International Journal of Economy, Management and Social Sciences, 2(8) August 2013, Pages: 620-625

TI Journals

International Journal of Economy, Management and Social Sciences

ISSN
2306-7276

www.tijournals.com

Critical Success Factors of Total Quality Management in the

Indian Automotive Industry (NCR)
Neha Kalra *1, Anoop Pant 2
1
2

Department of Management, Accurate Institute of Management & Technology, Greater Noida, U.P. 203006, India.
Director, Accurate Institute of Advanced Management, Greater Noida, U.P. 203006, India.

AR TIC LE INF O

AB STR AC T

Keywords:

The article shows a model to conduct an empirical study in Indian automotive industry in order to
improve their performance. There are many factors which are effective factors in improving
performance of Indian automobile industry namely, leadership, customer focus, training, supplier
quality management, product design, process management, and team work. The quality
improvement plays a fundamental role in determining the performance in Indian manufacturing
industries. In this research, a model has been developed that includes Quality culture, Critical
success factors of Total Quality Management and quality improvement to study their influence on
the performance of Indian automotive industry. It is hoped that this paper can provide an academic
source for both academicians and managers due to investigate the relationship between Quality
culture, critical success factors of Total Quality Management, Quality improvement, and
Performance in a systematic manner to increase successful rate of Total Quality Management
implementation.

Critical Success Factorss (CSF) of Total

Quality Management
Quality Culture
Quality Improvement
Performance Measurement
Indian Automobile Industry

2013 Int. j. econ. manag. soc. sci. All rights reserved for TI Journals.

Introduction
Global competition has increased during the past few decades. Nkechi Eugenia [1] pointed out that customers are the only factor that can
create competition between organizations, and quality of goods is determined by customers. Further, more customers identify the quality of
products and make factories focus more on quality. Nowadays, gaining competitive advantage has become a matter of knowing your
customers. As a matter of fact, customers have become the starting point rather than the ending point in any successful business. Nkechi
Eugenia [1] mentions that organizations for survival need to create new management based on total quality management.
Demirbag et al, [2] agreed that quality management is one of the most influential factors in every organization. Successful enterprises
comprehend the dominant influence customer-defined quality could have on trade. Hence, many rivalry companies constantly enhance their
quality models. If the firm does not consider quality, customers will be dissatisfied. The outcomes of such an approach are lost clients and
chances for rivals to catch benefit of the market require [3]. Therefore, paying serious attention to customers needs make quality a priority.
As Reid and Sanders [3] stated It means gathering and surpassing customer anticipations by engaging each person in the firm inward a
merged attempt. This integrated effort is named Total Quality Management (TQM). According to Demirbag et al., TQM is a factor that
can improve quality and it is a holistic approach towards continuous improvement in all organizations [2]. TQM is a management
competitive environment. TQM is identified as an origin of innovation, competitive advantage, and organizational culture. philosophy
necessary for all organizations and this factor exists in a competitive environment. TQM is identified as an origin of innovation,
competitive advantage, and organizational culture.

Literature review
Critical success factors are the behavioural aspects of management styles or the human factors which emphasized on organizations total
quality management. Rahman et al.[4], & Lewis et al.[5], pointed out that success factors include Leadership, Customer focus, Quality
culture, Teamwork, Training, Communication, Product design and etc. Moreover, the efficient utilize of critical success factors can increase
quality improvement in each organization. Kumar et al. referred to many articles and stated that although there are many definitions of
TQM; generally TQM is a comprehensive procedure for improving quality, productivity and competitiveness in the international
marketplace [6]. In the same manner, Yang gives more details by expressing that total quality management is a general section of
management which emphasizes competitive advantage, quality improvement, and customers requirements [7]. Total quality management
is very effective in decision making, and problem solving. TQM also has a prominent role in the continuous improvement of organizations.
TQM is a management integrative system for developing the quality of services and goods by means of the take part of all purposes and
* Corresponding author.
Email address: neha.kalra028@gmail.com

Critical Success Factors of Total Quality Management in the Indian Automotive Industry (NCR)

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Internat ional Jour nal of Economy, Mana ge ment and Social Sciences , 2(8) Au gust 2013

levels. Every person has a determining role in the production of quality services and goods. In another study, as cited by Wilson et al, TQM
as an organization method for creating arrangement wide take part in scheming and creating a continuous improvement action that joins
and increases customer requirements [8]. Mahmood et al, indicated that Quality culture is the pattern of arrangement materials or behavior
that has been accepted by a society (team, band) as the admitted way of resolving difficulties [9]. An association of a 'quality culture' can be
defined as one having "clear values and beliefs that foster total quality behaviour". Quality culture is the main component in a successful
total quality management plan. Exchanging the culture of a firm is an important condition for successful implementation of TQM. There
are many elements that define quality culture namely leadership, training, SQM, team working, process management, and etc. Sardana
revealed that performance measurement can be measured as a process that is effective in representing goals and this factor is a symbol in
showing the ultimate result of a firm [10]. Kennerley and Neely, pointed out that performance measurement is a factor that can be effective
in decision making because without performance measurement we cannot estimate the purpose of the organization [11]. On the other hand,
by using this factor, efficiency and effectiveness of every organization can be improved. As a result, performance measurement is effective
when this factor leads to good decision making in an organization. As a rule of the thumb, performance measurement is one of the factors
that focus on the development and improvement of the organization and this factor is very effective in improving performance. Abdullah, et
al studied the connection between TQM, quality improvement, and performance measurement and identified six critical success factors
(leadership, supplier quality management, reward & recognition, teamwork, E&T, customer focus) on performance [12]. His findings were
also relevant to quality management theory because it shows total quality management to be effective in quality management
implementation and organizational performance.
Furthermore, Kanji et al pointed out that critical factors of total quality management are positively related to quality culture [13]. Quality
culture was studied as an independent variable. In the same way, Zu et al pointed out that quality culture is an independent variable to
critical factors of total quality management [14]. On the other side, as cited by Abdullah et al [12] quality improvement is an intervening
variable between TQM success factors and performance. This study has modified the developed framework by Abdullah et al [12] and Zu
et al [14]. Then, the combining of two previous studies can bring new contribution for this study. This model has not examined by any
study. Therefore, the contribution of this study is combination of quality culture as an independent variable to total quality management
factors and also would want to consider quality improvement as a mediating variable between TQM factors and performance for continuous
survival of the Indian automobile industry.
Critical success factors (CSFs) are internal or external happenings that can affect the firm for better or worse and so, require special
attention. They provide early warning method for management and a way avoids surprise or missed opportunities. TQM initiatives often
fail due to lack of essential quality measures to monitor customer satisfaction, supplier satisfaction, management leadership, and product
quality and employee morale. Critical success factors model can help in understanding and removing these barriers. It can also help in
understanding and analyzing the complex interactions and the dynamics of factors affecting TQM over a longer time horizon. This can
equip management to evolve a strategy for growth and success. These critical success factors are listed in table 1.
Table 1. List of Critical Success Factors [15]: Features of TQM
S.No.

Variables

References

Remarks

Policy & Strategic

Planning

Ishikawa, 1985 Mody, 1996

Business Strategic incorporate long-term and short-term goals

based on customer and market expectations.

Process
Management
Control

Mody, 1995

Systems approach to quality in control of all operations including

appropriate use of "quality tools"

&

Suppliers focus &

Satisfaction

IS/ISO 9000, 2000 ISO / TS 16949

2002 Imai 1996, Khanna 1999

Suppliers are treated as partners in the process of improvement

Customer Focus &

Satisfaction

Day, 1193 Bossert, 1990

Internal and external customers know that their needs are

important - and addressed.

Human Resource
Focus & Satisfaction

Juran and Gryna, 1995 ISO/IS 9000,

2000, ISO /TS 16949, 2002

All employees are motivated and dedicated to continuous

improvement feeling empowered and valued.

Information
Management

Ishikawa, 1985 John, 1995

Effective information and communication systems for continuous

improvement of all work

Quality Leadership

Crosby, 1981 Deming 1993

Senior Managers who provide clear vision and values that

promote total quality. The most important TQM enables for
driving TQM culture.

Organizations
Specific Business
Results

Mody, 1996

Do the company's results demonstrate effective performance

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Int ernational Journal of Ec onomy, Mana ge ment and Soci al Sci ences, 2(8) Au gust 2013

Research methodology
To obtain an insight on the awareness of TQM practices in the Indian Automobile Industry (NCR), a total of 200 questionnaires were sent
to automobile organizations in National Capital Region (NCR) of India on a purposive sampling basis. However, only 48 (12 automobile
manufacturers, 26 suppliers, and 10 sub-contractors) responds were obtained which gives a response rate of 24%. The structured
questionnaires were used to elicit TQM practices in the organizations. The study indicated a comparative level of awareness and practice of
Total Quality Management in the Automobile Industry. The identified groups of respondents from the selected units were contacted either
personally or through telephone taking care that the sample represented different departments and managerial levels. The process of
administering the questionnaires was clearly communicated personally. It was emphasized that absolute privacy of an individuals
responses would be maintained. The respondents were also requested to only respond to the statements keeping in view how things actually
were in their organizations. The questionnaire basically consisted of questions to infer the employees perception on the concept of TQM,
using a five point Likert type scale, with a response of 1 indicating that respondents disagree with the item perceived and 5 indicating that
respondents agree with the item perceived.

Research questions
The main research questions of this study are as below:

What are the effect determinants of total quality management on quality culture and performance in Indian Automobile Industry?
What is the relation between the seven soft factors of TQM and quality culture in Indian Automobile Industry?
What is the relation between quality culture and performance in Indian Automobile Industry?
What is the direct and indirect effect of TQM on performance in Indian Automobile Industry?

Results and discussion

The finding of survey revealed that there are eight CSFs as part of the total quality management in Indian Automobile Industry. The
analysis of finding show that the three CSFs viz; policy & strategic plan, quality leadership and customer focus & satisfaction (means 2.51,
2.51 & 2.48) are the most important among these eight CSFs This companies is given below in table 2.

Critical success factor

No. of
Elements

Table 2. Analysis of CSFs category wise

Manufacturers category
Supplier category
Mean
S.D.
Mean
S.D.

Sub-Contractor
Mean
S.D.

Automobile Category
Mean
S.D.

Policy & Strategic Planning

08

2.73

0.07

2.57

0.12

2.22

0.16

2.51

0.06

Process management & control

07

2.80

0.23

2.47

0.26

1.81

0.26

2.36

0.25

Customer focus & satisfaction

21

2.73

0.20

2.58

0.24

2.13

0.28

2.48

0.22

Human resource focus & satisfaction

34

2.67

0.23

2.41

0.22

1.98

0.26

2.35

0.24

Information management

14

2.75

0.11

2.43

0.30

1.99

0.49

2.39

0.26

Quality leadership

13

2.66

0.19

2.69

0.25

2.16

0.38

2.51

0.27

Suppliers focus & satisfaction

07

2.57

0.36

2.28

0.46

1.88

0.45

2.24

0.42

Organization specific business result

06

2.67

0.19

0.19

0.25

2.00

0.32

2.42

0.23

From the table-2 it is clear that the comparative aspects of all the 8 CSFs with respect to the three categories its manufacturer, subcontractors and suppliers is important and useful. Each CSFs has its own importance and potential to help the organization solve many of
the problems.
The response analysis indicates the sub-contractor category is still not responding to the changing needs of the market scenario. Corrective
and preventive actions are weak these leading to very high rejections. The strategic planning is generally not done on the basis of
organizations strength, weakness, opportunities and threat. Another weak are is top management involvement in training the members of
the core team which is reflected by low morale of the people. Suppliers are generally not treated as business partners in the process of
improvement. Though information management system has been developed, however information sharing among employees is very weak.
There is generally a lack of communication of goal throughout the organization. The cost of quality has not been understood an important
analytical tools to drive continuous improvement in prioritized manner. Lack of using customer listening technique like QFD is a weak area
and thus customers and market focus lacks depth thus many objectives of improving quality, lowering cost and delivery lack direction.
The analysis reveals that in spite of above weaknesses the overall quality scenario in the Indian Automobile Industry is improving and more
and more organizations are focusing on TQM as competitive strategy to survive and grow.

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Internat ional Jour nal of Economy, Mana ge ment and Social Sciences , 2(8) Au gust 2013

TQM model, a process of cultural change within the organization has to be initiated. Three critical success factor of TQM namely, quality
leadership, policy & strategic, planning, customer focus & satisfaction would need reinforcement during the implementation process.
As demonstrated below (the theoretical framework of the study, see Figure 1) there is a positive connection among quality culture, CSF of
TQM, Quality Improvement and PM.
Figure 1. Theoretical Model of the study
Critical Success factors of TQM

Hypotheses Development
The hypotheses of this study are developed as following:
H1: Quality culture is positively related to leadership
H2: Quality culture is positively related to customer focus
H3: Quality culture is positively related to training
H4: Quality culture is positively related to supplier quality management
H5: Quality culture is positively related to teamwork
H6: Quality culture is positively related to process management
H7: Quality culture is positively related to product design
H8: Management Leadership is positively related to Quality Improvement
H9: Customer Focus is certainly related to Quality Improvement.
H10: Training is certainly related to Quality Improvement.
H11: Supplier Quality Management (SQM) is positively related to Quality Improvement.
H12: Teamwork positively affects Quality Improvement
H13: Process Management (PM) is explicitly connected to QI (Quality Improvement)
H14: Product Design (PD) is positively related to QI (Quality Improvement)
H15: Leadership is positively related to Performance Measurement.
H16: Customer Focus is positively related to Performance.
H17: Training is positively connected to Performance
H18: Supplier Quality Management is directly connected to Performance measurement.
H19: Teamwork is positively and directly connected to Performance.
H20: Process Management is positively related to Performance Measurement.
H21: Product Design is positively related to Performance Measurement
H22: Quality Improvement is positively related to Performance

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Int ernational Journal of Ec onomy, Mana ge ment and Soci al Sci ences, 2(8) Au gust 2013

Conclusion
The aim of this research is to carry out an empirical study on the determinants of TQM in the Indian Automotive Industry. The main
contribution of this paper is to persuade managers to take a serious attention on the relationship among TQM determinants, quality
improvement, and performance improvement in the Indian Automotive Industry. Investigating the relationship led us to lucrative outcomes.
The Indian automobile industry has specifically been chosen for several reasons. First, the automotive industry in India is one of the larger
markets in the world and had previously been one of the fastest growing globally, but is now seeing flat or negative growth rates [16, 17].
Second, it contributes more than 10% to the countrys GDP growth [18]. Third, the sector directly employs 1.31 crore people of the
countrys workforce [19]. Fourth, in 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea,
and Thailand [20]. In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars. India's automobile exports have
grown consistently and reached $4.5 billion in 2009, with United Kingdom being India's largest export market followed by Italy, Germany,
Netherlands and South Africa [21]. India's automobile exports are expected to cross $12 billion by 2014 [22]. While the possibilities are
impressive, there are challenges that could thwart future growth of the Indian automobile industry. Since the demand for automobiles in
recent years is directly linked to overall economic expansion and rising personal incomes, industry growth will slow if the economy
weakens [23]. Due to stiff competition, turbulent business environment, increasing customers expectations, and increasing demands of the
Indian Automotive Industry, TQM is considered a serious problem faced by the sector. Due to lack of studies on the above addressed
problem in the country, attempts are being made to investigate the determinants of TQM in the Indian Automotive Industry. This study,
theoretically reviewed prior literatures on the same problem in other countries. The aim was to shed some light on the research problem. A
survey is designed in order to conduct an empirical research for examining surveys hypotheses. It is hoped that the important facts
addressed in this paper will be a means whereby managers and researchers will be able to investigate the TQM problem in the Indian
Automotive Industry with better awareness.

Acknowledgements
Sincere thanks are due to Dr. A. K. Saxena, Dean, Dept. of Management, A.I.M.T., Greater Noida for providing research facilities. Authors
are also thankful to Dr. Sanjay Dubey, Director Academics, Dr. Manoj Kumar Agarwal, Director Planning, Dr. Sandeep Tiwari, Director
Research, A.I.M.T, Greater Noida for their constant encouragement to carry out such research work. Special thanks are also due to Maruti
Suzuki, Gurgaon & Maneser; India Yamaha Motors, Faridabad & Greater Noida; Honda Siel Cars India, Greater Noida; Hero Motocorp,
Gurgaon and Suzuki, Gurgaon for allocation of time for questionnaires.

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