Total quality management in the automotive industry

Production Management

Total quality management (TQM) is a business concept that focuses on carefully controlling the quality of a product or service by involving every manager and employee within a company. During the production process then, the focus is on continuously monitoring the quality of the production stage, as well as the product emerging from the specific stage. If flaws in quality are noticed, the ideal is to report these and correct them before the next stage is entered. This helps to maintain a competitive edge within the industry.

The motor industry is extremely competitive in terms of quality, productivity, cost and rate of innovation. These elements are of course directly related to customer requirements and satisfaction. A new car dealership therefore has to focus on certain aspects of TQM in order to remain financially viable in the industry.

In the motor industry then, partnerships are forged with a number of direct suppliers in order to meet customer demands. These partnerships can be targeted as part of the TQM process. According to Zeller and Gilles (1995), for example, costs can be reduced by working with fewer direct suppliers, and quality improved by letting vested suppliers handle subassemblies. This then results in lower production time, which implies an improvement in productivity. The information exchanged via the various channels involved would then also stimulated innovation and improve the overall process.