An Empirical Study on Enhancing Product Quality and Customer Satisfaction Using Quality Assurance Approach in an Indian Manufacturing Industry

Ankesh Mittal,Pardeep Gupta

doi:10.33889/ijmems.2021.6.3.052

Abstract

The aim of this paper is to investigate the utilization of quality assurance approach in improving the product quality and customer satisfaction while implementing total quality management (TQM) initiatives in leading tractors manufacturing industry situated in Mohali, Punjab, India and highlight the improvements that have taken place as a result of these initiatives. ABC Ltd. (name changed) started implementing TQM as a business management approach in 2007 and its implementation helped the organization to excel in quality, cost and delivery to gain flexibility, provide quality products of wide range and gain operational excellence. Initially, the focus of the industry was on traditional approach that is inspection and control but after TQM it got shifted to prevention of defects and quality assurance. Improvement in field quality, supplier quality and manufacturing quality were mainly focused under quality assurance approach in order to improve product quality and customer satisfaction. Implementation of TQM initiatives helped the industry to double the revenue, triple the profit in just three years and as a result the company got Deming Prize in 2012. The customer satisfaction index improved from 76 to 106, sales volume increased from 27000 to 67000 tractors and market share enhanced from 9.1 to 12.6 percent after TQM deployment within a period of five years. The empirical study presented in this paper is a novel study on augmenting the product quality and customer satisfaction may give insight to the TQM practitioners in promoting similar approaches in their organizations for enhancing customer satisfaction and product quality.

Highlights

In the present scenario of fiercely competitive market, customers are looking for high quality products and services
To enhance customer satisfaction and confidence in product quality, several initiatives such as improving quality of products and processes, and reduce variation and prevention of defects at design and development stages have been taken. This was achieved by integrating quality assurance and quality improvement activities with the establishment of Quality Management System for improving product quality and customer satisfaction
The supplier quality improvement initiatives helped in reducing Goods Rejection (GR) of castings and forgings from 11.03 to 2.49 and Line Rejection (LR) rejections reduced from 390 PPM to 140 PPM

Summary

Introduction

In the present scenario of fiercely competitive market, customers are looking for high quality products and services. The main goal of any organization is to ensure the satisfaction level of their customers because satisfied customers lead to higher profits. Improving customer satisfaction is a prime mission that tends to build value for customers, anticipate and manage their expectations, and exhibit ability and responsibility to satisfy their needs. The most important value of any organization is its customers and it has become its responsibility to always keeps them happy and satisfied. It is very important to determine the customers' perception on quality for products and services provided by any organization so as to meet their requirements. Many organizations have started implementing some business improvement tools viz. TQM, TPM, Lean Six Sigma, TEI, JIT, etc. TQM has become popular because of the numerous studies confirmed its influence on performance and excellence

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