The TQM Journal

Quality strategy for transformation: a case study

S.K. Breja D.K. Banwet K.C. Iyer
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Quality
Quality strategy for strategy for
transformation: a case study transformation
S.K. Breja and D.K. Banwet
Department of Management Studies, Indian Institute of Technology Delhi, 5
New Delhi, India, and
K.C. Iyer Received September 2008
Revised June 2009
Department of Civil Engineering, Indian Institute of Technology Delhi, Accepted August 2010
New Delhi, India
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Abstract
Purpose This paper aims to address the issue of sustainability of excellence in todays turbulent
environment and evaluates the effectiveness (to achieve objectives) of quality strategy in a
DAP-winning company.
Design/methodology/approach A face-to-face interview and a literature review were carried out
in a case study mode.
Findings The paper finds that total quality management (TQM) implemented in the Deming
Application Prize (DAP) framework has a positive effect on business performance. To sustain
excellence, it is important to maintain strategic focus, match strategic options with aspirations, link the
human resource mission with the company vision, and work for transformation.
Research limitations/implications Information provided/reported by the case company is fully
relied upon and the required data are extracted.
Originality/value Working definitions of TQM and business excellence are presented and the
issue of transformation is explored. The study adopts creative approach for identifying critical
success factors, discovers the possibility of including flexibility as the fifth angle in DAP
examination, and proposes a framework for further research.
Keywords Quality management, Total quality management, Deming Prize, Organizational change,
Business excellence, India
Paper type Case study

1. Introduction
Total quality management (TQM), which has been called a management philosophy
(Hafeez et al., 2006), a business strategy (Bowles and Hammond, 1991), a company
culture (Dahlgaard et al., 1998) and a systematic, scientific, companywide activity
(Kano, 1996), is an holistic approach to managing quality; it requires development of a
quality strategy (Kanji et al., 1992) and a framework for its implementation. The three
popular award frameworks i.e. the Deming Application Prize (DAP), the Malcolm
Baldrige National Quality Award (MBNQA) and European Foundation for Quality

The authors thank anonymous reviewer(s) of the paper and the Editor for their useful comments
The TQM Journal
and suggestions, which have led to enhancing the quality of this paper. Vol. 23 No. 1, 2011
The authors thank Sona Koyo Steering Systems Ltd for providing the opportunity for the pp. 5-20
q Emerald Group Publishing Limited
subject study. The views expressed in the article are the authors and not necessarily those of the 1754-2731
organisation that they are with. DOI 10.1108/17542731111097452
 TQM Management (EFQM) Excellence Model seek to promote excellence through the
implementation of TQM. However, with sustainability of excellence becoming a
23,1 challenge, these models are drawing criticism for lacking a scientific approach in their
development (see Williams et al., 2006, among others) and insight into internal
relations and the value generation processes (Conti, 2006). Addressing the issue of
sustainability of excellence, this paper evaluates the effectiveness of quality strategy in
6 a DAP-winning company and attempts to build insight into the issue of
transformation, viewed as prerequisite to excellence.

2. Concepts and definitions

Quality refers to the correctness or appropriateness of an activity or fitness of an entity;
it is compliance to a certain standard. the quality movement in the industrial world,
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beginning with Shewharts control chart technique (Shewhart, 1931), incorporating the
views of operations, systems, behavioural, management function school, and
encompassing Western and Eastern approaches, led to the development of the
concept of TQM. Pioneered as total quality control (TQC), termed a thought revolution
in management (Ishikawa, 1985) by Feigenbaum (1957), TQM marked a change in
management thinking. Though continuously evolving, it is considered different for
several reasons:
.
it attempts to do away with bureaucratic and scientific thinking;
.
it adopts a strategic and socio-technical systems approach to managing quality;
.
it views people as partners and not adversaries, and
. it stresses continuous improvement with the application of a variety of tools and
techniques, such as PDCA improvement cycle, muda, kanban, QC circles, old and
new seven QC tools, policy deployment and daily management, kaizen, quality
function deployment, lean production, Six Sigma and so on, with most of the
tools originating in Japan.
TQM, with top management support and company-wide implementation, seeks to
protect the interests of all business stakeholders, and can be defined as:
An integrated process focusing on the customer, the chief beneficiary, but simultaneously
aiming to protect and enhance the interests of all stakeholders and generate the greatest
possible value at minimum cost through the use of continuously evolving tools and
techniques.
With the creation of superior value (Porter, 1980) and satisfaction of all stakeholders
being the aim, the above definition (showing the inherent dynamism of the concept) can
be applied in a business context as well as socio-political context; it is in keeping with
the emerging thinking regarding the applicability of excellence models in all types of
organisation (Conti, 2006). It also clarifies that TQM (preferred over excellence by some
quality researchers, for example Dale et al., 2000) is the process [implemented as
comprehensive strategy] leading to the effect, whereas excellence (defined below) is
the effect [including the process], an outcome of process; the more the process glitters,
the better the outcomes will be and the greater will be the excellence.
Strategy is the determination of the path (how?) for achieving objectives or goals
(what?) at corporate, business or operational level; it is a pattern observed in a stream
of decisions (Mintzberg, 1973). TQM covers all organisational layers and requires
 effective and efficient implementation. According to Kano (2007), it is about Quality
effectiveness from the customer viewpoint and efficiency from the company strategy for
viewpoint. Quality awards for example MBNQA and DAP according to Kano
(2007) focus on both quality and business excellence and the DAP is given for transformation
setting challenging objectives and strategies, applying TQM for achieving the
objectives, and realising outstanding effects as outcomes.
The European Foundation for Quality Management (2007) defines excellence as the 7
outstanding practice in managing the organisation and achieving results. According
to the authors, business excellence is: a positive and consistent change in all round
performance of the organisation, and realisation of challenging goals, and can be
defined as:
Continual achievement of all round business goals and targets as enshrined in company
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vision, for realisation of the mission, made possible through focused efforts [measured, for
example, in balanced scorecard format], for satisfaction of all business stakeholders.
However, the prerequisite for excellence appears to be learning, which is considered as
being connected with change and transformation (Deming, 1991; Dahlgaard-Park,
2006b). This paper addresses the issue of sustainability of excellence and attempts to
build insight into the issue of transformation. The views and contributions of some
leading researchers on quality management are summarised in Table I.

3. Research objectives and methodology

To address the issue of sustainability of excellence, this paper, within a case, evaluates
the effectiveness (effective to achieve the objectives; The Deming Prize Committee,
2008) of the strategy in achieving goals and objectives and attempts to identify factors
affecting excellence. It also broadly evaluates the impact of TQM (implemented in DAP
framework) as a concept on business performance. Finding case based research
method suitable, as it helps answer how? question as well as or instead of a what?
question and where phenomena and the context in which they exist are difficult to
separate (Yin, 1999), a DAP-winning company was selected for the study and
following research questions were framed:
RQ1. How effective is the case companys strategy in achieving the objectives?
RQ2. How does TQM impact business performance?
RQ3. What should be the approach with regard to implementing TQM techniques
(best fit versus best practice)?
RQ4. What are the factors that are critical for sustaining excellence in todays
turbulent environment?
Primary data collected by watching a company presentation, conducting a face-to-face
semi-structured interview with its Vice President (Strategy And Business
Development) and taking a guided tour of the shop floor in April 2007, and
secondary data collected from the companys website, annual reports and press
releases have been utilised.
The DAP examination focuses on the formulation of business objectives and
strategies, TQM implementation for achieving objectives and strategies, and
outstanding results achieved as an outcome (The Deming Prize Committee, 2008).
 TQM
Author Contribution Views
23,1
Schultz (1994) Origin of quality Taking lead from the meaning of qualis as
how constituted, traces its origin in human
wants
Juran (1974) Definition of quality Fitness for use; customer satisfaction
8 Crosby (1979) Definition of quality Quality is conformance to requirements
Feigenbaum (1957) Definition of TQC An effective system for integrating quality
development, quality maintenance and
quality improvement efforts to enable
marketing, engineering, production and
service to achieve full customer satisfaction
Deming (1991) Emphasis on transformation Transformation into a new style of
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management is required whose root lies in

profound knowledge
Kanji et al. (1992) Quality strategy Development of quality strategy is an
essential part of implementation of TQM
Kano (1996) Definition of TQM A systematic, scientific, companywide
activity that places importance on customers
Dahlgaard et al. (1998) Definition of TQM A company culture characterized by
increased customer satisfaction through
continuous improvements, in which all
employees actively participate
Kondo (1998) Creativity and future Without creative ability, diversification of
development business and branching out into new
business fields which support future
development of the company are very
difficult
Savolainen (2000) Business excellence Business excellence emphasizes the aspect of
competitiveness enhancement
Conti (2006) Systems thinking The full meaning of quality and quality
management concepts can only be
understood within the framework of systems
Table I. thinking
Summary of views and Kaplan and Norton Strategy alignment The enterprise must also align its employees
contributions on quality (2006) and management processes with the strategy
management and Idris and Zairi (2006) Sustainability Sustainability is the product of efficiency and
excellence effectiveness in TQM implementation

Companies applying for the DAP are required to prepare a corporate DTQMP
(description of TQM practices) giving information on business goals and strategies,
status and effect of TQM implementation and future plans, and are evaluated for
basic categories: management policies and deployment, new product development
and/or work process innovation, maintenance and improvement, management system,
information analysis and utilization of IT and human resource development (from four
angles: effectiveness, consistency, continuity and thoroughness); unique activities and
roles of top management.
The case analysis focuses on objectives, TQM implementation and results, and
attempts to answer the research questions. The relationship between objectives and
strategies has been analysed by carrying out a strategic analysis of the company,
including its approach to implementing TQM, and checking alignment of the strategy
 with the companys goals. This is followed by evaluation of outcomes in the BSC Quality
format (Kaplan and Norton, 1996) and also against vision goals and the expectations of strategy for
the DAP (The Deming Prize Committee, 2008). Synthesising the findings and learning,
and adopting the creative approach suggested by de Bono (1970), critical factors are transformation
identified, research questions answered and a framework for future research is
proposed.
9
4. The case company
Sona Koyo Steering Systems Limited, a technical and financial joint venture company
of JTEKT Corporation (created with the merger of Koyo Seiko Company and Toyoda
Machine Works), is the company studied. It produces complete steering systems, for
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manual, hydraulic and electronic power steering systems, and driveline products
including case differentials, axle components, rear axle assemblies and propeller
shafts, for passenger cars and medium utility vehicles (MUVs) in India. The companys
clientele includes Maruti Suzuki (previously called Maruti Udyog Limited) with a 58
per cent share in sales, Hyundai, JTEKT, Tata Motors, Toyota, General Motors and
several others. Established in 1985 and named a global growth company by the
World Economic Forum (WEF) in 1998, it is the worlds first steering systems
company to have won the DAP, in 2003.
Sensing overseas opportunities for the auto-components business at the beginning
of the new century, the company identified its mission: to Create a company that India
is proud of and articulated its goals in its Vision 2010 statement (released in 2003),
reproduced below:
To make Sona a partner of choice to global customers:
.
An organization of energized and involved employees.
.
Growing & achieving high profitability.
.
Supplying to major global OEMs directly or indirectly.
.
At least 45% of the sales are to overseas customers.
.
Continue to be no. 1 steering systems company in India.

Beliefs respect for the individual; service to the customer; excellence in the pursuit of
goals.It set the first milestone target of net sales of INR5 billion (< $0.125 billion) and
exports worth INR1 billion by 2006-2007.

5. Strategic analysis
5.1 Vision-business strategy relationship
With over 45 per cent (by volume) of domestic sales, Sona Koyo is the leader in steering
systems business in India. It sees future growth opportunity in the compact car,
low-cost entry level car, light commercial vehicle and off-highway vehicle segments
and considers Rane (Madras) Limited, which has a higher share in terms of value
(higher proportion of power steering to total sales) as its major competitor.
The company has adopted a growth posture and has set ambitious corporate and
business goals (shown in Vision 2010), especially the goal relating to overseas sales: to
move from a situation of insignificant exports to a company earning 45 per cent
revenues and targeting INR1 billion (20 per cent) by 2006-2007 from overseas markets.
 TQM The basic components of its business strategy, aimed at achieving the above objectives
23,1 are:
.
scaling up volume, capacity and manpower;
.
establishing alliances and partnerships;
.
building technology, R&D and testing capabilities;
10 .
diversifying its product portfolio;
.
expanding customer base;
.
de-risking the business-reducing share of Maruti Suzuki in sales;
.
increasing exports; and
.
excelling through TQM.
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The pattern of decisions, when read in a structured format (Figure 1), reflects the
contours of the strategy and its alignment with the goals.

5.2 Quality strategy and the implementation of TQM

Sona Koyo began its TQM journey in 1997 when, faced with high customer rejections
and returns, it joined the Maruti cluster of suppliers. With TQM led and Toyota
production system (TPS) and total productive maintenance (TPM) supported
integrated approach (domain-b.com, 2004), it has implemented its quality strategy
through policy deployment in three phases:
(1) retainment;
(2) improvement; and
(3) breakthrough.
Starting with 5S and simple techniques like exactness, pokayoke, visualization and a
suggestion scheme in 1997, moving forward to applying gap analysis, deep analysis,
why-why analysis, and 7QC tools, it has implemented kaizen, just-in-time ( JIT) and
TPM, and taken some unique initiatives like quality gate 20 for the development of
new products and high-volume production trial [HVPT] for judging the feasibility of
its production. The company is penetrating specific market segments like off-highway
vehicles, collaborating with the Indian Institutes of Technology (IITs), developing
niche products and trying to become a Tier I supplier in the non-passenger car
segment. New products introduced during the past three years account for over 44 per
cent of total sales. However, its R&D expenditure of 0.8 per cent of revenue is quite low.
Its approach to implementing TQM, with beliefs related to customers, people and
excellence (Table II), is aimed at achieving the business goals and aligned to the
business strategy. However, the real test of effectiveness of the strategy is the
achievement of business goals and meeting the expectations of the DAP.

5.3 Evaluation of outcomes

Sona Koyo witnessed 100 per cent or greater growth in the production (except case
differential assembly) and sales of all steering system and driveline products and an
improvement in operator efficiency and the cycle time of new products during the
2003-2007 period. The analysis of selected measures in balanced scorecard format
(Table III) from 2003-2004 to 2005-2006 reveals improvement, barring an increase in
 Quality
strategy for
transformation

11
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Figure 1.
Strategy relationships and
alignment

supplier rejections in 2004-2005, in learning and growth and in internal business

processes. There is improvement in customer and financial processes also, with
consistent improvement (year-on-year) in return on capital employed (ROCE) and
return on net worth (RONW), which has grown (not shown in the table) at rates of 19.8
per cent, 22.9 per cent and 19.3 per cent. However, achievements in operating profit
 TQM Beliefs Strategy Strategy elements
23,1
Service to the customer Total quality Establishing Vision 2010
Respect for the individual management Setting a higher ideal for vision realisation
Excellence in the pursuit of Adopting a new management model
goals Policy deployment
12 Flow manufacturing (TPS)
Implementing QS 9000/ISO 9001, TS 16949
and ISO 14001 systems
JIT, TPM, kaizen and other initiatives
Supplier development
Fact-based negotiations with suppliers
Table II. Leveraging IT
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TQM implementation at Learning and continuous improvement

Sona Koyo Breakthrough management

Measure 2003-2004 2004-2005 2005-2006

Financial
Operating profit (per cent) (before depreciation,
interest and tax) 60 26 10.5

Customer
ROCE (per cent) 16.5 24.2 22
Customer returns (ppm) 112a 90 57
Exports (percentage of net sales) 2 6 15

Internal business processes

Supplier rejections (ppm) 932b 1368 537
Products developed 24 39 49

Learning and growth

Training/employee (hours) 57.5c 60 75
Suggestions/employee 10.4d 20.6 29
Table III.
Balanced scorecard of Note: a1997 figure (i.e. prior to implementation of TQM) was 1,579; b1997 figure was 3,500; c1997 figure
performance was 36; d1997 figure was 2

(increased cumulatively but not uniformly) and exports (increased from INR30 million
(< $0.75 million) to INR500 million (< $12.5 million) but low in percentage terms) are
not satisfactory.
In 2006-2007, the company derived 84.7 per cent (product wise) of its revenues from
steering systems products and 58 per cent (customer wise) from Maruti Suzuki, whose
share remained at the same level. Its sales touched $78 million and there were
year-on-year increases of 59.3 per cent in profit, 27.8 per cent in ROCE and 20.8 per cent
in RONW. However, exports stagnated. Mid-course review of performance against
2010 goals and first milestone targets set by the company for 2006-2007 (Table IV) and
the benefits expected of winning the DAP as mentioned in DAP Guide (Table V) reveal
increased growth, increased profit (though declining gradually), improvement in
 Quality
Goal Remarks
strategy for
An organisation of energised and involved High employee attrition (75 per cent employees transformation
employees new, i.e. working for less than three years with
company)a
Growing and achieving high profitability Profit growth is there but declininga
Supplying to major global OEMs directly or Initiatives taken in this direction (but being 13
indirectly limited, have not led to satisfactory overseas
sales)a
At least 45 per cent of sales are to overseas Target revised to 35 per cent in 2007, although
customers retained in real termsa
Continue to be no. 1 steering systems company in Continues to be no. 1, so far (70 per cent growth in
India domestic sales in 2006-2007)
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First milestone (2006-2007): net sales of INR5 INR5.8 billion; above the target
billion (<$0.125 billion)
First milestone (2006-2007): exports worth INR1 INR0.547 billion, at 2005-2006 levela
billion Table IV.
Vision 2010: mid-term
Note: aArea of underperformance check

Expectation Performance

Quality stabilization and improvement U

Productivity improvement/cost reduction U
Expanded sales Happening but not in the international marketa
Increased profits U Table V.
Evaluation against DAP
Note: aArea of underperformance expectations

productivity and quality, but poor performance in exports (attributed to a delay in

launching a vehicle on the part of a client), limited expansion in overseas market and
revision of export target (in percentage terms) for 2010, indicating the impact of two
risk factors for auto-component suppliers, i.e. dependence on vehicle manufacturers
and currency fluctuations (rupee appreciation). The effect appears to have been
augmented by high employee attrition (mostly at the middle management level) and
increased human resource (HR) strength (286 in 2003-2004 to 689 in 2006-2007), leading
to a changed employee profile (three-quarters of the workforce were new). This may
have caused a discontinuity in functional tactics and contributed to sub-optimal
performance in the competitive global market.

5.4 Key findings

The analysis reveals that TQM implemented as comprehensive strategy in the DAP
model has helped Sona Koyo improve its performance. However, the company has not
been able to meet its overseas goals and the expectations of DAP in all respects. With
domestic growth outpacing overseas growth, it has revised the export target from 45
per cent of sales to 35 per cent, for 2010. But business excellence i.e. a positive and
consistent change in all round performance of the organisation requires strong focus
and long-term commitment to goals!
 TQM 5.5 Learning and recommendations
23,1 5.5.1 Strategic focus. Technological alliances are a source of strength; however,
gradual self-reliance and development of niche products help in leapfrogging
competition, fighting pricing pressures and reducing risk in auto-component business.
The case company, it appears, has not been able to match its HR (nurturing and
retaining distinctive competencies) and marketing and technological options
14 (developing more products for overseas market) with its aspirations and develop a
presence in key international markets as planned. With major OEMs planning to make
India a global export hub for compact cars, the focus also appears to be shifting to the
domestic market.
5.5.2 Flexibility. In the past few years, Sona Koyo has exhibited flexibility, as is
evident from the adoption of a new management model, the establishment of new
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alliances, scaling up, product diversification, the outsourcing of non-core products,

parallel sourcing, and the change in the production process from cellular to single piece
flow. However, it has not been able to generate enough strategic options for meeting its
goals in all respects. The process of change is facilitated with the creation of quicker
change mechanisms, empowerment and freedom of choice, and according to Sushil
(2000), a flexible process and a flexible actor can quickly respond and adapt to a
changing situation.
5.5.3 Transformation. TQM has to act as vehicle for transformation
(transformation requires maintaining ability and renewing ability; Dahlgaard-Park,
2006a). Companies pursuing excellence need to develop the ability to manage
continuity with change and transformation, and to recall the views of Deming (1991):
Transformation into a new style of management is required. The route to take is what I call
profound knowledge. It is not automatic. It must be learned; it must be led.
Leading change means having a shared vision, in a true sense, a culture of mutual
respect, trust, openness and cooperation among fellow employees and an all-pervading
commitment to the companys mission; creating a company people are happy and
proud to be part of, by making Sona an employer of choice to Sona people, and thus
realising the companys vision and mission (Figure 2).
5.5.4 DAP evaluation. The DAP committee evaluates the basic category items for
effectiveness, consistency, continuity and thoroughness. With flexibility emerging as a
critical factor for transformation and sustainability, there is case for including
flexibility as the fifth evaluation angle in TQM diagnosis in the DAP methodology
for the success of future plans.

Figure 2.
Leading the change
 6. Critical factors Quality
Efforts have been made to identify factors affecting TQM and competitiveness by strategy for
various authors across industries and sectors (Idris and Zairi, 2006), including quality
performance of construction projects ( Jha and Iyer, 2006). In recent years, emphasis has transformation
been placed on strategic intent (Hamel and Prahalad, 1989), shared vision
(Dahlgaard and Dahlgaard-Park, 2006), value generation processes, particularly
internal relations (Conti, 2006), new working environment (Hafeez et al., 2006), 15
alignment of employees and management processes with the strategy (Kaplan and
Norton, 2006), and agreement in the literature is found on environmental, industry and
organisational factors as the source for their identification ( Jonker, 2004).
As regards the method of identification, de Bono (1970) has suggested creative
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approaches for developing dominant ideas (often confused with critical factors) from
vague ideas, and isolating crucial factors from dominant ideas. A SWOT&R
(strength, weakness, opportunity, threat, and risk) analysis (an adaptation of SWOT
framework), presented as a snapshot in Table VI, of the company based on a synthesis
of the findings and learning and literature review, helps to evaluate the external
environmental and internal organisational factors impacting the case company in
achieving its objectives, and isolating crucial factors.
The critical (crucial) factors, defined as important cause factors related to vision,
strategy and four BSC perspectives, and identified for the company, are presented in
Table VII. These factors are isolated from dominant ideas, which in addition included
long-term market commitment and satisfaction of all stakeholders (included in a and
b in Table VII), motivation, loyalty, internal relationships and culture (included in b,
c and e), team work and coordination (included in b, c and e), technological innovation
(achieved through c, e and f) and strengthening of alliances and partnerships (achieved
through a and b) for serving current and future markets, anticipation of change and
adaptability (achieved through c and d), learning and transformation (achieved
through b, c, e and f) and risk reduction (included in d and e); these are considered

Strengths Weaknesses Opportunities Threats Risks

Visionary leadership High Excellent growth Ability of Economic downturn

Alliances and employee prospects for car and competitors in Power and currency
partnerships attrition UV industry EPS segment fluctuations
Quality standards Technological Presence of global Increased Technological
and engineering dependence OEMs in India pricing alliances
skills Limited niche Good export pressures Domestic growth
Design, analysis products potential Slowdown of dependent on
managing data base Opportunities in off- GDP growth passenger car and
and testing highway vehicle and UV sales
capabilities other niche segments Excessive
Cost-effectiveness dependence on
Maruti (partner with
7.4 per cent stake;
largest customer
with 58 per cent Table VI.
share) SWOT&R analysis
 TQM critical for the case company in sustaining the excellence, along with others, and are
23,1 proposed to be studied further through questionnaire survey.

7. Answering research questions

7.1 RQ1. Effectiveness of quality strategy
Adoption of the DAP framework and implementation of a TQM-led and TPS- and
16 TPM-supported integrated approach at Sona Koyo has led to improvements in
management processes and strengthened its competitive position in the domestic
market. However, the inability of the company to meet completely its strategic goals
and the expectations of the DAP shows gaps in respect of the HR, technology and
marketing components (included in basic categories in the DAP framework) of the
quality strategy.
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7.2 RQ2. Impact of TQM on business performance

The improvement witnessed in the case company shows that TQM has a positive
impact on business performance and the gains increase with the proliferation of TQM
across the organisation with time. Similar strong empirical support has been found by
Douglas and Judge (2001) and several others, as cited by Idris and Zairi (2006).

7.3 RQ3. Suitability of TQM techniques (best fit versus best practice)
Sona Koyo went through a period of crisis (the reason reported for TQM
implementation by nine out of 40 organisations surveyed by Kano, 1996) in
1997-1998; faced with high in-house rejections and supplier returns and low net profit,
it started its TQM journey and adopted a comprehensive three-phase strategy for TQM
implementation. Change has come with time and a higher level of TQM
implementation has led to higher performance (reported similarly by Bounds et al.,
1994 and Lai and Cheng, 2003). Extrapolating this, it should continue learning and
implement techniques matching market, product and production process requirements.

7.4 RQ4. Factors critical for sustaining excellence

The study has identified strategic focus, process objective alignment, change,
broadening of the customer base, flexibility, empowerment and speed, distinctive
competencies and continuous improvement as critical factors. With emphasis being
placed on efficiency and effectiveness in TQM implementation (Idris and Zairi, 2006;
Kano, 2007) and flexibility being considered a prerequisite for sustaining competitive

Factor BSC link

Strategic focus (a) Vision and strategy

Alignment of employees and management processes Vision and strategy
with objectives (b)
Leading the change (c) Vision and strategy
Broadening of customer base (d) Vision, strategy and customer
Flexibility, empowerment and speed in making and Strategy
Table VII. implementing choices (e)
Critical factors for Nurturing distinctive competencies (f) Strategy, learning and growth
excellence Continuous improvement (g) Internal business processes
 advantage (Hamel and Prahalad, 1989; Mintzberg, 1994), the generation of flexible Quality
options becomes a necessary requirement. strategy for
8. Towards sustainable excellence: a model for research transformation
The above analysis leads to the belief that sustenance of excellence requires ensuring
stability through cultivating a blend of dynamism and wisdom, learning and
developing competencies; outside dependence may affect a firms future degree of 17
freedom (Little, 1981). Learning is connected with change, development and
transformation (Dahlgaard-Park, 2006b). According to Senge (1990), as the world
becomes more interconnected and business becomes more complex and dynamic, work
must become more learningful. The organisations that will truly excel in the future
will be the organizations that discover how to tap peoples commitment and capacity to
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learn at all levels in an organisation. And this question of how? needs further
probing. With TQM, aiming at effectiveness and efficiency of processes, building of
capabilities, value addition and excellence and, defined as an approach for improving
the competitiveness and flexibility (Oakland, 1989), a link is observed between the
concept of quality and flexibility, as also brought out by Bahrami (1992):
Flexibility is a multi-dimensional concept- demanding agility and versatility: associated with
change, innovation, and novelty: coupled with robustness and resilience, implying stability,
sustainable advantage, and capabilities that may evolve over time.
Quality is a pearl which shines through time (Kondo, 1998). It can shine only with
the creation of capabilities and applying learning, made possible through various
functional tactics, routines, activities, experiences, innovations, understanding the
relationships, and transforming capabilities into distinctive competencies or abilities
(Kano, 2007) and retaining and building on them. Thus quality, a dynamic concept,
calls for flexibility, and systemic flexibility (Sushil, 2000) is defined as:
Exercise of free will or freedom of choice on the continuum to synthesize the dynamic
interplay of thesis and antithesis in an interactive and innovative manner, capturing the
ambiguity in systems and expanding the continuum with minimum time and efforts.
This analogy to a pearl opens a plethora of opportunities for studying the interplay,
between various strategy related critical factors (i.e. speed, flexibility, novelty, agility,
adaptability) and quality on the one hand and the resources, capabilities, competencies,
learnings, experiences on the other, for research and evolution of a new paradigm. This
concept (Figure 3) is proposed as the framework for the next level of research on TQM.
In support of this conceptual model, the opinion of Hamel and Prahalad (1994) is
cited:
Firms need an holistic review and continuous innovation of strategy to match their resources
to the requirements of the future-oriented marketplace.

Figure 3.
Towards sustainable
excellence
 TQM This case study, being a micro-study, is proposed to be followed by a macro study,
23,1 comprising a questionnaire survey, adopting the above framework, of DAP-winning
(since 1991 when the economies world over started opening up) companies and more
case studies, to draw learning and work towards an effective business excellence
framework.

18 9. Conclusion
The case study taken up to address the issue of sustainability of excellence has
revealed the link between the quality strategy of the company and its business
strategy, the positive effect of TQM on performance, and some gaps in goal
achievement. It has established the need for maintaining strategic focus and
matching strategic options with aspirations. Adopting a creative approach, the study
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has used the SWOT&R framework (which can be used in such analysis) for identifying
critical factors. It has also discovered the possibility of the inclusion of flexibility as
the fifth angle for evaluation in the DAP methodology and, exploring the issue of
transformation, has proposed a direction for future research.

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Further reading
Breja, S.K. (2007), Quality strategy in a manufacturing company: a case study, Minor Project
Report, Department of Management Studies, Indian Institute of Technology Delhi, New
Delhi.
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About the authors

S.K. Breja is a Research Scholar in the Department of Management Studies, Indian Institute of
Technology Delhi, New Delhi, India. He is a Quality Professional, working at the National
Council for Cement and Building Materials, Ballabgarh (Haryana) India. He has been
instrumental in designing and implementing the National Quality Award Scheme for the cement
industry in India. S.K. Breja is the corresponding author and can be contacted at:
skbreja2006@yahoo.co.in
D.K. Banwet is a Professor in the Department of Management Studies, Indian Institute of
Technology Delhi, New Delhi, India. He is also Dalmia Chair Professor of the department. His
areas of interests include production operation management, project management and operations
research, supply chain management, TQM, facilities, entrepreneurship and technology
management.
K.C. Iyer is currently a Professor in the Department of Civil Engineering, Indian Institute of
Technology Delhi, New Delhi, India. His areas of research include project risks, legal issues in
business, project management and TQM.

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