IMPLEMENTATION OF COST MANAGEMENT INITIATIVES THROUGH TQM IN AN INDIAN AUTOMOTIVE INDUSTRY: A CASE STUDY

[ 31 May 2021 | vol. 12 | no. 1| pp. 25-38]

About Authors:

Sumit Kumar1 and Pardeep Gupta2
-1Department of Mechanical Engineering, SLIET Longowal, Sangrur Punjab, India
-2Department of Mechanical Engineering, SLIET Longowal, Sangrur Punjab, India

Abstract:

The objective of this paper is to investigate the outcomes of cost management initiatives through the TQM implementation in a reputed Deming awarded Indian automobile original equipment manufacturer. Today’s global economy has forced Indian industries to adopt some management philosophies that simultaneously cater to the needs of the customers and establishes the organization as competitive in terms of both cost (C) and quality (Q) ensuring the right time delivery (D) of the product/services. The TQM philosophy, a customer-centric approach aims to improve the parameters that directly relate to customers like Quality (Q), Cost (C), and Delivery (D). The organization was plagued with poor cost management issues comprising of high MUDA, high energy consumptions along with poor productivity, profitability, and competitiveness. This paper presents the interpretive solution to the above situations in the case organization. The adoption of the TQM philosophy helped the organization to reduce its total conversion cost by 23%, improve the productivity of the electrodeposition (ED) line by 13% along with the reduction in energy consumption in ED line by 13%. The organization saved Rs. 13 Lakh per year from the above initiatives. This case study highlights that TQM implementation plays an important role in the improvement of productivity, quality, and competitiveness of an organization. In the future, this empirical study will be helpful to TQM practitioners and researchers in addressing the cost issues of the manufacturing industry.

Keywords:

Cost Management Initiatives, TQM, Productivity, Quality, Competitiveness

 

About this Article: