Product Design as a Critical Success Factor in TQM Organizations

Abstract

Globally, the automotive industry is transforming itself - from the design studios, to the modular assembly to the new shop floor practices, to delight the customer. Perhaps the most dynamic change and also the biggest challenge in the automotive industry is its relationship with the customers. Increasingly customers are being given the opportunity to customize their purchases, including everything from exterior shape to the interior features. In order to comply to the requirements of the global customers, a constant vigil on product innovation through better and better design is the solution. TQM is recognized as a competitive edge worldwide. Especially in manufacturing sector in order to deliver better and better (Dean and Bowen, 1994). This paper tries to understand how the Indian auto component industry has delivered better products to customers' requirements by integrating the TQM philosophy into their processes. This study on TQM implementation in Indian auto component industries was focused on auto component manufacturing companies in and around Chennai, Tamilnadu. Primary data was collected from the quality managers and executives of QS 9000/TS 16949 certified auto Component-manufacturing companies in Chennai. The data collection instrument was a structured questionnaire. Extensive review of literature established factors which were critical for TQM in organisations. Statistical analysis of these critical success factors was performed in order to understand the important drivers of TQM among certified auto component manufacturers. This study was an attempt to categorise the key drivers of TQM and evolve strategies to leverage the critical success factors to the organisational growth. Since the study was limited only to auto component manufacturers in and around Chennai, the study can be extended to other Indian auto component clusters, Pune and Gurgaon. Also an analogous study can be conducted among non-certified suppliers to original equipment manufacturers (OEMs), who are implementing TQM practices. Despite these limitations, however, the study does sheds light on the important Critical Success Factors (CSFs) on TQM, namely supplier quality management, process management and product design. Since the focus of this paper is on product innovation and design in the automotive industry, the role of product design as a very important critical success factor for TQM implementation is discussed in greater detail.