Chapter – 1:

Part - 2

Historical Development of Total Quality Management:

The history of quality control is undoubtedly as old as industry itself. The concept of
specialization of labor was introduced during the Industrial revolution. As a result, a worker
no longer made the entire product, only in a portion – brought about a decline in
workmanship. Because most products manufactured during that early period were not
complicated, quality was not greatly affected. In fact, because productivity improved there
was a decrease in cost, which resulted in lower customer expectations. As products became
more complicated and jobs more specialized, it became necessary to inspects after
manufacture.

Industrial Concept of Specialization of labor -decline workmanship, caused

Revolution complexity and less quality. Required Inspection after Production

1924 W.A.Shewart of Bell Telephone lab. Developed a statistical chart for the
control of Product variables. Later in the same decade H.F.Dodge and
H.G. Roming developed the area of acceptance sampling as a substitute
for 100% Inspection

1942 Recognition of the value of SCC (Statistical Control Chart)

1946 American Society for quality (ASQ) formed
1950 E.Deming and Joseph.M.Juran made their valuable lectures and sharing on
SCC to Japanese engineers and management’s response to achieve quality.
Joseph Juran made his first trip to Japan in 1954 and further emphasized
management’s responsibility to achieve Quality. He began his cost of
quality approach , emphasizing accurate and complete identification and
measurement of costs of quality.

1960 The concept of ‘Zero – defects’ gained favour. Philip Crosby, who was the
champion of Zero – defects concept focused on employee’s motivation and
awareness.
The first quality control circles were formed in Japan for the purpose of
quality improvement.
Simple Statistical Tech. Were learned and applied by Japanese.
1970- early U.S Managers were frequent troops to Japan to learn the Japanese miracles.
1980 A quality success began to occur in U.S products and services
Middle The concept of TQM were being publicized
1980s
Late 1980s The auto motive industries began to emphasize statistical process control
(SPC)
The Malcom Baldrige National Quality Award and became the means to
measure TQM.
Genechi Taguchi introduced his concepts of ‘Parameter and Tolerance
design’ as a valuable quality improvement tool.

1990 Emphasis on quality control in the auto industries.

 1996 Saturn Automobile ranked first in customer satisfaction. In addition,
ISO – 9000 became the model for a quality management system world
wide, ISO – 14000 was approved as the world wide model for Environment
Management system
Quality assurance begins as a priority for engineers and managers.

1996- 2000 Transmission to open economy, domestic and international competitions

starts.
TQM is the ultimatum for continuous improvement and sustainable
growth

2001 – 07 High growth of economy- the new millennium brought about increased
emphasis on world wide quality and the Internet.

CONCEPTUAL DEVELOPMET OF TQM (IN INDIAN SCINARIO)

Step – 1 The year 1991 (economic liberalization) brought about a lot of changes
in the Indian Economy and over all business environment in our country.
Step – 2 Lots of Foreign MNCs started operations in India in the form of Joint
ventures (JV) like – Hero Honda, Maruti Sujuki, etc.
Step – 3 Professor Yasutosi Washio, has predicted that the quality of Indian man
will overtake that of Japan in 2013.
Step – 4 Mahindra’s Tractor unit is the first tractor unit in the world to win
DEMNG Award.
Step – 5 Indian industries even small industries interested to envolve themselves
under total quality management process by using the tools and
techniques like TPM (Total Productive Maintenance) and other
standards.

Now it is very important to see what is the Evolution of TQM – related activities in
India and what could be the projection for the future. We can see it in tabular form in
contrast with changes in social and economic environment, development in quality,
quality control tools, and quality assurance system and finally changes of concepts in
policy management in India.

The year 1991 brought about a lot of changes in the Indian economy and the overall
business environment in the country. During the liberalization process, a lot of foreign
multinational corporations (MNCs) started operations in India. Most of these
operations were in the form of Joint Ventures (JVs) with domestic companies. It was
not that all the JVs started during the period after 1991 only, Some JVs, such as
Maruti – Suzuki, Hero Honda, TVS Suzuki, Escorts Yamaha etc., had already started
in the early and mid – 1980s due to the decision of the Indian Government to allow
the entry of MNCs in selective sectors of the industry. These MNCs could set up JVs
with Indian Companies only if the Indian company held a majority stake. This
condition existed only in the 1980s. After 1991, the Government continued more
rigorously with its liberalization programme, and we saw most of the earlier
restrictions, such as the majority stake of the Indian JV partner, being withdrawn by
the Government.
The MNCs can now set up 100% subsidiaries in India in most of the sectors of
economy. This has brought about a lot of competition, especially from the point of
view of the domestic industry. It has become a ‘do’ or ‘die’ situation for most of the
domestic companies, which had ben operating, for a long period of time, in a seller’s
market of the license Raj. Most of the JVs formed during the 1980s and 1990s have
ended with either the MNC taking full control of the venture, or the MNC exiting the
JV to set up its separate 100% owned subsidiary in direct competition with the JV.
Joint ventures such as Kinetic Honda, Shriram Honda, TVS Suzuki etc. are to name a
few, JVs which ended up in this manner. Table - 1 shows the evolution of TQM
related activities in India and projection for the future given by Mehta (1999)

Changes in social Developmen Quality control (QC) Quality Change of

and economic t in quality tools assurance (QA) concepts in
environment systems policy
management
1947-82 QC in • Inspection • Regulation
India becomes inspection of inspection
independent stage • Regulation
• Regulated (Identification of product
economy of defectives) audit
• Slow rate of
economic growth
• Very low
competition

1983-94 • Quality • 7 tools of QC • QA systems To attach

• Initial phase of awarene • Compliance importance to
deregulation of ss with ISO measures or
economy growing 9000 quality means in
• Slow growth rate • Attempt system addition to target
• Imported kits ed use requirement
• Emerging of QC s
domestic circles
competition
1995-2000 • QC in • Various statistical • Regulation To attach
• Transition to open manufac methods of process importance to
economy turing • Design of control coordination to
• Adequate growth stage experiments • QC process management of
rate of economy (preventi • Failure mode chart, all the divisions
• Growing domestic on of effect analysis control in addition to that
competition detectiv and fault tree chart, and of each division
• Select es) analysis check sheet
international • Quality
competition tables
deploying
required
qualities

2001-07 • QC in • Multivariate • Quality To attach

• Deregulation of design analysis tables importance to
economy stage • Weibull transforming midterm and
• High growth of (making probability paper required long-term
economy new • 7 management qualities to policies in
• Open competition products tools design addition to those
to satisfy qualities specified
new annually
custome
r
requirem
ent)
2008- • QC in • Subsystem in • Regulation Transition to
• Self-regulated research managing of design strategic
economy stage research review management of
• Total integration programme using business by the
with global market a combination of participant of all
(Development of Q table, process members and all
technology for design, and divisions
new products) process control
• Steady growth
economy

Finally, it is true that the effort on quality improvement will intensify only when it
becomes an issue for survival and sustainability and that is dependent upon the
intensity of fair competition in the market place. In this context, it is high time that the
Indian companies follow business excellence model of survival and growth to face the
threat of competition effectively.