TQM journey of an Indian milk‐producing cooperative

Abstract

PurposeThis paper seeks to focus on the TQM journey of MilkFed, a major milk‐producing cooperative in the state of Punjab in Northern India. It aims to demonstrate how TQM principles have been used to create an organisation‐wide environment of continuous improvement in a cooperative sector organisation that spread into tradition and ways of doing business in spite of facing numerous challenges.Design/methodology/approachMilkFed hired Punjab Technical University's School of TQM and Entrepreneurship (PGSTE) to create an organisation‐wide system of continuous improvement. PGSTE consultants prepared a road‐map for TQM implementation. In the first phase, 14 teams comprising 76 senior/middle level executives (one team from each of Milkfed's 14 plants/units) were trained in the structured application of TQM principles and the project‐by‐project improvement through a series of workshops. Each team implemented an improvement project, which was facilitated by the consultants.FindingsMilkFed has saved USD 0.89 million per annum which amounted to more than 25 per cent of its net profit. There is a tremendous scope for multiplying the gains through horizontal deployment of learning across various plants and units. Intangible benefits included transformation in attitude of employees, creation of team culture, breakdown of departmental silos and tremendous improvement in labour‐management relations.Originality/valueThe paper demonstrates that the project‐by‐project approach used in conjunction with the basic 7 QC tools is an excellent approach for building a culture of continuous improvement. It has many important lessons for organisations, which are starting their quality improvement journey.