Total Quality Management
1. Introduction to Tata Steel
Tata Steel is one of the largest steel-producing companies across the world with operations in 35 countries. The company has implemented the strategy of continuous improvement and is the second-highest steel producer in the world. Tata Steel operates through the creation of value for the customers and the stakeholders and has generated a revenue of Rs 30,187.02 million in FY11. The company operates with the vision of fostering teamwork and delivers premium quality Steel to the customers while providing a safe workplace to the employees.
2. Reasons to implement TQM in Tata Steel
TQM was implemented in Tata Steel due to the prospect of creating awareness among the customers and standardizing and modernizing the operations of the company across the locations. The quality framework was implemented in the company for facilitating growth by enhancing cost competitiveness along with the use of excellent strategies and systems. The idea behind the implementation of TQM was to establish proper it systems and quality circles based on ISO certification along with modernization with the help of the pillars of TQM through employee involvement.
3. The process behind implementing TQM in Tata Steel
TQM was first integrated into the DNA of Tata Steel, which enabled the company to benchmark their activities of innovation and sustainability to change. The quality standard enables the company to create customer awareness and integrate the TQM framework into their value chain followed by achieving operational efficiency through cost-effectiveness due to the use of TQM tools and measuring the efficiency of production. The company had also involved the employees through strategic leadership and planning for providing them with the training and education to abide by the quality standards and achieve process management.
4. Benefits of TQM
The application of total quality management within the organisation aim towards maintaining benchmarking that improves the reputation of the organisation within the business organisation. Furthermore, the TQM process within the Tata Steel also includes of Plan-Do-Check-Act cycle that enables the firm in maintaining the quality of the product along with building their trust among the customers. TQM also seek cost reduction and increase the process management that not only aims towards defect reduction but also comprehend product design control.
5. Benefits of TQM
The evidence gathered in regards to TQM within Tata Steel has pointed out about the incremental changes that it culminates within the organisation. The changes aid the employees in receiving training and workshops that develop their skill sets that as a result benefits the employees in performing their assigned roles and responsibilities successfully. Besides, it has also been noticed that TQM also help in identifying errors and issues within the business process that improves their efficiency to eliminate the challenges and foster better operational efficiency.
6. Major challenges of TQM
The long time to interpret result made it difficult for TQM to sustain their operations, besides the higher cost of operation, consulting fees and maintenance fees that are associated with TQM process also makes it difficult to consider TQM process. TQM also discourages creativity that lack focuses on task standardisation along with discourages creativity that impacts negatively on the productivity of the organisation.
7. Appraisal of the challenges of TQM in Tata Steel
Examining the challenges of TQM in Tata Steel critical information has been gathered that includes long waiting time for manufacturing iron and sintering products. Furthermore, the challenges associated with the TQM process in Tata Steel also includes of lack of labour management relations that as a result lacks skill and traits that make it difficult for the organisation in performing their activities successfully. Lack of relationship with employees also makes it difficult for the organisation to undertake the TQM process for performing activities within the establishment.
8. Appraisal of the challenges of TQM in Tata Steel
Examining the challenges of TQM in Tata Steel makes it difficult for the business organisation in maintaining continuous development in their casting method that converts molten steel into semi-finished products. Furthermore, the limitations that have been noticed for Tata Steel in regards to TQM include of not facilitating the reduction process that decreases the production capacity for Tata Steel.
Tata Steel had undertaken the decision to implement total quality management in the operations for establishing equality standard across their operations in all the locations. The company has been able to create awareness among the customers and use TQM tools effectively for enhancing the productivity and efficiency of operations while using cost. Disruption in the process of manufacturing steel and rolling materials is one of the challenge of TQM for Tata Steel.
10. Recommendations for TQM in Europe for Tata Steel
Tata Steel is recommended to apply the principles of TQM in all aspects of operations including the value chain in the European operations. The company is recommended to integrate total quality management into the process management in European operations for enhancing the efficiency and output of Steel manufacturing. the company is also recommended to modernize the operations and train the employees for using the tools of TQM and abiding by the pillars.
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