You are on page 1of 13

TQM TOTAL QUALITY MANAGMENT

11 TQM STEPS TO BE AN WORLD CLASS ORGANISATION

Background
A board of Directors of Consumer Electronics company Company wants to enter the Television (TV) segment

Wants to be market leader


Tough competition in the TV market Achieve this through implementation of 11 steps of TQM

Step 1 Setting Mission


Our Mission statement is: To be Leader in consumer electronics, through affordable quality products , through employee involvement, continual improvement & innovation

Step 2 Identify the customers


Urban & sub-urban markets are already saturated Target the un-tapped market, which has growth i.e. Market Development

Our Target customers : Rural (Low income class) & Sub-urban (Middle class)

Step 3 Identify customers need


Techniques used: VOC (voice of customer) through survey The customers were asked to give their preferences for the following attribute:

1)
2) 3) 4) 5) 6) 7)

Picture quality
Sound quality Reliability Advance features Price Durability After sales services etc.

Picture quality, Sound quality & Durability got the highest preferences Through implementation of the Pareto rule of 80:20

Identify the customers need.


Based on this, to set the benchmark, customer asked to specify brands for each preferred attribute 1) Picture quality Sony, LG 2) Sound quality Sony, Philips, Yamaha 3) Durability Is an overall quality attribute

Step 4 : Define Critical processes & measures


Critical Parts: 1) Picture
a) Picture tube b) Chip for receipt of Sound, picture signal, demodulation & reproduction
2) Sound a) Magnet quality b) Design 3) Durability a) Material of construction b) Mounting c) Quality of component

Step 5 : Set organizational vision


"Create an exciting world of electronics.

Committed to creating a delightful entertainment world through adding value to partners and employees

Step 6 : Develop strategic plan


1) Price should be competitive 2) To providing better, after sales service / network.

To achieve this

1) Picture
a) Picture tube Procure from vendor supplying to Sony b) Chip for receipt of Sound, picture signal, demodulation & reproduction Internal R&D

2) Sound
a) b) Magnet quality - Procure from vendor supplying to Sony or Yamaha Design Sound engineer needs to be appointed

3) Durability
a) b) c) Material of construction Mounting Quality of component Automated mechanized tools to be used

Step 6 : Develop strategic plan (contd)


Marketing Strategy: Targeting lower & income class hence focus on Rural & sub-urban area Identify issues facing these segments -Power load shedding Solution : Tie-ups with UPS manufacturers/distributors for 12 hrs backup as Add-on feature

Step 6 : Develop strategic plan (contd)


Pricing Strategy: To sale TV at affordable price, the price of the Raw material & operation should

be low, therefore margin will also be low.


To reduce the transportation cost, either we can use a distribution channel of existing companies Or give franchisee to marketing & distribution company

Step 6 : Develop strategic plan (contd)


Operational Strategy: To have a low cost operation the plant should be designed as per product layout
Mechanized automated tools should be used
Ergonomics should be considered while designing the plant More investment on R&D should be done, to have competitive advantage

Bottlenecking operation should not exist


Margin being low, only volume production & sale will generate revenue.

Thank you
Team members
Rohit Aru Sujay Argade Jitendra Patil Nivrutti Patil Gauresh Zarbade Onkar Sawant - B-03 - A-02 - A-34 - A-35 - A-53 - A-58

You might also like