Nor agree/neither agree Disagree Total
Analysis: From the above table 66% of respondents they strongly agreed and 34% of respondents agreed that employee training program which improves their skill.
Inference: Hence from the above analysis, it is inferred that entire respondents agreed that the employee training program which improve their skill.
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Figure number 8.6 shows the opinion about employee training program which improve their skill.
Percentage of respondent
70
60
50
40
30 Percentage of respondent 20
10
0 Stronly agree Agree Nor agree/neither agree Disagree
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Table 8.7 shows the relationship with superiors and co- workers
Parameter Highly satisfied Satisfied Neither satisfied or nor Dissatisfied Total
Analysis: From the above table, it is found that 60% of respondents are satisfied and 40% of respondents are highly satisfied with the relationship of their superiors and co- workers.
Inference: From the above analysis, it is inferred that majority of the respondents are satisfied with the relationship of their superiors and co- workers.
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Figure number 8.7 shows the relationship with superiors and co- workers
60
50
40
30
no: of respondent % of respondent
20
10
0 Highly satisfied Satisfied Neither satisfied or nor Dissatisfied
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Table 8.8 shows the respondents are treated as the asset of the company.
Levels
Total Respondent
Yes
number
No % 100 100 100 100

number
% 0 0 0 0
7 15 28 50
7 15 28 50
0 0 0 0
Analysis: From the above table shows that 100% respondents they say they are treated as the asset of the company.
Inference: From the above analysis, it is inferred that all the respondents are commonly agreed that they are treated as the asset of the company.
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Fig no 8.8 shows the respondents are treated as the asset of the company.
100
90
80
70
60 YES 50 NO 40
30
20
10
0 Top level Middle level Lower level
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Table 8.9-shows employee opinion about the company benefits which improve their productivity.
Levels
Total Respondent
Yes
number
No % 100 100 100 100

number
% 0 0 0 0
7 15 28 50
7 15 28 50
0 0 0 0
Analysis: From the above table shows that 100% respondents they say that the company benefits which improve their productivity.
Inference: From the above analysis, it is inferred that all the respondents are commonly agreed that the company benefits which improve their productivity.
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Fig no 8.9-shows employee opinion about the company benefits which improve their productivity
100 90 80 70 60 50 40 30 20 10 0 Top level Middle level Lower level
YES NO
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Table 8.10 shows that the employees job makes the best use of their abilities
Levels
Total Respondent
Yes
number
No % 100 100 71 84
number
% 0 0 29 16
7 15 28 50
7 15 20 42
0 0 8 8
Analysis: From the above table, it is found that the top level and middle level employees responds 100%, that the employees job makes the best use of their abilities.
Inference: From the above analysis, it is inferred that 84% of the total respondents says that the employees job makes the best use of their abilities.
Page 51
Fig no 8.10 shows that the employees job makes the best use of their abilities
Total
Lower level
NO YES Middle level
Top level
20
40
60
80
100
120
Page 52
Table 8.11 shows the TQM implementation which changes in product complaint.
Products
Total Respondent Zero complaint

number
Complaint
number
% 100 100 100 -
% 0 0 0 -
Speed governor Pay Phone P CO Monitors Charge Indicator Conference Unit
20 16 16 -
20 16 16 -
0 0 0 -
Analysis: From the above table shows that the all respondents says speed governor, PCO Monitors and charge indicators are the present manufacturing products they are having 100% zero complaint. Inference: From the above analysis, it is inferred that after the implementation of TQM the products are moved in to zero complaint products.
Page 53
Fig no 8.11 shows the TQM implementation which changes in the complaints of products
100 90 80 70 60 50 40 30 20 10 0 speed governor Pay phone pco monitor charge indicator conference unit Zero complaint Complaint
Page 54
Table no. 8.12 shows the cycle time difference of after the implementation of TQM.
Levels
Total Respondent
Yes
number
No % 100 100 100

number
% 0 0 0
Top Level Middle Level Total
7 15 22
7 15 22
0 0 0
Analysis: From the above table shows that all respondents of top and middle level employees say that there is a cycle time difference after the implementation of TQM. Inference: From the above analysis, it is inferred that after the implementation of TQM there is a cycle time difference of the production process of the company.
Page 55
Fig no. 8.12 shows the cycle time difference of after the implementation of TQM.
120
100
80
60 YES 40 NO
20
0 Top level Middle level Total
Page 56
Table no 8.13 shows the organizations sales turnover

Si 1 2 3 4 Year Sales turnover( units) Sales turnover in Rs.
2007-2008 2008-2009 2009-2010 2010-2011
4218 2745 3250 4555
12653467 8237650 9750000 13665000
Analysis: From the above table shows that 2007-08 sales turnover is 4218 units .In 200809 that was 2745 units and 2009-10 that was increased into 3250 units. And the final year the sales turnover increased into 4555 units. Inference: From the above analysis, it is inferred that after the implementation of TQM there is a positive effect on the sales turnover.
Page 57
Fig no 8.13 shows the organizations sales turnover
5000 4500 4000 3500 3000 2500 2000 1500 1000 500 0 2007-2008 2008-2009 2009-2010 2010-2011 STR IN UNITS
Page 58
Table no 8.14 shows the Market share of the product in various years
Si 1 2 3 4
Year
Market share (%)
2007-2008 2008-2009 2009-2010 2010-2011
20 25 32 38
Analysis: From the above table shows 20% market share in 2007-08, 25% in 200809, 32% in 2009-10 and 38% in the year 2010-11. Inference: There is a gradual growth on the market share of the product after the implementation of TQM.
Page 59
Figure number 8.14 shows the market share of the product.
market share (%)

40
35
30
25
20 market share (%) 15
10
0 2007-2008 2008-2009 2009-2010 2010-2011
Page 60
Table 8.15 shows the number of distributors of the company in various years.
Si 1 2 3 4 Year Number of Distributors
2007-2008 2008-2009 2009-2010 2010-2011
40 60 75 120
Analysis: From the above table shows 40 distributors in 2007-08, 60 in 2008-09, 75 in 2009-10 and 120 in the year 2010-11. Inference: There is a gradual growth on the number of distributors after the implementation of TQM.
Page 61
Figure 8.15 shows the number of distributors
number of distributors
140
120
100
80
60 number of distributors 40
20
0 2007-08 2008-09 2009-10 2010-2011
Page 62
FINDINGS
Digila Devices India Pvt.LTD having a well defined quality management system. TQM implementation helps to the overall improvement of the firm. TQM effect reflects in a long term basis, and also considers the quality as a long term investment. In theoretically the TQM has quality of life as its primary objective. But in reality, it is perceived to be an instrument to achieve high product quality through continuous improvement. Top level and middle level employees know very well about TQM implementation. But in lower level employees around 18 % have no idea about the implementation of TQM. All levels of employees have a clear cut knowledge about ISO. Top level and middle level employees know very well about Quality Circle. But in lower level employees around 29 % have no idea about the functions of QC. 80% of respondents are highly satisfied with their working environment. 20% respondents are satisfied with their working environment.
66% respondents are strongly agreed that the training programs which improve their skills and abilities.34% respondents are agreed to that.
All levels of employees jointly agreed that they are treated as the asset of the company. 60% are highly satisfied and 40% are satisfied with the relationship of their superiors and co-workers. Top and middle level employees are agreed that their job makes the best use of their abilities. TQM implementation changes the complaints of products in zero defects. TQM effectiveness reflects on the market share of the product After the implementation of TQM there is a positive effect on the sales turnover of the company. There is a gradual growth on the number of distributors after the implementation of TQM.
All levels of employees are agreed to that the implementation of TQM

which makes a positive effectiveness.
SUGGESTION To increase sales promotional activities. To focus more on the lower level employees productivity and their quality of work life.
Page 64
CONCLUSION The TQM is an opportunity for management to control the overall quality of the products manufactured by the company.TQM should be on the agenda of every company.TQM is an overall business strategy. It means that all activities of the company will be focused on satisfying all stakeholders of the company. Digila Devices India Pvt.LTD has been successfully following their quality management systems through a well defined TQM. Theoretically the TQM has quality of life as its primary objective. But in reality, it is perceived to be an instrument to achieve high product quality through continuous improvement. We can concise this project that the company is successfully following their quality management system through a well defined TQM and this effectiveness reflects a positive effect on Improved the quality of products Improve the quality conscious employees Improved workers participation Improved the workers satisfaction Improved relation with suppliers and dealers Improved internal communication Preventation of non-conformities Reduction in costs Increase in sales
Page 65
On the basis of this study we can find out some side effects of the implementation of TQM. But those effects like cost of quality, complex documentation process affects very narrowly on the functions of the company.
Page 66
CHAPTER-10 ANNEXURE Questionnaire
Dear sir/madam, I Rahul. P. Chandran final year MBA student of SEA College of Engineering and Technology, Bangalore have undertaken a Study on the effectiveness of TQM with special reference to Digila Devices India Pvt.LTD. This exercise is a partial fulfillment of the MBA. I would be obliged if you could provide some of your valuable time to answer the following questions.
1. Name : 2. Age 3. Post : : 5-10 Above 15
4. Years of experience: 0 - 5 10-15 Q1.Does your organization apply TQM? YES [ ] NO [ ]
Q2.Is your organization ISO 9000 Certified? YES [ ] NO [ ]
Q3.What are the quality practices, your organization are apply for Quality Circle [ ] GMP [ ] JIT [ ] Benchmarking [ ]
Page 67
5s Practice
[ ]
Business Process Re-engineering [
Q4. How is the working environment in the organization? a. Highly satisfied b. satisfied c. Neither satisfied nor dissatisfied d. dissatisfied Q5. Training program of the company has helped me lot in improving my skills a. Strongly Agree b. Agree c. Disagree d. Strongly disagree Q6. The relationship with your superior and co-workers a. Highly satisfied b. Satisfied c. Neither satisfied nor dissatisfied d. dissatisfied Q7.Are you treated as the asset of the company? a. Yes b. No Q8.Is the company providing benefits to improve the productivity of workers a. Yes b. No
Page 68
Q9 .Do you find that your job makes the best use of your abilities? YES [ ] NO [ ]
Q10.Are you attending the QC meetings Monthly [ ] Quarterly [ ]
Q11.Have any estimated cycle time difference after the implementation of TQM? YES [ ] NO [ ]
Q12. After the implementation of TQM have any changes in the complaint Complaint [ ] Zero complaint [ ].
Q13. Defects, damages, quality complaints YES [ ] NO [ ]
Q14. The sales turnover of the company in various years a. In 2008 b. In 2009 c. In 2010 d. In 2011. Q15.Market share of the product in various years a. In 2008 b. In 2009 c. In 2010 d. In 2011
Page 69
Q16. Number of distributors of the company a. In 2008 b. In 2009 c. In 2010 d. In 2011
Page 70

Effectiveness of TQM

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Effectiveness of TQM

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Effectiveness of TQM

SEA College of Engineering & Technology

SEA College of Engineering & Technology

Over view of the automobile industry in India

SEA College of Engineering & Technology

2.3 Vision, Mission & Quality Policy

SEA College of Engineering & Technology

Automobile Equipments: Speed Governor

SEA College of Engineering & Technology

SEA College of Engineering & Technology

2.7 Competitors Information

SEA College of Engineering & Technology

ROSMERTA AUTOTECH PVT. LTD.

SEA College of Engineering & Technology

SEA College of Engineering & Technology

2.10 Work flow model

Deale r enqui ry/or der

Review including Design& resource

Pr od uct ion Purc pla hase nni ng Re cei pt of

S t o Iss r ue e to pr Manuf od acturin uct g ion Produc ts In proc ess &

In co mi ng Maintai ins n the pe machin cti ery & on tools

ive/ pre ven tive acti on

SEA College of Engineering & Technology

SEA College of Engineering & Technology

SEA College of Engineering & Technology

SEA College of Engineering & Technology

SEA College of Engineering & Technology

Quality Assurance Mgr

SEA College of Engineering & Technology

OPPORTUNITIES: Good progress of speed governor in business market.

THREATS: Competition from other brand like Pricol, MSG, Craysol.

SEA College of Engineering & Technology

187000.00 53107.00 480000.00 118800.00 46578.20

300000.00 108000.00 14280.00

44650.00 14091.00 3000.00 39837.00 5865.00 31200.00 792750.00

141488.50 28612.00 36750.00 53352.00 7890.00 31200.00 28472.00 1061832.00

D 1728800.00 Profit/Loss before depreciation Less depreciation C-D

NET PROFIT/ LOSS

SEA College of Engineering & Technology

BALANCE SHEET AS ON 31 st MARCH 2009

162680.00 218732.00 292907.00 9172400.00

162680.00 218732.00 257953.00 14492850.00

23604.31 89498.52 B 9959821.83

188933.70 105776.63 15426925.33

SEA College of Engineering & Technology

Net current assets

Miscellaneous expenditure not w/off Preliminary expenses E 12250.00 12250.00

PROFIT &LOSS A/C

SEA College of Engineering & Technology

SEA College of Engineering & Technology

SEA College of Engineering & Technology

SEA College of Engineering & Technology

SEA College of Engineering & Technology

SEA College of Engineering & Technology

SEA College of Engineering & Technology

SEA College of Engineering & Technology

QUALITY STANDARDS AQSR American Quality Standards Rating

SEA College of Engineering & Technology

SEA College of Engineering & Technology

DATA ANALYSIS AND INTERPRETATION

Top Level Middle Level Lower level Total

SEA College of Engineering & Technology

100 90 80 70 60 50 40 30 20 10 0 Top Level Middle Level Lower Level Total Yes % NO %